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Home My WebLink About28523-05-2026 - City Council - OrdinanceORDINANCE NO. 28523-05-2026 AN ORDINANCE LEVYING SPECIAL ASSESSMENTS FOR THE COSTS OF CERTAIN IMPROVEMENTS AND SERVICES BENEFITTING THREE ADDITIONAL HOTEL PROPERTIES IN PUBLIC IMPROVEMENT DISTRICT 18 - TOURISM DURING THE REMAINDER OF FISCAL YEAR 2025-2026; SETTING CHARGES AND LIENS AGAINST PROPERTY IN THE DISTRICT AND AGAINST THE OWNER THEREOF; PROVIDING FOR THE COLLECTION OF THE SPECIAL ASSESSMENTS; PROVIDING FOR DUE DATES, PENALTIES, AND INTEREST; PROVIDING FOR RELIANCE ON ORDINANCE AND RECITALS IN EVENT OF A SUIT; PROVIDING A SEVERABILITY CLAUSE; PROVIDING THAT ORDINANCE IS CUMULATIVE OF ALL NON -CONFLICTING PRIOR ORDINANCES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Chapter 372 of the Texas Local Government Code ("Code") authorizes the creation of a public improvement district consisting of non-contiguous territory in which is located hotels meeting certain criteria, with owners/operators of such hotel properties being subject to assessment to pay for the services and benefits provided by the district; WHEREAS, on August 29, 2017, the City Council adopted Resolution No. 4837-08-2017, establishing Public Improvement District No. 18 - Tourism ("PID") in accordance with Section 3 72.003 5 and other applicable sections of the Code; WHEREAS, on August 18, 2020, April 13, 2021, September 14, 2021, April 26, 2022, May 21,2024, August 27, 2024, May 13, 2025, and August 26, 2025, the City Council adopted Resolution Nos. 5264-08-2020, 5382-04-2021, 5467-09-2021, 5561-04-2022, 5958-05-2024, 5998-08-2024, 6098-05-2025, and 6155-08-2025 (collectively, the "Expansion Resolutions") respectively, expanding the boundaries of the Tourism PID; WHEREAS, on April 28, 2026, the City Council conducted a public hearing on the following matters related to the PID: (i) further expansion of the PID to include three additional hotel properties, the Cambria, located at 925 Jerome St, Fort Worth, TX 76104, the Crescent West 7th, located at 3300 Camp Bowie Blvd, Fort Worth, Texas 76107, and the Home 2 Suites, located at 6730 NW Loop 820, Fort Worth, TX, 76135, and the advisability of the improvement and services to be provided ("Services"), and (ii) the 2025-2026 assessment for the additional hotel properties (M&C No. 26- 0275); WHEREAS, on May 12, 2026, the City Council conducted a second public hearing on the above -stated PID matters and took the following actions: • Adopted a Resolution to further Expand the PID ("Expansion Resolution") to include the three additional hotel properties listed in Exhibit A, which is attached hereto and made a part of this Ordinance for all purposes (such property hereinafter being referred to as "Hotel Parcel" and the hotel located thereon being referred to as a "Qualifying Hotel'), pursuant to Section 372.0121 and other applicable sections of the Code; Ordinance No. 28523-05-2026 Page I of 5 Approved the revised 2025-2026 assessment roll; and Adopted this Ordinance levying special assessments on the Hotel Parcel for the remaining Fiscal Year 2025-2026. WHEREAS, the Texas Comptroller of Public Accounts has indicated that owners/operators may seek reimbursement in an amount equal to the special assessment from hotel guests, with such reimbursement being a mandatory charge that is subject to state and local hotel tax (Texas Comptroller Opinion Letter 201111277L, November 8, 2011); WHEREAS, it is proposed that the owner/operator of the Hotel Parcel be assessed at a rate of two percent (2%) of the consideration received from occupancy of any sleeping room furnished by the Qualifying Hotel, which assessments will be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code; and WHEREAS, notice of the above -stated public hearings on April 28, 2026, and May 12, 2026, ("Public Hearings") was published and mailed in accordance with state law, and all persons desiring to be heard were given a full and fair opportunity to be heard at the Public Hearings. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. The Public Hearings are hereby closed, and any and all protests and objections, whether herein enumerated or not, are hereby overruled. SECTION 2. The City Council, from all evidence before it, including all information provided to it and considered in the Public Hearings, finds that the assessments described herein on the Hotel Parcel should be made and levied in a manner that results in imposing the costs of the Services on the Qualifying Hotel and Original Qualifying Hotels that are similarly benefitted from the provision of those Services. The apportionment of those costs will be based on the special benefits accruing to the Qualifying Hotel and the Original Qualifying Hotels on account of the Services provided. As a result, the Qualifying Hotel and Original Qualifying Hotels that sell more guest rooms will pay a greater portion of the costs of the Services because those properties will have received a greater benefit from the promotions and marketing comprising the Services. The City Council further finds that this method of assessment is fair and equitable and results in an apportionment of the costs of the Services that complies with applicable law. SECTION 3. In accordance with Section 372.017, Texas Local Government Code, in order to pay the costs of the Services provided during the remaining Fiscal Year 2025-2026, the City hereby levies a special Ordinance No. 28523-05-2026 Page 2 of 5 assessment against the owner/operator of the Hotel Parcel in an amount equal to two percent (2%) of the consideration received from the occupancy of any sleeping room furnished by the Qualifying Hotel, which assessments will be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code. This is effective on the date that the Expansion Resolution is adopted by the City Council. SECTION 4. The assessments levied hereunder, together with reasonable attorney's fees and cost of collection, if incurred, are hereby declared to be and are made a lien upon the Hotel Parcel and Qualifying Hotel, and are a personal liability and charge against the real and true owners of such properties, whether such owners are correctly named herein or not. Such liens shall be and constitute the first enforceable lien and claim against the Hotel Parcel and Qualifying Hotel, superior to all other liens and claims, except state, county, school district and city ad valorem taxes. A copy of this Ordinance will be filed with the County Clerk of each county in which a Hotel Parcel and Qualifying Hotel are located, and when so filed constitute complete and adequate legal notice to the public concerning the liens hereby assessed against the parcel of property and the owners thereof. The sums assessed against the Hotel Parcel are due at the same time that hotel occupancy taxes on the Qualifying Hotel located thereon become due, and shall become delinquent if not paid by the applicable deadlines for hotel taxes remittance established by Chapter 32, Article II of the City Code. The entire amount assessed against the Hotel Parcel shall bear penalty and interest, from and after the respective due date at the same rate as prescribed Chapter 32, Article II of the City Code, for hotel tax. SECTION 5. If default shall be made in the payment of any assessments, collection thereof shall be enforced by suit in any court of competent jurisdiction, and said City shall exercise all of its lawful powers to aid in the enforcement and collection of said assessments. SECTION 6. The total amount assessed against the respective parcel of property and the owners thereof is in accordance with the proceedings of the City hereto and is permitted by applicable law. SECTION 7. Full power to make and levy reassessments and to correct mistakes, errors, invalidities, or irregularities in the assessments are, in accordance with the law in force in this City, vested in the City. SECTION 8. In any suit upon any assessment or reassessment, it shall be sufficient to allege the substance of the provision recited in this Ordinance and that the Recitals hereto are in fact true, and further Ordinance No. 28523-05-2026 Page 3 of 5 allegations with reference to the proceedings relating to such assessment and reassessment will not be necessary. SECTION 9. Should any portion, section, or part of a section of this Ordinance be declared invalid, inoperative, or void for any reason by a court of competent jurisdiction, such decision, opinion, or judgment will in no way impair the remaining portions, sections, or parts of sections of this Ordinance, which remain in full force and effect. SECTION 10. This Ordinance is cumulative of all other ordinances and appropriations amending the same except in those instances where the provisions of this Ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 11. This Ordinance takes effect and is in full force and effect from and after the date of its passage. AND IT IS SO ORDAINED. APPROVED AS TO FORM AND LEGALITY: Taylor Paris, Sr. Assistant City Attorney M&C: 26-0400 Adopted: May 12, 2026 ATTEST: Jannette S. Goodall, City Secretary d FORT��aa 'I� �o�0000%00. 00 0 �015 0 A 0 0V0 0 0 0 00 0 4K ri 00 00000 Ordinance No. 26523-05-2026 Page 4 of 5 Account Name Cambria Hotel Crescent West 7th Home 2 Suites EXHIBIT "A" OUALIFYING HOTEL AND HOTEL PARCEL Address 925 Jerome St 3300 Camp Bowie Blvd 6730 NW Loop 820 City, State, Zip Rooms Fort Worth, TX 76104 139 Fort Worth, TX 76107 200 Fort Worth, TX 76135 150 Ordinance No. 26523-05-2026 Page 5 of 5 City of Fort Worth Public Improvement District No. 18-Tourism Hotel Roll As of: 3/13/26 63 AC HOTEL FORT WORTH DOWNTOWN 601 HOUSTON ST FORT WORTH TX 76102 AMERICAN AIRLINES TRAINING AND CONF CENTER 4500 AMERICAN BLVD FORT WORTH TX 76155 AUTOGRAPH COLLECTION DOWNTOWN 512 MAIN ST FORT WORTH TX 76102 AVID HOTEL 320 SAMUELS AVE FORT WORTH TX 76102 BOWIE HOUSE HOTEL 3700 CAMP BOWIE BLVD FORT WORTH TX 76107 BUDGET SUITES OF AMERICA FOSSIL CREEK 3500 NE LOOP 820 FORT WORTH TX 76137 CAMBRIA HOTEL Y 925 JEROME ST FORT WORTH TX 76104 CANDLEWOOD SUITES DFW SOUTH 4200 REGGIS CT FORT WORTH TX 76155 COURTYARD MARRIOTT ALLIANCE 3001 AMADOR DR FORT WORTH TX 76177 COURTYARD MARRIOTT BLACKSTONE 609 MAIN ST FORT WORTH TX 76102 COURTYARD MARRIOTT FOSSIL CREEK 3751 NE LOOP 820 FORT WORTH TX 76137 COURTYARD MARRIOTT STOCKYARDS 2537 N MAIN ST FORT WORTH TX 76164 COURTYARD MARRIOTT UNIVERSITY 3150 RIVERFRONT DR FORT WORTH TX 76107 COURTYARD MARRIOTT WEST AT CITYVIEW 6400 OVERTON RIDGE BLVD FORT WORTH TX 76132 CRESCENT WEST 7TH Y 3300 CAMP BOWIE BLVD FORT WORTH TX 76107 DALWORTH INN 812 E FELIX ST FORT WORTH TX 76115 DFW AIRPORT MARRIOTT SOUTH 4151 CENTREPORT DR FORT WORTH TX 76155 DFW MARRIOTT HOTEL AND GOLF CLUB AT CHAMPIONSHIP CIRCLE 3300 CHAMPIONSHIP PKWY FORT WORTH TX 76177-2106 EMBASSY SUITES HOTEL DOWNTOWN FTWORTH 3300 CHAMPIONSHIP PKWY FORT WORTH TX 76102 EXTENDED STAY AMERICA CITY VIEW 5065 BRYANT IRVIN RD FORT WORTH TX 76132 FAIRFIELD INN AND SUITES DOWNTOWN 1010 HOUSTON ST FORT WORTH TX 76102 FAIRFIELD INN AND SUITES FOSSIL CREEK 3701 NE LOOP 820 FORT WORTH TX 76137 FOUR POINTS BY SHERATON FORTWORTH 6828 NORTH FWY FORT WORTH TX 76137 HAMPTON INN AND SUITES DFW SOUTH 4201 REGGIS CT FORT WORTH TX 76155 HAMPTON INN AND SUITES DOWNTOWN FT WORTH 1001 COMMERCE ST FORT WORTH TX 76102 HAMPTON INN AND SUITES WEST/I30 2700 GREEN OAKS RD FORT WORTH TX 76116 HILTON FORT WORTH 815 MAIN ST FORT WORTH TX 76102 HILTON GARDEN INN MEDICAL CENTER 912 NORTHTON ST FORT WORTH TX 76104 HILTON GARDEN INN FORT WORTH ALLIANCE AIRPORT 2600 WESTPORT PKWY FORT WORTH TX 76177 HOLIDAY INN DFW AIPORT SOUTH 14320 CENTRE STATION DR FORT WORTH TX 76155 HOLIDAY INN EXPRESS DOWNTOWN 1111 W LANCASTER AVE FORT WORTH TX 76102 HOLIDAY INN NORTH FOSSIL CREEK 4635 GEMINI PL FORT WORTH TX 76106 HOME 2 SUITES - LANDMARK Y 6730 NW LOOP 820 FORT WORTH TX 76135 HOME 2 SUITES BY HILTON CULTURAL DISTRICT 3000 W LANCASTER AVE FORT WORTH TX 76107 HOMEWOOD SUITES FOSSIL CREEK 3701 TANACROSS DR FORT WORTH TX 76137 HOMEWOOD SUITES MEDICAL CENTER 2200 CHARLIE LN FORT WORTH TX 76104 HOTEL DROVER AUOTOGRAPH COLLECTION 200 MULE ALLEY DR FORT WORTH TX 76164 HYATT PLACE ALLIANCE TOWN CENTER 3201 ALLIANCE TOWN CENTER FORT WORTH TX 76177 HYATT PLACE CITYVIEW 5900 CITYVIEW BLVD FORT WORTH TX 76132 HYATT PLACE STOCKYARDS 132 E EXCHANGE AVE FORT WORTH TX 76164 HYATT PLACE TCU 2500 W BERRY ST FORT WORTH TX 76109 KIMPTON HARPER HOTEL 714 MAIN ST FORT WORTH TX 76102 LA QUINTA INN AND SUITES FORT WORTH NORTH 2501 POLARIS DR FORT WORTH TX 76137 LA QUINTA INN AND SUITES SOUTHWEST 6100 OVERTON RIDGE BLVD FORT WORTH TX 76132 LE MERIDIEN 811 COMMERCE ST FORT WORTH TX 76102 OMNI FORT WORTH HOTEL 1300 HOUSTON ST# 100 FORT WORTH TX 76102 ONE CITY PLACE (Formerly Aloft) 300 THROCKMORTON ST FORT WORTH TX 76102 QUALITY INN AND SUITES CATTLE BARON 2700 CHERRY LN FORT WORTH TX 76116 RADDISSON HOTEL FORT WORTH FOSSIL CREEK 2540 MEACHAM BLVD FORT WORTH TX 76106 RADISSON FORT WORTH SOUTH HOTEL 100 E ALTAMESA BLVD FORT WORTH TX 76134 RESIDENCE INN CULTURAL DISTRICT 2500 MUSEUM WAY FORT WORTH TX 76107 RESIDENCE INN ALLIANCE AIRPORT 13400 NORTH FWY FORT WORTH TX 76177 RESIDENCE INN FOSSIL CREEK 5801 SANDSHELL DR FORT WORTH TX 76137 RESIDENCE INN WATERSIDE 5825 ARBORLAWN DR FORT WORTH TX 76109 SANDMAN SIGNATURE HOTEL 810 HOUSTON ST FORT WORTH TX 76102 SHERATON FORT WORTH HOTEL AND SPA 1601 COMMERCE ST FORT WORTH TX 76102 SPRINGHILL SUITES BY MARRIOTT STOCKYARDS 2315 N MAIN ST FORT WORTH TX 76164 SPRINGHILL SUITES BY MARRIOTT UNIVERSITY 3250 LOVELL AVE FORT WORTH TX 76107 THE NOBLEMEN HOTEL 503 BRYAN AVE FORT WORTH TX 76104 TOWNEPLACE SUITES DOWNTOWN 801 E BELKNAP ST FORT WORTH TX 76102 TOWNEPLACE SUITES UNIVERSITY 3450 W VICKERY BLVD FORT WORTH TX 76107 WOODSPRING SUITES FORT WORTH 3501 NE LOOP 820 FORT WORTH TX 76137 WORTHINGTON RENAISSANCE HOTEL 200 MAIN ST FORT WORTH TX 76102 252 600 164 104 106 366 139 174 127 203 154 124 129 104 200 110 295 286 156 104 120 106 113 116 245 105 294 157 127 143 132 126 150 162 137 112 200 130 128 101 150 232 133 128 188 614 180 110 247 247 150 111 113 120 245 431 170 145 153 140 128 121 504 Docusign Envelope ID: AEC8AF0E-78CF-40A8-970E-C19246145CA2 STATE OF TEXAS COUNTY OF TARRANT TO: THE MAYOR AND CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS APPROVAL OF PETITION AND VERIFICATION OF SIGNATORY AUTHORITY Full Legal Name of Hotel: CAM B R I A HOTEL Address of Hotel: 925 JEROME ST. FORT WORTH, TEXAS 76104 TAD Listing of Hotel Owner: CH FW ROSEDALE LLC TAD Listing of Hotel Owner Address: 1 CHOICE HOTELS CIR SUITE 400, ROCKVILLE MD 20850 I, the undersigned, am a duly authorized executive of the Company identified above, which is a record owner of real property that would be liable for assessment under the existing City of Fort Worth Tourism Public Improvement District ("TPID"). By executing this Approval of Petition and Verification of Signatory Authority requesting inclusion within the existing TPID, I hereby represent on behalf of Company that I have read and understand the Original Petition Requesting Establishment of the TPID, Resolution No. 4837-08-2017 Authorizing the Establishment of the TPID, Resolution Nos. 5264-08-2020, 5382-04-2021, 5467-09-2021, 5561-04-2022, 5958-05-2024, 5998-08-2024, 6098-05-2025, and 6155-08- 2025 Authorizing and Expanding the TPID, and the updated Service and Assessment Plan adopted by the City Council through Ordinance No. 27996-09-2025, all of which constitute the TPID Petition. I also represent that I have the authority to legally bind Company and to execute this approval on Company's behalf. I affirm that such binding authority has been granted by Company. By virtue of the same (singular) signature below, I do request on behalf of Company that the City Council of the City of Fort Worth, Texas include the above noted hotel within the existing TPID under the Public Improvement District Assessment Act, V.T.C.A. Local Government Code, Chapter 372 (Act"), so that the powers granted under the Act may be exercised by the City of Fort Worth."), so that the powers granted under the Act may be exercised by the City of Fort Worth. Name: Scott Oaksmith PLW�print name of Hotel Signatory to Petition or '*'-3 s+s 4 "' Signature of Authorized Representative of Hotel Ownership Group Senior Vice President, Chief Financial Officer Title of Signatory (May be Hotel GM if GM is authorized to sign on behalf of Ownership Group) Choice Hotels International Name of Entity Employing Above Signatory (e.g.; name of hotel ownership group, hotel, or management company, etc.) Date: 3-2-2026 Note: The Company further represents, affirms, and certifies that, with respect to the expansion of the TPID, the City is fully entitled to rely on the warranty and representation set forth in this form unless and until the City receives written notice from the Company of a change. The Company acknowledges that it is solely responsible for ensuring that the City is provided with an updated form within ten (10) business days of any change to the signatory authority. STATE OF TEXAS j COUNTY OF TARRANf S TO: THE MAYOR AND CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS _ APPROVAL OF PETITION AND VERIFICATION OF SIGNATORY AUTHORITY Full LegalNameofHotel: CRESCENT WEST 7TH (THE CRESCENT HOTEL, FORT WORTH) Address of Hotel: 3300 CAMP BOWIE BLVD (TAD ACCOUNT: 42822368) TAD Listing of Hotel Owner: GPIF CD HOTEL LLC TAD Listing of Hotel Owner Address: 777 MAIN ST STE 2260, FORT WORTH, TX 76102' *New address: 3230 Camp Bowie Blvd., Suite 500, Fort Worth, TX 76107 I, the undersigned, am a duly authorized executive ofthe Company identified above, which is a record owner of real property that would be liable for assessment under the existing City of Fort Worth Tourism Public Improvement District (`TPID"). By executing this Approval of Petition and Verification of Signatory Authority requesting inclusion within the existing TPID, I hereby represent on behalf of Company that I have read and understand the Original Petition Requesting Establishment of the TPID, Resolution No. 4837-08-2017 Authorizing the Establishment of the TPID, Resolution Nos. 5264-08-2020, 5382-04-2021, 5467-09-2021, 5561-04-2022, 5958-05-2024, 5998-08-2024, 6098-05-2025, and 6155-08- 2025 Authorizing and Expanding the TPID, and the updated Service and Assessment Plan adopted by the City Council through Ordinance No. 27996-09-2025, all of which constitute the TPID Petition. I also represent that I have the authority to legally bind Company and to execute this approval on Company's behalf. I affirm that such binding authority has been granted by Company. By virtue of the same (singular) signature below, I do request on behalf of Company that the City Council of the City of Fort Worth, Texas include the above noted hotel within the existing TPID under the Public Improvement District Assessment Act, V.T.C.A. Local Government Code, Chapter 372 (Act"), so that the powers granted under the Act may be exercised by the City of Fort Worth."). so that the powers granted under the Act may be exercised by the City of Fort Worth, Name: Ki�TLh SnUC�� 'Please print name ofH6iel Signatory to Petition Signature ofAuthRepresentative of Hotel Ownership Group Title of Signatory (May be Hotel GM if G is authorized to sign on behalf of Ownership Group) 6P(F, CD 6A LL(, Name of Entity Employing Above Signatory (e.g.; name of hotel ownership group, hotel, or management company, etc.) Date: Fe6UAItif CAI i0ti(9 Note: The Company further represents, affirms, and certifies that, with respect to the expansion of the TPID, the City is fully entitled to rely on the warranty and representation set forth in this form unless and until the City receives written notice from the Company of a change. The Company acknowledges that it is solely responsible for ensuring that the City is provided with an updated form within ten (10) business days of any change to the signatory authority. STATE OF TEXAS COUNTY OF TARRANT TO: THE MAYOR AND CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS APPROVAL OF PETITION AND VERIFICATION OF SIGNATORY AUTHORITY Full Legal Name of Hotel: HOME 2 SUITES Address of Hotel: 6730 NW LOOP 820 FORT WORTH. TX 76135 TAD Listing of Hotel Owner: LANDMARK FORTH WORTH LODGING LLC TAD Listing of Hotel Owner Address: 8951 CYPRESS WATERS BLVD STE 166 COPPELL, TX 75019 I, the undersigned, am a duly authorized executive of the Company identified above, which is a record owner of real property that would be liable for assessment under the existing City of Fort Worth Tourism Public Improvement District ("TPID"). By executing this Approval of Petition and Verification of Signatory Authority requesting inclusion within the existing TPID, I hereby represent on behalf of Company that I have read and understand the Original Petition Requesting Establishment of the TPID, Resolution No. 4837-08-2017 Authorizing the Establishment of the TPID, Resolution Nos. 5264-08-2020, 5382-04-2021, 5467-09-2021, 5561-04-2022, 5958-05-2024, 5998-08-2024, 6098-05-2025, and 6155-08- 2025 Authorizing and Expanding the TPID, and the updated Service and Assessment Plan adopted by the City Council through Ordinance No. 27996-09-2025, all of which constitute the TPID Petition. I also represent that I have the authority to legally bind Company and to execute this approval on Company's behalf. I affirm that such binding authority has been granted by Company. By virtue of the same (singular) signature below, I do request on behalf of Company that the City Council of the City of Fort Worth, Texas include the above noted hotel within the existing TPID under the Public Improvement District Assessment Act, V.T.C.A. Local Government Code, Chapter 372 (Act"), so that the powers granted under the Act may be exercised by the City of Fort Worth."), so that the powers granted under the Act may be exercised by the City of Fort Worth. Name: L P.. Please rint name of Hotel Signatory to Petition Signature of Authorized Representative of Hotel Ownership Group 144 K.,;7 Pa-1 e - Title of Signatory (May be Hotel GM if GM is authorized to sign on behalf of Ownership Group) :TC�11 "�� Name of Entity Employing Above Signatory (e.g.; name of hotel ownership group, hotel, or management company, etc.) Date: ? 13 - ;)-6 Note: The Company further represents, affirms, and certifies that, with respect to the expansion of the TPID, the City is fully entitled to rely on the warranty and representation set forth in this form unless and until the City receives written notice from the Company of a change. The Company acknowledges that it is solely responsible for ensuring that the City is provided with an updated form within ten (10) business days of any change to the signatory authority. Resolution No. 6155-08-2025 A UTHORIZING AND EXPANDING FORT WORTH PUBLIC IMPROVEMENT DISTRICT NO. 18 (TO URISH PID) TO INCL UDE ANADDITIONAL HOTEL AND TAKING CERAIN OTHER ACTIONS CONCERNING THE DISTRICT WHEREAS, the Public Improvement District Assessment Act, Chapter 372 of the Texas Local Government Code ("Act") allows for the establishment of public improvement districts; WHEREAS, on August 29, 2017, the City Council adopted Resolution No. 4837-08-2017, establishing Fort Worth Public Improvement District 18 - Tourism ("Tourism PID") ("Establishing Resolution'); WHEREAS, on August 18, 2020, April 13, 2021, September 14, 2021, April 26, 2022, May 21, 2024, August 27, 2024, and May 13, 2025, the City Council adopted Resolution Nos. 5264- 08-2020, 5382-04-2021, 5467-09-2021, 5561-04-2022, 5958-05-2024, 5998-08-2024, and 6098- 05-2025, respectively, expanding the boundaries of the Tourism PID (Resolution Nos. 5264-08- 2020, 5382-08-2021, 5467-09-2021, 5561-04-2022, 5958-05-2024, 5998-08-2024, and 6098-05- 2025 are collectively referred to as the "Expansion Resolutions"); WHEREAS, Section 372.0121 of the Act allows the City Council to include additional properties in the Tourism PID if (i) the property is a hotel and (ii) a sufficient number of the record owners of the real property currently included and proposed to be included in the Tourism PID have consented to be included in the Tourism PID by signing the original petition to establish the Tourism PID or by signing a petition or written consent to include property in the Tourism PID; WHEREAS, the number of consenting record owners is sufficient if (1) the record owners own more than 60% of appraised value of taxable real property liable for assessment in the Tourism PID; and (2) either (i) constitute more than 60% of all record owners of taxable real property liable for assessment in the Tourism PID, or (ii) own, in aggregate, more than 60% of the area of all taxable real property liable for assessment in the Tourism PID; WHEREAS, another expansion petition ("Petition') was submitted to the City of Fort Worth, Texas ("City"), pursuant to the Act, from The Nobleman Hotel, located at 503 Bryan Ave, Fort Worth, Texas 76104, requesting to expand the Tourism PID boundaries to include an additional hotel property within the Tourism PID and has been on file in the office of the City Secretary for public inspection; WHEREAS, pursuant to Section 372.009 of the Act, the City provided notice and publication of two public hearings to be conducted on August 26, 2025, and September 16 , 2025 to consider the expansion of the Tourism PID ("Public Hearings"), which notice and publication included the following: (i) time and place of the Public Hearings; (ii) general nature of the proposed improvements and services; (iii) estimated costs of the improvements and services; (iv) expanded boundaries of the Tourism PID; (v) proposed method of assessment; and (vi) proposed apportionment of cost between the additional hotel property in Tourism PID and the City; WHEREAS, notice of the Public Hearings was published on August 8, 2025, in the Fort Worth Star -Telegram, a newspaper of general circulation in the City, and was also mailed on August 8, 2025, to all record owners of property in the Tourism PID liable for assessment, and all persons desiring to be heard were given a full and fair opportunity to be heard at the Public Hearing; WHEREAS, the City Council conducted and adjourned the Public Hearing to consider the expansion of the Tourism PID. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: 1. Recitals. The findings set forth in the recitals of this Resolution are found to be true and correct. 2. Findings. The City Council, after duly considering the evidence and testimony presented at the Public Hearings and based on all information known by the City Council, hereby makes the following findings: 2.1 Petition and Boundaries. (a) The current boundaries of the Tourism PID consist of noncontiguous areas authorized under Section 372.0035 of the Act consisting solely of hotel properties with 100 or more rooms ordinarily used for sleeping within the City of Fort Worth. The lists of the original and additional hotels that are included within the boundaries of the Tourism PID are included in the Establishing Resolution and Expansion Resolutions, respectively. (b) As set forth in the Recitals above, the Act allows the City Council to include additional properties in the Tourism PID if the required elements are satisfied. As evidenced below, the hotel property set forth in Exhibit "A", which is attached hereto and incorporated herein for all purposes ("Additional Hotel Property"), meets the necessary elements for inclusion into the Tourism PID. (i) The Additional Hotel Property to be included in the Tourism PID as part of this Resolution is a hotel property. (ii) A sufficient number of record owners of the real property currently included and proposed to be included in the Tourism PID have consented to be included in the Tourism PID by signing the original petition to establish the Tourism PID or by signing a petition or written consent to include property in the Tourism PID. Specifically, the number of consenting record owners exceeds the thresholds required by the Act, which is evidenced by the following: (1) 85.78% of appraised value of taxable real property liable for assessment, (2) 68.33% of record owners of taxable real property liable for assessment, and (3) 72.71% for the area of all taxable real property liable for assessment. 2.2 Advisability and Feasibility of the Improvements and Services Proposed for the Tourism PID. It is advisable to expand the Tourism PID to include the Additional Hotel Property to provide the proposed improvements and services described in the Petition and this Resolution. The improvements and services will promote the interests of the City and confer a special benefit on the assessed properties within the Tourism PID. The Fort Worth Convention and Visitor's Bureau staff performed an analysis of the Tourism PID, its service plan and strategies, and concluded that it provides a very effective means for significantly enhancing the ability of Fort Worth to promote its hotel,, convention, and tourism activity, which has been borne out since the Tourism PID's establishment. Based on this analysis and the successful history of the Tourism PID, the City finds the proposed tourism public improvement district to be both advisable and feasible. 2.3 Nature of the Improvements and Services. The general nature of the proposed improvements and services to be provided within the expanded boundaries of Tourism PID include, without limitation, marketing, business recruitment, and promotional activities authorized by the Act for improvements and promotion of the Tourism PID, including, but not limited to, the provision of incentives by the Fort Worth Convention and Visitors Bureau to organizations to encourage them to bring large and city-wide events (including, without limitation, meetings, sporting, recreation, and cultural events) to Fort Worth and to fund additional marketing by the Fort Worth Convention and Visitors Bureau to increase hotel stays within the City. 2.4 Estimated Cost of the Improvements and Services. Over the two (2) year period beginning on October 1, 2025, and ending on the expiration of the Tourism PID as provided in Section 3 of the Establishing Resolution, the estimated total cost of the improvements and services to be provided by the Tourism PID will be $15,750,000.00, which includes a revised estimated cost of $7,750,000.00 for the 2025-2026 fiscal year. For the 2025-2026 fiscal year, the revised estimated costs of the below -referenced improvements and services, and estimated costs to implement such improvements and services are: Incentives and Sales Efforts $4,540,050 Marketing and Research (Promotion/Advertising) $2,154,600 Site Visits & Familiarization Tours $ 115,425 Cultural Enhancements through Marketing and Promotion of the Arts $577,125 Operations and Administration $307,800 City Administrative Fee $55,000 Total $7,750,000 On September 17, 2024, the City Council adopted the fiscal 2024-2025 budget and three-year service plan, the same being Ordinance No. 27176-09-2024.On May 13, 2025, the City Council adopted a revised fiscal 2024-2025 budget and three-year service plan, the same being Ordinance No. 27648-05-2025.The inclusion of the Additional Hotel Property will not affect the adopted budget. Such costs will be paid from assessments levied in accordance with the Act. The full three-year service plan is attached to the resolution approving the amended budget and three-year service plan that is being considered at the same time as this resolution. 2.5. Method of Assessment. The costs of the improvements and services will be funded from assessments levied on and collected from properties located in the Tourism PID that contain hotels of one hundred (100) or more guest rooms and that are subject to payment of City hotel occupancy taxes pursuant to Chapter 32, Article II of the City Code, as amended. The City will levy a special assessment against the new hotel property located within the expanded boundaries of the Tourism PID ("Hotel Parcel") in an amount equal to two percent (2%) of the consideration received for occupancy of any sleeping rooms furnished by the new hotel on the Hotel Parcel (subject to any lawful exemption of the hotel occupancy tax under applicable state law and City ordinances), with such assessments to be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code, as amended. The collection of assessments will begin on the earliest date allowed by the Act and continue to be collected at the same time hotel occupancy taxes are collected. The City Council hereby finds that the proposed method of assessment is reasonable and necessary. 2.6 Apportionment of Costs Between the Tourism PID and the City, as a Whole. The apportionment of costs between the Tourism PID, inclusive of the Additional Hotel Property, and the City, as a whole, is as follows: (a) The entire cost of each improvement and service will be paid from assessments levied in accordance with the Act. (b) No City funds will be used to pay any portion of the cost of any improvement or service, unless such funding is approved from the City Council or other appropriate municipal authority on a case -by -case basis. 3. Inclusion of Additional Hotel Property within the Tourism PID; Term. Based on the findings set forth above, the City Council authorizes the expansion of the boundaries of the Tourism PID to include the Additional Hotel Property. The inclusion of the Additional Hotel Property within the Tourism PID takes effect on the date on which this Resolution is adopted by the City Council and will expire concurrently with the expiration date set forth in Section 3 of the Establishing Resolution. The expansion of the Tourism PID is subject to all conditions, limitations, and reservations set forth in the findings in Sections 1 and 2. All other provisions of this Resolution will be effective from and after adoption of this Resolution. 4. Advisory Bodv. The City Council hereby declines to appoint an advisory body for the expanded Tourism PID boundaries pursuant to Section 372.008 of the Act. The City Council hereby reserves the right to assign responsibility for preparation of the ongoing service plan for the PID to another entity in the absence of such an advisory body, as authorized by Section 372.013(a) of the Act. ADOPTED this 26th day of August 2025. ATTEST: Jannette S. Goodall City Secretary 0 0 Vo �'F[ 0 PPS* 6 00000000 EXHIBIT A Expanded Boundaries of the Tourism PID (Additional Hotel Property) Account Name Address City, State, Zip Rooms The Nobleman 503 Bryan Ave Fort Worth, TX 76104 153 City of Fort Worth Public Improvement District No. 18 - Tourism Hotel Roll As of: 07/29/2025 Count: 60 •. AC HOTEL FORT WORTH DOWNTOWN 601 HOUSTON ST FORT WORTH TX 76102 252 AMERICAN AIRLINES TRAINING AND CONF CENTER 4500 AMERICAN BLVD FORT WORTH TX 76155 600 AUTOGRAPH COLLECTION DOWNTOWN 512 MAIN ST FORT WORTH TX 76102 164 AVID HOTEL 320 SAMUELS AVE FORT WORTH TX 76102 104 BOWIE HOUSE HOTEL 3700 CAMP BOWIE BLVD FORT WORTH TX 76107 106 BUDGET SUITES OF AMERICA FOSSIL CREEK 3500 NE LOOP 820 FORT WORTH TX 76137 366 CANDLEWOOD SUITES DFW SOUTH 4200 REGGIS CT FORT WORTH TX 76155 174 COURTYARD MARRIOTT ALLIANCE 3001 AMADOR DR FORT WORTH TX 76177 127 COURTYARD MARRIOTT BLACKSTONE 609 MAIN ST FORT WORTH TX 76102 203 COURTYARD MARRIOTT FOSSIL CREEK 3751 NE LOOP 820 FORT WORTH TX 76137 154 COURTYARD MARRIOTT STOCKYARDS 2537 N MAIN ST FORT WORTH TX 76164 124 COURTYARD MARRIOTT UNIVERSITY 3150 RIVERFRONT DR FORT WORTH TX 76107 129 COURTYARD MARRIOTT WEST AT CITYVIEW 6400 OVERTON RIDGE BLVD FORT WORTH TX 76132 104 DALWORTH INN 812 E FELIX ST FORT WORTH TX 76115 110 DFW AIRPORT MARRIOTT SOUTH 4151 CENTREPORT DR FORT WORTH TX 76155 295 DFW MARRIOTT HOTEL AND GOLF CLUB AT CHAMPIONSHIP CIRCLE 3300 CHAMPIONSHIP PKWY FORT WORTH TX 76177 286 EMBASSY SUITES HOTEL DOWNTOWN FTWORTH 600 COMMERCE ST FORT WORTH TX 76102 156 EXTENDED STAY AMERICA CITY VIEW 5065 BRYANT IRVIN RD FORT WORTH TX 76132 104 FAIRFIELD INN AND SUITES DOWNTOWN 1010 HOUSTON ST FORT WORTH TX 76102 120 FAIRFIELD INN AND SUITES FOSSIL CREEK 3701 NE LOOP 820 FORT WORTH TX 76137 106 FOUR POINTS BY SHERATON FORTWORTH 6828 NORTH FWY FORT WORTH TX 76137 113 HAMPTON INN AND SUITES DFW SOUTH 4201 REGGIS CT FORT WORTH TX 76155 116 HAMPTON INN AND SUITES DOWNTOWN FT WORTH 1001 COMMERCE ST FORT WORTH TX 76102 245 HAMPTON INN AND SUITES WEST/130 2700 GREEN OAKS RD FORT WORTH TX 76116 105 HILTON FORT WORTH 815 MAIN ST FORT WORTH TX 76102 294 HILTON GARDEN INN MEDICAL CENTER 912 NORTHTON ST FORT WORTH TX 76104 157 HILTON GARDEN INN FORT WORTH ALLIANCE AIRPORT 2600 WESTPORT PKWY FORT WORTH TX 76177 127 HOLIDAY INN DFW AIPORT SOUTH 14320 CENTRE STATION DR FORT WORTH TX 76155 143 HOLIDAY INN EXPRESS DOWNTOWN 1111 W LANCASTER AVE FORT WORTH TX 76102 132 HOLIDAY INN NORTH FOSSIL CREEK 4635 GEMINI PL FORT WORTH TX 76106 126 HOME 2 SUITES BY HILTON CULTURAL DISTRICT 3000 W LANCASTER AVE FORT WORTH TX 76107 162 HOMEWOOD SUITES FOSSIL CREEK 3701 TANACROSS DR FORT WORTH TX 76137 137 HOMEWOOD SUITES MEDICAL CENTER 2200 CHARLIE LN FORT WORTH TX 76104 112 HOTEL DROVER AUOTOGRAPH COLLECTION 200 MULE ALLEY DR FORT WORTH TX 76164 200 HYATT PLACE ALLIANCE TOWN CENTER 3201 ALLIANCE TOWN CENTER FORT WORTH TX 76177 130 HYATT PLACE CITYVIEW 5900 CITYVIEW BLVD FORT WORTH TX 76132 128 HYATT PLACE STOCKYARDS 132 E EXCHANGE AVE FORT WORTH TX 76164 101 HYATT PLACE TCU 2500 W BERRY ST FORT WORTH TX 76109 150 KIMPTON HARPER HOTEL 714 MAIN ST FORT WORTH TX 76102 232 LA QUINTA INN AND SUITES FORT WORTH NORTH 2501 POLARIS DR FORT WORTH TX 76137 133 LA QUINTA INN AND SUITES SOUTHWEST 6100 OVERTON RIDGE BLVD FORT WORTH TX 76132 128 LE MERIDIEN 811 COMMERCE ST FORT WORTH TX 76102 188 OMNI FORT WORTH HOTEL 1300 HOUSTON ST # 100 FORT WORTH TX 76102 614 ONE CITY PLACE (Formerly Aloft) 300 THROCKMORTON ST FORT WORTH TX 76102 180 QUALITY INN AND SUITES CATTLE BARON 2700 CHERRY LN FORT WORTH TX 76116 110 RADDISSON HOTEL FORT WORTH FOSSIL CREEK 2540 MEACHAM BLVD FORT WORTH TX 76106 247 RADISSON FORT WORTH SOUTH HOTEL 100 E ALTAMESA BLVD FORT WORTH TX 76134 247 RESIDENCE INN CULTURAL DISTRICT 2500 MUSEUM WAY FORT WORTH TX 76107 150 RESIDENCE INN ALLIANCE AIRPORT 13400 NORTH FWY FORT WORTH TX 76177 111 RESIDENCE INN FOSSIL CREEK 5801 SANDSHELL DR FORT WORTH TX 76137 113 RESIDENCE INN WATERSIDE 5825 ARBORLAWN DR FORT WORTH TX 76109 120 SANDMAN SIGNATURE HOTEL 810 HOUSTON ST FORT WORTH TX 76102 245 SHERATON FORT WORTH HOTEL AND SPA 1601 COMMERCE ST FORT WORTH TX 76102 431 SPRINGHILL SUITES BY MARRIOTT STOCKYARDS 2315 N MAIN ST FORT WORTH TX 76164 170 SPRINGHILL SUITES BY MARRIOTT UNIVERSITY 3250 LOVELL AVE FORT WORTH TX 76107 145 THE NOBLEMEN HOTEL* 503 BRYAN AVE FORT WORTH TX 76104 153 TOWNEPLACE SUITES DOWNTOWN 801 E BELKNAP ST FORT WORTH TX 76102 140 TOWNEPLACE SUITES UNIVERSITY 3450 W VICKERY BLVD FORT WORTH TX 76107 128 WOODSPRING SUITES FORT WORTH 3501 NE LOOP 820 FORT WORTH TX 76137 121 WORTHINGTON RENAISSANCE HOTEL 200 MAIN ST FORT WORTH TX 76102 504 'Notates hotel addition City of Fort woth Five Year Service Plan Public Improvement District No. 18 - Toursim FY 25/26 FY 26/27 REVENUES PID Assessments $ 7,750,000 $ 81000,000 COFW Payment in lieu of Services COFW Assessment Total Budgeted Revenues $ 7,750,000 $ 8,000,000 Use of Fund Balance $ - $ - Total Revenues $ 7,750,000 $ 8,000,000 EXPENSES Incentives & Sales Efforts $ 4,540,050 $ 4,687,550 Marketing & Research (Promotion/Advertisting) 2,154,600 2,224,600 Site Visits & Familiarization Tours 115,425 119,175 Cultural Enhancements 577,125 595,875 Operations & Administration 307,800 317,800 City Administrative Fee 55,000 55,000 Total Budgeted Expenses $ 7,750,000 $ 8,000,000 Contribution to Fund Balance $ - $ - Total Expense $ 7,750,000 $ 8,000,000 Net Change in Fund Balance $ - $ - Estimated Fund Balance, Beginning of Year $ 7,158,329 $ 7,158,329 Estimated Fund Balance, End of Year $ 7,158,329 $ 7,158,329 Reserve Requirement 1,333,600 1,333,600 Over (Under) Reserve $ 5,824,729 $ 5,824,729 City of Fort Worth, Texas Mayor and Council Communication DATE: 08/26/25 M&C FILE NUMBER: M&C 25-0755 LOG NAME: 03PID18FY26 EXPAND SUBJECT (ALL) Conduct Public Benefit Hearing Concerning the Expansion of Fort Worth Public Improvement District No. 18 - Tourism to Include One Additional Hotel Property; Find for the Sufficiency of the Attached Petition Requesting Expansion of the Fort Worth Public Improvement District 18 — Tourism; and Adopt the Resolution Authorizing and Expanding the Fort Worth Public Improvement District No. 18 - Tourism to Include the Additional Hotel Property (PUBLIC HEARING - a. Staff Available for Questions: Holly Fortes; b. Public Comment; c. Council Action: Close Public Hearing and Act on the M&C) RECOMMENDATION: It is recommended that the City Council: 1. Conduct a public benefit hearing concerning the expansion of the Fort Worth Public Improvement District 18 — Tourism to include one additional hotel property; 2. Find that the attached petition requesting inclusion into the Fort Worth Public Improvement District 18 — Tourism meets the requirements set forth in Chapter 372 of the Texas Local Government Code; 3. Adopt the attached Resolution: (i) making certain findings concerning the nature and advisability of special improvements and services to be provided for the benefit of the additional hotel to be included in the Fort Worth Public Improvement District 18 — Tourism, the estimated costs of such improvements and services, the method of assessment, the boundaries of the Fort Worth Public Improvement District 18 — Tourism, and the apportionment of costs between the Fort Worth Public Improvement District 18 — Tourism and the City, as a whole, and (ii) authorizing and expanding the Fort Worth Public Improvement District 18 —Tourism to include one (1) additional hotel; and 4. Direct the City Secretary to publish notice of the expansion of the Fort Worth Public Improvement District 18 — Tourism as required by Chapter 372 of the Texas Local Government Code. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to expand the boundaries of Fort Worth Public Improvement District 18 - Tourism (Tourism PID) through the inclusion of one (1) additional hotel property. On August 29, 2017, the City Council adopted Resolution No. 4837-08-2017, establishing the Tourism PID (Establishing Resolution). The City Council subsequently adopted Resolution Nos. 5264-08-2020 (August 18, 2020), 5382-04-2021 (April 13, 2021), 5467-09-2021 (September 14, 2021), 5561-04-2022 (April 12,2022), 5958-05-2024 (May 14,2024), and 6098-05-2025 (May 15, 2025) expanding the boundaries of the Tourism PID to include additional hotel properties (Expansion Resolutions). Expansion of the Tourism PID Boundaries and Petition: The current boundaries of the Tourism PID consist of noncontiguous areas authorized under Section 372.0035 of the Texas Local Government Code (Code) consisting solely of hotel properties with 100 or more rooms ordinarily used for sleeping within the City of Fort Worth. A list of the hotels that are included within the boundaries of the Tourism PID is included in the Original and Expansion Resolutions and attached hereto. Senate Bill (SB) 804, 87th Texas Legislature (2021), which went into effect on June 14, 2021, revised Section 372.0121 of the Code to clarify the ability of cities to add new hotels into an existing Tourism PID. One of the new provisions affects the way in which the City calculates (or recalculates) the percentage threshold for adding new hotels into the Tourism PID. SB 804 requires the City to update and recalculate each of the percentage thresholds set forth below every time a new hotel property is added to the Tourism PID. Conversely, the prior version of Section 372.0121 only required the City to calculate the impact that the new hotel property had on the pre-existing thresholds. For example, under SB 804, the City has to update and recalculate the appraised value of each and every existing property in the Tourism PID each time that a new hotel is added; whereas, under the prior legislation, the City simply carried forward the values of the existing hotel properties from the year the hotel properties entered into the Tourism PID. Section 372.0121, as revised, allows the City Council to include additional properties in the Tourism PID if (i) the property is a hotel and (ii) a sufficient number of the record owners of the real property currently included and proposed to be included in the Tourism PID have consented to be included in the Tourism PID by signing the original petition to establish the district or by signing a petition or written consent to include property in the Tourism PID. The number of consenting record owners is sufficient if (1) the record owners own more than 60% of appraised value of taxable real property liable for assessment in the Tourism PID; and either (i) constitute more than 60% of all record owners of taxable real property liable for assessment in the Tourism PID, or (ii) own, in aggregate, more than 60% of the area of all taxable real property liable for assessment in the Tourism PID. If the addition of the new properties results in these numbers dropping at or below the 60% threshold, then the properties may not be added. Inclusion of the Nobleman Hotel, located at 503 Bryan Ave., Fort Worth, Texas 76104, meets the above -stated elements and, therefore, may be considered by the City Council for inclusion into the Tourism PID. First, the Nobleman Hotel is a hotel property. With regard to the second element, the property owner, or its duly authorized representatives, for the Nobleman Hotel, signed a petition requesting inclusion within the Tourism PID. This results in an increase to 85.78% of the appraised value of taxable real property liable for assessment, 72.71 % of the area of all taxable real property liable for assessment, and 68.33% of record owners liable for assessment. These figures remain above the statutory threshold of 60.00%, thereby meeting the required conditions for the adjustment of the Tourism PID's composition. Nature of the Improvements: The goals of the Tourism PID focus on increasing the economic impact and enhancing competitiveness in conventions, meetings, leisure and sports tourism and increasing tourism -related economic activity at all times, including during economic downturns and as inventory grows. The Tourism PID projects include incentives and sales efforts, convention and sports marketing and promotion, site visits and familiarization tours, community arts grants, convention services, event funding application, operations, research, and administration, all of which benefit the hotels within the Tourism PID. Method of Assessment and Apportionment of Costs: The assessment rate will be an amount equal to 2.00% of the consideration received from the occupancy of any sleeping room furnished by a hotel located within the Tourism PID, with such assessment to be collected in the same manner and in accordance with the same procedures as those established for the collection of the City's Hotel Occupancy Tax, as set forth in Chapter 32, Article II of the City Code, as amended. The entire costs of each improvement and service will be paid from the above -stated assessments and no City funds will be used to pay any portion of such costs unless such funding is approved by the City Council on a case -by -case basis. Estimated Costs of the Improvements and Services: The total estimated costs for the proposed services and improvements for the life of the Tourism PID (approximately two years) will be $15,750,000.00, which includes an estimated cost of $7,750,000.00 for the Fiscal Year 2025-2026 Budget. Assessments will begin on October 1, 2025. Advisability: Staff recommends that the City Council find that these improvements and services are advisable because they will promote the interests of the City and confer a special benefit on the assessed properties within the expanded boundary of the Tourism PID. Upon the close of the public hearing, staff recommends that the City Council declare the petition to expand the Tourism PID to include the one additional hotel property to be sufficient and adopt the attached Resolution making findings concerning the following and expanding the Tourism PID: • The apportionment of costs between the Tourism PID and the City, as whole; • The proposed method of assessment; • The expanded boundaries of the Tourism PID; • The estimated costs of the proposed improvements and services; • The general nature of the proposed improvements and services; and • The advisability of expanding the Tourism PID. Upon adoption of the Resolution, the Nobleman will be included within the boundaries of the Tourism PID, effective on the date that City Council's authorization to expand the Tourism PID has been published in a newspaper of general circulation and will expire on the date set forth in the Original Resolution. The City Council will hold two public hearings to consider the proposed budget, plan of service, and levy of assessments against property within the Tourism PID, which will be held during the regular City Council meetings on Tuesday, August 26, 2025 at 10:00 A.M., and Tuesday, September 16, 2025 at 6:00 P.M. The City Council is expected to take final action and vote on the proposed budget, plan of service, and levy of assessments following the close of the hearing on September 16, 2025. Notice of this public hearing was published in the Fort Worth Star -Telegram and mailed to the appropriate property owners on August 8, 2025, which complies with the notice requirements under the Act. These properties are located in ALL COUNCIL DISTRICTS. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that approval of these recommendations will have no material effect on City funds. Submitted for Citv Manaaer's Office bv: Oriainatina Business Unit Head: Christianne Simmons 6222 Additional Information Contact: Brady Kirk 8712 Expedited STATE OF TEXAS § COUNTY OF TARRANT § TO: THE MAYOR AND CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS APPROVAL OF PETITION AND VERIFICATION OF SIGNATORY AUTHORITY Full Legal Name of Hotel: The Nobleman Hotel Address of Hotel: 503 Bryan Avenue, Fort Worth, TX 76104 TAD Listing of Hotel Owner: MB HOSPITALITY FWSOUTHSIDE LLC TAD Listing of Hotel Owner Address: 4925 GREENVILEE AVE SUITE 1060, DALLAS, TX 75206 1, the undersigned, am a duly authorized executive of the Company identified above, which is a record owner ofreal property that would be liable for assessment under the existing City of Fort Worth Tourism Public Improvement District ("TPID"). By executing this Approval of Petition and Verification of Signatory Authority requesting inclusion within the existing TPID, I hereby represent on behalf of Company that I have read and understand the Original Petition Requesting Establishment of the TPID, Resolution No. 4837-08-2017 Authorizing the Establishment of the TPID, Resolution Nos. 5264-08-2020, 5382-04-2021, 5467-09-2021, 25488-04-2022, 5958-05-2024, 5998-08-2024, and 6098-05-2025 and Authorizing and Expanding the TPID, and the updated Service and Assessment Plan adopted by the City Council through Ordinance No. 27648-05-2025, all of which constitute the TPID Petition. I also represent that I have the authority to legally bind Company and to execute this approval on Company's behalf. I affirm that such binding authority has been granted by Company. By virtue of the same (singular) signature below, I do request on behalf of Company that the City Council of the City of Fort Worth, Texas include the above noted hotel within the existing TPID under the Public Improvement District Assessment Act, V.T.C.A. Local Government Code, Chapter 372 (Act"), so that the powers granted Under the Act may be exercised by the City of Fort Worth,"), so that the powers granted under the Act may be exercised by the City of Fort Worth. Please print name of Hotel Signatory to Petition Name: 4. T k rkh4.11-\ Signature of A--uthori AUqr3zntft4v0 of Hotel Ownership Group Title of Signatory (May be Hotel GM if GM is authorized to sign on behalf of Ownership Group) NA At)��,W i rO� )(Aido, ) L c Name of Entity Employing Aboveignatory (e.g.; name of hotel ownership group, hotel, or management company, etc.) Date: )%� 5 r � Note: The Company further represents, affirms, and certifies that, with respect to the expansion of the TPID, the City is fully entitled to rely on the warranty and representation set forth in this form unless and Until the City receives written notice from the Company of a change. The Company acknowledges that it is solely responsible for ensuring that the City is provided with an updated form within ten (10) business days of any change to the signatory authority. Resolution No. 6098-05-2025 AUTHORIZINGAND EXPANDING FORT WORTHPUBLICIMPROVEMENT DISTRICT NO. 18 (TOURISMPID) TO INCLUDEANADDITIONAL HOTEL WHEREAS, the Public Improvement District Assessment Act, Chapter 372 of the Texas Local Government Code ("Act") allows for the establishment of public improvement districts; WHEREAS, on August 29, 2017, the City Council adopted Resolution No. 4837-08-2017, establishing Fort Worth Public Improvement District 18 — Tourism ("Tourism PID") ("Establishing Resolution"); WHEREAS, on August 18, 2020, April 13, 2021, September 14, 2021, April 26, 2022, May 21,2024, and August 27, 2024, the City Council adopted Resolution Nos. 5264-08-2020, 5382-04- 2021, 5467-09-2021, 5561-04-2022, 5958-05-2024, and 5998-08-2024 respectively, expanding the boundaries of the Tourism PID (Resolution Nos. 5264-08-2020, 5382-08-2021, 5467-09-2021, 5561-04-2022, 5958-05-2024, and 5998-08-2024 are collectively referred to as the `Expansion Resolutions"); WHEREAS, Section 372.0121 of the Act, as amended by the 87th Texas Legislature (2021) through Senate Bill 804, allows the City Council to include additional properties in the Tourism PIDif (i) the property is a hotel and (ii) a sufficient number of the record owners of the real property currently included and proposed to be included in the Tourism PID have consented to be included in the Tourism PID by signing the original petition to establish the Tourism PID or by signing a petition or written consent to include property in the Tourism PID; WHEREAS, the number of consenting record owners is sufficient if (1) the record owners own more than 60% of appraised value of taxable real property liable for assessment in the Tourism PID; and either (i) constitute more than 60% of all record owners of taxable real property liable for assessment in the Tourism PID, or (ii) own, in aggregate, more than 60% of the area of all taxable real property liable for assessment in the Tourism PID; WHEREAS, another expansion petition ("Petition") was submitted to the City of Fort Worth, Texas ("City"), pursuant to the Act, from the Le Meridien Hotel, located at 811 Commerce Street, Fort Worth, Texas 76102, requesting to expand the Tourism PID boundaries to include an additional hotel property within the Tourism PID and has been on file in the office of the City Secretary for public inspection; WHEREAS, pursuant to Section 372.009 of the Act, the City provided notice and publication of two public hearings to be conducted on April 22, 2025, and May 13, 2025 to consider the expansion of the Tourism PID ("Public Hearings"), which notice and publication included the following: (i) time and place of the Public Hearings; (ii) generaI nature of the proposed improvements and services; (iii) estimated costs of the improvements and services; (iv) expanded boundaries of the Tourism PID; (v) proposed method of assessment; and (vi) proposed apportionment of cost between the additional hotel property in Tourism PID and the City; WHEREAS, notice of the Public Hearings was published on April 4, 2025, in the Fort Worth Star -Telegram, a newspaper of general circulation in the City, and was also mailed on April 4, 2025, to all record owners of property in the Tourism PID liable for assessment, and all persons desiring to be heard were given a full and fair opportunity to be heard at the Public Hearing; WHEREAS, the City Council conducted and adjourned the Public Hearing to consider the expansion of the Tourism PID. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: I. Recitals. The findings set forth in the recitals of this Resolution are found to be true and correct. 2. Findings. The City Council, after duly considering the evidence and testimony presented at the Public Hearings and based on all information known by the City Council, hereby makes the following findings: 2.1 Petition and Boundaries. (a) The current boundaries of the Tourism PID consist of noncontiguous areas authorized under Section 372.0035 of the Act consisting solely of hotel properties with 100 or more rooms ordinarily used for sleeping within the City of Fort Worth. The lists of the original and additional hotels that are included within the boundaries of the Tourism PID are included in the Establishing Resolution and Expansion Resolutions, respectively. (b) As set forth in the Recitals above, the Act allows the City Council to include additional properties in the Tourism PID if the required elements are satisfied. As evidenced below, the hotel property set forth in Exhibit "A", which is attached hereto and incorporated herein for all purposes ("Additional Hotel Property"), meets the necessary elements for inclusion into the Tourism PID. (i) The Additional Hotel Property to be included in the Tourism PID as part of this Resolution is a hotel property. (ii) A sufficient number of record owners of the real property currently included and proposed to be included in the Tourism PID have consented to be included in the Tourism PID by signing the original petition to establish the Tourism PID or by signing a petition or written consent to include property in the Tourism PID. Specifically, the number of consenting record owners exceeds the thresholds required by the Act, which is evidenced by the following: (1) 81.79% of appraised value of taxable real property liable for assessment, (2) 67.80% of record owners of taxable real property liable for assessment, and (3) 70.39% for the area of all taxable real property liable for assessment. 2.2 Advisability and Feasibility of the Improvements and Services Proposed for the Tourism PID. It is advisable to expand the Tourism PID to include the Additional Hotel Property to provide the proposed improvements and services described in the Petition and this Resolution. The improvements and services will promote the interests of the City and confer a special benefit on the assessed properties within the Tourism PID. The Fort Worth Convention and Visitor's Bureau staff performed an analysis of the Tourism PID, its service plan and strategies, and concluded that it provides a very effective means for significantly enhancing the ability of Fort Worth to promote its hotel, convention, and tourism activity, which has been borne out since the Tourism PID's establishment. Based on this analysis and the successful history of the Tourism PID, the City finds the proposed tourism public improvement district to be both advisable and feasible. 2.3 Nature of the Improvements and Services. The general nature of the proposed improvements and services to be provided within the expanded boundaries of Tourism PID include, without Iimitation, marketing, business recruitment, and promotional activities authorized by the Act for improvements and promotion of the Tourism PID, including, but not Iimited to, the provision of incentives by the Fort Worth Convention and Visitors Bureau to organizations to encourage them to bring large and city-wide events (including, without limitation, meetings, sporting, recreation, and cultural events) to Fort Worth and to fund additional marketing by the Fort Worth Convention and Visitors Bureau to increase hotel stays within the City. 2.4 Estimated Cost of the Improvements and Services. Over the three (3) year period beginning on October 1, 2024, and ending on the expiration of the Tourism PID as provided in Section 3 of the Establishing Resolution, the estimated total cost of the improvements and services to be provided by the Tourism PID will be $24,190,000.00, which includes a revised estimated cost of $7,750,000.00 for the 2024-2025 fiscal year. For the 2024-2025 fiscal year, the revised estimated costs of the below -referenced improvements and services, and estimated costs to implement such impiuYoitir'J [s and services are: Incentives and Sales Efforts $3,962, 925 Marketing and Research (Promotion/Advertising) $2,693,250 Site Visits & Familiarization Tours $ 153,900 Cultural Enhancements through Marketing and Promotion of the Arts $577,125 Operations and Administration $3072800 City Administrative Fee $55,000 Total $7,750,000 On September 17, 2024, the City Council adopted the fiscal 2024-2025 budget and three-year service plan, the same being Ordinance No. 27176-09-2024. The inclusion of the Additional Hotel Property will not affect the adopted budget. Such costs will be paid from assessments levied in accordance with the Act. The full three-year service plan is attached to the resolution approving the amended budget and three-year service plan that is being considered at the same time as this resolution. 2.5. Method of Assessment. The costs of the improvements and services will be funded from assessments levied on and collected from properties located in the Tourism PID that contain hotels of one hundred (100) or more guest rooms and that are subject to payment of City hotel occupancy taxes pursuant to Chapter 32, Article II of the City Code, as amended. The City will levy a special as�c.JoL,, ,4. against the new hotel property located within the expanded boundaries of the Tourism PID ("Hotel' Parcel") in an amount equal to two percent (2%) of the consideration received for occupancy of any sleeping rooms furnished by the new hotel on the Hotel Parcel (subject to any lawful exemption of the hotel occupancy tax under applicable state law and City ordinances), with such assessments to be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code, as amended. The collection of assessments will begin on the earliest date allowed by the Act and continue to be collected at the same time hotel occupancy taxes are collected. The City Council hereby finds that the proposed method of assessment is reasonable and necessary. 2.6 Apportionment of Costs Between the Tourism PID and the City, as a Whole. The apportionment of costs between the Tourism PID, inclusive of the Additional Hotel Property, and the City, as a whole, is as follows: (a) The entire cost of each improvement and service will be paid from assessments levied in accordance with the Act. (b) No City funds will be used to pay any portion of the cost of any improvement or service, unless such funding is approved from the City Council or other appropriate municipal authority on a case -by -case basis. 3. Inclusion of Additional Hotel Property within the Tourism PID; Term. Based on the findings set forth above, the City Council authorizes the expansion of the boundaries of the Tourism PID to include the Additional Hotel Property. The inclusion of the Additional Hotel Property within the Tourism PID takes effect on the date on which this Resolution is adopted by the City Council and will expire concurrently with the expiration date set"forth in Section 3 of the Establishing Resolution. The expansion of the Tourism PID is subject to all conditions, limitations, and reservations set forth in the findings in Sections 1 and 2. All other provisions of this Resolution will be effective from and after adoption of this Resolution. 4. Advisory Body. The City Council hereby declines to appoint an advisory body for the expanded Tourism PID boundaries pursuant to Section 372.008 of the Act. The City Council hereby reserves the right to assign responsibility for preparation of the ongoing service plan for the PID to another entity in the absence of such an advisory body, as authorized by Section 372.013(a) of the Act. ADOPTED this 13'h day of May, 2025. ATTEST: A � .Iannette S. Goodall City Secretary EXHIBIT A Expanded Boundaries of the Tourism. PID (Additional Hotel Property) Account Name Address City, State, Zip Rooms Le Meridien 811 Commerce Street Fort Worth, TX 76102 188 REVENUES City of Fort Worth Three Year Service Plan Public Improvement District No. 18 - Tourism - MidYear Update PID Assessments Use of Fund Balance Total Funds Available for Use EXPENSES Incentives & Sales Efforts Marketing and Research (Promotion/ Advertising) Site Visits & Familiarization Tours Cultural Enhancements through Marketing and promotion of the Arts Operations & Administration City Administrative Fee Total Budgeted Expenses FY24125 FY25/26 FY26127 $ 7,750,000 $ 8,060,000 $ 8,380,000 $ 7,750,000 $ 8,060,000 $ 8,380,000 $ 3,962,925 $ 4,122,575 $ ' 4,287,375 2,693,250 2,801,750 2,913,750 153,900 160,100 166,500 677,125 600,375 624,375 307,800 320,200 333,000 55,000 55,000 55,000 $ 7,750,000 $ 8,060,000 $ 8,380,000 I Tourism PID Hotels Updated as of 412212024 Account Name Address City, State, Zip RMS AC Hotel Fort Worth - Downtown 610 Main St Fort Worth, TX 76102 252 Aloft Downtown Fort Worth 300 Throckmorton Fort Worth, TX 76102 180 American Airlines Training and Conference Center 4500 American Blvd. Fort Worth, TX 76155 299 Autograph Collection Downtown Fort Worth 512 Main St. Fort Worth, TX 76102 165 y Avid Hotel 320 Samuels Ave. Fort Worth, TX 76102 104 Bowie House 3700 Camp Bowie Blvd. Fort Worth, TX 76107 106 Budget Suites of America - Fossil Creek 3500 NE Loop 820 Fort Worth, TX 76137 366 Candlewood Suites - DFW South 4200 Reggis Drive Fort Worth, TX 76155 174 Courtyard by Marriott - Alliance 3001 Amador Dr. Fort Worth, TX 76244 127 Courtyard by Marriott - Blackstone 609 Main Street Fort Worth, TX 76102 203 Courtyard by Marriott - Stockyards 2537 Main St. Fort Worth, TX 76164 124 Courtyard by Marriott - University Drive 3150 Riverrront Fort Worth, TX 76107 130 Courtyard by Marriott - West at Cityview 6400 Overton Ridge Boulevard Fort Worth, TX 76132 104 Dalworth Inn 812 E. Felix Street Fort Worth, TX 76115 120 DFW Airport Marriott South 4151 Cenlreport Boulevard Fort Worth, TX 76155 295 DFW Marriott Hotel and Golf Club at Champions Circle 3300 Championship Pkwy Fort Worth, TX 76177 286 Embassy Suites Hotel - Downtown Fort Worth 600 Commerce Street Fort Worth, TX 76102 156 Extended Stay America - City View 5065 Bryant Irvin Rd Fort Worth, TX 76132 104 FairFeld Inn & Suites Downtown 1010 Houston Fort Worth, TX 76102 110 Fairfield Inn & Suites Fossil Creek 3761 NE Loop 820 Fort Worth, TX 76137 106 Four Points by Sheraton Fort Worth 6828 North Freeway Fort Worth, TX 76137 113 Hampton Inn and Suites - West11-30 2700 Green Oaks Fort Worth, TX 76116 105 Hampton Inn and Suites - DFW South 4201 Reggis Court Fort Worth, TX 76155 116 Hampton Inn and Suites Downtown Fort Worth 1001 Commerce St. Fort Worth, TX 76102 245 Hilton Fart Worth 815 Main Street Fort Worth, TX 76102 294 Hilton Garden Inn - Fort Worth Alliance Airport 2600 Westport Parkway Fort Worth, TX 76177 127 Hilton Garden Inn - Medical Center 912 Northlon Street Fort Worth, TX 76104 157 Holiday Inn - DFW Airport South 14320 Centre Station Road Fort Worth, TX 76155 143 Holiday Inn Express - Downtown 1111 W Lancaster Fort Worth, TX 76102 132 Holiday Inn North - Fossil Creek 4635 Gemini Place Fort Worth, TX 76106 126 Home2 Suites by Hilton - Cultural District 3000 & 3012 W Lancaster Ave Fort Worth, TX 76107 114 Homewood Suites - Fossil Creek 3701 Tanacross Fort Worth, TX 76137 137 Homewood Suites- Medical Center 2200 Charlie Lane Fort Worth, TX 76104 157 Hotel Drover, Autograph Collection 200 Mule Alley Drive Fort Worth, TX 76164 200 Hyatt Place -Alliance Town Center 3201 Alliance Town Center Fort Worth, TX 76177 130 Hyatt Place - Cilyview 5900 Cityview Street Fort Worth, TX 76132 127 Hyatt Place - Stockyards 132 E Exchange FortWorth, TX 76164 100 Hyatt Place - TCU 2500 West Berry Street Fort Worth, TX 76109 127 Kimpton Hotel 714 Main St Fort Worth, TX 76102 232 La Quinta Inn and Suites - Fort Worth North 2501 Polaris Dr Fort Worth, TX 76137 133 La Quinta Inn and Suites - Southwest 6100 Overton Ridge Fort Worth, TX 761132 128 * Le Meddien 811 Commerce Street Fort Worth, TX 76102 188 i Omni Fort Worth Hotel 1300 Houston Fort Worth, TX 76102 614 Quality Inn and Suites - Cattle Baron 2700 S Cherry Lane Fort Worth, TX 76116 109 Holiday Inn (Previously-Radisson - Fort Worth South Hotel) 100 Alta Mesa East Fort Worth, TX 76134 247 Radisson Hotel - Fort Worth Fossil Creek 2540 Meacham Street Fort Worth, TX 76106 247 Residence Inn - Alliance Airport 13400 North Freeway Fort Worth, TX 76177 111 Residence Inn - Cultural District 2500 Museum Way Fort Worth, TX 76107 150 Residence Inn - Waterside 5825 Arborlawn Drive Fort worth, TX 76109 119 Sandman Signature Hotel 810 Houston Street Fort Worth, TX 76102 240 Sheraton Fort Worth Hotel and Spa 1601 Commerce Street Fort Worth, TX 76102 429 Sonesta ES Suites - (Previously- Residence Inn - Fossil 5801 Sandshell Drive Fort Worth, TX 76137 114 Creek) Sonest Select (Previously Courtyard by Marriott - Fossil 3751 NE Loop 820 Fort Worth, TX 76137 154 Creek) SpringHill Suites by Marriott - Stockyards 2315 N Main St Fort Worth, TX 76164 170 SpringHill Suites by Marriott - University 3250 Lovell Street Fort Worth, TX 76107 145 TownePiace Suites Downtown 801 E Belknap Fort Worth, TX 76102 140 TownePlace Suites University 3450 W Vickery Fort Worth, TX 76107 128 WoodSpring Suites Fort Worth Worthington Renaissance Hotel Total # of Hotels: 59 * New hotel Addition 3501 NE Loop 820 200 Main Street Fort Worth, TX 76137 121 Fort Worth, TX 76102 504 �fm1w �� StPLL ��..w,.ai� )]i�+ lolsl.fa i)an.M � I '� I III I I )aa},•,m,e I. 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SCtl 3L/rauf¢aNRlrf loLc C-O-.d ^e' ..%63,t7i 1WILwidtia•iYfmali/= _ %$P9 Ilnmxrlrm]a nAl% City of Fort Worth, Texas Mayor and Council Communication DATE: 05/13/25 M&C FILE NUMBER: M&C 25-0422 LOG NAME: 17PID18 MIDYEAR FY25 SUB.IECT (ALL) Conduct Public Benefit Hearing Concerning the Following Matters Related to Fort Worth Public Improvement District No. 18 — Tourism: (1) Expansion of the Tourism Public Improvement District to Include One Additional Hotel, (2) the Updated and Revised Fiscal Year 2024- 2025 Budget and Three -Year Service Plan, and (3) the 2024-2025 Assessment for the Additional Hotel Property; Adopt Resolution Authorizing and Expanding the Tourism Public Improvement District to Include One Additional Hotel Property; Approve Attached Revised 2024- 2025 , itvi .t Roll; Adopt Ordinance Levying Special Assessments on the Additional Hotel Property for Fiscal Year 2024-2025; Adopt Resolution Updating and Revising the Tourism Public Improvement District's Fiscal Year 2024-2025 Budget and Three -Year Service Plan; and Adopt Appropriation Ordinance (PUBLIC HEARING - a. Staff Available for Questions: Crystal Hinojosa; b. Public Comment; c. Council Action: Close Public Hearing and Act on M&C) RECOMNtENDATION: It is recommended that the City Council: 1. Conduct a Public Benefit Hearing Concerning the following matters related to Fort Worth Public Impiuvviiit�,it District No. 18--Tourism: (1) Expansion of the Tourism Public Improvement District to include one additional hotel property, (2) the updated and revised Fiscal Year 2024-2025 Budget and Three -Year Service Plan, and (3) the 2024-2025 Assessment for the additional hotel; 2. Adopt the attached Resolution: (i) making certain findings concerning the nature and advisability of special improvements and services to be provided for the benefit of the additional hotel to be included in the Tourism Public Improvement District, the estimated costs of such ;... N,uvviiiw 6s and services, the method of assessment, the boundaries of the Tourism Public Improvement District, and the apportionment of costs between the Tourism Public Improvement District and the City, as a whole; and (ii) authorizing and expanding the Tourism Public Improvement District to include one additional hotel property; 3. Direct City Staff to record a copy of the Assessment Ordinance in the real properly records of the appropriate county no later than the seventh (7th) day after adoption by the City Council; 4. Approve the attached revised 2024-2025 Assessment Roll; 5. Adopt the attached uitYmoi levying special assessments on the additional hotel property for Fiscal Year 2024-2025, 6. Adopt the attached resolution updating and revising the Tourism Public Improvement District's Fiscal Year 2024-2025 Budget and Three - Year Service plan; and 7. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Fort Worth Public Improvement District 18 - Tourism Fund in the amount of $350,000.00, from available, unreserved fund balance, for the purpose of funding mid -year budget adjustments. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to conduct a public hearing concerning the expansion of the Tourism Public Improvement District (PID) to include one additional hotel property, the updated and revised Fiscal Year 2024-2025 budget and three-year service plan, and the 2024-2025 assessment for the additional hotel, along with certain actions related thereto. On August 29, 2017, the City Council adopted Resolution No. 4837-08-2017, establishing the Tourism PID (Establishing Resolution). The City Council subsequently adopted Resolution Nos. 5264-08 2020 (August 18, 2020), 5382-04-2021 (April 13, 2021), Resolution No. 5467-M 2021 (September 14, 2021), Resolution No. 5561-04-2022 (April 12, 2022), 5958-05-2024 (May 14,2024), and 5998-08-2024 (August 27, 2024) expanding the boundaries of the Tourism PID to include additional hotel properties (Expansion Resolutions). Expansion of the Tourism PID Boundaries and Petition: The current boundaries of the Tourism PID consist of noncontiguous areas authorized under Section 372.0035 of the Texas Local Government Code (Code) consisting solely of hotel properties with 100 or more rooms ordinarily used for sleeping within the City of Fort Worth. A list of the hotels that are included within the boundaries of the Tourism PID is included in the Original and Expansion Resolutions and attached hereto. Senate Bill (SB) 804, 87th Texas Legislature (2021), which went into effect on June 14, 2021, revised Section 372.0121 of the Code to clarify the ability of cities to add new hotels into an existing Tourism PID. One of the new provisions affects the way in which the City calculates (or recalculates) the percentage threshold for adding new hotels into the Tourism PID. SB 804 requires the City to update and recalculate each of the percentage thresholds set forth below every time a new hotel property is added to the Tourism PID. Conversely, the prior version of Section 372.0121 only required the City to calculate the impact that the new hotel property had on the pre-existing thresholds. For example, under SB 804, the City has to update and recalculate the appraised value of each and every existing property in the Tourism PID each time that a new hotel is added; whereas, under the prior legislation, the City simply carried forward the values of the existing hotel properties from the year the hotel properties entered into the Tourism PID. Section 372.0121, as revised, allows the City Council to include additional properties in the Tourism PID if (i) the property is a hotel and (ii) a sufficient. number of the record owners of the real prope, ly 4uL I C, it y included and proposed to be included in the Tourism PID have consented to be included in the Tourism PID by signing the original petition to establish the district or by signing a petition or written consent to include property in the Tourism PID. The number of consenting record owners is sufficient if (1) the record owners own more than 60% of appraised value of taxable real property liable for assessment in the Tourism PID; and either (i) constitute more than 60% of all record owners of taxable real property liable for assessment in the Tourism PID, or (ii) own, in aggregate, more than 60% of the area of all taxable real property liable for assessment in the Tourism PID. If the addition of the new properties results in these numbers dropping at or below the 60% threshold, then the properties may not be added. Inclusion of the Le Meridien Hotel, located at 811 Commerce Street, Fort Worth, Texas 76102, meets both of the above -stated elements, therefore the hotel may be considered by the City Council for inclusion into the Tourism PID. First, the Le Meridien is a hotel property. With regard to the second element, the City Council found that the previous two petitions (original and expanded) complied with Section 372.005 (b-1) of the Code because they had met the necessary percentages. The property owners, or their duly authorized representatives, for the new hotel property, have signed a petition requesting inclusion within the Tourism PID. This results in an increase to 81.79% of the appraised value of taxable real property liable for assessment, 70.39% for the area of all taxable real property liable fu, tent, and 67.80% of record owners liable for assessment. Because the percentages are still above the 60.00% threshold, the properties meet the second element. Nature of the Improvements: The goals of the Tourism PID focus on increasing the economic impact and enhancing competitiveness in conventions, meetings, leisure and sports tourism, and increasing tourism -related t-,wo ou. ilu activity at all times, including during economic downturns and as inventory grows. The Tourism PID projects include incentives and sales efforts, convention and sports marketing and promotion, site visits and familiarization tours, community arts grants, convention services, event funding applications, operations, research, and administration, all of which benefit the hotels within the Tourism PID. Method of Assessment and Apportionment of Costs: The assessment rate will be an amount equal to 2.00% of the consideration received from the occupancy of any sleeping room furnished by a hotel located within the Tourism PID, with such assessment to be collected in the same manner and in accordance with the same procedures as those established for the collection of the City's Hotel Occupancy Tax, as set forth in Chapter 32, Article 11 of the City Code, as amended. The entire costs of each improvement and service will be paid from the above -stated assessments and no City funds will be used to pay any portion of such costs unless such funding is approved by the City Council on a case -by -case basis. Estimated Costs of the Improvements and Services: ' The total estimated costs for the proposed services and improvements for the life of the Tourism PID (approximately three years) will be $24,190,000.00, which includes, an estimated cost of $350,000.00 for the Fiscal Year 2024-2025 Mid -Year Budget Adjustment. The updated and revised budget and three-year service plan is set forth in more detail below and attached. The final version will be subject to approval by the City Council. The estimated costs of the proposed improvements and services to be provided in subsequent years will be subject to future annual budget and service and assessment plans adopted by the City Council in accordance with the Code. The actual costs of improvements and services will be determined in accordance with the approved budget and service plan to be adopted by City Council and will be paid from Tourism PID assessments. Advisability: Staff recommends that the City Council find that these improvements and services are advisable because they will promote the interests of the City and confer a special benefit on the assessed properties within the expanded boundary of the Tourism PID. Staff recommendation: The Petition has been examined, verified, and found by City staff to meet the requirements of the Code. Therefore, staff recommends that the City Council find that the Petition to include the above -stated three hotel properties meets the requirements of the Code. Tourism PID Mid -Year Adjustments The Tourism PID is funded through a 2% assessment on the consideration received from occupancy of any sleeping room furnished by a hotel in the Tourism PID. Due to the most recent forecast analysis, Tourism PID assessment revenue is now projected to be 4.73% or $350,000.00 more t; ia, - u. ly„ 4dy budgeted. The budgeted expenses show an increase in each category line item for the current fiscal year service plan (see table below). Revenue adjustments: Line Items previously Approved Recommended Amended to be FY25 Budget Item Mid -Year FY25 Budget Adjusted Adjustment It, PID $7,400,000.00 $350,000.00 $7,750,000.00 Assessments Totals $7,400,000.001I $350,000.00�$7,750,000.00 Expenditures adjustments: Recommended Amended Line Items to Previously Approved Mid Year FY25 Budget be Adjusted PY25 Budget Item Adjustment Item Incentives & $3,782,675.00 $180,250.00 $3,962,925.00 Sales Efforts Marketing and Research $2,570,750.00 $122,500.00 $2,693,250.00 (Promotion/ Advertising) Site Visits & Familiarization $146,900.00 $7,000.00 $153,900.00 Tours Cultural Enhancements through $550,875,00 $26,250.00 $577,125,00 Marketing and promotion of the Arts Operations & $293,800.00 $14,000.00 $307,800.00 Administration City ,Administrative $55,000.00 $0.00 $55,000.00 Fee Totals $7,400,000.00 1 $350,000.00 $7,750,000.00 Staff supports Fort Worth Tourism PID Corporation and Convention & Visitor Bureau's recommended mid -year budget adjustments. Upon approval of the above recommendations, the total budgeted expenses for FY 2024-2025 will be $7,750,000.00. The revised Budget and three- year service plan will take effect upon approval by City Council. The proposed changes to the Tourism PID's FY 2024-2025 budget complies with the City's reserve requirements. Funding is available for appropriation in the fund balance of the FWPID #18 - Tourism Fund. The beginning balance is $7,902,711.97, After this M&C, the available balance will be $73552,711.97. The Tourism PID properties are located in ALL COUNCIL DISTRICTS. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION I CERTIFICATION: The Director of Finance certifies that upon approval of the recommendations and adoption of the attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, in the FWPID 418 -Tourism Fund. Prior to any expenditure being incurred, the Economic. Development Department has the responsibility to validate the availability of funds. Submitted for Citv Manaaer's Office bv: Jesica McEachern 5804 Oriainatina Business Unit Head: Kevin Gunn 2015 Additional Information Contact: Crystal Hinojosa 7808 STATE OF TEXAS COUNTY OF TARRANT TO: THE MAYOR AND CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS Full Legal Name of Hotel: Address of Hotel: TAD Listing of Hotel Owner: APPROVAL OF PETITION AND VERIFICATION OF SIGNATORY AUTHORITY Le. Merl J ien 8 ! 1 Commee cf— ;+.) Fsr+ GL.F FW Hotel) TAD Listing of Hotel Owner Address: of l SO'D 91sc�vnc 9/vA • i r V4,4A , 7X 7 t� L-LC— S,Ae. 700. hvmlwa FL 3?1 YO r I, the undersigned, am a duly authorized executive of the Company identified above, which is a record owner of real property that would be liable for assessment under the existing City of Fort Worth Tourism Public Improvement District ("TPID"). By executing this Approval of Petition and Verification of Signatory Authority requesting inclusion within the existing TPID, I hereby represent on behalf of Company that I have read and understand the Original Petition Requesting Establishment of the TPID, Resolution No. 4837-08-2017 Authorizing the Establishment of the TPID, Resolution Nos. 5264-08-2020, 5382-04-2021, 5467-09-2021, 25488-04-2022 and 5958-05-2024 Authorizing and Expanding the TPID, and the updated Service and Assessment Plan adopted by the City Council through Ordinance No. 27176-09-2024, all of which constitute the TPID Petition. I also represent that I have the authority to legally bind Company and to execute this approval on Company's behalf. I affirm that such binding authority has been granted by Company. By virtue of the same (singular) signature below, I do request on behalf of Company that the City Council of the City of Fort Worth, Texas include the above noted hotel within the existing TPID under the Public Improvement District Assessment Act, V.T.C.A. Local Government Code, Chapter 372 (Act"), so that the powers granted under the Act may be exercised by the City of Fort Worth."), so that the powers granted under the Act may be exercised by the City of Fort Worth. Name: Cr i Sf i /10. 91-- 1 j; n i Please print name of Hotel Signatory to Petition ju� Signature of Authorized Representative of Hotel Ownership Group AtAm- ze,A o�P;cec Title of Signatory (May be Hotel GM if GM is authorized to sign on behalf of Ownership Group) Gam. F FW Hp+el L L.LG Name of Entity Employing Above Signatory (e.g.; name of hotel ownership group, hotel, or management company, etc.) Date: Marc 111 04Ua S Note: The Company further represents, affirms, and certifies that, with respect to the expansion of the TPID, the City is fully entitled to rely on the warranty and representation set forth in this form unless and until the City receives written notice from the Company of a change. The Company acknowledges that it is solely responsible for ensuring that the City is provided with an updated form within ten (10) business days of any change to the signatory authority. A Resolution NO.5998-08-2024 AUTHORIZING AND EXPANDING FORT WORTH PUBLIC IMPROVEMENT DISTRICT NO. 18 (TOURISM PID) TO INCLUDE AN ADDITIONAL HOTEL AND TAKING CERTAIN OTHER ACTIONS CONCERNING THE DISTRICT WHEREAS, the Public Improvement District Assessment Act, Chapter 372 of the Texas Local Government Code ("Act") allows for the establishment of public improvement districts; WHEREAS, on August 29, 2017, the City Council adopted Resolution No. 4837-08- 2017, establishing Fort Worth Public Improvement District 18 — Tourism ("Tourism PID") ("Establishing Resolution"); WHEREAS, on August 18, 2020, April 13, 2021, September 14, 2021, and April 12, 2022 the City Council adopted Resolution Nos. 5264-08-2020, 5382-04- 2021, 5467-09-2021, 5561-04-2022, and 5958-05-2024 respectively, expanding the boundaries of the Tourism PID (Resolution Nos. 5264-08-2020, 5382-08-2021, 5467- 09-2021, 5561-04-2022, and 5958-05-2024 are collectively referred to as the "Expansion Resolutions"); WHEREAS, Section 372.0121 of the Act, as amended by the 87" Texas Legislature (2021) through Senate Bill 804, allows the City Council to include additional properties in the Tourism PID if the property is ahotel and (ii) asufficient number of the record owners of the real property currently included and proposed to be included in the Tourism PID have consented to be included in the Tourism PID by signing the original petition to establish the Tourism PID or by signing a petition or written consent to include property in the Tourism PID; WHEREAS, the number of consenting record owners is sufficient if (1) the record owners own more than 60% of appraised value of taxable real property liable for assessment in the Tourism PID; and either (i) constitute more than 60% of all record owners of taxable real property liable for assessment in the Tourism PID, or (ii) own, in aggregate, more than 60% of the area of all taxable real property liable for assessment in the Tourism PID; WHEREAS, another expansion petition ("Petition") was submitted to the City of Fort Worth, Texas ("City"), pursuant to the Act, requesting to expand the Tourism PID boundaries to include an additional hotel property within the Tourism PID and has been on file in the office of the City Secretary for public inspection; WHEREAS, pursuant to Section 372.009 of the Act, the City provided notice and publication of two public hearings to be conducted on August 27, 2024 and September 17, 2024 to consider the expansion of the Tourism PID ("Public Hearings"), which notice and publication included the following: (i) time and place of the Public Hearings; (ii) general nature of the proposed improvements and services; (iii) estimated costs of the improvements and services; (iv) expanded boundaries of the Tourism PID; (v) proposed method of assessment; and (vi) proposed apportionment of cost between the additional hotel property in Tourism PID and the City; WHEREAS, notice of the Public Hearings was published on August 9, 2024 in the Fort Worth Star -Telegram, a newspaper of general circulation in the City, and was also mailed on August 9, 2024 to all record owners of property in the Tourism PID liable for assessment, and all persons desiring to be heard were given a full and fair opportunity to be heard at the Public Hearing; WHEREAS, the City Council conducted and adjourned the Public Hearing to consider 'the expansion of the Tourism PID; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: 1. Recitals. The findings set forth in the recitals of this Resolution are found to be true and correct. 2. Findines. The City Council, after duly considering the evidence and testimony presented at the Public Hearings and based on all information known by the City Council, hereby makes the following findings: 2.1 Petition and Boundaries. (a) The current boundaries of the Tourism PID consist of noncontiguous areas authorized under Section 372.0035 of the Act consisting solely of hotel properties with 100 or more rooms ordinarily used for sleeping within the City of Fort Worth. The Iists of the original and additional hotels that are included within the boundaries of the Tourism PID are included in the Establishing Resolution and Expansion Resolutions, respectively. (b) As set forth in the Recitals above, the Act allows the City Council to include additional properties in the Tourism PID if the required elements are satisfied. As evidenced below, the hotel property set forth in Exhibit °` which is attached hereto and incorporated herein for all purposes ("Additional Hotel Property"), meets the necessary elements for inclusion into the Tourism PID. (i) The Additional Hotel Property to be included in the Tourism PID as part of this Resolution is a hotel property. (ii) A sufficient number of record owners of the real property currently included and proposed to be included in the Tourism PID have consented to be included in the Tourism PID by signing the original petition to establish the Tourism PID or by signing a petition or written consent to include property in the Tourism PID. Specifically, the number of consenting record owners exceeds the thresholds required by the Act, which is evidenced by the following: (1) 80.54% of appraised value of taxable real property liable for assessment, (2) 66.67% of record owners of taxable real property liable for assessment, and (3) 69.63% for the area of all taxable real property liable for assessment. 2.2 .Advisability and Feasibility of the Improvements and Services Proposed for the Tourism PID. It is advisable to expand the Tourism PID to include the Additional Hotel Property to provide the proposed improvements and services described in the Petition and this Resolution. The improvements and services will promote the interests of the City and confer a special benefit on the assessed properties within the Tourism PID. The Fort Worth Convention and Visitor's Bureau staff performed' an analysis of the Tourism PID, its service plan and strategies, and concluded that it provides a very effective means for significantly enhancing the ability of Fort Worth to promote its hotel, convention, and tourism activity, which has been borne out since the Tourism PID's establishment. Based on this analysis and the successful history of the Tourism PID, the City finds the proposed tourism public improvement district to be both advisable and feasible. 2.3 Nature of the Improvements and Services. The general nature of the proposed improvements and services to be provided within the expanded boundaries of Tourism PID include, without limitation, marketing, business recruitment, and promotional activities authorized by the Act for improvements and promotion of the Tourism PID, including, but not limited to, the provision of incentives by the Fort Worth Convention and Visitors Bureau to organizations to encourage them to bring large and city-wide events (including, without limitation, meetings, sporting, recreation, and cultural events) to Fort Worth and to fund additional marketing by the Fort Worth Convention and Visitors Bureau to increase hotel stays within the City. 2.4 Estimated Cost of the Improvements and Services. Over the four (4) year period beginning on October 1, 2023 and ending on the expiration of the Tourism PID as provided in Section 3, the estimated total cost of the improvements and services to be provided by the Tourism PID will be $29,810,000.00, which includes an estimated cost of $7,000,000.00 for the 2023-2024 fiscal year. For the 2024-2025 fiscal year, the estimated costs of the above -referenced improvements and services, and estimated costs to implement such improvements and services are: Incentives and Sales Efforts $3,782,675 Marketing and Research (Promotion/Advertising) $2, 570,750 Site Visits & Familiarization Tours $ 146,900 Cultural Enhancements through Marketing and Promotion of the Arts $550,875 Operations and Administration $2 93,800 City Administrative Fee $55,000 Total $7,400,000 On May 21, 2024, the City Council adopted the fiscal 2023-2024 budget and six- year service plan, the same being Ordinance No. 26928-05-2024. The inclusion of the Additional Hotel Property will not affect the adopted budget. Such costs will be paid from assessments levied in accordance with the Act. The six -year service plan proposed for the Tourism PID is attached hereto as "Exhibit B" ("Service Plan") and incorporated herein for all purposes. The Service Plan, budget, and assessment amount are subject to annual review and approval by the City Council. 2.5. Method of Assessment. The costs of the improvements and services will be funded from assessments levied on and collected from properties located in the Tourism PID that contain hotels of one hundred (100) or more guest rooms and that are subject to payment of City hotel occupancy taxes pursuant to Chapter 32, Article 11 of the City Code, as amended. The City will levy a special assessment against the new hotel property located within the expanded boundaries of the Tourism PID ("Hotel Parcel") in an amount equal to two percent (2%) of the consideration received for occupancy of any sleeping rooms furnished by the new hotel on the Hotel Parcel (subject to any lawful exemption of the hotel occupancy tax under applicable state law and City ordinances), with such assessments to be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code, as amended. The collection of assessments will begin on the earliest date allowed by the Act and continue to be collected at the same time hotel occupancy taxes are collected. The City Council hereby finds that the proposed method of assessment is reasonable and necessary. 3.6. Apportionment of Costs Between the Tourism PID and the City, as a Whole. The apportionment of costs between the Tourism PID, inclusive of the Additional Hotel Property, and the City, as a whole, is as follows: (a) The entire cost of each improvement and service will be paid from assessments levied in accordance with the Act. (b) No City funds will be used to pay any portion of the cost of any improvement or service, unless such funding is approved from the City Council or other appropriate municipal authority on a case -by -case basis. 3. h( ,Rion of Additiopaj Hotel Property within the Tourism PW: Term. Based on the findings set forth above, the City Council authorizes the expansion of the boundaries of the Tourism PID to include the Additional Hotel Property. The inclusion of the Additional Hotel Property within the Tourism PID takes effect on the date on which this Resolution is adopted by the City Council and will expire concurrently with the expiration date set forth in Section 3 of the Establishing Resolution. The expansion of the Tourism PID is subject to all conditions, limitations, and reservations set forth in the findings in Sections 1 and 2. All other provisions of this Resolution will be effective from and after adoption of this Resolution. 4. Advisory Bodv. The City Council hereby declines to appoint an advisory body for the expanded Tourism PID boundaries pursuant to Section 372.008 of the Act. The City Council hereby reserves the right to assign responsibility for preparation of the ongoing service plan for the PID to another entity in the absence of such an advisory body, as authorized by Section 372.013(a) of the Act. ADOPTED this 27' d a y of August, 2024. ATTEST: Jannette S. Goodall, City Secretary EXHIBIT A Expanded Boundaries of the Tourism PID (Additional Hotel Property) Account Name Address City, State, Zip RMS Avid Hotel -Trinity Uptown 320 Samuels Ave. Fort Worth, TX 240 76107 EXHIBIT B Service Plan City of Fort Worth Three Year Service Plan Public Improvement district No.18 - Tourism PY24126 FY25122G FY2627 REVENUES PIDAssessments S 7,400,000 S 7.770,000 S 8,160,000 Total Funds Available for Use $ 7.400,000 $ 7,7701000 $ 8,160.000 EXPENSES Incentives & Sales Efforts $ 3,782,675 $ 3,973,225 $ 4.174,075 Marketing and Research (Promotion/Advertising) 2,570,750 2,700,250 2,836,750 SiteVsits & Familiarization Tours 146,900 154,$00 162,100 Cultural Enhancements through Marketing and promotion of the Arts 550,875 578,625 607,875 Operations &Administration 293,800 308.600 324,200 C1tyAdministrativeFee 65,000 55,000 55,000 Total Budgeted Expenses $ 7.400,000 $ 7.770,000 $ 6.160.000 Contribution to Fund Balance - _ Total Expanses $ 7A00,000 $ 7,770.000 $ 8,160.000 Net Change in Fund Balance- FundBalance,Beginning of Yea,Esflmated 4618,056 6,516,056 6,516,056 Estimated Fund Balance, End of Year 6,616.056 6,516,056 6,516,056 Reserve Requirement 1.295,259 1.360.272 1,360,272 Over (Linder) Reserve $ 5,220.797 $ 5.155.784 $ 5.155,784 Tourism PID Hotels Updated as of 8.27.2024 Account Name Address City, State, Zip RMS AC Hotel Fort Worth - Downtown 610 Main St Fort Worth, TX 76102 252 Aloft Downtown Fort Worth 300 Throckmorton Fort Worth, TX 76102 180 American Airlines Training and Conference Center 4601 State Hwy 360 Fort Worth, TX 76155 299 Autograph Collection Downtown Fort Worth 512 Main St. Fort Worth, TX 76102 165 * Avid Hotel 320 Samuels Ave. Fort Worth, TX 76102 104 (Bowie House 3700 Camp Bowie Blvd. Fort Worth, TX 76107 106 Budget Suites of America - Fossil Creek 3500 NE Loop 820 Fort Worth, TX 76137 366 ICandlewood Suites - DFW South 4200 Reggis Drive Fort Worth, TX 76155 174 Courtyard by Marriott - Alliance 3001 Amador Dr. Fort Worth, TX 76244 127 Courtyard by Marfiott -Blackstone 609 Main Street Fort Worth, TX 76102 203 Sonest Select (Previously Courtyard byMardott- Fossil 3751 NE Loop 820 Fort Worth, TX 76137 154 Creek) Courtyard by Marriott - Stockyards 2537 Main St. Fort Worth, TX 76164 124 Courtyard by Marriott - University Drive 3150 Riverfronl Fort Worth, TX 76107 130 Courtyard by Marriott - West at Cityview 6400 Overton Ridge Boulevard Fort Worth, TX 76132 104 Dalworth Inn 812 E. Felix Street Fort Worth, TX 76115 120 1DFW Airport Marriott South 4151 Centreport Boulevard Fort Worth, TX 76155 295 iDFW Marriott Hotel and Golf Club at Champions Circle 3300 Championship Pkwy Fort Worth, TX 76177 286 Embassy Suites Hotel - Downtown Fart Worth 600 Commerce Street Fort Worth, TX 76102 156 Extended Stay America - City View 5065 Bryant Irvin Rd Fort Worth, TX 76132 104 Fairfield Inn & Suites Downtown 1010 Houston Fort Worth, TX 76102 110 Fairfield Inn & Suites Fossil Creek 3701 NE Loop 820 Fort Worth, TX 76137 106 Four Points by Sheraton Fort Worth 6828 North Freeway Fort Worth, TX 76137 113 (Hampton Inn and Suites - West11-30 2700 Green Oaks Fort Worth, TX 76116 105 (Hampton Inn and Suites - DFW South 4201 Reggis Court Fort Worth, TX 76155 116 (Hampton Inn and Suites Downtown Fort Worth 1001 Commerce St. Fort Worth, TX 76102 245 (Hilton Fort Worth 815 Main Street Fort Worth, TX 761102 294 Hilton Garden Inn - Fort Worth Alliance Airport I2600 Westport Parkway I Fort Worth, TX 76177 I127 Hilton Garden Inn -Medical Center 912 Northton Street Fort Worth, TX 76104 157 Holiday Inn - DFW Airport South 14320 Centre Station Road Fort Worth, TX 76155 143 Holiday Inn Express - Downtown 1111 W Lancaster Fort Worth, TX 76102 132 Holiday Inn North - Fossil Creek 4635 Gemini Place Fort Worth, TX 76106 126 Home2 Suites by Hilton - Cultural District 3000 & 3012 W Lancaster Ave Fort Worth, TX 76107 114 Homewood Suites - Fossil Creek 3701 Tanacross Fort Worth, TX 76137 137 Homewood Suites - Medical Center 2200 Charlie Lane Fort Worth, TX 76104 157 Hotel Drover, Autograph Collection 200 Mule Alley Drive Fort Worth, TX 76164 200 i Hyatt Place - Alliance Town Center 3201 Alliance Town Center Fort Worth, TX 76177 130 1 Hyatt Place - Cityview 5900 Cityview Street Port Worth, TX 76132 127 Hyatt Place - Stockyards 132 E Exchange FortWorth, TX 76164 100 Hyatt Place - TCU 2500 West Berry Street Fort Worth, TX 76109 127 Kmpton Hotel 714 Main St Fort Worth, TX 76102 232 La Quinta Inn and Suites - Fort Worth North 2501 Polaris Dr Fort Worth, TX 76137 133 La Quinta Inn and Suites - Southwest 6100 Overton Ridge Fort Worth, TX 76132 128 Omni Fort Worth Hotel 1300 Houston Fort Worth, TX 76102 614 Quality Inn and Suites - Cattle Baron 2700 S Cherry Lane Fort Worth, TX 76116 109 Holiday Inn (Previously-Radisson - Fort Worth South Hotel) 100 Alta Mesa East Fort Worth, TX 76134 247 Radisson Hotel - Fort Worth Fossil Creek 2540 Meacham Street Fort Worth, TX 76106 247 (Residence Inn - Alliance Airport 13400 North Freeway Fort Worth, TX 76177 111 (Residence Inn - Cultural District 2500 Museum Way Fort Worth, TX 76107 150 (Residence Inn - Fossil Creek 5801 Sandshell Drive Fort Worth, TX 76137 114 (Residence Inn -Waterside 5825 Arbodawn Drive Fort Worth, TX 76109 119 (Sandman Signature Hotel 810 Houston Street Fort Worth, TX 76102 240 Sheraton Fort Worth Hotel and Spa 1601 Commerce Street Fort Worth, TX 76102 429 SpringHill Suites by Marriott - Stockyards 2315 N Main St FortWorth, TX 76164 170 SpringHill Suites by Marriott - University 3250 Lovell Street Fort Worth, TX 76107 145 ITownePlace Suites Downtown 801 E Belknap Fort Worth, TX 76102 140 ITownePlace Suites University 3450 W Vickery Fort Worth, TX 76107 128 WoodSpring Suites Fort Worth 3501 NE Loop 820 Fort Worth, TX 76137 121 Worthington Renaissance Hotel 200 Main Street Fort Worth, TX 76102 504 Total U of Hotels: 58 • New Hotel Addition Petition TAD ROLL Received TAD AccountNulrlbe pr©party Address 0111, 1 Total Appraised Total Taxable New Ccanstructi� otal Acres MARRIOTT AC HOTEL 00005193 601 HOUSTON ST IS FW HOTEL LLC 16,750,00C 16,250,000 0.115 MARRIOTT AC HOTEL Y 0657870S 610 MAIN ST 1S FW HOTEL LLC 16,250,000 16,250,D00 0 0.115 AMERICAN AIRLINES TRAINING AND CONE CE Y 05978.130 450D AMERICAN BLVD AMERICAN AIRLINES INC 240,000,ODO 240,000,000 45 44.860 SINCLAIR AUTOGRAPH COLLECTION HOTEL TWAIN GL XIII '.LC SINCLMR HOTEL BUDGET SUITES CANDLEWOOD SUITES COURTYARD MARRIOT COURTYARD BY MARRIOT DOWNTOWN FT WORTH BLACKSTONE COURTYARD BY MARRIOT DOWNTOWN FT WORTH BLACK57ONE COURTYARD BY MARRIOTT PC' COURTYARD BY MARRIOT COURTYARD BY MARRIOTT FW COURTYARD BY MARRIOT DALLAS NORTH INN MARRIOTT DEW AIRPORT SOUTH DEW MARRIOTT HOTEL AND GOLF CLUB AT CHAMPIONSHIP CIRCLE EMBASSY SUITES BY HILTON DOWNTOWN FORT WORTH EXTENDED STAY AMERICA EXTENDED STAY AMERICA DOWNTOWN FAIRFIELD INN AND SUITES FAIRFIELD INN FOUR POINTS BY SHERATON FORTWORTH HAMPTON INN & SUITES DOWNTOWN HAMPTON INN AND SUITES HAMPTON INN & SUITES HILTON FORT WORTH HILTON FORT WORTH HILTON FORT WORTH HILTON FORT WORTH HILTON GARDEN HILTON GARDEN INN HIL70N GARDEN INN HOLIDAY INN HOLIDAY INN EXPRESS HOLIDAY INN HOME 2 SUITES BY HILTON HOME 2 SUITES BY HILTON HOMEWOOD SUITES HOMEWOOD SUITES HOTEL DROVER MARRIOTT HYATT PLACE (PCTC 2020) HYATT PLACE HYATT PLACE STOCKYARDS HOTEL HYATT PLACE TCU KIMPTON HARPER HOTEL KIMPTON HARPER HOTEL KIMPTON HARPER HOTEL LA QUINTA INN LA QUINTA INN LA QUINTA INN Y 42706948 MAIN 5T SINCLAIR HOLDINGS LLC 28,000,000 28,000,000 0 0.000 Y 00004532 512 MAIN ST TWAIN GLXIII LLC 675,000 675,000 0 0.172 N 07408749 350D NE LOOP 820 DESERT PINES ASSOC 14,692,000 14,692,000 7 6.968 N 41170903 4200 REGG15 CT FOUR2NINE HOLDINGS LLC 11,273,456 11,273,496 4 4,281 Y 42040025 3001 AMADOR DR ATX HOTEL NO. 1 LTD 13,400,0DO 13,400,DOO 4 3.993 Y 04659287 609 MAIN ST SUMMIT HOSPITALITY 140 LLC 1,000,000 1,000,000 0 0.230 Y 04659295 601 MAIN ST SUMMIT HOSPITALITY 140 LLC 22,5DO,000 22,500,000 0 0,230 Y 06887201 3751 NE LOOP 820 AJNM F0551L CREEK LLC 6,000,000 6,000,000 3 3.433 Y 41720091 2537 N MAIN 57 APPLE NINE HOSPITALITY OWNER! 16,750,000 16,750,000 2 2,210 Y 06287158 3150 RIVERFRONT DR CM6=GROUND (MULTI) LLC 12,967,054 12,957,054 4 1977 Y 41331S67 6400 OVERTON RIDGE BLVE FW WEST HOTEL LP 8,7DO,D00 8,,700,000 3 3,012 N 02865254 812 E FELIX 5T ONE SAE LLC 1,430,000 1,430,000 3 2.882 N 07323476 4151 CENTREPORTDR CP DEW AIRPORT LLC 47,000,000 47,000,000 9 8.531 O'REILLY HOTEL PARTNERS - Y 220283 3300 CHAMPIONSHIP PKWI CHAMPOINS CIRC 27,204,947 27,2D4,947 O 14.340 Y 04659309 600 COMMERCE ST AVR FORT WORTH HOTEL LLC 25,S75,245 25,575,245 0 0.459 N 07245203 5065 BRYANT IRVIN RD 6D92 CITY VIEW FT WORTH TX. HO' 4,597,265 4,S87,265 3 3.123 N 07245211 5065 BRYANT IRVIN RD 6092 CITY VIEW FT WORTH TX HO: 27,279 27,279 0 0.060 Y 42234695 1010 HOUSTON ST M2 FORT WORTH DOWNTOWN LL 9,721,870 8,721,870 1 0.588 Y 06964702 3701 NE LOOP 820 MDT286INC 7,340,029 7,340,029 2 2.004 Y 42011670 6828 NORTH FWY AJNM INVESTMENT LLC 8,000,000 €3,D00,000 2 1.999 N 4117D962 4201 REGGIS CT AIRPORT SOUTH HOTELS LP 9,868,000 9,868,000 3 2.862 N 00005959 1001 COMMERCE ST FORT WORTH DOWNTOWN LODG 32,013,988 32,013,988 1 0.918 Y 07217021 2700 GREEN OAKS RD GREEN OAKS HOSPITALITY LLC 7,564,341 7,564,341 2 2.094 Y 00005711 81S MAIN ST NEW FORT TOWER I HOTEL LTD 35,597,567 35,597,567 1. 0.689 Y 06769543 815 MAIN ST ELIZABETH JEAN VOSS FAMILY TRL 900,ODO 900,D00 0 0.230 Y 06769667 918 COMMERCE ST FORT TOWER 1 ASSOC HOTEL L P 300,000 300,000 0 0.000 Y 0676967S 816 MAIN ST FORT TOWER i ASSOC HOTEL L P 275,000 275,000 0 0.000 N 41540883 912 NORTHTON 5T APPLE HOSPITALITY FTW NORTH El 18,430,000 18,43D,000 2 1.505 N 41483073 26DO WESTPORT PKWY JMR ALLIANCE GROUP LP 10,814,000 10,814,000 5 4.809 N 41499018 2600 WESTPORTPKWY JMR ALLIANCE GROUP LP 68,932 68,932 0 0.211 N 41170911 14320 CENTRE STATION DR FOUR2NINE HOLDINGS LLC 10,265,000 10,265,000 3 1991 Y 41595408 1111 W LANCASTER AVE PINNACLE MISSION VALLEY LP 12,225,000 22,225,000 1 D.942 N 41184475 4635 GEMINI Pl. DEW HOTEL GROUP LLC 6,250,000 6,250,000 3 2.500 Y 03254127 3000 W LANCASTER AVE BCH FORT WORTH PARTNERS LLC 975,000 975,D00 0 0,449 Y 03254151 3012 W LANCASTER AVE BCH FORT WORTH PARTNERS LLC 20,055,770 20,055,770 1 0.770 N D7039778 3701 TANACROSS DR N EWCRESTI MAGE CAPITAL VI LLC 7,078,DOO 7,078,000 3 3.345 N 41595378 2200CHARLIE LN APPLE HOSPITALITY FTW CHARLIE 12,300,000 12,300,000 1 1.425 Y 42544481 200 MULE ALLEY DR STOCKYARD STATION HOTEL II LLC 107,782,288 107,782,288 3 3.187 Y 42064391 3201 ALLIANCE TOWN CEN' MOON HOTEL ALLIANCE INVESTM 11,267,296 11,267,296 3 3.444 Y 07031963 5900 CITYVIEW BLVD CITYVI EW HOSPITALITY LLC 9,300,D00 9,300,000 3 2.715 Y 40617823 132 E EXCHANGE AVE STOCKYARDS STATION HOTEL LP 17,700,000 17,700,000 2 2,430 Y 42551691 2500 W BERRY ST TEXAS CHRISTIAN UNIVERSITY 28,118,000 28,118,000 3 3.420 Y DOW5517 714 MAIN ST FORT WORTH CITY OF 904,950 - 0 0.231 Y MAIN ST 714 MAIN REAL ESTATE HOLDING.' 2%861,965 29,861,965 0 0.000 Y MAIN 5T 714 MAIN REAL ESTATE HOLDING` 9DD,D00 - 0 0.231 Y 06890687 2501 POLARIS DR TRINITY HOTEL LLC 8,669,198 8,669,188 2 2.471 Y 06890695 4750NORTH FWY TRINITY HOTEL LLC 13,812 13812 0 0.453 Y D6929699 6100 OVERTON RIDGE RLV[ P&R HOTELS LLC 4,591,047 4,591,047 2 1.542 LA QUINTA INN Y 06929702 61000V€RTON RIDGE BLVC P&R HOTELS LLC 3,935,587 3,935,597 2 1.651. OMNI CONVENTION HOTEL Y 41389336 1300 HOUSTON ST # 1DO OMNI FORT WORTH PARTNERSHIF 4,600,000 4,600,000 2 2112 OMNI CONVENTION HOTEL Y 41389360 1300 HOUSTON ST # 140 OMNI FORT WORTH PARTNERSHIF 136,228,366 136,228,366 0 0.000 ONE CITY PLACE Y 42192739 300THROCKMORTON ST CPAL180 LLC 24,500,000 24,500,DDO 0 0.000 ONE CITY PLACE Y 42192747 300 THROCKMORTON ST SREP-OCPFWTX LLC 24,000,000 24,000,000 0 0. DOD QUALITY INN AND SUITES N 06151973 2700 CHERRY LN SAI FORT WORTH HOTEL LLC 3,678,000 3,678,000 2 2.120 RADDISSON Y 049013982540 MEACHAM BLVD FWRFC LLC 14,487,000 14,487,D00 6 6.253 THE OLIVE HOTEL Y 04977203 100 E ALTAMESA BLVD MOMENTUM FORT WORTH INVES 11,561,000 11,561,000 7 7.000 MARRIOT RESIDENCE INN N 40739449 2500 MUSEUM WAY VARICK 2 LLC 15,968,266 15,968,266 2 2.371 RESIDENCE INN FORT WORTH ALLIANCE AIRPORT N 07120826 13400 NORTH FWY ALLIANCE HOTEL 11 LTD 9,000,000 9,000,D00 3 2.500 RESIDENCE INN BY MARRIOTT FC N 06819703 5801 SANDSHELL DR HPTMI PROPERTIESTRU5T 8,300,000 8,300,000 3 21908 RESIDENCE INN WATERSIDE Y 42052964 5825 ARBORLAWN DR FORT WORTH WATERSIDE L00GIN 16,800,000 16,800,000 3 2.971 SANDMAN SIGNATURE HOTEL Y 40735877 810 HOUSTON ST NORTHLAND DEVELOPMENTS] 25,941,709 25,941,709 1 0.918 SHERATON FW DOWNTON Y 00685755 1601 COMMERCE ST 1701 COMMERCE ACQUISITION LL 31,200,000 31,200,000 2 2.102 SPRINGHILL SUITES Y 00825433 2315 N MAIN ST OGC MAIN STREET LP 28,149,581 28,149,581 3 3.274 SPRINGHILL SUITES MARRIOT Y 07929463 3250 LOVELL AVE SHS FORT WORTH LLC 10,262,000 10,262,000 2 2.372 MARRIOTFTOWNEPLACE SUITES N 41475933 801 E BELKNAP ST APPLE NINE HOSPITALITY OWNER.' 11,449,075 11,449,075 2 1.987 TOWN PLACE SUITES Y 42126752 34SO W VICKERY BLVD M2 FORT WORTH UNIVERSITY LLC 10,600,000 10,600,000 2 1.851 WOODSPRINGS SUITES N 41185153 3501 NE LOOP 920 FOSSIL CREEK WS5 LLC 4,887,157 4,887,157 2 1.681 WORTHINGTON HOTEL Y 07355998 2DO MAIN ST DRH WORTHINGTON OWNER LP 93,160,000 83,160,000 3 3.122 BOWIE HOUSE HOTEL Y 43101979 3700 CAMP BOWIE BLVD BOWIE PLACE PROPERTIES LLC - 0 1.3160 BOWIE HOUSE HOTEL Y 43101987 37DO CAMP BOWIE BLVD BOWIE PLACE PROPERTIES LLC - 0 0.000 AVID HOTEL Y 41678176 320 SAMU€LS AVE TRINITY BLUFF HOSPITALITY LLC 8,108,779 8108779 1 1.484 Value % Land/ Area % N of Properties % Total 1,429,249,849 100% 207.102 58 1 60% 857,549,909 60% 121.2612 60% 34.8 60% Confirmed 1,189,869,391 83..25% 142.1235 70.32% 39 67.24 Unconfirmed 239,380,458 16.75% 59.978 30% 19 33% City of Fort Worth Three Year Service Plan Public Improvement District No. 18 - Tourism FY24125 FY25126 FY26127 REVENUES PIS Assessments $ 7,400,000 $ 7,770,000 $ 8,160,000 Total Funds Available for Use $ 7,400,000 $ 7,770,000 $ 8,160,000 EXPENSES Incentives & Sales Efforts $ 3,782,675 $ 3,973,225 $ 4,174,075 Marketing and Research (Promotion/ Advertising) 2,570,750 2,700,250 2,836,750 Site Visits & Familiarization Tours 146,900 154,300 162,100 Cultural Enhancements through Marketing and promotion of the Arts 550,875 578,625 607,875 Operations &Administration 293,800 308,600 324,200 City Administrative Fee 55,000 55,000 55,000 Total Budgeted Expenses $ 7,400,000 $ 7,770,000 $ 8,160,000 Contribution to Fund Balance - - - Total Expenses $ 7,400,000 $ 7,770,000 $ 8,160,000 Net Change in Fund Balance $ - $ - $ - Fund Balance, Beginning of Year Estimated 6,516,056 6,516,056 6,516,056 Estimated Fund Balance, End of Year 6,516,056 6,516,056 6,516,056 Reserve Requirement 1,295,259 1,360,272 1,360,272 Over (Under) Reserve $ 5,220,797 $ 5,155,784 $ 5,155,784 FoRTWORTH. NOTICE OF PUBLIC HEARING Re: Notice of Public Hearings Regarding the Proposed Expansion of Fort Worth Public Improvement District No. 18 (Tourism PID), along with the Proposed Budget, Alan of Service, and Levy of Assessment on Properties within the Tourism PID for Fiscal Year 2024.2025 Pursuant to Sections 372.009 and 372.016, of the Texas Local Government Code, as amended, ( Code') notice is given that the City Council ('City Ceunoii') of the City of Fort Worth, Texas ('City) will conduct a public hearing to consider (1) the expansion of Fort Worth Public Improvement District No. 18 (Tourism PID ('PID') and (2) the proposed budget, plan of service, and levy of assessments on property within the PID to pay for certain Improvements and/or services therein. The City Council will hold two public hearings to consider the expansion of the AID, the proposed budget, plan of service, and levy of assessments against property within the PID, which writ be held during the regular City Council meetings on Tuesday, August 27, 2024, beginning at 10:00 am and Tuesday, September 17, 2024, beginning at 6:00 pm In the City Council Chamber, City Hall, 200 Texas Street, Fort Worth, Texas. The City Council is expected to take final action and vote on the expansion, budget, plan of service, and levy of assessments following the close of the second public hearing on September 17, 2024; however, the City Council may continue such action to a subsequent meeting. All persons owning property that are liable for assessment located within the PID are invited to be heard concerning the proposed Improvements aridlor services, the benefits to the property because of the proposed improvements and/or services, and any other matter to which they are entitled to be heard pursuant to the Code. All interested persons will be given an opportunity to appear . and be heard at such public hearings. Written and oral objections will be considered at the hearings. If you would like to speak at the public hearings, you must sign up prior to 8:00 am on August 27, 2024 to speak at the first hearing and prior to 4:00 pm on September 17, 2024 to speak at the second hearing, (I) online at httpsllfortworthgov.legistar.comlCerenderaspx by clicking on the applicable agenda item, (d) by email at esoadmin@fortwarthtexas.gov, or (iii) by phone at (817) 392-0150. If a speaker wishes to use electronic media, the deadline to submit media is 5:00 pm the day before the applicable meeting. NOTE: YOU DO NOT HAVE TO BE PRESENT AT THE CITY COUNCIL MEETING TO SPEAK AT THE PUBLIC HEARING. IF YOU WANT SPEAK REMOTELY, YOU MAY DO SO BY SIGNINt, uM r u brer.K THROUGH THE ABOVE -STATED METHODS. There is no requirement that any property owners attend or speak at the public hearings. You can submit any written objections or concerns about the PID to the contact listed at the bottom of this notice, which should be submitted prier to the date of the applicable hearing to ensure adequate time for written comments to be recelved and dlstrlbuted for proper consideration. The subject of the public hearings will include the following matters: 1. The advisability of expanding the PID to include an additional hotel In order to provide the proposed Improvements and services set forth below and described in the petitions, which are on file at the Office of the City Secretary at City Hall, ' 100 FartWorth Trail, Fort Worth, Texas. The proposed improvements and/or services set forth below and, in the petitions, will promote the interest of the City and confer a special benefit on the assessed properties within the PID. 2. The general nature of the proposed Improvements and/or services to be provided in the PID Include, without limitation, the follewtng: marketing, business recrultment, and promotional activities authorized by the Code for Improvements and promotion of the PID, Including, but not limited to, the provision of incentives to organizations to encourage them to bring large and city-wide events (ncluding, without [limitation, meetings, sporting, recreation, and cultural events) to Fart Worth and to fund additional marketing to increase hotel stays within the City ("Proposed Improvements'). 3. A preliminary estimate of the cost of the Proposed improvements to be provided In the PID during fiscal year 2024-2025 is - as follows: FY 2024-2025 BUDGET Incentive & Sales Efforts $3,782,675.00 Marketing and Research $2,570,750.00 Site Visits & Familiarization Tours $146,900.00 Cultural Enhancements through Marketing and $550,875.00 Promotion of the Arts Operations and Administration $293,800.00 City Administrative Fee $55.000.00 Total Expenses $7,400,000.00 4. The current boundaries of the PID consist of noncontiguous areas authorized under Subchapter 372.0035 of the Code consisting solely of hotel properties with 100 or more rooms ordinarily used for sleeping within the City of Fort Worth and subject to assessment per Resolution Nos. 4837-08-2017, 5264-08-2020, 5382-04-2021, 5467-08-2021, 55614)42022 and 5858.05.2024. Copies of the resolutions and subsequent assessment orders are on file In the Cily Secretary% Office, City Hall, 100 Fort Wortit Trall, Fort Worth, Texas 76102. 5. Expanded Boundaries: Section 372.0121 of the Code allows the City Council to include property In the PID after the establishment of the PID If (1) the property is a hotel and (it) a sufficient number of the record owners of the real property currently Included and proposed to be included In the PID have consented to be included in the PID by signing the original petition to establish the PID or by signing a petition or written consent to Include property in the PID. The following property meets the requirements of the Code and, therefore, is being considered for Inclusion in the PID: e. Avid Hotel —Trinity Uptown, 320 Samuels Ave, Fort Werth, TX 76102 6. The City will net be obligated to provide any funds to finance the proposed Improvements and/or services, other than from assessments levied on property in the PID. All of the costs of the PID will be paid on the property within the PID and from other sources of funds, If any, available to the PI D. 7. The apportionment of costs for the proposed improvements andlor services will be made on the basis of special benefits accruing to the PID and will be levied an the hotel properties within the PID at a rate of 2% of the consideration received from occupancy of any sleeping room furnished by hotels within the PID. This methodology imposes equal shares of the cost on property similarly benefitted. S. The proposed assessment roll providing for the costs of the Proposed Improvements to be assessed, levied, and apportioned against the property within the PID, and the owner or owners thereof, Is on file at the office the City Secretary at City Hall, 100 Fort Worth Trait, Fort Worth, Texas. For further information, please contact Lacey Ruiz, Public Improvement District Administrator, at (817) 392- 2608 or via email at lecay.rulz@fortworthtexas.gov. For information about PID 18 — Tourism, please contact the PID Manager, Bob Jameson, at (817) 698-7822 or via email at Bob,lameson@FortWorth.com. You can also visit their webslte at forMorth.com. "• Si neceslta esta cans an Espadol, porfavor flamar al (817) 392.6021. "` City of Fort Worth, Texas Mayor and Council Communication DATE: 08/27/24 M&C FILE NUMBER: M&C 24.0728 LOG NAME: 17ED PID18FY25 EXPAND SUBJECT (ALL) Conduct Public Benefit Hearing Concerning the Expansion of Fort Worth Public Improvement District No. 18 - Tourism to Include One Additional Hotel Property; Find for the Sufficiency of the Attached Petition Requesting Expansion of the Fort Worth Public Improvement District 18 —Tourism; and Adopt the Resolution Authorizing and Expanding the Fort Worth Public Improvement District No. 18 -Tourism to Include the Additional Hotel Property (PUBLIC HEARING - a. Report of City Staff. Lacey Ruiz; b. Public Comment; c. Council Action: Close Public Hearing and Act on the M&C) RECOMMENDATION: It is recommended that the City Council: 1. Conduct a public benefit hearing concerning the expansion of the Fort Worth Public Improvement District 18 —Tourism to include one additional hotel property; 2. Find that the attached petition requesting inclusion into the Fort Worth Public Improvement District 18 — Tourism meets the requirements set forth in Chapter 372 of the Texas Local Government Code; 3. Adopt the attached Resolution: (i) mWng certain findings concerning the nature and advisability of special improvements and services to be provided for the benefit of the additional hotel to be included in the Fort Worth Public Improvement District 18 --Tourism, the estimated costs of such improvements and services, the method of assessment, the boundaries of the Fort Worth Public Improvement District 18 — Tourism, and the apportionment of costs between the Fort Worth Public Improvement District 18 — Tourism and the City, as a whole, and (ii) authorizing and expanding the Fort Worth Public Improvement District 18 -- Tourism to include one (1) additional hotel; and 4. Direct the City Secretary to publish notice of the expansion of the Fort Worth Public Improvement District 18 — Tourism as required by Chapter 372 of the Texas Local Government Code. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to expand the boundaries of Fort Worth Public Improvement District 18 - Tourism (Tourism PID) through the inclusion of one (1) additional hotel property. On August29, 2017, the City Council adopted Resolution No. 4837-08-2017, establishing the Tourism PID (Establishing Resolution). The City Council subsequently adopted Resolution Nos. 5264-08-2020 (August 18, 2020), 5382-04-2021 (April 13, 2021) and 5958-05 2024 (May 14,2024) expanding the boundaries of the Tourism PID to include additional hotel properties (Expansion Resolutions). Expansion of the Tourism PID Boundaries and Petition: The current boundaries of the Tourism PID consist of noncontiguous areas authorized under Section 372.0035 of the Texas Local Government Code (Code) consisting solely of hotel properties with 100 or more rooms ordinarily used for sleeping within the City of Fort Worth. A list of the hotels that are included within the boundaries of the Tourism PID is included in the Original and Expansion Resolutions and attached hereto. Senate Bill (SB) 804, 87th Texas Legislature (2021), which went into effect on June 14, 2021, revised Section 372.0121 of the Code to clarify the ability of cities to add new hotels into an existing Tourism PID. One of the new provisions affects the way in which the City calculates (or recalculates) the percentage threshold for adding new hotels into the Tourism PID. SB 804 requires the City to update and recalculate each of the percentage thresholds set forth below every time a new hotel property is added to the Tourism PID. Conversely, the prior version of Section 372.0121 only required the City to calculate the impact that the new hotel property had on the pre-existing thresholds. For example, under SB 804, the City has to update and recalculate the appraised value of each and every existing property in the Tourism PID each time that a new hotel is added; whereas, under the prior legislation, the City simply carried forward the values of the existing hotel properties from the year the hotel properties entered into the Tourism PID. Section 372.0121, as revised, allows the City Council to include additional properties in the Tourism PID if (i) the property is a hotel and (4) a sufficient number of the record owners of the real property currently included and proposed to be included in the Tourism PID have consented to be included in the Tourism PID by signing the original petition to establish the district or by signing a petition cr written consent to include property in the Tourism PID. The number of consenting record owners is sufficient if (1) the record owners own more than 60% of appraised value of taxable real property liable for assessment in the Tourism PID; and either (i) constitute more than 60% of all record owners of taxable real property liable for assessment in the Tourism PID, or (ii) own, in aggregate, more than 60% of the area of all taxable real property liable for assessment in the Tourism PID. If the addition of the new properties results in these numbers dropping at or below the 60% threshold, then the properties may not be added. Inclusion of the Avid Hotel - Trinity Uptown (Avid Hotel), located at 320 Samuels Ave., Fort Worth, Texas 76102, meets the above -stated elements and, therefore, may be considered by the City Council for inclusion into the Tourism PID. First, the Avid Hotel is a hotel property. With regard to the second element, the property owner, or its duly authorized representatives, for the Avid Hotel, signed a petition requesting inclusion within the Tourism PID. This results in an increase from 80.54% to 83.25% of the appraised value of taxable real property liable for assessment, from 69.63% to 70.32% of the area of all taxable real property liable for assessment and from 66.67% to 67.24% of record owners liable for assessment. These figures remain above the statutory threshold of 60.00%, thereby meeting the required conditions for the adjustment of the Tourism PID's composition. Nature of the Improvements: The goals of the Tourism PID focus on increasing the economic impact and enhancing competitiveness in conventions, meetings, leisure and sports tourism and increasing tourism -related economic activity at all times, including during economic downturns and as inventory grows. The Tourism PID projects include incentives and sales efforts, convention and sports marketing and promotion, site visits and familiarization tours, community arts grants, convention services, event funding application, operations, research, and administration, all of which benefit the hotels within the Tourism PID. Method of and Apportionment of Costs: The assessment rate will be an amount equal to 2.00% of the consideration received from the occupancy of any sleeping room furnished by a hotel located within the Tourism PID, with such assessment to be collected in the same manner and in accordance with the same procedures as those established for the collection of the City's Hotel Occupancy Tax, as set forth in Chapter 32, Article II of the City Code, as amended. The entire costs of each improvement and service will be paid from the above -stated assessments and no City funds will be used to pay any portion of such costs unless such funding is approved by the City Council on a case -by -case basis. Estimated Costs of the Improvements and Services: The total estimated costs for the proposed services and improvements for the life of the Tourism PID (approximately three years) will be $23,330,000.00, which includes an estimated cost of $7,400,000.00 for the Fiscal Year 2024-2025 Budget. Assessments will begin on October 1, 2024. Advisability: Staff recommends that the City Council find that thesd h opi ,ue„ients and services are advisable because they will promote the interests of the City and confer a special benefit on the assessed properties within the expanded boundary of the Tourism PID. Upon the close of the public hearing, staff recommends that the City Council declare the petition to expand the Tourism PID to include the one additional hotel property to be sufficient and adopt the attached Resolution making findings concerning the following and expanding the Tourism PID: • The apportionment of costs between the Tourism PID and the City, as whole; • The proposed method of assessment; • TIir uAva„6zd boundaries of the Tourism PID; • The estimated costs of the proposed improvements and services; • The general nature of the proposed improvements and services; and • The advisability of expanding the Tourism PID. Upon adoption of the Resolution, the Sandman will be included within the boundaries of the Tourism PID, effective on the date that City Council's authorization to expand the Tourism PID has been published in a newspaper of general circulation and will expire on the date set forth in the Original Resolution. The City Council will hold two public hearings to consider the proposed budget, plan of service, and levy of assessments against property within the Tourism PID, which will be held during the regular City Council meetings on Tuesday, August 27, 2024 at 10:00 A.M., and Tuesday, September 17, 2024 at 6:00 P.M. The City Council is expected to take final action and vote on the proposed budget, plan of service, and levy of assessments following the close of the hearing on September 17, 2024. Notice of this public hearing was published in the Fat Worth Star -Telegram and mailed to the appropriate property owners on August 9, 2024, which complies with the notice requirements under the Act. These properties are located in ALL COUNCIL DISTRICTS. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION 1 CERTIFICATION: The Director of Finance certifies that approval of these recommendations will have no material effect on City funds. Submilted for City Manaaer"s Offices William Johnson 5806 Oricinatina Business Unit Head: Robert Stums 2663 Additional Information Contact; Lacey Ruiz 2608 Expedited ki AUTHORIZING 1 EXPANDING FORTi•PUBLIC IMPROVEMENT DISTRICT NO. i • PID) TO INCLUDE ADDITIONAL i 1 TAKING CERTAINOTHER ACTIONS CONCERNING DISTRICT WHEREAS, the Public Improvement District Assessment Act, Chapter 372 of the Texas Local Government Code ("Act") allows for the establishment of public improvement districts; WHEREAS, on August 24, 2017, the City Council adopted Resolution No. 4837-08-2017, establishing Fort Worth Public Improvement District 18 — Tourism ("Tourism PID") ("Establishing Resolution"); WHEREAS, on August 18, 2020, April 13, 2021, and September 14, 2021, the City Council adopted Resolution Nos. 5264-08-2020, 5382-04-2021, 5467-04-2021, respectively, expanding the boundaries of the Tourism PID ("Tourism PID") (Resolution Nos. 5264-08-2020, 5382-08-2021, and 5467-04-2021 are collectively referred to as the "Expansion Resolutions"); WHEREAS, Section 372.0121 of the Act, as amended by the 87th Texas Legislature (2021) through Senate Bill 804, allows the City Council to include additional properties in the Tourism PID if (i) the property is a hotel and (ii) a sufficient number of the record owners of the real property currently included and proposed to be included in the Tourism PID have consented to be included in the Tourism PID by signing the original petition to establish the Tourism PID or by signing a petition or written consent to include property in the Tourism PID, WHEREAS, the number of consenting record owners is sufficient if (1) the record owners own more than 60% of appraised value of taxable real property liable for assessment in the Tourism PID; and either (i) constitute more than 60% of all record owners of taxable real property liable for assessment in the Tourism PID, or (ii) own, in aggregate, more than 60% of the area of all taxable real property liable for assessment in the Tourism PID; WHEREAS, another expansion petition ("Petition") was submitted to the City of Fort Worth, Texas ("City"), pursuant to the Act, requesting to expand the Tourism PID boundaries to include an additional hotel property within the Tourism PID and has been on file in the office of the City Secretary for public inspection; WHEREAS, pursuant to Section 372.009 of the Act, the City provided notice and publication of two public hearings to be conducted on April 12, 2022 and April 26, 2022 to consider the expansion of the Tourism PID ("Public Hearings"), which notice and publication included the followings (i) time and place of the Public Hearings; (ii) generaI nature of the proposed improvements and services; (iii) estimated costs of the improvements and services; (iv) expanded boundaries of the Tourism PID; (v) proposed method of assessment; and (vi) proposed apportionment of cost between the additional hotel property in Tourism PID and the City; WHEREAS, notice of the Public Hearings was published on March 25, 2022 in the Fort Worth Star -Telegram, a newspaper of general circulation in the City, and was also mailed on March 25, 2022 to all record owners of property in the Tourism PID liable for assessment, and all persons desiring to be heard were given a full and fair opportunity to be heard at the Public Hearing; WHEREAS, the City Council conducted and adjourned the Public Hearing to consider the expansion of the Tourism PID; and NOW, THEREFORE, BE IT RESOLVEDTHE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: 1. Recitals. The findings set forth in the recitals of this Resolution are found to be true and correct. 2. Findings. The City Council, after duly considering the evidence and testimony presented at the Public Hearings and based on all information known by the City Council, hereby makes the following findings: 2.1 Petition and Boundaries. (a) The current boundaries of the Tourism PID consist of noncontiguous authorized i" in 372.0035 of the Act consisting solely of hotelproperties with 100 or orooms ordinarily used for sleeping within the City of Fort Worth. The lists of the original and additional hotels that are included within the boundaries of i PID are included• + Resolution and Exp. •,' Resolutions, • •, As setforth in the Recitals above, . allowsCouncil includeto additional propertiesf PID if the required satisfied.elements are As evidenced below, t property set Exhibitforth in i hereto and incorporated herein for • 'pi ("Additional Hotel Property"), necessary elements for inclusion into the Tourism■'D. (i) The Additional Hotel Property to be included in the Tourism PID as part of this Resolution is a hotel property. k sufficient numberof i i owners of property currently I'd and proposed o be included TourismPID have consented to be included in the Tourism PID by +' + the original petition•'Tourism PID or by signing a petition or written consent to include property in the TourismPID. Specifically,•` of • + _ • i __• _ • • • �, the Act, which is evidenced by the following: (1) 79.93% of appraised value of taxable real property liable for assessment, (2) 64•+ r of i• owners of a - real • if'`i . --ble forand for the arev of all taxable real property liable for assessment. Incentives and Sales Efforts $1,850,125 Marketing and Research (Promotion/Advertising) $1,363,250 Site Visits & Familiarization Tours $ 194,750 Cultural Enhancements through Marketing and Promotion of the Arts $292,125 Operations and Administration $194,750 City Administrative Fee $55,000 Total $3,950,000 On September, 21, 2022, the City Council adopted the fiscal 2021-2022 budget and six -year service plan, the same being Ordinance No. 25089-09-2021. The inclusion of the Additional Hotel Property will not affect the adopted budget. Such costs will be paid from assessments levied in accordance with the Act. The six -year service plan proposed for the Tourism PID is attached hereto as "Exhibit B" ("Service Plan") and incorporated herein for all purposes. The Service Plan, budget, and assessment amount are subject to annual review and approval by the City Council. 2.5. Method of Assessment. The costs of the improvements and services will be funded from assessments levied on and collected from properties located in the Tourism PID that contain hotels of one hundred (100) or more guest rooms and that are subject to payment of City hotel occupancy taxes pursuant to Chapter 32, Article II of the City Code, as amended. The City will levy a special assessment against the new hotel property located within the expanded boundaries of the Tourism PID ("Hotel Parcel") in an amount equal to two percent (2%) of the consideration received for occupancy of any sleeping rooms furnished by the new hotel on the Hotel Parcel (subject to any lawful exemption of the hotel occupancy tax under applicable state law and City ordinances), with such assessments to be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code, as amended. The collection of assessments will begin on the earliest date allowed by the Act and continue to be collected at the same time hotel occupancy taxes are collected. The City Council hereby finds that the proposed method of assessment is reasonable and necessary. 3.6. Apportionment of Costs Between the Tourism PID and the City, as a Whole. The apportionment of costs between the Tourism PID, inclusive of the Additional Hotel Property, and the City, as a whole, is as follows: (a) The entire cost of each improvement and service will be paid from assessments levied in accordance with the Act. (b) No City funds will be used to pay any portion of the cost of any improvement or service, unless such funding is approved from the City Council or other appropriate municipal authority on a case -by -case basis. L'IF111 11111 ''I'll! 11171TOMMM, Based on the findings set forth above, the City Council authorizes the expansion of the boundaries of the Tourism PID to include the Additional Hotel Property. The inclusion of the Additional Hotel Property within the Tourism PID takes effect on the date on which this Resolution is adopted by the City Council and will expire concurrently with the expiration date set forth in Section 3 of the Establishing Resolution. The expansion of the Tourism PID is subject to all conditions, limitations, and reservations set forth in the findings in Sections I and 2. All other provisions of this Resolution will be effective from and after adoption of this Resolution. The City Council hereby declines to appoint an advisory body for the expanded Tourism PI D boundaries pursuant to Section 372.008 of the Act. The City Council hereby reserves the right to assign responsibility for preparation of the ongoing service plan for the PID to another entity in the absence of such an advisory body, as authorized by Section 372.013(a) of the Act. M � EXHIBIT A Expanded Boundaries of f F" (Additional Hotel Property) Account Name Address Four Points by Sheraton Hotel 6828 North Freeway City, State, Zip Fort Worth, TX 76137 113 EXHIBIT B Service Plan City o1 Fort Worth Six Year Service Plan PtrDlic knprowment District No. 18 _ Tou nam FY21122 FY2223 FY2174 FY24" FY2528 FY26r27 REVENUES PID ASSeSSrnerr& $ 3,950,0OD $ 4,545,000 $ 4,562 850 $ 4,790,363 $ 4,958.026 $ 5,131,557 Total Funds AvaliaWs for Use S 1,950,000 S 4.US,000 S 4,502 M S 4,790,363 S 4,958,028 S S,131,557 EXPENSES L,K mtses & Sales Efforts $ 1,850,125 $ 2,037,750 $ 2,140,944 $ 2249,297 $ 2,328,937 $ Z411,385 Marketing and Research (Promotion Advertising) 1353,250 1,501,500 1,577,538 1,657,3T7 1,716,059 1,776,795 Site 15ats & Famriantaton Tours 194,750 214,500 225,363 236,766 245,151 253,626 Cultural EMw4enrcMa through Marketing and pronwtmr of the Arts 29ZI25 321,750 338,044 355,152 387,727 380J42 Gperataru & Adm mstration 194,750 214,S00 225,361 236,769 245,152 253,827 City Admudstatve Fee 55,000 55,000 55,000 55,000 55,000 55,000 Total Budgeted Expenses S 3,950,000 S 4,145,000 S 4,5622M S 4,790,363 S 4,958,026 S 5431,557 COrltibAon t0 Fund Balance - _ _ _ - - Total Expenses S 3,960,800 S 045,000 S 4362,250 S 4,790,363 S 4,95t,WA S 5,131,557 Not Ct avve in Fund Balance S - S - S - $ - S - S RMflafsnoe,BayrWWVofYew Eagmated 2,834,045 2,834,045 2,834,045 2,834.040 ZW41045 2,834,045 ESfm msd Fund L-mcs, Eno 04 Year 2,834,045 2,834,045 2,834,045 2,834,045 $834,045 2,834,045 Ream Requ ramem 724,312 760,527 798,554 626„503 855,431 655A31 Over (Under) Reserve S 2,109,733 S 21OT3,518 S 2,075A91 S 2;007,542 S 1,978,614 $ 1,978,614 City of Fort Worth, Texas Mayor and Council Communication MUMNEF41.9 M. [Kelm Alffl�l ZU, ANIN IMMEMINAMY OMM all-M 10=6415111 Additional Hotel Property-, Adopt the Attached Resolution Authorizing and Expanding the Tourism PID to Include One Additional Hotel Property; Approve Attached Revised 2021-2022 Assessment Roll; and Adopt Attached Ordinance Levying Special Assessments on the Additional Hotel Property for Fiscal Year 2021-2022 PRIZE i a I 1. Conduct Public Benefit Hearing Concerning the following matters related to Fort Worth Public Improvement District Mo. 18 - Tourism (Tourism PID): (1) Expansion of the Tourism Public Improvement District to include one additional hotel property, and (2) the 2021-2022 Assessment for the additional hotel; 2. Adoat the attached Resolution f") makiriv certain findin,-ws concerning the nature and advisabilih-i of the sF,:` Uovements and services tt be provided for the benefit of the additional hotel to be included in the Tourism PID, the estimated costs of such improvements and services, the method of assessment, the boundaries of the Tourism PID, and the apportionment of costs between the Tourism PID and the City, as a whole,- and (ii) authorizing and expanding the Tourism PID to include one additional hotel-, 3. Approve the attached, revised 2021-2022 assessment roll. 4. Adopt the attached ordinance levying special assessments on the additional hotel property for Fiscal Year 2021-2022; 5. Direct the City Secretary to record a copy of the Assessment Ordinance in the real property records of the appropriate county no later than the seventh (7th) day after adoption by the City Council. 1 11 10111 p#1 1111""T hotel property, along with certain actions related thereto. The City Council conducted the first public hearing on April 12, 2022, finding that the Peon to Expand the Tourism PID met the requirements set is in Chapter 372 of the Texas Local Government Code ("Codeapproving the filling of the revised 2021-2022 assessment roll, and setting this public hearing. a I gag a C 'F�YS6Z--l-T--Z,172-i7A—pM-TS,-Z,17217,=it 54b77-4757ZVZF(�5-e�a lier ouncil su5sequenvy aaoptea Kesombori rios. I - 1 14,2021), and April 12,2022 (M&C 17ED PID18EXPANDTPID). -T�M-"w4ae u-j 2Feas Code (Code) consisting solely of hotel properties with 100 or more rooms ordinarily used for sleeping within the City of Fort Worth. A list of ItX-844 attached to this M&C within the Petition. FS -fr =ePei AIWA ef =6(Te7F-07rf r#— I F sin 1pij, carl IF al e msur I fiFTEM el-11 the Tourism PID. Section 372.0121 of the Code allows the City Council to include additional properties in the Tourism PID if (i) the property is a hotel and 1A611: A41944414 included in the Tourism PID by signing the original petition to establish the district or by signing a petition or written consent to include property in the Toudsm PD. The number of consenting record owners is sufficient if (1) the record owners own more than 60% of appraised value of taxable real property liable for assessment in the Tourism PID; and either (i) constitute more than 60% of all record owners of taxable real property liable for assessment in the Tourism PID, or (ii) own, in aggregates, more than 60% of the are of all taxable real property liable for assessment in the Tourism PID. If the addition of the new property results in these numbers dropping at or below the 60% threshold, then the property may not be added. Inclusion of the Four Points by Sheraton Hotel, located at 6828 North Freeway, Fort Worth, Texas 76137 (Four Points) meets the above -stated elements and, therefore, may be considered by the City Council for inclusion into the Tourism PID. First, the Four Points is a hotel property. With regard to the second element, the property owner, or its duly authorized representative, for the new hotel property, has signed a petition requesting inclusion within the Tourism PID. This results in an increase to 79.93% of the appraised value of taxable real property liable for assessment, 67.60% for the area of all taxable real property liable for assessment, and 64.91 % of record owners liable for assessment. Because the percentages are still above the 60.00\% threshold, inclusion of the Four Points the property meet the second element. Nature of the Improvements: The goals of the Tourism PID focus on increasing the economic impact and enhancing competitiveness in conventions, meetings, leisure and sports tourism and increasing tourism -related economic activity at all times, including during economic downturns and as inventory grows. The Tourism PID projects include incentives and sales efforts, convention and sports marketing and promotion, site visits and familiarization tours, community arts grants, convention services, event funding application, operations, research, and administration, all of which benefit the hotels within the Tourism PID. Method of Assessment and Apportionment of Costs: The assessment rate will be an amount equal to 2.00% of the consideration received from the occupancy of any sleeping room furnished by a hotel located within the Tourism PID, with such assessment to be collected in the same manner and in accordance with the same procedures as those established for the collection of the City's Hotel Occupancy Tax, as set forth in Chapter 32, Article II of the City Code, as amended. The entire costs of each improvement and service will be paid from the above -stated assessments and no City funds will be used to pay any portion of such costs unless such funding is approved by the City Council on a case -by -case basis. Costs of the Improvements and Services: The total costs for the adopted services and improvements for the life of the Tourism PID (approximately six years) will be $27,737,196.00, which includes an estimated cost of $3,950,000.00 for the Fiscal Year 2021-2022 budget. Assessments for this fiscal year began on October 1, 2021. Advisability: Staff recommends that the City Council find that these improvements and services are advisable because they will promote the interests of the City and confer a special benefit on the assessed properties within the expanded boundary of the Tourism PID. Staff recommendation: Staff recommends that City Council adopt the attached resolution authorizing and expanding the Tourism PID to include the above -state one additional hotel property, along with the corresponding assessment ordinance. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION I CERTIFICATION: The Director of Finance certifies that approval of these recommendations will have no material effect on City funds. Submitted for Citv Manaaer's Office bv: Reginald Zeno 8517 Oriainatina Business Unit Head: Robert Sturns 2663 Additional Information Contact: Crystal Hinojosa 7808 Expedited A Resolution NO. 5467-09-2021 AUTHORIZING AND EXPANDING FORT WORTH PUBLIC IMPROVEMENT DISTRICT NO. 18 (TOURISM PID) TO INCLUDE AN ADDITIONAL HOTEL AND TAKING CERTAIN OTHER ACTIONS CONCERNING THE DISTRICT WHEREAS, the Public Improvement District Assessment Act, Chapter 372 of the Texas Local Government Code (" Act") allows for the establishment of public improvement districts; WHEREAS, on August 29, 2017, the City Council adopted Resolution No. 4837-08-2017, establishing Fort Worth Public Improvement District 18 — Tourism ("Tourism PID") ("Establishing Resolution"); WHEREAS, on August 18, 2020, the City Council adopted Resolution No. 5264-08-2020, expanding the boundaries of the Tourism PID ("Tourism PID"); WHEREAS, on April 13, 2021, the City Council adopted Resolution No. 5382- 04-2020, expanding the boundaries of the Tourism PID ("Tourism PID") (Resolution Nos. 5264-08-2020 and 5382-08-2021 are collectively referred to as the "Expansion Resolutions"); WHEREAS, Section 372.0121 of the Act, as amended by the 871h Texas Legislature (2021) through Senate Bill 804, allows the City Council to include additional properties in the Tourism PID if (i) the property is a hotel and (ii) a sufficient number of the record owners of the real property currently include d and proposed to be included in the Tourism PID have consented to be included in the Tourism PID by signing the original petition to establish the Tourism PID or by signing a petition or written consent to include property in the Tourism PID; WHEREAS, the number of consenting record owners is sufficient if (1) the record owners own more than 60% of appraised value of taxable real property liable for assessment in the Tourism PID; and either (i) constitute more than 60% of all record owners of taxable real property liable for assessment in the Tourism PID, or (ii) own, in aggregate, more than 60% of the area of all taxable real property liable for assessment in the Tourism PID; WHEREAS, another expansion petition ("Petition") was submitted to the City of Fort Worth, Texas ("City"), pursuant to the Act, requesting to expand the Tourism PID boundaries to include an additional hotel property within the Tourism PID and has been on file in the office of the City Secretary for public inspection; WHEREAS, pursuant to Section 372.009 of the Act, the City provided notice and publication of a public hearing to be conducted on September 14, 2021 to consider the expansion of the Tourism PID ("Public Hearing"), which notice and publication included the following: (i) time and place of the public hearing; (ii) general nature of the proposed improvements and services; (iii) estimated costs of the improvements and services; (iv) expanded boundaries of the Tourism PID; (v) proposed method of assessment; and (vi) proposed apportionment of cost between the additional hotel property in Tourism PID and the City; WHEREAS, notice of the Public Hearing was published on August 27, 2021 in the Fort Worth Star -Telegram, a newspaper of general circulation in the City, and was also mailed on August 27, 2021 to all record owners of property in the Tourism PID liable for assessment, and all persons desiring to be heard were given a full and fair opportunity to be heard at the Public Hearing; WHEREAS, the City Council conducted and adjourned the Public Hearing to consider the expansion of the Tourism PID; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: 1. Recitals. The findings set forth in the recitals of this Resolution are found to be true and correct. 2. FindinLis. The City Council, after duly considering the evidence and testimony presented at the Public Hearings and based on all information known by the City Council, hereby makes the following findings: 2.1 Petition and Boundaries. (a) The current boundaries of the Tourism PID consist of noncontiguous areas authorized under Section 372.0035 of the Act consisting solely of hotel properties with 100 or more rooms ordinarily used for sleeping within the City of Fort Worth. The lists of the original and additional hotels that are included within the boundaries of the Tourism PID are included in the Establishing Resolution and Expansion Resolutions, respectively. (b) As set forth in the Recitals above, the Act allows the City Council to include additional properties in the Tourism PID if the required elements are satisfied. As evidenced below, the hotel property set forth in Exhibit "A". which is attached hereto and incorporated herein for all purposes ("Additional Hotel Property"), meets the necessary elements for inclusion into the Tourism PID. (i) The Additional Hotel Property to be included in the Tourism PID as part of this Resolution is a hotel property. (ii) A sufficient number of record owners of the real property currently included and proposed to be included in the Tourism PID have consented to be included in the Tourism PID by signing the original petition to establish the Tourism PID or by signing a petition or written consent to include property in the Tourism PID. Specifically, the number of consenting record owners exceeds the thresholds required by the Act, which is evidenced by the following: (1) 79.87% of appraised value of taxable real property liable for assessment, (2) 64.29% of record owners of taxable real property liable for assessment, and (3) 67.29% for the area of all taxable real property liable for assessment. 2.2 Advisability and Feasibility of the Improvements and Services Proposed for the Tourism PID . It is advisable to expand the Tourism PID to include the Additional Hotel Property to provide the proposed improvements and services described in the Petition and this Resolution. The improvements and services will promote the interests of the City and confer a special benefit on the assessed properties within the Tourism PID. The Fort Worth Convention and Visitor's Bureau staff performed an analysis of the Tourism PID, its service plan and strategies, and concluded that it provides a very effective means for significantly enhancing the ability of Fort Worth to promote its hotel, convention, and tourism activity, which has been borne out since the Tourism PID's establishment. Based on this analysis and the successful history of the Tourism PID, the City finds the proposed tourism public improvement district to be both advisable and feasible. 2.3 Nature of the Improvements and Services. The general nature of the proposed improvements and services to be provided within the expanded boundaries of Tourism PID include, without limitation, marketing, business recruitment, and promotional activities authorized by the Act for improvements and promotion of the Tourism PID, including, but not limited to, the provision of incentives by the Fort Worth Convention and Visitors Bureau to organizations to encourage them to bring large and city-wide events (including, without limitation, meetings, sporting, recreation, and cultural events) to Fort Worth and to fund additional marketing by the Fort Worth Convention and Visitors Bureau to increase hotel stays within the City. 2.4 Estimated Cost of the Improvements and Services. Over the six (6) year period beginning on October 1, 2021 and ending on the expiration of the Tourism PID as provided in Section 3 , the estimated total cost of the improvements and services to be provided by the Tourism PID will be $27,737,196.00, which includes an estimated cost of $3,950,000.00 for the 2021-2022 fiscal year. For the 2021-2022 fiscal year, the estimated costs of the above -referenced improvements and services, and estimated costs to implement such improvements and services are: Incentives and Sales Efforts Marketing and Research (Promotion/Advertising) Site Visits & Familiarization Tours i Cultural Enhanceme nts through Marketing and Promotion of the Arts $292,125 Operations and Administration $194,750 City Administrative Fee $55,000 Total $3,950,000 $1,850,125 $1,363,250 $ 194,750 Such estimated costs are reasonable and appropriate. The estimated costs of improvements and services provided in the 2021-2022 fiscal year will be determined in a subsequent annual budget and service plan for the Tourism PID to be approved by the City Council on or about September 21, 2021, in accordance with the Act. Such costs will be paid from assessments levied in accordance with the Act. The six -year service plan proposed for the Tourism PID is attached hereto as "Exhibit B" ("Service Plan") and incorporated herein for all purposes. The Service Plan, budget, and assessment amount are subject to annual review and approval by the City Council. 2.5. Method of Assessment. The costs of the improvements and services will be funded from assessments levied on and collected from properties located in the Tourism PID that contain hotels of one hundred (100) or more guest rooms and that are subject to payment of City hotel occupancy taxes pursuant to Chapter 32, Article II of the City Code, as amended. The City will levy a special assessment against the new hotel property located within the expanded boundaries of the Tourism PID ("Hotel Parcel") in an amount equal to two percent (2%) of the consideration received for occupancy of any sleeping rooms furnished by the new hotel on the Hotel Parcel (subject to any lawful exemption of the hotel occupancy tax under applicable state law and City ordinances), with such assessments to be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article lI of the City Code, as amended. The collection of assessments will begin on October 1, 2021 and continue to be made at the same time hotel occupancy taxes are collected. The City Council hereby finds that the proposed method of assessment is reasonable and necessary. 3.6. Apportionment of Costs Between the Tourism PID and the City, as a Whole. The apportionment of costs between the Tourism PID, inclusive of the Additional Hotel Property, and the City, as a whole, is as follows: $1,850,125 $1,363,250 $ 194,750 Such estimated costs are reasonable and appropriate. The estimated costs of improvements and services provided in the 2021-2022 fiscal year will be determined in a subsequent annual budget and service plan for the Tourism PID to be approved by the City Council on or about September 21, 2021, in accordance with the Act. Such costs will be paid from assessments levied in accordance with the Act. The six -year service plan proposed for the Tourism PID is attached hereto as "Exhibit B" ("Service Plan") and incorporated herein for all purposes. The Service Plan, budget, and assessment amount are subject to annual review and approval by the City Council. 2.5. Method of Assessment. The costs of the improvements and services will be funded from assessments levied on and collected from properties located in the Tourism PID that contain hotels of one hundred (100) or more guest rooms and that are subject to payment of City hotel occupancy taxes pursuant to Chapter 32, Article II of the City Code, as amended. The City will levy a special assessment against the new hotel property located within the expanded boundaries of the Tourism PID ("Hotel Parcel") in an amount equal to two percent (2%) of the consideration received for occupancy of any sleeping rooms furnished by the new hotel on the Hotel Parcel (subject to any lawful exemption of the hotel occupancy tax under applicable state law and City ordinances), with such assessments to be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article lI of the City Code, as amended. The collection of assessments will begin on October 1, 2021 and continue to be made at the same time hotel occupancy taxes are collected. The City Council hereby finds that the proposed method of assessment is reasonable and necessary. 3.6. Apportionment of Costs Between the Tourism PID and the City, as a Whole. The apportionment of costs between the Tourism PID, inclusive of the Additional Hotel Property, and the City, as a whole, is as follows: (a) The entire cost of each improvement and service will be paid from assessments levied in accordance with the Act. (b) No City funds will be used to pay any portion of the cost of any improvement or service, unless such funding is approved from the City Council or other appropriate municipal authority on a case -by -case basis. 3. Inclusion of Additional Hotel Property within the Tourism PID; Term. Based on the findings set forth above, the City Council authorizes the expansion of the boundaries of the Tourism PID to include the Additional Hotel Property. The inclusion of the Additional Hotel Property within the Tourism PID takes effect on the date on which this Resolution is published in a newspaper of general circulation in the City in accordance with Section 372.010(b) of the Act and will expire concurrently with the expiration date set forth in Section 3 of the Establishing Resolution. The expansion of the Tourism PID is subject to all conditions, limitations, and reservations set forth in the findings in Sections 1 and 2. All other provisions of this Resolution will be effective from and after adoption of this Resolution. 4. Advisory Body. The City Council hereby declines to appoint an advisory body for the expanded Tourism PID boundaries pursuant to Section 372.008 of the Act. The City Council hereby reserves the right to assign responsibility for preparation of the ongoing service plan for the PID to another entity in the absence of such an advisory body, as authorized by Section 372.013(a) of the Act. S. Publication. The City Secretary is hereby directed to publish notice of the City Council's authorization to establish the PID once in a newspaper of general circulation in the City. ADOPTED this 14th day of September 2021. ATTEST: ? " P C,, Ronald P. Gonzales Acting City Secretary EXHIBIT A Expanded Boundaries of the Tourism PID (Additional Hotel Property) Account Name Address City, State, Zip RMS Sandman Signature Hotel 810 Houston Street Fort Worth, TX 240 76102 REVENUES PID Assessments Total Funds Available for Use EXPENSES Ince rtives &Sates Efforts Marketirg and Research (Promotior/ Advertisirg) Site Visits & Familiarintion Tours Cultural Enharcements Ormtgh Mad;etirg and promotion of the Arts Operations & Administratior City Administrative Fee Total Budgeted Expenses Contribution to Fund Balance Total Expenses Net Change in Fund Balance Fund Balance, Beginning of Year Estimated Estimated Fund Balance, End of Year Reserve Requirement Over (Under) Reserve EXHIBIT B Service Plan City of Fort Worth Six Year Service Plan Public Improvement District No. 18 -Tourism FY21122 FY22J23 FY23124 FY24125 FY25f28 FY26127 $ 3,950,000 $ 4,345,000 $ 4,562,250 $ 4,790,363 $ 4,958,026 $ 5,131,557 $ 3,950,000 $ 4,345,000 $ 4,562,250 $ 4,790,363 $ 5.131,557 $ 4,958,E(i S 1.850,125 S 2,037,750 S 2,140,944 S 2,249,297 5 2,328,937 5 2,411,365 1,363,250 1,501.5W 1,577.538 1, 6 57 , 3 7 7 1,716,059 1,776,795 194,750 214.500 225,363 236,768 245,151 253,828 292,t25 321,750 338,044 355,152 367.727 380,742 194.750 214,500 225.361 236,769 245,152 253.827 55,000 55,DD0 E5,000 55,000 55,000 55,000 S 3,950,000 $ 4,345,000 $ 4,562.250 $ 4.790,363 $ 4,958,026 $ 5,131,557 S 3,850,000 $ 4,345 000 $ 4,562 250 $ 4,790,363 $ 4,958,026 $ 5,131,557 2,834.045 2834,045 2,834,045 2,834,045 2,834,045 2,834,045 2,834,045 2,834,045 2,834,045 2,834,045 2,834,045 2,834,045 724,312 760,527 798,554 826,503 855,431 855.431 S 2,109,733 $ 2,073,618 $ 2,035,491 $ 2,007,542 $ 1,878,614 $ 1,978,614 City of Fort Worth, Texas Mayor and Council Communication DATE: 09/21/21 MSC FILE NUMBER: M&C 21-0707 LOG NAME: 17ED PID18FY22 SUBJECT Mon, W4M ilia Q -0EMNON (PUBLIC HEARING - a. Report of City Staff: Crystal Hinojosa; b. Public Comment; c. Council Action: Close Public Hearing and Act on M&C) RECOMMENDATION: 1 . Conduct a public benefit heahng concerning the proposed special assessments on property located in the Fort Worth Public Improvement Disthct 18 - Tourism (ToD) for Fiscal Year 2021-2022; 2. Adopt the attached ordinance: (1) approving and adopting the fiscal year 2021-2022 budget in the amount of $3,950,000.00, six -year service plan, assessment plan, and assessment roll (on file with the City Secretary) for the Tourism PID; and (2) levying special assessments on property located within the Tourism PID (SAP and Assessment Ordinance); 3. Direct the City Secretary to record a copy of the SAP and Assessment Ordinance in the real property records of the county in which the properties are located no later than the seventh (7th) day after adoption by the City Council; 18 - Tourism Fund for Fiscal Year 2021-2022 in the amount of $3,950,000,00, from available funds. n7n- - �Ir-S—f I TMM# =10 I m7rrA #"ry A No. 18, Touhsm (Touhsm PID). The City Council subsequently approved the expansion of the Touhsm PID to include additional hotels on August 18, 2020 (Resolution No. 5264-08-2020), April 13, 2021 (Resolution No. 5382-04-2021), and September 14, 2021 (M&C 17ED PID18EXPANDTPID). lm�i = - Improvements Total Budgeted I F— Costs---J lincentive & Sales Efforts $1,850,125.00� Imarketing and Research (Promotion/Advertising) $1,363,250.00' [Site Visits & Familiarization Tours $194,750.00 Cultural Enhancements through Marketing and I promotion of the Arts $292,125.001 loperations & Administration $194,750.001 ICity Administrative Fee $55,000.00 , I LTotal Expenses $3,950,000 --601 Trie total budgeted costs ot trie improvements and services are all ot which will be tunded by the owners/operators ot I ounsm PID hotels with 100 or more rooms paying a special assessment at a rate of two percent of revenues they receive from a hotel room. The owners/operators may seek reimbursement in an amount equal to the special assessment from hotel guests, with such reimbursement being a mandatory charge that is subject to state and local hotel tax. E . IrAfforTyr-710-ram-9-17 a �," we I I 111Q 0 12 RA R S.W. 1 WPM WAVOMMIRFA ILI 1,110 r. I rg 0 oil Lo [I r-4 'Jolmalown a year, the amount is 13%, or $593,200.00, less than Fiscal Year 2018-2019 actual collections On September 14, 2021, the City Council conducted a public hearing to receive comments on the proposed Fiscal Year 2021-2022 budget, six year service plan, and 2021 assessments for the Tourism PID (M&C 17ED PID18FY22 BENEFIT). Notice of the September 14, 2021, benefit hearing and this hearing were published in the Fort Worth Star -Telegram on August 27, 2021, and mailed to all hotel owners on record in the Tourism PID on August 25, 2021, in accordance with state law. In fiscal year 2018, the City entered into a contract with the FWTPIDC and the FWCVB to manage the operations of the Tourism PID. The term of this agreement is commensurate with the term of the Tourism PID; thus, the FWTPIDC and the FWCVB will continue to manage the operations of the Tourism PID for Fiscal Year 2021-2022. The Tourism PID properties are located in ALL COUNCIL DISTRICTS. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations and the adoption of the Fiscal Year 2021-2022 Budget by the City Council, funds will be available in the Fiscal Year 2022 operating budget, as appropriated, of the FWPID #18 - Tourism Fund. Prior to any expenditure being incurred, the Financial Management Services Department has the responsibility to validate the availability of funds. Submitted for City Manager's Office by; Jay Chapa 5804 Originating Business Unit Head: Robert Sturns 2663 Additional Information Contact: Crystal Hinojosa 7808 Expedited 1 10 L � � ■ 1 1 WHEREAS, Chapter 372 of the Texas Local Government Code ("Code") authorizes the creation of a public improvement district consisting of non-contiguous territory in which is located hotels meeting certain criteria, with owners/operators of such hotel properties being subject to assessment to pay for the services and benefits provided by the district; WHEREAS, on August 29, 2017, the City Council of the City of Fort Worth ("City Council") adopted Resolution No. 4837-08-2017, establishing Public Improvement District No. 18 - Tourism ("PID") in accordance with Section 372.0035 and other applicable sections of the Code; WHEREAS, on August 18, 2020, the City Council adopted Resolution No. 5264-08-2020 to expand the PID to include five additional hotels; WHEREAS, on April 13, 2021, the City Council adopted Resolution No. 5382-04-2021 to further expand the PID to include three additional hotels; WHEREAS, on September 14, 2021, the City Council adopted a Resolution to further expand the PID to include one additional hotel (M&C 21-0636); WHEREAS, Section 372.013 of the Act, as recently amended by the 87' Texas Legislature through House Bill No. 1543 (effective September 1, 2021), requires the City Council to annually review and adopt an ordinance approving the Service Plan ("Service Plan") for the District; WHEREAS, Sections 372.013 and 372.014 of the Act require the annual Service Plan to (i) cover a period of at least five years; (ii) define the annual indebtedness and the projected costs for improvements; (iii) include an Assessment Plan ("Assessment Plan"); and (iv) include a copy of the notice form required by Section 5.014 of the Texas Property Code (the Service Plan and Assessment Plan are collectively referred to herein as the "Service and Assessment Plan"); WHEREAS, City Council must review the proposed fiscal year 2021-2022 Service Plan and hold a public hearing to receive comments and pass on any objections to the Assessment Plan raised by any owner of Ordinance No. 25089-09-2021 Page 1 of 11 property located within the District and, at the conclusion of the hearing, levy an assessment for the purpose of providing supplemental services and improvements for the PID; WHEREAS, the Service and Assessment Plan is attached hereto as Exhibit A and incorporated herein for all purposes; WHEREAS, City Council desires to approve and adopt the fiscal year 2021-2022 Assessment Roll that was filed with the City Secretary and subject to public inspection in the City's official records prior to the public hearings set forth below ("Assessment Roll"); WHEREAS, the total budgeted cost of the improvements and services in the Service Plan for fiscal year 2021-2022 will be funded by special assessments on the owners/operators of PID hotels with 100 or more rooms, with such assessments being in an amount equal to two percent of revenues that the hotels receive from taxable hotel room night charges and with the names of such hotels being listed in Exhibit B, which is attached hereto and hereby made a part of this Ordinance for all purposes (such properties hereinafter being referred to as "HotelParcels" and the hotels located thereon being referred to as "Qualifying Hotels"); WHEREAS, the Texas Comptroller of Public Accounts has indicated that owners/operators may seek reimbursement in an amount equal to the special assessment from hotel guests, with such reimbursement being a mandatory charge that is subject to state and local hotel tax (Texas Comptroller Opinion Letter 201111277L, November 8, 2011); WHEREAS, it is proposed that the owners/operators of the Hotel Parcels located in the PID be assessed at a rate of two percent (2%) of the consideration received from occupancy of any sleeping room furnished by Qualifying Hotels, which assessments shall be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code; WHEREAS, the Service and Assessment Plan were previously presented in public hearings conducted by the City Council beginning at 7:00 p.m. on September 14, 2021 (C 21-0637) and at 7:00 p.m. on September 21, 2021 in the City Council Chambers in City Hall in the City of Fort Worth, Texas ("PublicHearings"); and WHEREAS, notice of the Public Hearings was published and mailed in accordance with state law, and all persons desiring to be heard were given a full and fair opportunity to be heard at the Public Hearing. NOW, THEREFORE,BE ORDAINED 1 OF THE CITY 1 FORT WORTH, The Public Hearings are hereby closed, and any and all protests and objections, whether herein enumerated or not, are hereby overruled. The Recitals and findings listed above are true and correct and form the basis upon which this Ordinance is being adopted and are incorporated herein by reference. SECTION 2. The City Council hereby approves and adopts the Service and Assessment Plan and Assessment Roll. In doing so, the City Council finds that the supplemental services and improvements set forth in the Service Plan are feasible and advisable and will serve the needs and desires of the property owners in the PID. SECTION 3. The City Council, from all evidence before it, including all information provided to it and considered in the Public Hearings, finds that the assessments described herein on Hotel Parcels should be made and levied in a manner that results in imposing the costs of the Services on Qualifying Hotels that are similarly benefitted from the provision of those Services. The apportionment of those costs will be based on the special benefits accruing to the Qualifying Hotels on account of the Services provided. As a result, those Qualifying Hotels that sell more guest rooms will pay a greater portion of the costs of the Services because those properties will have received a greater benefit from the promotions and marketing comprising the Services. The City Council further finds that this method of assessment is fair and equitable and results in an apportionment of the costs of the Services that complies with applicable law. SECTION 4. In accordance with Section 372.017, Texas Local Government Code, in order to pay the costs of the improvements and services in the Service Plan provided during Fiscal Year 2021-2022, effective October 1, 2021 the City hereby levies a special assessment against owners/operators of the Hotel Parcels in an amount equal to two percent (2%) of the consideration received from the occupancy of any sleeping room furnished by Qualifying Hotels, which assessments shall be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code. SECTION 5. The assessments levied hereunder, together with reasonable attorney's fees and cost of collection, if incurred, are hereby declared to be and are made a lien upon the Hotel Parcels and Qualifying Hotels, and are a personal liability and charge against the real and true owners of such properties, whether such owners are correctly named herein or not. Such liens shall be and constitute the first enforceable lien and claim against the Hotel Parcels and Qualifying Hotels, superior to all other liens and claims, except state, county, school district and city ad valorem taxes. A copy of this Ordinance may be filed with the County Clerk of each county in which a Hotel Parcel and Qualifying Hotel are located, and when so filed shall constitute complete and adequate legal notice to the public concerning the liens hereby assessed against the respective parcels of property and the owners thereof. The sums assessed against the Hotel Parcels are due at the same time that hotel occupancy taxes on the Qualifying Hotels located thereon become due, and become delinquent if not paid by the applicable deadlines for hotel taxes remittance established by Chapter 32, Article II of the City Code. The entire amount assessed against each Hotel Parcel shall bear penalty and interest, from and after the Ordinance No. 25089-09-2021 Page 3 of 11 If default is made in the payment of any assessments, collection thereof may be enforced by suit in any court of competent jurisdiction, and said City may exercise all of its lawful powers to aid in the enforcement and collection of said assessments. The total amount assessed against the respective parcels of property and the owners thereof is in accordance with the proceedings of the City hereto and is permitted by applicable law. Full power to make and levy reassessments and to correct mistakes, errors, invalidities, or irregularities in the assessments are, in accordance with the law in force in this City, vested in the City. In any suit upon any assessment or reassessment, it shall be sufficient to allege the substance of the provision recited in this Ordinance and that the Recitals hereto are in fact true, and further allegations with reference to the proceedings relating to such assessment and reassessment shall not be Should any portion, section, or part of a section of this Ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion, or judgment shall in no way impair the remaining portions, sections, or parts of sections of this Ordinance, which shall remain in full force and effect. This Ordinance shallbe cumulative of all other ordinances . • appropriations amending same except in those instances where the provisions of this Ordinance are in direct conflict with such *ther ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. The City Secretary is directed to cause a copy of this Ordinance to be recorded in the real property records of each county in which a Hotel Parcel and Qualifying Hotel are located, no later than the seventh (7 Ih ) day after the adopted date of this Ordinance. Ordinance No. 25089-09-2021 :a,. 4 o SECTION 13. This Ordinance takes effect and will be in full force and effect from and after the date of its passage. AND IT IS SO ORDAINED. APPROVED AS TO FORM AND LEGALITY: A X i r. Tyler F—Wa c Ronald P. Gonzales Assistant City Att Acting City Secretary M&C: 21-0707 Adopted: September 21, 2021 r.F FORT U M a Ordinance No.25089-09-2021 Page 5 of 1 I EXHIBIT "A" SERVICE AND ASSESSMENT PLAN REVENUES P D 4sses,�,nerd4 Total Funds AvalloW6 for Use EXPENSES lnarlim d Saks Efforts Marketirg and Reward, (PromotiW Adrenis") Site Yraks 81 Familanntion Tours Cultural Ent orcernom Om qt- Marketing and promotion of the Arts Operators & Admiristrator, Gty Admirittrative Far Total Budgeted Eupsnaes Ca1tsWon:a Fund Ba!ance Total Exponeas Net Change In Fund Balance Fund 9e'ance. Ein mng of Year cstimeted Estimated Fuia Balance Erd of Year Reserve Requirement Over (Under) Reserve Coy of Fort worth Six Year Service Plan Public Improvement District No. 1B • Tourism FY21122 FY22l21 FYM4 FY2A,25 FYZ5126 FY25127 $ 3,950,000 $ 4,345,000 $ 4,562,25 i 5 4,790,363 5 4,958,026 5 5,131,557 3 ' ,IIH 00 S 4,345,000 S 4,582,230 3 4,190,363 4 5.131,557 3 4,958,026 S 1.850.125 S 2,037.150 S 2,140.944 S 2.249,297 S 2,328.937 S 2411,365 1.393,250 1,501.5w 1,577538 1.657.377 1.716.059 1716.795 194,750 214,5f30 M.163 236.788 245151 253,828 292.125 321.150 338 044 355,152 367,727 390.74' 194.750 214,500 M.361 236.769 245.162 253,827 55,000 55,000 55.000 55,000 5600 55.0w 3 3,050,000 1 4,34&= 3 4,582,250 S 4,780,M 3 4,90,026 3 5.131.567 S 3,9%,000 S 4,345.000 3 4,562,250 3 4,190,363 S 4.959,026 S 5.131,557 $ . 3 3 - 3 - S 3 Z834104i 2834.045 2854045 MOO 2,woo 2.834.045 2834,045 2834,045 2.834.W 2.934,045 2.834,045 2834.045 724.312 760.527 798,554 826.503 96,431 855.431 S Z109,733 3 Z073,519 3 2,036,491 3 Z007,542 1 1,078.914 1 1,078.614 Ordinance No. 25089-09-2021 Page 6 of I I Assessment Plan The total budgeted costs of the Services will be funded by special assessments on the owners/operators of Tourism PID hotels with 100 or more rooms, with such assessments being in an amount equal to two percent of the consideration received from occupancy of any sleeping room furnished by qualifying hotels. The assessments will be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article 11 of the City Code. The current names and addresses of the qualifying hotels that are subject to assessment, along with the ordinance levying such assessments, are on file with the City Secretary of the City of Fort Worth. Page 7 of I I Notice Form for Hotel Properties NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO THE CITY OF FORT WORTH, TEXAS CONCERNING THE FOLLOWING HOTEL PROPERTY (insert property address) As the purchaser of the real property described above, you are obligated to pay assessments to the City of Fort Worth, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Services") undertaken for the benefit of the property within Fort Worth Public Improvement District No.Tourismcreated under• ..ter A, Chapter 372, Local Government .,d LEVIEDAN ASSESSMENT HAS BEEN AGAINST YOUR PROPERTY i' THE AUTHORIZED SERVICES, WHICH MUST BE iIN FULL WITH EVERYPAYMENT LOCALi OCCUPANCY TAX REMITTANCES TO THE MUNICIPALITY. YOUR FAILUREi PAY THE ASSESSMENT MAY RESULT IN PENALTIES AND INTEREST BEING ADDED TO WHAT YOUOWE, AND MAY INCLUDEPURSUITOF OTHER REMEDYi' i UNDER SECTION 372.0035(d),iGOVERNMENT CODE. Infon-nation about the calculation of the assessment may be obtained from the City of Fort Wort Texas. The exact assessment rate will be approved each year by the Fort Worth City Council in t annual service plan update for the District. More infon-nation about the assessments, including t assessment rate and due dates, may be obtained from the City Secretary. The undersigned purchas acknowledges receipt of this notice before the effective date of a binding contract for the purchase the real property at the address described above. r Page 8. EXHIBIT B OUALIFYING HOTELS IN THE TOURISM PID Toarbs PM HQtela Account Name Address Cny, elate, Zip RMa AC Hotel Fort Worth - Downtown 610 Main St Fort Worth. TX 76102 a" S. 2 Aloft Downtown Fat Worth 300 Throckmorton Fort Worth, TX 76102 180 Amert[an Airlines Training and Conference Center 4601 State Hwy 360 Fort Worth, TX 76155 299 Autograph Collection Downtown Fort Worth 512 Mein SL Fort Worth. TX 75102 165 Budget Suites of America - Fossil Creek 3500 NE Loop ft20 Fort Worth, TX 78137 366 Canaewood Suites - DFW South 4200 Reggls Rive Fort Worth, TX 76155 174 Courtyard by Marriott - Allrdnce 3001 Amador Dr Fort Worth. TX 76244 127 Courtyard by Mamott - Blackstone 609 Main Street Fort Worth, TX 76102 203 Courtyard by Mama" - Fossil Creek 3751 NE Loop 820 Fort Worth, TX 76137 154 Courtyard by Marriott - Stockyards 2537 Mein St Fort Worth. TX 76164 124 Courtyard by Marriott - University Dare 3150 RiveAront Fat Worth, TX 76107 130 Courtyard by Marriott - West at CRyview 6400 Overton Ridge Boulevard Fat Worth. TX 76132 104 Dalwal h Ion 812 E Felix Street Fat Worth, TX 76115 120 DFW Airport MamoE South 4151 Centraport Boulevard Fort Worth, TX 76156 295 DFW Marriott HoW and Golf Dub et Crampions C)rde 3300 Championship Pkwy Fort Worth. TX 76177 286 Embassy Suites Hotel - Downtown Fort Worth B00 Commerce Street Fort Worth, TX 76102 156 Extended Say America - C1ty Mites 5065 Bryant Irvin Rd Fort Worth, TX 76132 104 Fairfield Ion 8 Suites Downtown 1010 Houston Fort Worth. TX 76102 110 Fairfield Ion 8 Stites Fossil Creek 3701 NE Loop 820 Fart Worth, TX 76137 106 Hampton Inn and States Westifl-30 2700 Green Oaks Fort Worth, TX 76116 105 Hampton Inn and Suites- DFW South 4201 Reggs Court Fort Worth. TX 76155 116 Hampton Inn and Stites Dorhrritown Fort Worth 1001 Commerce St. Fort Worth. TX 76102 245 Hilton Fat Wareh 815 Main Street Ron Watt, TX 76102 294 Hilton Garden ton - Fort Wont nlllence Airport 2600 Westport Paruwey, fort Worth, TX 76177 127 Hli Gercien Inn - Medical Center 912 Northton Street Fort Worth, TX 76104 157 Holiday Inn - DFW Airport South 14320 Contra Station Road Fort Worth, TX 76156 143 Ordinance No. 25089-09-2021 Page 9 of 1 1 Holiday Inn Express - downtown 1111 W Lancaster Fort Wot1n, I X 161w 132 Holiday Inn North - Fossil Creek 4635 Gemini Place Fort Worth, TX 76108 126 11ome2 Suites by Hilton - Cultural Drstrlct 3000 6 3012 W Lancaster A— Fat Worth, TX 761011 114 Homewood Sidles - Fossil Creek 3701 Tanscross Fort Worth, TX 76137 137 Homewood Suites - M"C.1 Center 2200 Charlie Lane FoO Waroi. TX 76104 157 Hotel Drover. Aulograph Collection 200 Mule Alley Drive Fort Worth. TX 76164 200 Hyatt Place - Alliance Town Center 3201 Alliance Town renter Fort Worth. TX 76177 130 Hyatt Place - Cityview 5900 Cltyview Street Fort Worth. T X 76132 127 Myatt Plakn - SiocXywris 132 E Exchange FortWorth TX 76161 100 Ftyatt Place - TGU 2500 West Berry Street Fort Worth. TX 76109 127 IGmplon Hotel 714 Main SI Fort Worth, TX 75102 232 Ls Quints Inn and Sultan- Fort Worth North 2501 Polaris LY Fart Worth. TX 76137 133 Le Quints Inn and Suites- Sour----st 6100 Overton Ridge Fort Worth, TX 76132 128 Omni Fort Worth Hotel 1300 Houston Fort Worth, ,Tx 76102 614 Okuftity Inn and Suites - Cattle Beron 2700 S Cherry Lane Fort Worth, TX 76116 I Radlsson - Fort Worth South Hotel 100 Alta Mese East Fort Worth. TX 76134 247 Rodisson Hotel - Fort Worth Fossil CreeY: 2540 Mee -hem Street Fort Worth, TX 76106 247 Residence Inn - Aitarice Airport 13400 North Freeway Fort Worth, TX 76177 111 Residence Inn - Cultural District 2WO Mu11144n Way Fort Worth. TX 76107 150 Residence Inn - Fossil Creek 5801 Sandsrlell Drive Fort Worth, TX 76137 114 Residence Inn - Waterside 5825 Arboriawn 17*1ve Fort Worth. TX 76109 119 Sandman Signature Hotel 810 Houston Street Fort Worth, TX 76102 240 Sheraton Fat Worth Hotel and Spa 1601 Commerce Street Fort Worth. TX 76102 429 Spring Mil Sulfas try Marriott Stockyards -2315 N Main St Fort Worth. TX 76164 170 Spring Fill Sulles by Marriott - UnNeryty 3250 Lovell Street Fort Worth. TX 76107 145 Slay Express Hotel Fort Worth 2000 Beech Street Fort Worth. TX 76103 168 Towne Place Suites Downtown 801 E Belknap Fort Worth, TX 76102 140 Towne Place Suites University 3450 W Vickery Fort Worth, TX 76107 128 Wood Spring Suites Fort Worth 3WI NE Loop 820 Fort Watt, TX 76137 121 Ordinance No. 25089-09-2021 Page 10 of I I IWorlitngton Re-Wmance HMW I200 Main Street IFon Worth, TX 76102 15W Ordinance No. 25089-09-2021 Page 11 of 11 ORDINANCE NO. 25090-09-2021 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE FISCAL YEAR 2021-2022 FORT WORTH PUBLIC IMPROVEMENT DISTRICT 18 — TOURISM IN THE AMOUNT OF $3,950,000.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF PROVIDING IMPROVEMENTS AND SERVICES TO THE PUBLIC IMPROVEMENT DISTRICT 18-TOURISM; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allocated to the various City departments for Fiscal Year 2021-2022 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Fiscal Year 2021-2022 Fort Worth Public Improvement District 18 — Tourism in the amount of $3,950,000.00, from available funds, for the purpose of providing improvements and services to the Public Improvement District 18-Tourism during Fiscal Year 2021-2022, SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be incorporated into the ordinance effecting the budget of the municipal government of the City of Fort Worth for the ensuing Fiscal Year beginning October 1, 2021, and ending September 30, 2022, and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations arc hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: Assistant City Attorney ADOPTED AND EFFECTIVE: September 21, 2021 CITY SECRETARY Ronald P. Gonzales Acting City Secretary pF..!TGL A Resolution NO.5382-04-2021 AUTHORIZING AND EXPANDING FORT WORTH PUBLIC IMPROVEMENT DISTRICT NO. 18 (TOURISM PID) TO INCLUDE ADDITIONAL HOTELS AND TAKING CERTAIN OTHER ACTIONS CONCERNING THE DISTRICT AND CORRECTING THE SUFFICIENCY PERCENTAGES ASSOCIATED WITH THE PRIOR TOURISM PID EXPANSION PETITION WHEREAS, the Public Improvement District Assessment Act, Chapter 372 of the Texas Local Government Code ("Act") allows for the establishment of public improvement districts; WHEREAS, on August 29, 2017, the City Council adopted Resolution No. 4837-08-2017, establishing Fort Worth Public Improvement District 18 — Tourism ("Tourism PID") ("Establishing Resolution"); WHEREAS, Section 372.0121 of the Code allows the City Council to include additional properties in the Tourism PID if (i) the property is a hotel and (ii) the property could have been included in the Tourism PID without violating Section 372.005 (b-1) of the Code when the Tourism PID was created regardless of whether the record owners of the property signed the original petition; WHEREAS, with regard to the second element, the Code requires the petition to be signed by the (1) record owners of taxable real property liable for assessment that constitute more than 60.00% of the appraised value and (2) more than 60% of (i) all record owners liable for assessment or (ii) area of all taxable property liable for assessment within the Tourism PID; WHEREAS, on August 18, 2020, the City Council adopted Resolution No. 5264-08-2020, expanding the boundaries of the Tourism PID ("Tourism PID") ("Expansion Resolution"); WHEREAS, in the Expansion Resolution, the sufficiency percentages for the Tourism PID expansion petition ("Expansion Petition") were found to be sufficient because the addition of the new hotel properties did not result in the percentages dropping at or below 60%; WHEREAS, however, the property owner(s) for the Hyatt Place TCU, 2500 W. Berry Street, was counted as not having signed the Expansion Petition when, in fact, the owner(s) did sign (See the Expansion Petition attached to Mayor and Council Communication 20-0551); WHEREAS, when factoring in the signed petition for the Hyatt Place TCU, the petition sufficiency percentages for the Expansion Petition should have been as follows: (1) 74.9% of the appraised value of taxable real property liable for assessment, (2) 61.1% of record owners of taxable real property liable for assessment, and (3) 65.7% of the area of all taxable real property liable for assessment; WHEREAS, another expansion petition ("Petition") was submitted to the City of Fort Worth, Texas ("City"), pursuant to the Act, requesting to expand the Tourism boundaries to include additional hotel properties within Tourism PID and has been on file in the office of the City Secretary for public inspection; WHEREAS, pursuant to Section 372.009 of the Act, the City provided notice and publication of public hearings to be conducted on April 6, 2021 and April 13, 2021 to consider the expansion of the Tourism PID ("Public Hearings"), which notice and publication included the following: (i) time and place of the public hearing; (ii) general nature of the proposed improvements and services; (iii) estimated costs of the improvements and services; (iv) expanded boundaries of the Tourism PID; (v) proposed method of assessment; and (vi) proposed apportionment of cost between the additional hotel properties in Tourism PID and the City; WHEREAS, notice of the Public Hearing was published on March 19, 2021 in the Fort Worth Star -Telegram, a newspaper of general circulation in the City, and was also mailed March 18, 2021 to all record owners of property in the Tourism PID liable for assessment, and all persons desiring to be heard were given a full and fair opportunity to be heard at the Public Hearing; WHEREAS, the City Council conducted and adjourned the Public Hearing to consider the expansion of the Tourism PID; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, OF THE CITY OF FORT WORTH, TEXAS: 1. Recitals. The findings set forth in the recitals of this Resolution are found to be true and correct. 2. Correction to Expansion Petition. 2.1 Expansion Petition. Based on the recitals set forth above, the City Council hereby finds that the Expansion Petition remains sufficient and that the percentages are, and should always have, resulted in an increase to: (1) 74.9% of the appraised value of taxable real property liable for assessment, (2) 61.1 % of record owners of taxable real property liable for assessment, and (3) 65.7% of the area of all taxable real property liable for assessment. 3. Findings. The City Council, after duly considering the evidence and testimony presented at the Public Hearings and based on all information known by the City Council, hereby makes the following findings: 3.1 Petition and Boundaries. (a) The current boundaries of the Tourism PID consist of noncontiguous areas authorized under Section 372.0035 of the Act consisting solely of hotel properties with 100 or more rooms ordinarily used for sleeping within the City of Fort Worth. A list of the original and additional hotels that are included within the boundaries of the Tourism PID is included in the Establishing Resolution and Expansion Resolution, respectively. (b) Section 372.0121 of the Act allows the City Council to include additional properties in the Tourism PID if (i) the property is a hotel and (ii) the property could have been included in the Tourism PID without violating Section 372.005(b-1) of the Code when the Tourism PID was created regardless of whether the record owners of the property signed the original petition. As evidenced below, the hotel properties set forth in Exhibit "A", which is attached hereto and incorporated herein for all purposes ("Additional Hotel Properties"), meet the necessary elements for inclusion into the Tourism PID. (i) The Additional Hotel Properties to be included in the Tourism PID as part of this Resolution are all hotel properties. (ii) City Council found that the Original Petition and Expansion Petition for the Tourism PID were sufficient because they had been signed by record owners of taxable real property liable for assessment that constituted: (a) 74.9% of the appraised value, (2) 6 1. 1% of record owners, and (3) 65.7% of the area of all taxable real property liable for assessment. The property owners, or their duly authorized representatives, for all of the Additional Hotel Properties have each signed a petition requesting inclusion within the Tourism PID. This results in an increase to (1) 75.7% of appraised value of taxable real property liable for assessment, (2) 63.2% of record owners of taxable real property liable for assessment, and (3) 66.9% for the area of all taxable real property liable for assessment. 3.2 Advisability and Feasibility of the Improvements and Services Proposed for the Tourism PID. It is advisable to expand the Tourism PID to include the Additional Hotel Properties set forth herein to provide the proposed improvements and services described in the Petition and this Resolution. The improvements and services will promote the interests of the City and confer a special benefit on the assessed properties within the Tourism PID. The Fort Worth Convention and Visitor's Bureau staff performed an analysis of the Tourism PID, its service plan and strategies, and concluded that it provides a very effective means for significantly enhancing the ability of Fort Worth to promote its hotel, convention, and tourism activity, which has been borne out since the Tourism PID's establishment. Based on this analysis and the successful history of the Tourism PID, the City finds the proposed tourism public improvement district to be both advisable and feasible. 3.3 Nature of the Improvements and Services. The general nature of the proposed improvements and services to be provided within the expanded boundaries of Tourism PID include, without limitation, marketing, business recruitment, and promotional activities authorized by the Act for improvements and promotion of the Tourism PID, including, but not limited to, the provision of incentives by the Fort Worth Convention and Visitors Bureau to organizations to encourage them to bring large and city-wide events (including, without limitation, meetings, sporting, recreation, and cultural events) to Fort Worth and to fund additional marketing by the Fort Worth Convention and Visitors Bureau to increase hotel stays within the City. 3.4 Estimated Cost of the Improvements and Services. Over the seven (7) year period beginning on October I, 2020 and ending on the expiration of the Tourism PID as provided in Section 4, the estimated total cost of the improvements and services to be provided by the Tourism PID will be $29,555,000.00, which includes an estimated cost of $2,800,000.00 for the 2020-2021 fiscal year. For the 2020-2021 fiscal year, the estimated cost of the above -referenced improvements and services, and estimated costs to implement such improvements and services is: Incentives and Sales Efforts $1,262,000 Marketing and Research (Promotion/Advertising) $972,000 Site Visits & Familiarization Tours $ 81,000 Cultural Enhancements through Marketing and Promotion of the Arts $257,200 Operations and Administration $173,000 City Administrative Fee $55,000 Total $2,800,000 Such estimated costs are reasonable and appropriate. The estimated costs of improvements and services provided in the 2020-2021 fiscal year will be determined in a subsequent annual budget and service plan for the Tourism PID to be approved by the City Council on April 13, 2021, in accordance with Chapter 372 of the Act. Such costs will be paid from assessments levied in accordance with Chapter 372 of the Act. The seven-year service plan proposed for the Tourism PID is attached hereto as "Exhibit B" ("Service Plan") and incorporated herein for all purposes. The Service Plan, budget, and assessment amount are subject to annual review and approval by the City Council. 3.5. Method of Assessment. The costs of the improvements and services will be funded from assessments levied on and collected from properties located in the Tourism PID that contain hotels of one hundred (100) or more guest rooms and that are subject to payment of City hotel occupancy taxes pursuant to Chapter 32, Article 11 of the City Code, as amended. The City will levy a special assessment against the new hotel properties located within the expanded boundaries of the Tourism PID ("Hotel Parcel") in an amount equal to two percent (2%) of the consideration received for occupancy of any sleeping rooms furnished by a hotel located on a Hotel Parcel (subject to any lawful exemption of the hotel occupancy tax under applicable state law and City ordinances), with such assessments to be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code, as amended. The collection of assessments for the Additional Hotel Properties will be made at the same time hotel occupancy taxes are collected on and after the date that the Additional Hotel Properties are included in the Tourism PID. The City Council hereby finds that the proposed method of assessment is reasonable and necessary. 3.6. Apportionment of Costs Between the Tourism PID and the City, as a Whole. The apportionment of costs between the Tourism PID, inclusive of the Additional Hotel Properties, and the City, as a whole, is as follows: (a) The entire cost of each improvement and service will be paid from assessments levied in accordance with Chapter 372 of the Act. (b) No City funds will be used to pay any portion of the cost of any improvement or service, unless such funding is approved from the City Council or other appropriate municipal authority on a case -by -case basis. 4. Inclusion of Additional Hotel Proaerties within the Tourism PID: Term. Based on the findings set forth above, the City Council authorizes the expansion of the boundaries of the Tourism PID to include the Additional Hotel Properties. The inclusion of the Additional Hotel Properties within the Tourism PID takes effect on the date on which this Resolution is published in a newspaper of general circulation in the City in accordance with Section 372.010(b) of the Act and will expire concurrently with the expiration date set forth in Section 3 of the Establishing Resolution. The expansion of the Tourism PID is subject to all conditions, limitations, and reservations set forth in the findings in Sections 2 and 3. All other provisions of this Resolution will be effective from and after adoption of this Resolution. S. Advisory Bodv. The City Council hereby declines to appoint an advisory body for the expanded Tourism PID boundaries pursuant to Section 372.008 of the Act. The City Council hereby reserves the right to assign responsibility for preparation of the ongoing service plan for the PID to another entity in the absence of such an advisory body, as authorized by Section 372.013(a) of the Act. 6. Publication. The City Secretary is hereby directed to publish notice of the City Council's authorization to establish the PID once in a newspaper of general circulation in the City. ADOPTED this 13`h day of April 2021. ATTEST: Mary J. Kayser, City Secretary EXHIBIT A Expanded Boundaries of the Tourism PID (Additional Hotel Properties) Account Name I-Iome2 Suites — Cultural District Hotel Drover Residence Inn Waterside — Fort Worth Southwest Address 3000 and 3012 W Lancaster Avenue 200 Mule Alley Drive 5825 Arborlawn Drive City, State, Zip RMS Fort Worth, TX 114 76107 Fort Worth, TX 200 76164 Fort Worth, TX 119 76109 REVENUES PO Assessments Total Fund&Available For Use EXPENSES :xerttves & Saks Efforts Marketing and Research (Promohon/ Advems,ng) Site Visits 81 Familiarization tours CuBural Enhancements through Marketing and promotion of the Arts Operations & Adminrstiabon City Adnwnstratne Fee Total Budgeted Expenses Ccotnbution to Fund Balance Total Ex pa naa& Net change in Fund Balance Fund Belw a, Beginning of Year (Estimated Yn; 2Sl Eafimalr`d Fund Balance. End of Year Rexene R"wremeni Over (Under) Reserve EXHIBIT B Service Plan City of Fort Womb Seven Year Service Plan (Mid -Year) Public Improvement Dirtrlct No. 18 - Tourl&m FY 20121 FY2V22 FY22723 FY23124 I FYMM FY25126 FYM27 S 2.800.000 5 3,515.000 S 4.100.000 '. 4AMOOD 441 1 $ 4,68$,000± 5 4.915.000 5 5,110,000 S 2,8D0,DO0 S 3.515.000 • 4,100,808 t 6 4,1M000 t AI10&DOO ; 5 4.913,000 S 5.110.000 S 1.262.000 I $ 1.643.500 $ 1,021,375 S 2.078.125 S 2.199.250, S 2,308.500 S 2.401,125 972,000 + 1.211.000 1.415.750 1.531.250 1,620,500 i 1.701,000 1.769,250 91.0001 173,000 202,250 216,750 231,500 243,000 252.750 257.000 259,500 303.375 326,125 347,250 364.500 379,125 173.000 173.000 202.250 218.750 231,500 243.000 252,750 55,000 55.000 55,0011) S5,000 55.000 55,000 55.000 6 2,500,000 $ "15,000 $ &,t6a1100 S 4.430,000', S 4.685,000 S 4,915,000 S 6,110,000 S 2,800,000 S 3,515,000 S 4,100,000 S 4,43-0,000 S 4,685,000 S 4,915.000 S S1110,000 Z671,172' 2,Eil1.+t2 2,071,122__� Z_671_122 Z,871,122 2,871.122 2,671.122 _ 2,671,T22�-2,871,122 2,6T1,iZ2' _ -—2,671,1Z2i Z.67t.W Z.671.122 2.671,122 533,439' W470 786,461 780,660 Bie,2s1 861.837 851,837 S 2,137,683 6 1,087,652 i 1,Bl2,M1 6 1,810,/02 1 1,861t781 6 1,810AS i 1,810.2BS A Resolution NO. 5264-08-2020 AUTHORIZING AND EXPANDING FORT WORTH PUBLIC IMPROVEMENT DISTRICT NO. 18 (TOURISM PID) TO INCLUDE ADDITIONAL HOTELS AND TAKING CERTAIN OTHER ACTIONS CONCERNING THE DISTRICT WHEREAS, the Public Improvement District Assessment Act, Chapter 372 of the Texas Local Government Code ("Act") allows for the establishment of public improvement districts; WHEREAS, on August 29, 2017, the City Council adopted Resolution No. 4837- 08-2017, establishing Fort Worth Public Improvement District 18 — Tourism ("Tourism PID") ("Establishing Resolution"); WHEREAS, a petition ("Petition") was submitted to the City of Fort Worth, Texas ("City"), pursuant to the Act, requesting to expand the Tourism boundaries to include additional hotel properties within Tourism PID and has been on file in the office of the City Secretary for public inspection; WHEREAS, pursuant to Section 372.009 of the Act, the City provided notice and publication of a public hearing to be conducted on August 18, 2020 to consider the expansion of the Tourism PID ("Public Hearing"), which notice and publication included the following: (i) time and place of the public hearing; (ii) general nature of the proposed improvements and services; (iii) estimated costs of the improvements and services; (iv) expanded boundaries of the Tourism PID; (v) proposed method of assessment; and (vi) proposed apportionment of cost between the additional hotel properties in Tourism PID and the City; WHEREAS, notice of the Public Hearing was published on August 2, 2020 in the Fort Worth Star -Telegram, a newspaper of general circulation in the City, and was also mailed on July 31, 2020 to all record owners of property in the Tourism PID liable for assessment, and all persons desiring to be heard were given a full and fair opportunity to be heard at the Public Hearing; WHEREAS, the City Council conducted and adjourned the Public Hearing to consider the expansion of the Tourism PID; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: 1. Recitals. The findings set forth in the recitals of this Resolution are found to be true and correct. 2. Findings. The City Council, after duly considering the evidence and testimony presented at the Public Hearing and based on all information known by the City Council, hereby makes the following findings: 2.1 Petition and Boundaries. (a) The current boundaries of the Tourism PID consist of noncontiguous areas authorized under Section 372.0035 of the Act consisting solely of hotel properties with 100 or more rooms ordinarily used for sleeping within the City of Fort Worth. A list of the original hotels that are included within the boundaries of the Tourism PID is included in the Establishing Resolution. (b) Section 372.0121 of the Act allows the City Council to include additional properties in the Tourism PID if (i) the property is a hotel and (ii) the property could have been included in the Tourism PID without violating Section 372.005(b-1) of the Code when the Tourism PID was created regardless of whether the record owners of the property signed the original petition. As evidenced below, the hotel properties set forth in Exhibit "A", which is attached hereto and incorporated herein for all purposes ("Additional Hotel Properties"), meet the necessary elements for inclusion into the Tourism PID. (i) The Additional Hotel Properties to be included in the Tourism PID as part of this Resolution are all hotel properties. (ii) The City Council found that the original petition for the Tourism PID was sufficient because it had been signed by record owners of taxable real property liable for assessment that constituted: (a) 73.13% of the appraised value of taxable real property liable for assessment and (b) 62.96% of the area of all taxable real property liable for assessment (see Establishing Resolution). The property owners, or their duly authorized representatives, for all of the Additional Hotel Properties have each signed a petition requesting inclusion within the Tourism PID. This results in an increase to 73.9% of appraised value of taxable real property liable for assessment and 64.4% for the area of all taxable real property liable for assessment. 2.2 Advisability and Feasibility of the Improvements and Services Proposed for the Tourism PID. It is advisable to expand the Tourism PID to include the Additional hotel Properties set forth herein to provide the proposed improvements and services described in the Petition and this Resolution. The improvements and services will promote the interests of the City and confer a special benefit on the assessed properties within the Tourism PID. The Fort Worth Convention and Visitor's Bureau staff performed an analysis of the Tourism PID, its service plan and strategies, and concluded that it provides a very effective means for significantly enhancing the ability of Fort Worth to promote its hotel, convention, and tourism activity, which has been borne out since the Tourism PID's establishment. Based on this analysis and the successful history of the Tourism PID, the City finds the proposed tourism public improvement district to be both advisable and feasible. 2.3 Nature of the Improvements and Services. The general nature of the proposed improvements and services to be provided within the expanded boundaries of Tourism PID include, without limitation, marketing, business recruitment, and promotional activities authorized by the Act for improvements and promotion of the Tourism PID, including, but not limited to, the provision of incentives by the Fort Worth Convention and Visitors Bureau to organizations to encourage them to bring large and city-wide events (including, without limitation, meetings, sporting, recreation, and cultural events) to Fort Worth and to fund additional marketing by the Fort Worth Convention and Visitors Bureau to increase hotel stays within the City. 2.4 Estimated Cost of the Improvements and Services. Over the seven (7) year period beginning on October 1, 2020 and ending on the expiration of the Tourism PID as provided in Section 3, the estimated total cost of the improvements and services to be provided by the Tourism PID will be $37,220,037.00, which includes an estimated cost of $4,178,453.00 for the 2020-2021 fiscal year. For the 2020-2021 fiscal year, the estimated cost of the above -referenced improvements and services, and estimated costs to implement such improvements and services is: Incentives and Sales Efforts $1,855,554 Marketing and Research (Promotion/Advertising) $1,443,208 Site Visits & Familiarization Tours $ 309,259 Cultural Enhancements through Marketing and Promotion of the Arts $309,259 Operations and Administration $206,173 City Administrative Fee $55,000 Total $4,178,453 Such estimated costs are reasonable and appropriate. The estimated costs of improvements and services provided in the 2020-2021 fiscal year will be determined in a subsequent annual budget and service plan for the 'Tourism PID to be approved by the City Council on August 25, 2020, in accordance with Chapter 372 of the Act. Such costs will be paid from assessments levied in accordance with Chapter 372 of the Act. The seven-year service plan proposed for the Tourism PID is attached hereto as "Exhibit B" ("Service Plan") and incorporated herein for all purposes. The Service Plan budget and assessment amount are subject to annual review and approval by the City Council. 2.5. Method of Assessment. The costs of the improvements and services will be funded from assessments levied on and collected from properties located in the 'Tourism PID that contain hotels of one hundred (100) or more guest rooms and that are subject to payment of City hotel occupancy taxes pursuant to Chapter 32, Article II of the City Code, as amended. The City will levy a special assessment against the new hotel properties located within the expanded boundaries of the Tourism PID ("Hotel Parcel") in an amount equal to two percent (2%) of the consideration received for occupancy of any sleeping rooms furnished by a hotel located on a Hotel Parcel (subject to any lawful exemption of the hotel occupancy tax under applicable state law and City ordinances), with such assessments to be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code, as amended. The collection of assessments will be made at the same time hotel occupancy taxes are collected on and after October 1, 2020. The City Council hereby finds that the proposed method of assessment is reasonable and necessary. 2.6. Apportionment of Costs Between the Tourism PID and the City, as a Whole. The apportionment of costs between the Tourism PID, inclusive of the Additional Hotel Proeprties, and the City, as a whole, is as follows: (a) The entire cost of each improvement and service will be paid from assessments levied in accordance with Chapter 372 of the Act. (b) No City funds will be used to pay any portion of the cost of any improvement or service, unless such funding is approved from the City Council or other appropriate municipal authority on a case -by -case basis. 3. Inclusion of Additional Hotel Pronerties within the Tourism PID; Term. Based on the findings set forth above, the City Council authorizes the expansion of the boundaries of the "Tourism PID to include the Additional Hotel Properties. 'The inclusion of the Additional Hotel Properties within the Tourism PID takes effect on the date on which this Resolution is published in a newspaper of general circulation in the City in accordance with Section 372.010(b) of the Act and will expire concurrently with the expiration date set forth in Section 3 of the Establishing Resolution. The expansion of the Tourism PID is subject to all conditions, limitations, and reservations set forth in the findings in Section 2. All other provisions of this Resolution shall be effective from and after adoption of this Resolution. 4. Advisory Bodv. The City Council hereby declines to appoint an advisory body for the expanded Tourism PID boundaries pursuant to Section 372.008 of the Act. The City Council hereby reserves the right to assign responsibility for preparation of the ongoing service plan for the PID to another entity in the absence of such an advisory body, as authorized by Section 372.013(a) of the Act. 5. Publication. The City Secretary is hereby directed to publish notice of the City Council's authorization to establish the PID once in a newspaper of general circulation in the City. ADOPTED this l 8t' day of August 2020. ATTEST: r►UV- Mary J. Kayser, City Secretary 1 g EXHIBIT A Expanded Boundaries of the Tourism PID (Additional Hotel Properties) Account Name Address City, State, Zip Moon Hotel Alliance, Hyatt Place OGC Main Street, Spring Hill Suites AC Hotel Fort Worth Downtown Kimpton Hotel Hyatt Place Fort Worth, TCU 3201 Alliance Town Center Fort Worth, TX 76117 2315 N. Main Street Fort Worth, TX 76164 101 West 511 Street/610 Fort Worth, TX Main Street 76102 714 Main Street Fort Worth, TX 76102 2500 West Berry Street Fort Worth, TX 76109 RMS 130 170 252 232 127 Fh[al Tev TP1D C,ollec bens Use of Flmd 84tanor oud" Rwetww+ )' I&O-CA z911t1 trCaMMas dt S.Yei Effrml M.W.9 rd Rt+e b(Pr� A& —It g) Sea ~s 6 Frnru mr.. T— C.R. 1 ENvn<e.Wm Ibm"O M4rtM�q 4nd prtmlo!w of dv mt 3perMW%& AdmirvnrAloln City Atkn,r Ors"W Fae EXHIBIT B Service Plan Fort WoM Tourism Public I District au 2Q7i S9L 2 242� 20i2 r• r..r S 4,17A,453 S 4.746.749 S 51,1021216 S 540E-J53 S 5.678,76E S 5,934.313 S 6,171 kes S 37.20,037 Ett4MW E"kra d EslYnaed Udw t4d Eakrat" ee Esdnrd Estwood G1M IMed S 1,955,554 5 2,111p62 S 2,271,24E 5 2,409,006 5 2.530.6% S -,CAS,691 S 2,752,50E 5 16.575,767 S 1,413,20E 5 1,641,931 5 1,766,S26 S 1,R73,673 S 1,966.i19 S 2p57.760 S 2,140AA0 S ".692.262 $ 109,1S9 S 11. 1,A" S 178,541 S 401,5501 S 421,7113 S 440,942 S 4S8,751 S 2.762.+2A S 309Z9 $ 3SIA44 S 373,541 S 401.501 S 421.7a3 5 M,11M S 04,751 S 2,762An S 206,171 S 234,562 S 25 AI S 167,66E $ 261,18E S 294,966 S 305,834 S LM1,7S7 S 5%000 S 551000 S $S,000 $ 55.000 S 55,0M S WCOO S Wal() $ AS AOo S 4,17A,4S3 S 4,746.2A9 S S.102,238 S 5,Aw3si S 5.6r,76R S 5,934,313 S 6,171.6R5 S 17,220,017 A Resolution NO.4837-08-2017 AUTHORIZING AND ESTABLISHING FORT WORTH PUBLIC IMPROVEMENT DISTRICT NO. 18 (TOURISM PID) AND TAKING CERTAIN OTHER ACTIONS CONCERNING THE DISTRICT WHEREAS, the Public Improvement District Assessment Act, Chapter 372 of the Texas Local Government Code ("Act") allows for the establishment of public improvement districts; WHEREAS, a petition ("Petition") was submitted to the City of Fort Worth, Texas ("City"), pursuant to the Act, requesting the establishment of a public improvement district on land within the City to be known as the Fort Worth Public Improvement District No. 18 ("Tourism PID") and has been on file in the office of the City Secretary for public inspection; WHEREAS, pursuant to Section 372.009 of the Act, the City provided notice and publication of a public hearing to be conducted on August 29, 2017 to consider the creation of the Tourism PID ("Public Hearing"), which notice and publication included the following: (i) time and place of the public hearing; (ii) general nature of the proposed improvements and services; (iii) estimated costs of the improvements and services; (iv) boundaries of the proposed Tourism PID; (v) proposed method of assessment; and (vi) proposed apportionment of cost between the Tourism PID and the City; WHEREAS, notice of the Public Hearing was published on August 13, 2017 in the Fort Worth Star -Telegram, a newspaper of general circulation in the City, and was also mailed on August 11, 2017 to all record owners of property in the Tourism PID, and all persons desiring to be heard were given a full and fair opportunity to be heard at the Public Hearing; WHEREAS, the City Council conducted and adjourned the Public Hearing to consider the creation of the Tourism PID; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: 1. Recitals. The findings set forth in the recitals of this Resolution are found to be true and correct. 2. Findings. The City Council, after duly considering the evidence and testimony ftywom —T presented at the Public Hearing and based on all information known by the City Council, hereby makes the following findings: 2.1 Petition. The Petition was filed with the City Secretary and complies with Section 372.005 of the Act and has been signed by record owners of taxable real property liable for assessment under the proposal who constitute: (a) 73.13% of the appraised value of taxable real property liable for assessment under the proposal set forth in the Petition, as determined by the current roll of the Tarrant Appraisal District, and (b) 62.96% of the area of all taxable real property that is liable for assessment under the proposal. 2.2 Advisability and Feasibility of the Improvements and Services Proposed for the Tourism PID. It is advisable to create the Tourism PID to provide the proposed improvements and services described in the Petition and this Resolution. The improvements and services will promote the interests of the City and confer a special benefit on the assessed properties within the Tourism PID. The Fort Worth Convention and Visitor's Bureau staff have done an analysis of the proposed tourism public improvement, its service plan and strategies, and have concluded that it provides a very effective means for significantly enhancing the ability of Fort Worth to promote its hotel, convention, and tourism activity. Based on this analysis, the City finds the proposed tourism public improvement district to be both advisable and feasible. 2.3 Nature of the Improvements and Services. The general nature of the proposed improvements and services to be provided in the Tourism PID include, without limitation, marketing, business recruitment, and promotional activities authorized by the Act for improvements and promotion of the Tourism PID, including, but not limited to, the provision of incentives by the Fort Worth Convention and Visitors Bureau to organizations to encourage them to bring large and city-wide events (including, without limitation, meetings, sporting, recreation, and cultural events) to Fort Worth and to fund additional marketing by the Fort Worth Convention and Visitors Bureau to increase hotel stays within the City. 2.4 Estimated Cost of the Improvements and Services. Over the ten (10) year period beginning on January 1, 2018 and ending on the expiration of the Tourism PID as provided in Section 3, the estimated total cost of the improvements and services provided by the Tourism PID will be $57,036,809.00, which includes an estimated cost of $3,469,985.00 for the 2017-2018 fiscal year, a 40% increase for the 2018-2019 fiscal year, and a year -over -year increase thereafter of five percent (5%) for the remaining eight -year term. For the 2017-2018 fiscal year, the estimated cost of the above -referenced improvements and services, and estimated costs to implement such improvements and services is: Incentives and Sales Efforts $1,474,744 Marketing, (Promotion/Advertisin�) $1,214,495 Site Visits & Familiarization Tours $ 346,998 Event Funding Application Pool $ 260,249 Operations/Research/Administration $ 156,499 One -Time City Administrative Fee $17,000 Total $3,469,985 Such estimated costs are reasonable and appropriate. The estimated costs of improvements and services provided in the 2017-2018 fiscal year will be determined in a subsequent annual budget and service plan for the Tourism PID to be approved by the City Council on August 29, 2017, in accordance with Chapter 372 of the Act. Such costs will be paid from assessments levied in accordance with Chapter 372 of the Act. The ten-year service plan proposed for the Tourism PID is attached hereto as "Exhibit A" ("Service Plan") and incorporated herein for all purposes. The Service Plan budget and assessment amount are subject to annual review and approval by the City Council. 2.5 Boundaries of the Tourism PID. The boundaries of the Tourism PID are noncontiguous areas authorized under Subchapter 372.0035 of the Act consisting solely of hotel properties with 100 or more rooms ordinarily used for sleeping within the City of Fort Worth as set forth in the attached "Exhibit B", which is incorporated herein for all purposes_ The Tourism PID's boundaries may be expanded by the same procedure required by Chapter 372.012 of the Act for establishment of the Tourism PID. 2.6. Method of Assessment. The costs of the improvements and services will be funded from assessments levied on and collected from properties located in the Tourism PID that contain hotels of one hundred (100) or more guest rooms and that are subject to payment of City hotel occupancy taxes pursuant to Chapter 32, Article 11 of the City Code, as amended. The City will levy a special assessment against properties located within the boundaries of the Tourism PID ("Hotel Parcel") in an amount equal to two percent (2%) of the consideration paid for occupancy of any sleeping room furnished by a hotel located on a Hotel Parcel (subject to any lawful exemption of the hotel occupancy tax under applicable state law and City ordinances), with such assessments to be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code, as amended. The collection of assessments will be made at the same time hotel occupancy taxes are collected on and after January 1, 2018. The City Council hereby finds that the proposed method of assessment is reasonable and necessary. The Tourism PID shall not incur bonded indebtedness. 2.7. Apportionment of Costs Between the Tourism PID and the City, as a Whole. The apportiomnent of costs between the Tourism PID and the City, as a whole, is as follows: FoRTWomi (a) The entire cost of each improvement and service will be paid from assessments levied in accordance with Chapter 372 of the Act. (b) No City funds will be used to pay any portion of the cost of any improvement or service, unless such funding is approved from the City Council or other appropriate municipal authority on a case -by -case basis. 3. Establishment of the PID; Term. Based on the findings set forth above, the Tourism PID comprising the boundaries set forth in Section 2.5 above is authorized to be established and shall be known as Fort Worth Public Improvement District No. 18 (Tourism PID). The Tourism PID shall take effect on the date on which the City Council's authorization to establish the Tourism PID pursuant to and in accordance with this Resolution is published in a newspaper of general circulation in the City in accordance with Section 372.010(b) of the Act ("PID Effective Date") and shall expire on the earlier of (i) ten years from the PID Effective Date or September 30, 2027 (whichever is earlier); (ii) the effective date of a Resolution dissolving the Tourism PID adopted by the City Council following receipt of a petition requesting dissolution and the holding of a public hearing to consider such dissolution in accordance with Section 372.011 of the Act; or (iii) any other lawful method provided for dissolution of a public improvement district pursuant to the Act, as it may be amended. The Tourism PID shall be subject to all conditions, limitations, and reservations set forth in the findings in Section 2. All other provisions of this Resolution shall be effective from and after adoption of this Resolution. 4. Advisory Bodv. The City Council hereby declines to appoint an advisory body for the Tourism PID pursuant to Section 372.008 of the Act. The City Council hereby reserves the right to assign responsibility for preparation of the ongoing service plan for the PID to another entity in the absence of such an advisory body, as authorized by Section 372.013(a) of the Act. 5. Publication. The City Secretary is hereby directed to publish notice of the City Council's authorization to establish the PID once in a newspaper of general circulation in the City. ADOPTED this 291' day of August 2017. ATT T: ary J. Kayser ' Se y Fort Worth Tourism Publk improvement D&t Fbwyw 2w 30 m Im am m w lC-YW W,LW S .45W, 6;M6g t 7r171,41d $ 57,036,M kwo Cat"Orles ElinaI EMWAIW fdkXW Ettiasated NOW Ethated Estimated FdrAW EW=W Estimated TOW Incentives & Saks Efforts $ IA74j44 $ Z%4,641 1,1i7jt ZMX W�84 $ 46506A $ 476 3A,416 $ 24,20,644 Marketing jPmmotion/AdvwO4 't_ 1,214,495 LA70043, $ 1,78SA71$ IA74,573 I IMP Z066,717 � ?47Q_ A�A ;SIZW7 Site VMs & FmdWntkm Tow SWO M517981$ S4= 535,592 $ sm $ SW90: $ 6w -AW4 717,74S %7(B,60 Event Funding App"i!?*_ $ _2"1__364-W $ jy*t - 0 -4-W 'AM $ LgM 0 _._P 4,M,761 6pmtims�RewchjAjnW*9W'$ L%S 242899 $ BW'$ V,7* $ 2436! $ 3 AN!$ $ MX'$ wis $ 3w - $ WIN One Time aw— J— --VA—M $ A— $ I -- . $ $ - $ -3--- - - -- - - —j s mw s 'WEqmfkm wtpdtDoMWp!eftkmhkkeonqacWie2%*onW occupied mm as defined to d%e poft WTI EXHIBIT B Boundaries of the Tourism PID Account Name Address City, State, Zip Aloft Downtown Fort Worth 300 W. 3rd St. Fort Worth, TX 76102 American Airlines Training and Conference 4200 American Blvd 76155 Fort Worth, TX Center 76155 Autograph Collection Downtown Fort Worth 1512 Main St. Fort Worth, TX 76102 Budget Suites of America - Fossil Creek 3500 NE Loop 820 Fort Worth, TX 76137 Candlewood Suites - DFW South 4200 Reggis Drive Fort Worth, TX Courtyard by Marriott - Alliance Courtyard by Marriott - Blackstone Courtyard by Marriott - Fossil Creek Courtyard by Marriott - Stockyards Courtyard by Marriott - University Drive Courtyard by Marriott - West at Cityview Crossland Economy Studios - Fossil Creek Dalworth Inn DFW Airport Marriott South DFW Marriott Hotel and Golf Club at Champions Circle Embassy Suites Hotel - Downtown Fort Worth Extended Stay America - City View Fairfield Inn & Suites Downtown 76155 3001 Amador Dr. Fort Worth, TX 76177 601 Main Street Fort Worth, TX 76102 3751 NE Loop 820 Fort Worth, TX 76137 2537 Main St. Fort Worth, TX 76164 3150 Riverfront Fort Worth, TX 76107 6400 Overton Ridge Fort Worth, TX Boulevard 76132 3804 Tanacross Fort Worth, TX 76137 812 E. Felix Street Fort Worth, TX 76115 4151 Centreport Boulevard Fort Worth, TX 76155 3300 Championship Pkwy Fort Worth, TX 76177 600 Commerce Street Fort Worth, TX 76102 5831Overton Ridge Blvd I Fort Worth, TX 76132 1010 Houston Fort Worth, TX 1 76102 oRs WO T Ir— RMS 180 299 165 366 174 127 203 154 124 130 104 124 120 295 286 156 104 110 Fairfield Inn & Suites Fossil Creek NE Loop 820 Fort Worth, TX 106 13701 76137 Hampton Inn and Suites - West/1-30 2700 Green Oaks Fort Worth, TX 105 76177 Hampton Inn and Suites - DFW South Reggis Court Fort Worth, TX 116 14201 76155 Hampton Inn and Suites Downtown Fort 210 E. 9th Street Fort Worth, TX 245 Worth 76102 Hawthorn Suites - University South University Fort Worth, TX 120 11701 Drive I 76107 Hilton Fort Worth 815 Main Street Fort Worth, TX 294 76102 Hilton Garden Inn - Fort Worth Alliance 2600 Westport Parkway Fort Worth, TX 127 Airport I 76177 I Hilton Garden Inn - Medical Center 912 Northton Street Fort Worth, TX 157 76104 Holiday Inn - DFW Airport South 14320 Centre Station Road Fort Worth, TX 143 76155 Holiday Inn Express - Downtown 1111 W Lancaster Fort Worth, TX 132 76102 Holiday Inn North - Fossil Creek 4635 Gemini Place Fort Worth, TX 126 76106 Homewood Suites - Fossil Creek 3701 Tanacross Fort Worth, TX 137 76137 Homewood Suites - Medical Center 2200Charlie Lane Fort Worth, TX 1157 76104 Hyatt Place — Cityview 5900 Cityview Street Fort Worth, TX l 127 76132 Hyatt Place — Stockyards 1132 E Exchange Fort Worth, TX 100 76164 La Quinta Inn and Suites - Fort Worth North 14700 North Street Fort Worth, TX 133 76137 La Quinta Inn and Suites - Southwest 14900 Bryant Irvin Fort Worth, TX 1128 76132 Omni Fort Worth Hotel 1300 Houston Fort Worth, TX 614 76102 Quality Inn and Suites - Cattle Baron 2700 S Cherry Lane Fort Worth, TX 109 76116 Radisson - Fort Worth South Hotel 100 Alta Mesa East Fort Worth, TX 247 76134 Radisson Hotel - Fort Worth Fossil Creek 2540 Meacham Street Fort Worth, TX 1247 76106 Residence Inn - Alliance Airport 13400 North Freeway Fort Worth, TX 111 76177 Residence Inn - Cultural District 2500 Museum Way Fort Worth, TX 150 76107 Residence Inn - Fossil Creek 5801 Sandshell Drive Fort Worth, TX 114 76137 Sheraton Fort Worth Hotel and Spa 1701 Commerce Street Fort Worth, TX 429 176102 SpringHill Suites by Marriott - University 3250 Lovell Street Fort Worth, TX 145 76107 Stay Express Hotel Fort Worth 2000 Beach Street Fort Worth, TX 168 76111 Towne Place Suites Downtown 805 E Belknap Fort Worth, TX 76102 1140 TownePlace Suites University W. Vickery & Trinity Street Fort Worth, TX 128 76107 I WoodSpring Suites Fort Worth 3501 NE Loop 820 I Fort Worth, TX 1121 11 76137 Worthington Renaissance Hotel 200 Main Street Fort Worth, TX 504 76102 Opa NnJ I.- 'DFl Arrnunl N... TAU AIC,f gMt Data frogrW V.I- Swl.r. A..(Sljll Cora 1. A • Abk Uuwnlown Fort Wonh Ito U} WILL9S,420.169 104,2 0 -111 nAlrin.l 1—i" "d ConhrenraC rater t10D3f410 7M 29.487.130 1.40,339 A AulotuDh ColkCllon Downtown lwlWwlh 01/004507 1651 01 7017 6.SIe.o06 ?.Soo C I /ud/rt S.-.1A-- F—OCrrr. 07401747, .1 ICLO9,111r 103,514 0 I rl-dk rd S..r. DFW Swr.h 4117mil 1141 1,SOU,t100) IK,4►Ol [ ifnurlyatl by Mnr.n11 Am— 1 42•1100111 1111 ' 11000,1100 173,5101 A I Cuurty.rd by Murbtl � M.rktlonr 'CbwtYard I 0/6591671 701I lJ700,000 10.0001 C I by Murbll tot.ACrtak I K41e77011 1141 1 G,e5C OWI 149,',111 I • ICarrlyard C by Narrioll Slbrkyard, 41720"1 2241 1 9, 147,95� 9h.26.1 ICwUy..d I ► by MNrbU Un.veu0y OrRe 067//11J I)0( 11,070,0U01 173,1IJI A I 1rr tya,d by MurbN. 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I S,3M136 73.13%l 61.96% City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 81Z8/Z0:17_.:-.Resolution:No.37-08-2Q7 ; DATE: Tuesday, August 29, 2017 REFERENCE NO.: BH-366 LOG NAME: 25PID18ESTABLISHTOURISMPID SUBJECT: Conduct Public Benefit Hearing to Declare the Sufficiency of a Petition Requesting Establishment of Fort Worth Public Improvement District No. 18 (Tourism PID) and Adopt a Resolution Authorizing and Establishing the Tourism PID (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Conduct a public benefit hearing concerning the sufficiency of a petition requesting establishment of Fort Worth Public Improvement District No. 18 (Tourism PID) and the establishment of the Tourism PID; 2. Find that the petition requesting establishment of the Tourism PID meets the requirements necessary to designate the proposed area as a Public Improvement District pursuant to Chapter 372 of the Texas Local Government Code; 3. Adopt the attached Resolution: (i) making certain findings concerning the nature and advisability of special improvements and services to be provided for the benefit of properties in the Tourism PID, the estimated costs of such improvements and services, the method of assessment, the boundaries of the Tourism PID and the apportionment of cost between the Tourism PID and the City, as a whole and (ii) authorizing and establishing the Tourism PID; and 4. Direct the City Secretary to publish notice of the establishment of the Tourism PID as required by Chapter 372 of the Texas Local Government Code. DISCUSSION: Chapter 372 of the Texas Local Government Code (Act) allows certain hotel property owners to petition the City for the establishment of a public improvement district that confers a special benefit on non- contiguous properties comprised solely of hotels with 100 rooms or more within the City. A petition requesting establishment of Fort Worth Public Improvement District No. 18 (Tourism PID) has been filed with the City Secretary. The petition complies with Section 372.005 of the Act and, as of August 29, 2017, has been signed by record owners of taxable real property liable for assessment under the proposal who constitute: (a) 73.13% of the appraised value of taxable real property liable for assessment under the proposal set forth in the petition, as determined by the current roll of the Tarrant Appraisal District and (b) 62.96% of the area of all taxable real property that is liable for assessment under the proposal (see Attachment 1). City staff has verified and confirmed all petition signatures. The goals of the proposed Tourism PID focus on increasing the economic impact and enhancing competitiveness in conventions, meetings, leisure and sports tourism and increasing tourism -related economic activity at all times, including during economic downturns and as inventory grows. The Logname: 25PID18ESTABLISHTOURISMPID Page I of 3 proposed Tourism PID projects include incentives and sales efforts, convention and sports marketing and promotion, site visits and familiarization tours, community arts grants, convention services, event funding application, operations, research, and administration, all of which benefit the hotels within the Tourism PID. The proposed boundaries include noncontiguous areas authorized under the Act consisting only of hotel properties with 100 or more rooms ordinarily used for sleeping within the City. The proposed assessment rate would be two percent of the consideration paid for occupancy of any sleeping room furnished by a hotel located within the Tourism PID, with such assessment to be collected in the same manner an in accordance with the same procedures as those established for collection of the City's Hotel Occupancy Tax, as set forth in Chapter 32, Article It of the City Code, as amended. The entire costs of each improvement and service will be paid from the above -stated assessments and no City funds will be used to pay any portion of such costs, unless such funding is approved by the City Council on a case -by -case basis. The total estimated costs for the proposed services and improvements for the life of the Tourism PID (approximately 10 years) will be $57,036,809, which includes an estimated cost of $3,469,985.00 for the 2017-2018 fiscal year, a 40% increase for the 2018-2019 fiscal year and a year -over -year increase of five percent (5 percent) for the remaining eight -year term. Assessments will begin on January 1, 2018. The City intends to enter into a management Agreement with a to -be -named non-profit corporation associated with the Fort Worth Convention and Visitors Bureau (Fort Worth Tourism Public Improvement District Corporation) to manage the day-to-day affairs of the Tourism PID, which contract will be addressed in a separate, but related, M&C authorizing the assessment. Staff recommends that the City Council find that these improvements and services are advisable because they will promote the interests of the City and confer a special benefit on the assessed properties within the Tourism PID. Upon the close of the public hearing, staff recommends that the City Council declare the petition to create the Tourism PID to be sufficient and adopt the attached Resolution making findings concerning the following and establishing the Tourism PID: • The advisability of establishing the proposed Tourism PID; • The general nature of the proposed improvements and services; • The estimated costs of the proposed improvements and services; • The boundaries of the Tourism PID; • The proposed method of assessment; and • The apportionment of costs between the Tourism PID and the City, as whole. Upon adoption of the Resolution, the Tourism PID will become effective on the date that City Council's authorization to establish the Tourism PID has been published in a newspaper of general circulation and will remain in effect until the earlier of 10 years from the effective date of the Tourism PID or September 30, 2027. The proposed Tourism PID encompasses ALL COUNCIL DISTRICTS. This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that approval of the above recommendations will establish the City's 18th Public Improvement District. FUND IDENTIFIERS (FIDs): Logname: 25PID18ESTABLISI-ITOURISMPID Page 2 of 3 TO Fund Department ccountl Project ctivity Budget ID ID lProgram I Year FROM Fund Department ccountl Project Program ctivity Budget ID ID I Year CERTIFICATIONS: Submitted for City Manaaer's Office bv: Oriainatina Department Head: Additional Information Contact: Susan Alanis (8180) Kirk Slaughter (2501) Kirk Slaughter (2501) Reference # �Amoun j (Chartfield 2) II Reference # mound (Chartfield 2) Logname: 25PID18ESTABLISHTOURISMPID Page 3 of 3 ■ ■ =1 I I IIm ■ 10 1 1 ■ 1 1 1 1 11 1 11 1 1 1 Petition Requesting the Establishment of the FORT WORTH TOURISM PUBLIC IMPROVEMENT DISTRICT PETITION REQUESTING THE ESTABLISHMENT OF THE FORT WORTH TOURISM PUBLIC IMPROVEMENT DISTRICT ARTICLE i - REOUF.ST TO ESTABLISH DISTRICT This petition (the "Petition") is submitted to the City of Fort Worth, Texas (the "City") by the Property Owners listed on and signing Exhibit A (the "Petitioner') requesting the establishment of a public improvement District (the "District") that would be known as The Fort Worth Tourism Public Improvement District. 2. This Petition is submitted under the authority of Chapter 372 of the Texas Local Government Code (the "Code') and pursuant to the "Policy Statement - Public Improvement Districts - City of Fort Worth" adopted February 3, 2009 by the City Council of the City, as amended. 3. '17 is Petition is submitted with the understanding that the City and the Petitioner will mutually agree upon the form and content of the resolution establishing the District. If the City and the Petitioner are unable to agree upon the form and content of the resolution, or if the City Council does not adopt the resolution as agreed, the Petitioner shall be deemed to have withdrawn this Petition prior to any action having been taken by the City Council to establish the District. Under no circumstances shall the City Council have the authority to establish the District unless the form and content of the resolution have been approved by the Petitioner. The Petitioner further reserves the right to withdraw this petition at any time and for any reason by giving written notice of withdraw (including notice by FAX, e-mail or hand delivery) to the City Secretary of the City at any time before the City Council votes to establish the District (regardless of whether the City Council may have opened a public hearing to consider the advisability of establishing the District). 4. The establishment of the District pursuant to this Petition will promote the interests of the City, will confer a special benefit on all property within the District, and will promote the interest of the City, the District and all property within the District. ARTICLE II - LEGAL SUFFICIENCY OF THE PETITION This petition is legally sufficient under the Code to establish the District because it has been signed: (1) by the record owners of taxable real property representing xx.xx% of the appraised value of taxable real property liable for assessment under this Petition, as determined by the current roll of the Tarrant Appraisal District; and (2) by the record owners of taxable real property liable for assessment under this Petition who own taxable property that constitutes xx.xx% of the area of all taxable real property that is liable for assessment under this Petition, as determined by the current roll of the Tarrant Appraisal District. A copy of the current roll of the Tarrant County Appraisal District (with original signatures of each property shown next to each (2) parcel within the boundaries of the proposed District that is liable for assessment) is provided as Exhibit A. ARTICLE III — GENERAL NATURE OF PROPOSED DISTICT SERVICES The purpose of the District is to enhance services, undertake certain improvements, in particular, special supplemental services relating to District marketing, business recruitment, and promotional activities authorized by the Act for improvement and promotion of the district, including the provision of incentives by the to -be -formed Fort Worth Tourism Public Improvement District Corporation (the "FWTPIDC") through the Fort Worth Convention and Visitors Bureau (the "FWCVB") to organizations to encourage them to bring their large and city wide meetings to Fort Worth and to fund marketing by the to -be -formed FWTPIDC through the FWCVB to increase hotel stays within the City, including but not limited to the services set forth on Exhibit "B". In addition to the services set forth in Exhibit "B" the Petitioner requests that the District be authorized to engage inany activity permitted under the Code, subject to annual approval by the City Council. The FWTPIDC will recommend each year, to both property owners within the District and to the City Council, an annual plan of service and budget setting forth in detail the services and other activities proposed for the District. ARTICLE IV — ESTIMATED COST OF DISTRICT SERVICES 1. During a proposed ten (10) year period, the estimated annual cost of improvements and services provided by the District are estimated to range from million to _ million dollars ($x,000,000 to $x,000,000) annually; however, in no event shall the assessment rate exceed two percent of the price paid to hotels for a room in a hotel. The District shall not incur bonded indebtedness. See the attached preliminary ten (10) year budget for total estimated collections. The service plan budget and assessment rate are subject to annual review by the to -be -formed FWTPIDC and are subject to an annual public hearing and approval by the Fort Worth City Council. 2. An itemized estimate of the District's budget for the first ten years together with a ten- year service plan summary for the District are set forth in Exhibit "C". The Petitioner acknowledges and agrees that each annual plan of service and budget for the District, although prepared and recommended by the FWTPIDC, will be subject to approval by the City Council after a public hearing. The Petitioner acknowledges and agrees that each annual plan of service and budget will fully fund all costs incurred by the City in connection with the administration of the District, including but not limited to, the costs for personnel, data services, appraisals, notifications, and collection fees. 4. All funds of the District will be managed in accordance with accounting methods approved by the City. (3) ARTICLE V — ANNUAL PLAN OF SERVICE AND BUDGET REVIEW PROCESS Each year beginning xxxxxxx 1, 2017, the District's Manager (FWTPIDC)--through the FWCVB—willprepare and recommend to the City Council an annual plan of service and budget and an updated ten-year plan of service and budget_ Prior to presenting each annual plan and budget to the City Council, the FWTPIDC will conduct at least one annual public hearing open to all property owners within the District at which time the proposed plan and budget including any comments from the Board will be presented and property owners within the District will be given an opportunity for public comment. The City PID Administrator will give individual, written notice to each property owner not less than 15 days before the date of each public hearing, which notice will be accompanied by an outline of the proposed annual plan and budget, or revisions thereto, as the case may be. 'Phis public hearing is in addition to the public hearing -that will be held by the City Council as required by the Code before approving and adopting an annual plan of service and budget for the District. ARTICLE VI — BOUNDARIES OF THE PROPOSED DISTRICT The proposed boundaries of the District are shown on the map attached as Exhibit D and shall solely include non-contiguous hotel properties with 100 or more rooms within the City of Fort Worth as shown in the attached Exhibit A. ARTICLE VII — PROPOSED METHOD OF ASSESSMENT The proposed method of assessment, which may specify included or excluded classes of assessable property, is based on the sale of hotel nights by the hotels with 100 or more rooms that are located within the District as determined by the Fort Worth City Controller. The annual assessment rate for all hotel properties with 100 or more rooms within the district shall not exceed two percent of the price paid to hotels for a room in a hotel, which reflects the special benefits accruing to the property because of the services and improvements provided by the District. ARTICLE VHI — PROPOSED APPORTIONMENT OF COSTS BETWEEN THE DISTRICT AND THE CITY Except as provided in this Article 111, all costs of the District will be apportioned to the District. ARTICLE IX — MANAGEMENT OF THE DISTRICT The District will be managed by the FWTPIDC (the "Manager") through the FWCVB under professional services contract with the City in the form attached as Exhibit E. Management fees and other management expenses will be included in the District's annual plan of service and (4) budget approved by the City Council. The District Manager will carry general liability insurance with limits of at least $1,000,000.00 per occurrence and naming the city as an additional insured. Upon request by the City, the District Manager will provide certificates of insurance evidencing such coverage. The District Manager will indemnify the City against injury, damages and losses resulting from the acts or omissions of the District Manager and those for whom the Manager is responsible. ARTICLE X — DISSOLUTION OF THE DISTRICT The District will be deemed established immediately upon publication in a newspaper of general circulation in the City of a resolution duly adopted by the City Council authorizing the District, and the District shall continue thereafter until dissolved or reestablished as provided by the Code. ARTICLE XI — ESTABLISHMENT OF THE DISTRICT DOES NOT OBLIGATE THE CITY Except as provided for under a professional services contract in this Article (X, the Petitioner agrees that the establishment of the District does not obligate the City to fund or perform any District services, even if the District is dissolved. ARTICLE XIl — SALES DISCLOSURES All sales by the Petitioner of property within the District will disclose in the Deed that the property is located in the District and the City is not obligated to fund or perform and District services, even if the District is terminated. ARTICLE XIII — APPLICATION FEE The Petitioner agrees to pay to the City an application fee of $17,000.00 to cover the cost of the City in evaluating this Petition and in verifying the signatures contained in this Petition. Any unexpended portion of the fee shall be reimbursed to the Petitioner when the evaluation and verification is complete. ARTICLE XIV — BENEFIT OF THE DISTRICT As a result of the purpose and services described in this Article III, as well as listed in further detail in this Exhibit 13, the proposed District will benefit all property owners within the District by resulting increased hotel room sales. (5) LIST OF EXHIBITS Exhibit A Proposed District — 2016 Tarrant Appraisal District Roll with Owners' Signatures Exhibit B Summary of Initial District Services Exhibit C Feasibility Study and Initial Service Plan & Budget Exhibit D Map of Proposed District Exhibit E Form of District Management Contract (6) Exhibit A Proposed District — 2016 TAD Rod with Owners' Signatures (7) Exhibit B Summary of Initial District Services Administration • Overall management and administration of the Fort Worth Tourism Public Improvement District (FWTPID). • FWCVB staff will serve as District manager and work with FWTPIDC board of directors to ensure the benefits of the FWTPID are realized. • Provide FWTPID service plan/budget to City of Fort Worth annually or as required. • Maintain accurate accounting of use of revenues and disbursement of FWTPID funds and provide financial statements to the TPID board of directors and City as required. • Produce an annual FWTPIDC audit and provide appropriate insurance for board of directors. • Work with FWTPIDC board of directors to produce quarterly board reports. • Participate in meetings with City of Tort Worth departments to coordinate FWTPID activities. • Maintain a full and accurate accounting of revenues and disbursements of FWTPTD funds and provide financial statements to proper entities as required. • Provide primary oversight of FVITID funds for disbursement for Sales, Marketing and Administrative initiatives (as noted in the FWTPID Service Plan). • Procure market research and trends analyses to determine the best and judicious application of FWTPID funds for sales and marketing efforts. • Notify new hotel property owners of FW"I-PID assessment as required. • Schedule annual town hall meeting for FWTPID hotels (or more frequently if deemed appropriate). • Develop guidelines for individual hotel use of FWTPID funds to ineentivize convention group business (exclusive of hotel's participation in citywide incentivized business). • Expand tourism research measuring the impact of marketing efforts on client and consumer awareness of Fort Worth as a destination and allowing customization of efforts to ensure high ROI from all such initiatives. • Expand research opportunities including staff as deemed appropriate by the FWTPID board of directors and FWCVB. Provide access to hotel benefited programs as deemed appropriate by FWTPID board and FWCVB designated staff. Marketing and Promotions • Create a formal marketing plan with an agency of record. • Expand advertising campaign focused on brand identification and awareness. • Expand market reach based on research and analyses. (8) • Distribute regular communications to partners, visitors and stakeholders. • Coordinate/partner with other businesses and organizations to maximize marketing budget. • Develop collateral marketing material as needed to market Fort Worth (including digital). • Develop media familiarization tour(s) as deemed appropriate. Sales • Increase the FWCVB sales staff participation at key trade shows and events to further increase targeted hotel business opportunities. • Utilize FWTPID funds to incentivize and retain citywide meetings at the Fort Worth Convention center, sporting events and single property events based on established ROI criteria. • Ensure a 10:1 ROl requirement for every dollar provided in FWTPID funding (based on room night revenue). • Increase Fort Worth team presence at key trades show missions. • Host meeting, convention and leisure group organizers on scheduled familiarization (FAM) tours to showcase Fort Worth's assets and community spirit as a means of attracting future business. • Provide focused marketing to ensure that Fort Worth receives the appropriate market share of third party and independent group leads. (9) Exhibit C Feasibility Study and Initial Service Plan & Budget Feasibilitv Studv (NEED TO INSERT FEASIBILITY STUDY HERE) Initial Service Plan & Budget (NEED TO INSERT APPROPRIATE VALUES IN THE BELOW TABLE) Petition Allocation 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Categories Incentives & 42.5% $ $ $ $ $ $ $ $ $ $ Sales Efforts Marketing/ 35.0% $ $ $ $ $ $ $ $ S $ Promotion/ Advertising Site Visits & 10.0% $ $ $ $ $ $ $ $ $ $ FAM Tours Event Funding 7.5% $ $ $ $ $ $ $ $ $ $ Application Pool Operations/ 5.0% $ $ $ $ $ $ $ $ $ $ Research/ Administration 1000/0 $ $ $ $ $ $ $ $ $ $ *Note: Expenditures are limited to actual collections, which cannot exceed the 2% fee on each occupied room as defined in the District's petition. (10) Exhibit D Map of Proposed District (Need to insert map of the District here) Exhibit E Form of District Management Contract STATE OF TEXAS § COUNTY OF TARRANT § CONTRACT FOR THE FORT WORTH TOURISM PUBLIC IMPROVEMENT DISTRICT This contract for the collection of assessments and provision of services and improvements for the Fort Worth Tourism Public Improvement District (the "Contract") effective as of xxxxxxx 1, 2017, is made by and between the Fort Worth Tourism Public Improvement District Corporation, Inc. ("FWTPIDC"), a Texas nonprofit corporation, and the City of Fort Worth, Texas (the "C"), a Texas municipal corporation. RECITALS: WHEREAS, on xxxxxxx xx, 201x, the City Council, passed Resolution No. xx-xxx that made certain findings concerning the advisability of establishing the Fort Worth Tourism Public Improvement District (the "District"), authorized and created the District as a public improvement district under Chapter 372 of the Texas Local Government Code,. designated the FWTPIDC as the entity responsible for the management of and provision of services and improvements to the District, authorized the City Manager to enter into a contract with FWTPIDC for the provision of services and improvements for the District and collection services by the City for the District, and approved the initial District service plan, attached hereto as Exhibit A (the "Service Plan"); and WHEREAS, FWTPIDC shall be the primary entity responsible for the management of and provision of services and improvements to the District; and WHEREAS, the Board of Directors of FWTPIDC has passed a resolution authorizing it to enter into this Contract and authorizing to sign on behalf of FWTPIDC to bind the corporation under this Contract; and WHEREAS, the City and FWTPIDC now desire to enter into this Contract for the collection of the assessments and the management of and provision of services and improvements to the District; and WHEREAS, the services to be supplied to the District provide special benefits to the property owners within the District and are supplemental to standard City services; NOW, THEREFORE, (12) In consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, FWTPIDC and the City agree as follows: Engagement and Compensation. The City hereby engages FWTPIDC and FWTPIDC agrees to provide in accordance with the provisions of this Contract and Resolution No. xx-xxx the services and improvements described in the Service Plan and future annual service plans to be approved by the City Council. The compensation to be paid for the administration of the program items shall not exceed the amount established for "Administration" by each annually approved service plan (as same may be later modified pursuant to Section 2.(a) of this Contract). Scope of Services. Throughout the duration of this Contract, FWTPIDC shall provide the services and improvements as described in the Service Plan and thereafter approved annually by the City Council. In providing these services and improvements, FWTPIDC shall: (a) timely deliver the services and improvements in' accordance with the annually approved service plan, subject to FWTPIDC's ability to modify or substitute items without City Council approval within the program categories if FWTPIDC determines that such changes would serve the common interest of owners in the District and the increase or decrease in the amount of a program category does not exceed ten percent (10%) of the budgeted amount for that category (the Service Plan and each such annually approved service plan as same may thereafter be increased or decreased shall be hereafter referred to as the "Service Plan`). The FWIPIDC's administrative expenses shall not exceed ten percent (10%) of the total budget in any year unless approved by City Council. "Program categories" in the Service Plan include marketing and incentive activities and other services as provided in the Service Plan; (b) only use District assessment funds received to defray expenditures which are: (i) specifically listed in the Service Plan (except as modified pursuant to subsection (a) above) or reasonably incurred in the creation and organization of the FWTPIDC; and (b) incurred after xxxxxxx.x, 2017, unless specific authorization from the City's City Manager to the contrary is received (hereinafter called "allowable costs"); (c) support all costs defrayed from District assessment funds by properly executed checks, orders, payrolls, time records, invoices, contracts, vouchers, or other accounting documents evidencing in detail the nature and propriety of the charges. Such documentation shall be clearly identified, readily accessible and, to the extent possible, kept separate and apart from all other such documents; (13) (d) set priorities and schedules for implementing the service plan elements, considering the needs and preferences of owners in the District and the availability of personnel and financial resources; (e) if necessary, secure and retain the services of qualified personnel to implement the service plan and provide communication equipment and office supplies; (f) prepare a timely annual update of the Service Plan for the District to be presented to the City Council for review and approval. The plan must include a budget, an assessment plan and an updated ten-year plan for services and improvements; (g) prepare and deliver to the City quarterly reports of financial revenues and expenditures for work activities within the District and any budget revisions within forty-five (45) days of the end of each fiscal quarter; (h) prepare and deliver to the City joint quarterly progress reports of the FWTPIDC's efforts to implement the Service Plan within forty-five (45) days of the end of each fiscal quarter; (i) commission an annual financial audit of all PID expenditures by a Certified Public Accountant and make the audit available to the City within one hundred twenty (120) days of the end of the fiscal year; (j) allow reasonable access by the City to the financial records of FWTPIDC that relate to the District; (k) enter into contracts with exempt jurisdictions for the payment of assessments or the provision of services or improvements to the District; (1) prepare and deliver to the City quarterly/annual financial reports in a timely manner as listed in Exhibit B; and (m) take other actions reasonably necessary for the management of the District and the provision of the services and improvements to the District. 3. Collection and Distribution of Assessments. The City shall collect the annual assessments for the District along with the other local hotel occupancy taxes paid by hotels within the District. Funds shall be accounted for and distributed as provided below. (a) The City shall retain a collection service fee commensurate with its anticipated actual or allocated share of the costs for collection of the assessments (including collecting delinquent accounts). The collection service fee will be deducted from the total assessments collected each month. The net assessments received will be transferred to the FWTPIDC on a monthly basis. Delinquent assessments collected after the District has been dissolved shall be retained by the City for (14) payment of any prior commitments made by the District, but the retention of suet assessments shall be subject to utilization by the tax collector to repay any hotel that is legally entitled to a refund of all or a portion of an assessment and any interest required by law to be paid. (b) For its services in creating the District, the City shall also retain a one-time fee of $17,000. This fee will cover the costs of the District creation (or) renewal by City staff. If the City's costs for this process are less than $17,000, the remainder will be reimbursed to the District entity. The application fee ($17,000) will not be counted as part of the 10% maximum limit for administrative expenses in a District budget. (c) The City will also assess the FWTPIDC for annual expenses related to oversight of District operations. This fee shall include staff time and expenses related to the District assessment collection, costs for publication of legal notice regarding District iterns, mailing expenses and staff time required for District oversight (attending District meetings, reviewing reports and audit, preparing tax rolls and City Council documents). This fee will not be counted as part of the 10% maximum allocation for administrative expenses in a District budget. The District assessment collection process is explained in Exhibit C. (d) The remaining assessments after the collection service fees and City staff administrative fees have been deducted, including any interest for late payments, shall be transferred on a monthly basis to an account of the FWTPIDC by Automated Clearing House, wire transfer or other means mutually agreed to by the City and the FWTPIDC. (e) Pursuant to Section 2.(n) above, the City hereby expressly acknowledges that FWTPIDC is contracting with the Fort Worth Convention and Visitors Bureau (FWCVB) to implement the funded activities of the District, more specifically: to enhance services, undertake certain improvements, in particular, special supplemental services relating to District marketing, business recruitment, and promotional activities for improvement and promotion of the District, including the provision of incentives to organizations to encourage them to bring their large and city wide meetings to Fort Worth and to fund marketing to increase hotel stays within the city. A copy of the FWTPIDC/FWCVB contract is included as Exhibit D. (f) The City shall provide FWTPIDC with printed reports or diskettes of the assessment roll. (g) If necessary, FWTPIDC shall make available to the tax collector sufficient funds to repay any taxpayer who is legally entitled to a refund of all or a portion of an assessment and any interest required by law to be paid. City shall make a good faith effort to notify FWTPIDC of such potential situations (including, but not (15) limited to, lawsuits and assessment protests) so that FWTPIDC is able to set aside a sufficient reserve to cover any such refunds and interests. (h) FWTPIDC will invest the District assessments received from the City and any income earned on those assessments in accordance with the investment policies and strategies prescribed in Chapter 2256 of the Texas Government Code to achieve the following investment objectives, in order of priority: (1) understanding of the suitability of the investment to the financial requirements of the entity; (2) preservation and safety of principal; (3) liquidity; (4) marketability of the investment if the need arises to liquidate the investment before maturity; (5) diversification of the investment portfolio; and (6) yield. The assessments and any interest or other income earned on such public funds shall be used by FWTPIDC to fund services and improvements listed in the Service Plan annually approved by the City Council. The FWTPIDC must receive City Manager approval of any contracts by the FWTPIDC which commit FWTPID funds beyond the ten year term of the FWTPID. Further, upon expiration of the FWTTID, any unexpended assessment revenues shall be transferred to the City along with a schedule of any contractually committed expenses for such funds into the future. The City shall transfer those funds back to the FWTPIDC if the FWTPID is reapproved for another term by the petitioners and City Council and this Contract is modified to extend the term or a new contract is executed between the City and the FWTPIDC for the provision of services and improvements for the FWTPID. 4, Conflict of Interest. By signing this Contract, the FWTPIDC acknowledges to the CITY that it has made full disclosure in writing of any existing conflicts of interest or potential conflicts of interest, including personal financial interest, direct or indirect, in property and business relationships that relate to the duties of the FWTPIDC. The FWTPIDC further agrees that it shall make disclosure in writing of any conflicts of interest which develop subsequent to the signing of this Contract and prior to its termination. 5. Discrimination Prohibited. FWTPIDC, the execution, performance, or attempt performance of the Agreement, will not discriminate against any person or persons because of sex, race, religion, color, national origin, sexual orientation, or familial status, nor will FWTPIDC permit its officers, agents, employees or subcontractors to engage in such discrimination. This Agreement is made and entered into with reference specifically to the ordinances codified at Chapter 17, Article Ill, Division 3 of the Code of the City of Fort Worth and FWTPIDC hereby covenants and agrees that FWTPIDC, its ,officers, agents, employees and subcontractors, have fully complied with all provisions of same and that no employee or applicant for employment has been discriminated against under the terms of such ordinances by either FWTPIDC, its officers, agents, employees, or subcontractors. 5. Gift to Public Servant. City may terminate this Contract immediately if FWTPIDC has offered or agreed to confer any benefit upon a City employee or official that the City employee or official is prohibited by law from accepting. (16) For purposes of this section, "benefit" means anything reasonably regarded as pecuniary gain or pecuniary advantage, including benefit to any other person in whose welfare the beneficiary has a direct or substantial interest, but does not include a contribution or expenditure made and reported in accordance with law. Notwithstanding any other legal remedies, City may require FWTPIDC to remove any employee of FWTPIDC from any work related to the District who has violated the restrictions of this section or any similar state or federal law, and obtain reimbursement for any expenditures made as a result of the improper offer, agreement to confer, or conferring of a benefit to a City employee or official. 6. Offset. City may, at its option, offset any amounts due and payable under this Contract against any debt (including taxes) lawfully due to City from FWTPIDC, regardless of whether the amount due arises pursuant to the terms of this Contract or otherwise and regardless of whether or not the debt due to City has been reduced to judgment by a court. 7. No Partnership or Joint Venture. It is specifically understood that the relationship described in this Contract between FWTPIDC and the City is contractual in nature and is not to be construed to create an agency, partnership or joint venture relationship between FW"fPIDC and the City; nor shall the City be liable for any debts incurred by the FWTPIDC in the conduct of such other party's business or function. 8. Independent Contractor. FWTPIDC's status shall be that of an independent contractor and not an agent, servant, employee, or representative of City in the performance of services under this Contract. FW'ITIDC shall exercise independent judgment in perforating duties under this Contract and is solely responsible for setting working hours, scheduling or prioritizing the work flow and determining how the work is to be performed. No term or provision of this Contract or act of FWTPIDC in the performance of this Contract shall be construed as making FWTPIDC the agent, servant or employee of City, or making FWTPIDC or any of its employees eligible for the fringe benefits, such as retirement, insurance and worker's compensation, which City provides its employees. 9. Assignment. FWTPIDC shall not sell, assign, transfer or convey this Contract, in whole or in part, without the prior written consent of City's City Manager. As an express condition of consent to any assignment, FWTPIDC shall remain liable for completion of the Contract work in the event of default by the successor contractor or assignee. 10. Insurance. (a) The FWTPIDC shall, at its own expense, maintain in full force and effect throughout the term of this Contract insurance as set forth below: (17) Comprehensive General Liabilitv insurance: FWTPIDC shall maintain throughout the Term of this Agreement a commercial general liability insurance policy in an amount of not less than $1,000,000 covering each occurrence with an aggregate limit of not less than $2,000,000. 2. Automobile Insurance — Bodily Iniury and Property Damage: FWTPIDC shall maintain throughout the Term of this Agreement comprehensive automotive liability coverage in an amount not less than $1,000,000 for each accident. This policy shall cover any automobile used in the provision of Improvements and Services under this agreement. 3. Worker's Compensation Insurance: FWTPIDC shall maintain throughout the Term of this Agreement statutory Worker's Compensation Insurance on all its employees to be engaged in undertaking any Improvements or Services hereunder. In case any class of employees engaged in hazardous work under this Agreement is not protected under the state's Worker Compensation statutes, FWTPIDC shall provide adequate employer's general liability insurance for the protection of such employees not so protected. (b) Other Requirements: The City shall be named as an additional insured and a waiver of subrogation in favor of the City shall be provided on every applicable insurance policy. The FWTPIDC hereby waives subrogation rights for loss or damage to the extent same are covered by insurance. Insurers shall have no right of recovery or subrogation against the City. 2. The term "CITY" shall include all authorities, boards, bureaus, commissions, divisions, departments and offices of the City, and the individual members, employees and agents in their official capacities. 3. Insurance shall be provided through companies duly approved to transact that class of insurance in the State of Texas. Companies providing coverage shall have a minimum A.M. Best rating of A VII. 4. Certificates of insurance shall be provided to the City's PID Administrator. Thirty (30) days written notices is required before any insurance is altered, cancelled, or non -renewed. City of Fort Worth Attn: PID Administrator Housing & Economic Dev Dept. 1000 Th rock.morton Street Fort Worth, Texas 76102-6311 (18) CITY SHALL HAVE NO DUTY TO EXECUTE OR PERFORM UNDER THIS CONTRACT UNTIL THE CERTIFICATE AND SUFFICIENT EVIDENCE OF CONFORMITY TO CITY'S INSURANCE REQUIREMENTS SHALL HAVE BEEN DELIVERED AND APPROVED BY RISK, AND NO CITY OFFICER OR EMPLOYEE SHALL HAVE AUTHORITY TO WAIVE THIS REQUIREMENT. 11. Indemnity. FWTPIDC AGREES TO INDEMNIFY AND HOLD HARMLESS THE CITY, ITS OFFICERS, AGENTS AND EMPLOYEES, AGAINST ANY AND ALL CLAIMS, LAWSUITS, JUDGMENTS, COSTS AND EXPENSES FOR PERSONAL INJURY (INCLUDING DEATH), PROPERTY DAMAGE OR OTHER HARM FOR WHICH RECOVERY OF DAMAGES IS SOUGHT, SUFFERED BY ANY PERSON OR PERSONS THAT MAY ARISE OUT OF OR BE OCCASIONED BY FWTPIDC'S BREACH OF ANY OF THE TERMS OR PROVISIONS OF THIS CONTRACT, OR BY ANY NEGLIGENT ACT OR OMISSION OF FWTPIDC, ITS OFFICERS, DIRECTORS, AGENTS, ASSOCIATES, EMPLOYEES, SUB -CONSULTANTS OR CONTRACTORS, IN THE PERFORMANCE OF THIS CONTRACT; EXCEPT THAT THE INDEMNITY PROVIDED FOR IN THIS PARAGRAPH SHALL NOT APPLY TO ANY LIABILITY RESULTING FROM THE SOLE NEGLIGENCE OF CITY, ITS OFFICERS, AGENTS, EMPLOYEES OR SEPARATE CONTRACTORS AND IN THE EVENT OF JOINT AND CONCURRENT NEGLIGENCE OF BOTH FWTPIDC AND THE CITY, RESPONSIBILITY AND INDEMNITY, IF ANY, SHALL BE APPORTIONED COMPARATIVELY IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT, HOWEVER, WAIVING ANY GOVERNMENTAL IMMUNITY AVAILABLE TO THE CITY UNDER TEXAS LAW. THE PROVISIONS OF THIS PARAGRAPH ARE SOLELY FOR THE BENEFIT OF THE PARTIES HERETO AND THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS, ASSOCIATES, EMPLOYEES, SUB - CONSULTANTS OR CONTRACTORS IN CONNECTION WITH THE PERFORMANCE OR CONDUCT OF THE SERVICES RELATED TO, CONTEMPLATED BY OR ARISING AS A RESULT OF THE SERVICE PLAN, AND ARE NOT INTENDED TO CREATE OR GRANT ANY RIGHTS, CONTRACTUAL OR OTHERWISE, TO ANY OTHER PERSON OR ENTITY. 12. Rights, Remedies and Termination. Both parties are executing this Contract in good faith and with the intent that all provisions contained herein shall be met in accordance with their terms. In the event of a breach or violation of its terms by either party to this Contract, then the party in compliance may exercise whatever rights and remedies may be available or afforded to such party at law or in equity. In addition to any other remedies available, the City may terminate this Contract if FWTPIDC violates any part of this Contract and FWTPIDC fails to reasonably cure the violation of this Contract within thirty (30) days of r-cceipt of written notice to FWTPIDC by the City of a violation of this Contract by certified mail. In addition to any other remedies available, the City may terminate this contract upon thirty (30) days written notice to FWTPIDC if City Council fails to approve an annual (19) Service Plan for the District. All services being performed under this Contract shall cease upon the date specified in such notice. In addition to termination, the City shall recover those portions of assessment funds, including interest or other income earned on such public funds that were not spent on allowable costs per the Service Plan, plus any other damages suffered by the City as a result of FWTPIDC's violation of the terms and conditions of this Contract. FWTPIDC may invoice City for all services they respectively completed and shall be compensated in accordance with the terms of this Contract with special assessments for all services performed by FWTPIDC prior to the date specified in such notice. A previous payment or approval of payment of all or any portion of assessment funds by City shall not be deemed a waiver of the City's rights under this section. Any express waiver by the City of a violation by FWTPIDC shall not be deemed to waive any subsequent violation by FWTPIDC. 13. Notice. Except as otherwise provided in Section 6, any notice, payment, statement, or demand required or permitted to be given under this Contract by either party to the other may be effected by personal delivery in writing or by mail, postage prepaid. Mailed notices shall be addressed to the parties at the addresses appearing below, but each party may change its address by written notice in accordance with this section. Mailed notices shall be deemed communicated as of three (3) days after mailing: If to the City: City of Fort Worth Attn: PID Administrator Housing & Economic Dev Dept. 1000 Thmckmorton Street Fort Worth, "Texas 76102-6311 If to FWTPIDC: or Current FWTPIDC Chair or (if is no longer Chair) Fort Worth Tourism Public Improvement District Corporation (FViT?IDC) Fort Worth, Texas 14. Right of Review and Audit. City is granted the right to audit, at City's election, all FWTPIDC records and billings relating to the performance of this Contract. FWTPIDC agrees to retain such records for a minirnum of three (3) years following completion of this Contract. Any payment, settlement, satisfaction, or release provided under this Contract shall be subject to City's rights as may be disclosed by such audit. 15. Captions. The captions, headings, and arrangements used in this Contract are for convenience only and shall not in any way affect, limit, amplify, or modify its WILL and provisions. (20) 16. Compliance with Laws and Regulations. This Contract is entered into subject to and controlled by the Charter and ordinances of the City of Fort Worth and all applicable laws, rules, and regulations of the State of Texas and the Government of the United States of America. FWTPIDC shall, during the course of performance of this Contract, comply with all applicable City codes and ordinances, as amended, and all applicable state and federal laws, rules and regulations, as amended. 17. Venue. The obligations of the parties to this Contract shall be performable in Tarrant County, Texas, and if legal action is necessary in connection with or to enforce rights under this Contract, exclusive venue shall lie in Tarrant County, Texas. 18. Governing Law. This Contract shall be governed by and construed in accordance with the laws and court decisions of the State of Texas, without regard to conflict of law or choice of law principles of Texas or of any other state. 19. Legal Construction. In case any one or more of the provisions contained in this Contract shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Contract, and this Contract shall be considered as if such invalid, illegal, or unenforceable provision had never been contained in this Contract. 20. Term. This Contract shall terminate on xxxxxxx xx, 2026, unless otherwise agreed to in writing by the parties. If for any reason the District is dissolved before xxxxxxx xx, 2026, this Contract shall terminate upon the payment to F WTPIDC for all services and improvements provided to the District to the date of dissolution and for the reasonable cost of services to conclude the business of the District. 21. Counterparts. This Contract may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. If this Contract is executed in counterparts, then it shall become fully executed only as of the execution of the last such counterpart called for by the terms of this Contract to be executed. 22. Captions. The captions to the various clauses of this Contract are for informational purposes only and shall not alter the substance of the terms and conditions of this Contract. 23. Successors and Assigns. 'This Contract shall be binding upon and inure to the benefit of the parties and their respective successors and, except as otherwise provided in this Contract, their assigns. 24. Entire Agreement; No Oral Modifications. This Contract (with all referenced exhibits, attachments, and provisions incorporated by reference) embodies the entire agreement of the City with both parties, superseding all oral or written previous and contemporary agreements between the parties relating to matters set forth in this Contract. Except as (21) otherwise provided elsewhere in this Contract, this Contract cannot be modified without written supplemental agreement executed by both parties. EXECUTED and effective as of the _ day of 2016, by City, signing by and through its City Manager, duly authorized to execute same by Resolution No. _- approved by the City Council on 2016, and by FWTPIDC, acting through its authorized official. APPROVED AS TO FORM: XXXXX XXXXX, City Attorney 1A CITY OF FORT WORTH, TEXAS X) XXX XXXXX, City Manager FAW FORT WORTH TOURISM PUBLIC IMPROVEMENT DISTRICT CORPORATION, INC., a Texas nonprofit corporation , Chairman Attachments: Resolution No. - Exhibit A - The Initial Service Plan Exhibit B - Financial Reports Exhibit C - Tourism PID Assessment Collection Process Exhibit E - FWTPIDC/FWCVB Contract for Services (22) THE STATE OF TEXAS § CITY OF FORT WORTH, TEXAS COUNTY OF TARRANT § Acknowled rg went BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared xxxxx xxxxx, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed same for and as the act and deed of the CITY OF FORT WORTH, TEXAS, a municipal corporation of the State of Texas, Tarrant County, Texas, and as the City Manager thereof, and for the purposes and consideration therein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this the day of , 2016. Notary Public State of Texas My Commission Expires Notary's Printed Name THE STATE OF TEXAS § FORT WORTH TOURISM PUBLIC IMPROVEMENT § DISTRICT CORPORATION, INC. COUNTY OF TARRANT § Ackno-ledgMent BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared xxxxx xxxxx, known to me or proved to me on the oath of or through (description of identity card or other document) to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that he/she executed same for and as the act and deed of FORT WORTH TOURISM PUBLIC IMPROVEMENT DISTRICT CORPORATION, INC., a Texas nonprofit corporation, and as the authorized agent thereof, and for the purposes and consideration therein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this the day of , 2016. Notary Public State of Texas My Commission Expires Notary's Printed Name (23) R0owtion No' (24) Exhibit A (NEED TO INSERT APPROPRIATE VALUES IN THE BELOW TABLE) Petition 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Allocation Categories Incentives & 42.5% $ $ $ $ $ $ $ S $ $ Sales Efforts Marketing/ 35.0% $ $ $ $ $ $ $ $ $ $ Promotion/ Advertising Site Visits & 10.0% $ $ $ $ $ $ $ $ $ $ FAM Tours Event Funding 7.5% $ $ $ $ $ $ $ $ $ $ Application Pool Operations/ 5.0% $ $ $ $ $ $ $ $ $ $ Research/ Administration 1000/0 $ $ $ $ $ $ $ $ $ $ *Note: Expenditures are limited to actual collections, which cannot exceed the 2% fee on each occupied mom as defined in the District's petition. (25) Exhibit B (NEED TO INSERT APPROPRIATE DATES AND SCHEDULE IN THE BELOW TABLE) Category Timeline (annually) TPID Management Workshop April/May/June 1'A Quarter financial report FY2016 (Cover Letter, December 15, 2016 P&L, Balance Sheet & Spending Update) 2"4 Quarter financial report FY2016 (Cover Letter, March 15, 2017 P&L, Balance Sheet & Spending Update) 3id Quarter financial report FY2016 (Cover Letter, June 15, 2027 P&L, Balance Sheet & Spending Update) 41h Quarter financial report FY2016 (Cover Letter, September 15, 2017 P&L, Balance Sheet & Spending Update) FY 2016 Annual Financial Report September 15, 2017 FY 2016 Annual Financial Audit Report November 30, 2017 Reports for 2016 TPID Assessment (Service Plan, Cover Letter, Ten -Year Assessment Plan & Ten -Year April 1, 2017 Budget) (26) Exhibit C Tourism Public Improvement District (TPID) Assessment: The Fort Worth Tourism PID was created by Resolution No: = on xxxxxxx xx, 201x. A two percent TPID assessment was created by Resolution No: ,- on xxxxxxx xx, 201x, and applies to hotels with 100 or more rooms within the designated TPID within the City of Fort Worth. The definitions related to hotel, occupancy, collection procedures, remedies, etc., are applied as referred to in Fort Worth City Code and applicable state law. TPID Fiscal Year Billing Cycle: The Fort Worth Tourism PID will operate for ten (10) years (xxxxxxx xx, 2017 to xxxxxxx xx, 2026). The assessment rate will be approved annually by the City Council. TPID Charges/Collection: The two percent (2%) assessment only applies to hotels that are subject to city hotel occupancy tax at hotels with 100 or more rooms. The TPID assessments will be remitted to and collected by the City using the schedule and process that is in place for City hotel occupancy tax payments. Remittances, collection and any penalties shall occur in accordance with city ordinance and state law. (27) Exhibit D FORT WORTH CONVENTION & VISITORS BUREAU (FWCVB) & FORT WORTH TOURISM PUBLIC IMPROVEMENT DISTRICT CORPORATION (FWTPIDC) EFFECTIVE DATE: TERM OF AGREEMENT: CONTRACT AMOUNT: FWCVB CONTACT: FWCVB PHONE NUMBER: FWCVB FACSIMILE NUMBER: FWTPIDC CONTACT: FWTPIDC PHONE NUMBER: FWTPIDC FACSIMILE NUMBER: xxxxxxx xx, 2016 120 months Sxx,xxx,xxx est. Bob Jameson 111 W. 4th Street, Suite 200 Fort Worth, TX 76102 800-433-5747 xxx-xxx-xxxx Xxxxxxx xxxxxxx Fort Worth, TX xxxxx xxx-xxx-xxx.x xxx-xxz-xxxz This Agreement (the "Agreement') is between FORT WORTH CONVENTION & VISITORS BUREAU ("FWCVB"), with its principal place of business at I I I W. 0 Street, Suite 200, Fort Worth, Texas and the FORT WORTH TOURISM PUBLIC IMPROVEMENT DISTRICT CORPORATION (hereinafter "FWTPIDC"), with its principal place of business at , Fort Worth, Texas. Whereas the Texas Legislature has provided the authority to the City of Fort Worth to create a Tourism Public Improvement District that is composed solely of hotels with 100 or more rooms. Whereas the City of Fort Worth has received petitions from more than the requisite number of properties within the proposed Tourism Public Improvement District to enable the creation of the district. Whereas the City of Fort Worth has held the two required public hearings on the public improvement district and on 2016, has approved the creation of a Fort Worth Tourism Public Improvement District. Whereas a group of hoteliers have created a non-profit 501 (c) (6) entity entitled the Fort Worth Tourism Public Improvement District Corporation (FWTPIDC) with the intention that this entity will oversee the administration of the Fort Worth Tourism Public Improvement District. (28) Whereas it is the intent of the Fort Worth Tourisin Public Improvement District Corporation Board to contract with the Fort Worth Convention and Visitors Bureau to implement the funded activities of the Fort Worth Tourism Public Improvement District. Whereas the Fort Worth Convention and Visitors Bureau is mutually interested in working with the Fort Worth Tourism Public Improvement District Corporation Board as a contracted entity to implement the District programs under the project funding guidelines authorized by the Fort Worth Tourism Public Improvement District Corporation Board. Therefore, be it resolved, in consideration of the mutual covenants and conditions set forth herein and in Exhibits and Attachments hereto, all of which are incorporated herein by reference, FWCVB and FWTPIDC agree as follows: Subject to the terms and conditions specified in Exhibits A and B hereto, FWTPIDC agrees to contract with the FWCVB to perform the obligations specified hereto under the Scope of Work Summary in Exhibit B with reimbursement for actual expenses and services by the FWCVB and other entities for implementation of the work, as provided in the Fort Worth Tourism Public Improvement District Service Plan and Budget. FORT WORTH CONVENTION & VISITORS BUREAU ("FWCVB") By: Name: Rob Jameson Title: Chief Executive Officer (CEO) Date: FORT WORTH 'TOURISM PUBLIC IMPROVEMENT DISTRICT CORPORATION ("FWTPIDC") Name: Title: Chairman Date: (29) EXHIBIT A STANDARD TERMS AND CONDITIONS R�FPRESENTATIONS AND WARRANTIES. FWCVB and FWTPIDC each warrant and represent that (i) it has the power and authority to grant the rights and perform the obligations to which it commits herein; (ii) the execution of the Agreement by the person representing it will be sufficient to render the Agreement binding upon it; and (iii) neither its performance hereunder nor the exercise by the other party of rights granted by the warranting party hereunder will violate any applicable laws or regulations, or the legal rights of any third parties, or the terms of any other agreement to which the warranting party is or becomes a party. Each party is separately responsible for ensuring that its performance and grant of rights does not constitute any such violation during the Term. No parry's approval of advertising or other copy submitted by another will relieve the other's responsibility under this Section. 2. USE OF TRADE AND SERVICE MARKS. Nothing contained herein will give either party a license or other right to use the trade or service marks of the other party except as expressly provided for in this agreement. Any such use will require the prior written consent of the party that owns the marks. 3. CONFIDENTIALITY. FWCVB and FWTPIDC each agree that they will not use in any way for their own account or the account of any third party, nor will they disclose to any third party, any confidential information revealed to them by the other party which is identified in writing as confidential prior to disclosure. Each party will take such reasonable precautions to protect the confidentiality of such information as are employed to protect the parry's own confidential information of a similar nature. It is expressly understood and agreed that all information disclosed by either party, or gained by either party in the course of this agreement, including this agreement, whether files, records, documents, presentations, research material, operational methods, marketing plans or strategies, electronic data, tapes, software, drawings, manuals, guidebooks, reports, plans, proposals, customer lists, business processes, know-how, specifications, or any other information not generally known outside of FWCVB or FWTPIDC (collectively known &-, "Confidential Information",) shall be considered confidential and shall be retained in confidence. In furtherance of the business relationship between the parties, it is agreed as follows: to take or cause to be taken all reasonable precautions to prevent the disclosure or communication of Confidential Information to third parties consistent with requirements imposed under the Texas Public Information Act; that this confidentiality clause shall survive the term of this or any other agreement or understanding the parties may have with each other, and • that either party will at no time take any action or make any statement that could discredit the reputation of the other party. (30) 4. TEE M AND TERMINATION. The Agreement will be effective on the Effective Date and will terminate immediately after the completion of the Term. In the event of expiration or early termination of the Agreement, the terms of Section 3 above and Sections 5, 6, and 9 below will forever survive the termination of the Agreement. Either party may terminate the Agreement in the event of a material default by the other party on any of its representation.-,, warranties, or obligations under the Agreement by the following procedure: (i) the non - defaulting party will provide the defaulting party with written notice specifying the particulars of the default; (ii) if the default is not cured within thirty (30) days after such notice is given, the non -defaulting party may terminate the Agreement immediately upon Providing written notice to the defaulting party. Additionally, either party may terminate the Agreement for any reason upon the completion of the fiscal year with sixty (60) days' written notice to the other party prior to the fiscal year's completion. Upon provision of termination notice by either party, and except to the extent the other party intends to timely cure its default, both parties will engage in good faith negotiations to arrange for a mutually satisfactory end to the Agreement. In the event of any termination prior to the natural expiration of the Term, FWCVB shall be entitled to payment for deliverables in progress to the extent work has been performed satisfactorily. 5. INDEMNIFICATION. FWTPIDC will indemnify and hold harmless FWCVB and their respective institutions, officers, directors, employees, franchisees, attorneys, agents, successors and assigns from any claims, damages, liabilities, losses, government procedures, and costs, including reasonable attorneys' fees and costs of suit, arising out of (i) FWTPIDC's failure to comply with applicable laws and regulations, unauthorized use of FWCVB's trademarks or negligence or willful misconduct in connection with its performance of the Agreement; or (ii) FWTPIDC's intentional misrepresentation or breach of any warranty, obligation or covenant of the Agreement. FWCVB will indemnify and hold harmless FWTPIDC and its respective institutions, officers, directors, employees, franchisees, attorneys, agents, successors and assigns from any claims, damages, liabilities, losses, government procedures and costs, including reasonable attorneys' fees and costs of suit, arising from (i) FWCVB's failure to comply with applicable laws and regulations, unauthorized use of FWTPIDC's trademarks or negligence or willful misconduct in connection with its performance of the Agreement; or (h) FWCVB's intentional misrepresentation or breach of any warranty, obligation or covenant of the Agreement. Except in the case of third party claims, neither party will be obligated to the other party for indirect, special, consequential, or incidental damages. 6. DISPUTE RESOLUTION. a. All claims, disputes or controversies between the parties under this Agreement ("Claim') that cannot be resolved through ordinary business negotiations will be resolved, at the election of either party, through mediation until such time as, the parties mutually agree to terminate such mediation or the mediator declares an impasse. (31) b. All offers, promises, conduct and statements, whether written or oral, made in the course of negotiation, or proceedings by either party to confirm awards hereunder are confidential, privileged, and inadmissible for any purpose, including, without limitation, impeachment or estoppel, in any other litigation or proceeding involving any of the parties, provided that evidence that is otherwise admissible or discoverable will not be rendered inadmissible or non -discoverable as a result of its use in the negotiation or arbitration. 7. RELA.TIONSHIP OF THE PARTIES. FWCVB and FWTPIDC are independent contractors, and the Agreement does not create a partnership, joint venture, employee/employer or other agency relationship between them. 8. ASSIGNMENT. The Agreement will be binding on and inure to the benefit of each of the parties, their successors and assigns. It may not be assigned or transferred, in whole or in part, without the written consent of the other party. Any such assignment or transfer without consent will be void. 9. NOTICES. All notices and other communications required to be given under the Agreement shall be in writing and shall be deemed to have been given (i) when personally delivered; or (ii) three (3) business days after mailing, postage prepaid, by certified mail; or (iii) when delivered (and receipted for) by an overnight delivery service, addressed in each case to the parties at the addresses set forth on the Agreement unless a different address shall have been designated in writing. 10. GOVERNING LAW. The Agreement will be governed by the laws of the state of Texas, without giving effect to its conflicts of law provisions. Any failure by either of the parties to exercise any right granted herein upon the occurrence of any contingency set forth in this Agreement will not in any event constitute a waiver of any such right upon the exercise of any such contingency. In case any term in this Agreement shall be held invalid, illegal or unenforceable in whole or in part, neither the validity of the remaining part of such term nor the validity of any other term shall be in any way affected thereby. 11, OWNERSHIP. All records, reports, documents and other material delivered or transmitted to FWTPIDC by FWCVB shall remain the property of FWCVB, and shall, upon request, be returned by FWTPIDC to FWCVB, at FWTPIDC's expense, at termination or expiration of this contract. All records, reports, documents, or other material related to this contract and/or obtained or prepared by FWTPIDC in connection with the performance of the services contracted for herein shall become the property of FWTPIDC, and shall, upon request, be returned by FWCVB to FWTPIDC, at FWCVB's expense, at termination or expiration of this contract. 12. INSPECTION AND AUDIT. The FWTPIDC, or its authorized agents or representatives, shall have the option of reviewing, examining, and/or auditing all accounts, records, documents, books, and other supporting materials of FWCVB relating to this contract. FWCVB shall provide reasonable access to such material at no charge. (32) 13. FUNDING. The continuation of this contract is contingent upon the approval of funds to fulfill the requirements of the contract by the City of Fort Worth. If the City fails to approve sufficient monies to provide for the continuation of the contract, or if such approval is denied, the contract shall terminate pursuant to Section 4 above. 14. NONDISCRIMINATION CLAUSE. FWTPIDC and FWCVB agree not to discriminate in their employment practices, and will render services under this contract without regard to race, color, religion, age, sex, national origin, veteran status, political affiliation, or disabilities. Any act of discrimination committed by FWTPIDC or FWCVB shall be grounds for immediate termination of this contract. 15. AMENDMENTS IN WRITING. Any alteration, variation, modification, or waiver of provisions of this contract shall be valid only when it has been reduced to writing, executed by all parties. The effective date of this contract may be extended only if an amendment to that effect is duly executed by the contracting parties and approved by the necessary authorities prior to said termination date. 16. SEVERABILITY. If any provision of the Contract is declared or found to be illegal, unenforceable or void, in whole or in part, then both parties shall be relieved of all obligations arising under such provision, but only to the extent that it is illegal, unenforceable or void, it being the intent and agreement of the parties that the Contract shall be deemed amended by modifying such provision to the extent necessary to make it legal and enforceable while preserving its intent or, if that is not possible, by substitution therefore another provision that is legal and enforceable and achieves the same objectives. Any such invalidity, illegality, or unenforceability shall not affect any other provision of the Contract. The parties agree to negotiate in good faith for a proper amendment to the Contract in the event any provision thereof is declared illegal, invalid or unenforceable. 17. ENTIRE AGREEMENT. Tlbe Agreement, and Exhibits A and B, and Attachments A, B, C, D, and E thereto constitute the entire agreement and understanding between FWCVB and FWTPIDC, and there are no other agreements, representatives, warranties or understandings between FWCVB and FWTPIDC with respect to the subject matter hereof. To the extent that any other agreement, written or verbal, appears to exist between the parties with respect to the subject matter hereof, the Agreement supersedes any such agreement. (The remainder of this page intentionally left blank) (33) EXHIBIT B SCOPE OF WORK for the Fort Worth Convention & Visitors Bureau (FWCVB) on behalf of the Fort Worth Tourism Public Improvement District (FWTPID) and the Fort Worth Tourism Public Improvement District Corporation (FWTPIDC) Summary The Fort Worth Convention and Visitors Bureau (FWCVB) proposes to contract with the Fort Worth Tourism Public Improvement District Corporation (FWTPIDC). The contract will enable the FWCVB to implement additional marketing and incentive programs to secure increased convention, group, and other hotel activity to the City of Fort Worth. The contract will be funded by Fort Worth Tourism Public Improvement District (FWTPID) proceeds received from a two percent special assessment levied against all hotels with 100 or more rooms within the City of Fort Worth. To implement this program, the Fort Worth Tourism Public Improvement District Corporation (hereinafter referred to as FWTPIDC) Board will adopt an annual budget along with specific ROI requirements for marketing and incentive expenditures. The FWTPIDC Board shall adopt incentive and marketing policies and protocols under which the FWCVB can pursuant to advance approval by the FW ITIDC Board, implement projects if the project meets the preset criteria adopted by the FWTPIDC Board. The FWTPIDC Board may choose to provide adjustments to the annual plan throughout the budget year that are not inconsistent with the annual adopted FWTPID budget and service plan. The FWCVB shall expend FW'IPID proceeds only for proposals that meet the ROI standards and protocols adopted by the FWTPIDC Board of Directors unless a specific exception is approved by a majority of the FWTPIDC Board of Directors. Mission of the FWTPID: The Fort Worth Tourism Public Improvement District is a public improvement district dedicated to improving convention and group hotel booking. and hotel room night consumption in the City of Fort Worth. Purpose of the Public Improvement District and the Non -Profit Corporation: The creation of the Fort Worth Tourism Public Improvement District and of the Fort Worth Tourism Public Improvement District Corporation is to ensure the effective and judicious allocation of district assessment revenues to accomplish the above noted mission of the District. Start -Up Costs for Creation of the YID It is understood by both the FWTPIDC and by the FWCVB that there are certain start-up costs for creation of the district. These costs include the consulting, legal, and administrative services that enabled creation of the district, and the administrative costs to the city for implementing the district. State law provides for the reimbursement of these costs from the proceeds of the District once it is established and the FWCVB will coordinate the presentation for (34) payment/reimbursement of these costs to the FWTPIDC Board for their approval. It is estimated that these costs will total less than $xxx,xxx. Ongoing Administrative Costs for the PID Similarly, it is understood by both the FWTPIDC and by the FWCVB that there are certain ongoing administrative costs for operation of the district. These costs include the consulting, legal, and administrative services that enable sustaining the operation of the district, and the administrative costs to the city for processing payments of the assessments to the district. State law provides for the reimbursement of these costs from the proceeds of the District and the FWCVB will coordinate the presentation for payment/reimbursement of these costs to the FWTPIDC Board for their approval. It is estimated that these costs will total less than $xxxxxx per year. General FWTPIDC Operations Obligations and Expenditures: The FWCVB is authorized to enter into contracts and otherwise obligate and spend FWTPIDC funds only in accordance with the FWTPIDC Board approved budget and plan. The FWCVB shall not incur obligations or indebtedness for the current or any future fiscal year in excess of its fund balance and/or anticipated revenues that will be available by the fiscal year in which the obligation must be paid. Requisitions to utilize FWTPIDC funds will only be sought by FWCVB staff for initiatives that meet the FWTPIDC ROI criteria as outlined in the FWTPID budget and operating plan. The FWCVB CFO must review all such expenditures to ensure compliance with this agreement and the approved FWTPIDC budget and plan. Staff utilizing FWTPIDC funds shall be bound by current FWCVB travel and expense politics. Maintenance of FWTPIDC Funds: All assessment funds received from the City of Fort Worth for the FWTPIDC shall be deposited in a bank account separate from all other FWCVB funds. Utilized banking institutions shall be FDIC insured and maintain a minimum of either a Moody's rating of "Baal" or higher, or a Standard & Poor's rating of "BBB+" or higher. An annual investment strategy and goals shall be presented to the FWTPIDC Board as part of the annual plan and budget approval process for funds that do not need to be reserved for maintenance and operation of the district. Insurance and Audit Services: The FWCVB shall secure insurance and financial and performance audit services for matters pertaining to the FWTPIDC. The representation contracts will generally go out through a RFP process in compliance with the city's MWBE guidelines. Recommendations will be brought to the FWTPIDC Board for approval. The completed performance and annual audit reports will be provided to the FWTPIDC Board and to the PID Administrator for the City of Fort Worth. (35) Staffing Pattern and Duties Summary The FWCVB will accomplish its contractual duties for the FWTPIDC through a mix of contracts with outside firms, very limited hiring of new staff, and utilization of existing FWCVB staff. The costs for each of these resources will be allocated to the FWTPID solely based on the percentage of time spent on FWTPID functions that are within the approved FWTPID budget and action plan. Below is a summary of the anticipated staffing pattern, duties, and costs related to the FWTPIDC with a total anticipated administrative cost of under $xxx,xxx. Approvals from FW'FPIDC Board Approval of Budget, Operating Plan, and Amendments/Exceptions: The annual FWTPIDC budget and operating plan will be presented to the FWTPIDC Board for approval at a meeting at least 30 days prior to the start of each fiscal year, other than the initial fiscal year of the TPID. Proposed amendments or exceptions to the annual plan or to the ROI protocols may be presented to the FWTPIDC Board for approval at their quarterly meetings. If there is a very time sensitive matter, recommendations for amendments or exceptions may be presented to the FWTPIDC Board at other times through email or specially called meetings, in accordance with the FW ITIDC bylaws. For the purposes of this agreement, amendments may also include the addition or deletion of previously approved marketing or sales initiatives. Overall Goals for FWTPID Marketing and Promotion Initiatives: The goals of the FWTPID marketing and promotion initiatives will be outlined definitively in each year's annual plan that will be approved by the FWTPIDC Board. The target audience will include convention and meeting planners, business travelers, and leisure travelers. Requests for Exceptions to ROI Requirements: While the FWCVB does not anticipate the need to ask for exceptions to the ROI Requirement, it is possible that such a situation may present itself. For example, there may be a meeting that requires more incentives than the ROI in lodging nights would indicate (e.g.; conventions held by ASAE, MPI, etc.) but offers the city and its hotel sector access to entities that can bring much other needed conventions and groups to our area. In such scenarios and other meritorious situations, the FWCVB staff may bring such items up for consideration to the FWTPIDC Board for their review and consideration. A brief summary of the anticipated ROI and an explanation of the grounds for considering an exception will be provided to the FWTPIDC Board. Whether to grant such an exception will be at the discretion of the FWTPIDC Board. Similarly, the FWTPIDC Board, one of its members, or a funding hotel within the district may propose such an item for consideration by the FWTPIDC Board for its review and consideration. Shifting Between Expenditure Categories: The FWCVB has the authority to propose to the FWTPIDC Board a shifting of resources between categories for approved activities and efforts. Shifts between categories shall not exceed 10%. Similarly, the FWTPIDC Board on its own motion may propose, approve and require such a shifting of resources. Conflict of Interest Administration: It is possible that certain hotel members of the FWTPIDC, and in certain cases a majority of the board, will have an interest in a city-wide or (36) regional convention or meeting that may be marketed or provided incentives through the FWTPID. In such cases, the FWCVB shall work with the involved board member(s) to file the appropriate conflict of interest forms as outlined in the bylaws for the FWTPIDC and shall secure the needed votes to authorize the project as outlined in the bylaws for the FWTPIDC. Reports to the FWTPIDC Board Reports on Status of Projects/Expenditures: Quarterly and annual reports shall be provided to the FWTPIDC Board on the progress of the FWCVB staff in implementation of the FWTPID programs. These reports will indicate the status of progress on the approved plan, financial statements, bank balances, and a cash flow statement showing the timing of actual FWTPID revenues and expenses. The quarterly financial statement, balance sheet, and statement of activities shall be maintained and presented in compliance with General Accepted Accounting Principles (GAAP) for non-profit corporations. These reports shall be similar to those currently produced by the FWCVB, incorporating the items contained in the FWTPIDC board approved plan and budget. The FWCVB staff will also provide courtesy copies of the quarterly and annual reports to the PID Administrator for the City of Fort Worth for further distribution. Financial Statements: The FWTPID cash flow statement will show the timing in which actual assessments will be collected and when they will be spent. In accordance with standard practices, the FWCVB may book meetings that will be held a number of years later. In this case, a meeting may be booked, and an obligation made, in one year; but the incentive expense will not actualize until the meeting occurs (up to twenty years in the fiiture). With this in mind, revenues will be shown over the ten-year term of the district, while expenses are shown over a twenty-year period (ten years past the initial ten year term of the PID). As the attached sample indicates, balances are carried forward, and all FWTPID assessments along with any earned interest will be proposed for expenditure over the booking period for eligible FWTPID marketing, events, and programs. In accordance with city and state law, any funds not obligated during the term of the district must be returned to the city for distribution back to the assessed properties. Access to FWTPID Materials: Reasonable access to all FWTPID related materials and information shall also be available to the FWTPIDC Board at all times. Courtesy copies of these reports will also be emailed to the Fort Worth City Manager for further ,,,-.,.:ate distribution. Requests for access to FWTPID documents by other parties will be handled as required under the Texas Public Information Act. Orientation for the Fort Worth FWTPIDC Board: An annual orientation shall be done for the FWTPIDC Board on the administration of the FWTPID, board roles and responsibilities, and the responsibilities of the FWCVB under this contract. (The remainder of this page intentionally left blank) (37) City of Fort Worth Two Year Service Plan: Mid -Year Adjustment Public Improvement District No. 18 - Toursim FY 25/26 FY 26/27 REVENUES PID Assessments $ 8,000,000 $ 8,000,000 COFW Payment in lieu of Services COFW Assessment Total Budgeted Revenues $ 81000,000 $ 81000,000 Use of Fund Balance $ - $ - Total Revenues $ 81000,000 $ 81000,000 EXPENSES Incentives & Sales Efforts $ 4,687,550 $ 4,687,550 Marketing & Research (Promotion/Advertisting) 2,224,600 2,224,600 Site Visits & Familiarization Tours 119,175 119,175 Cultural Enhancements 595,875 595,875 Operations&Administration 317,800 317,800 City Administrative Fee 55,000 55,000 Total Budgeted Expenses $ 8,000,000 $ 8,000,000 Contribution to Fund Balance $ - $ - Total Expense $ 8,000,000 $ 8,000,000 Net Change in Fund Balance $ - $ - Fund Balance, Beginning of Year $ 7,370,664 $ 7,370,664 Estimated Fund Balance, End of Year $ 7,370,664 $ 7,370,664 Reserve Requirement 1,333,600 1,333,600 Over (Under) Reserve $ 6,037,064 $ 6,037,064 City of Fort Worth, Texas Mayor and Council Communication DATE: 05/12/26 M&C FILE NUMBER: M&C 26-0400 LOG NAME: 03PID18 MYEXPAND FY26 SUBJECT (ALL) Conduct Public Benefit Hearing Concerning the Following Matters Related to Fort Worth Public Improvement District No. 18 — Tourism: (1) Expansion of the Tourism Public Improvement District to Include Three Additional Hotels, (2) the Updated and Revised Fiscal Year 2025-2026 Budget and Two -Year Service Plan, and (3) the 2025-2026 Assessment for the Additional Hotel Properties; Adopt Resolution Authorizing and Expanding the Tourism Public Improvement District to Include Three Additional Hotel Properties; Approve Attached Revised 2025-2026 Assessment Roll; Adopt Ordinance Levying Special Assessments on the Additional Hotel Properties for Fiscal Year 2025-2026; Adopt Resolution Updating and Revising the Tourism Public Improvement District's Fiscal Year 2025-2026 Budget and Two -Year Service Plan; and Adopt Appropriation Ordinance (PUBLIC HEARING - a. Staff Available for Questions: Crystal Hinojosa; b. Public Comment; c. Council Action: Close Public Hearing and Act on M&C) C7Xd9Iiv, 1iv, 1=1►117_rt[a]►A It is recommended that the City Council: 1. Conduct a Public Benefit Hearing Concerning the following matters related to Fort Worth Public Improvement District No. 18 — Tourism: (1) Expansion of the Tourism Public Improvement District to include three additional hotel properties, (2) the updated and revised Fiscal Year 2025-2026 Budget and Two -Year Service Plan, and (3) the 2025-2026 Assessment for the additional hotels; 2. Adopt the attached Resolution: (i) making certain findings concerning the nature and advisability of special improvements and services to be provided for the benefit of the additional hotel to be included in the Tourism Public Improvement District, the estimated costs of such improvements and services, the method of assessment, the boundaries of the Tourism Public Improvement District, and the apportionment of costs between the Tourism Public Improvement District and the City, as a whole; and (ii) authorizing and expanding the Tourism Public Improvement District to include three additional hotel properties; 3. Direct City Staff to record a copy of the Assessment Ordinance in the real property records of the appropriate county no later than the seventh (7th) day after adoption by the City Council; 4. Approve the attached revised 2025-2026 Assessment Roll; 5. Adopt the attached ordinance levying special assessments on the additional hotel property for Fiscal Year 2025-2026; 6. Adopt the attached resolution updating and revising the Tourism Public Improvement District's Fiscal Year 2025-2026 Budget and Two -Year Service plan; and 7. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Fort Worth Public Improvement District 18 - Tourism Fund in the amount of $250,000.00, from future assessment revenues, for the purpose of funding mid -year budget adjustments. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to conduct a public hearing concerning the expansion of the Tourism Public Improvement District (PID) to include three additional hotel properties, the updated and revised Fiscal Year 2025-2026 budget and two-year service plan, and the 2025-2026 assessment for the additional hotels, along with certain actions related thereto. On August 29, 2017, the City Council adopted Resolution No. 4837-08-2017, establishing the Tourism PID (Establishing Resolution). The City Council subsequently adopted Resolution Nos. 5264-08-2020 (August 18, 2020), 5382-04-2021 (April 13, 2021), Resolution No. 5467-09- 2021 (September 14, 2021), Resolution No. 5561-04-2022 (April 12, 2022), 5958-05-2024 (May 14,2024), 5998-08-2024 (August 27, 2024), 6098-05-2025 (May 13, 2025), and 6155-08-2025 (August 26, 2025) expanding the boundaries of the Tourism PID to include additional hotel properties (Expansion Resolutions). Expansion of the Tourism PID Boundaries and Petition: The current boundaries of the Tourism PID consist of noncontiguous areas authorized under Section 372.0035 of the Texas Local Government Code (Code) consisting solely of hotel properties with 100 or more rooms ordinarily used for sleeping within the City of Fort Worth. A list of the hotels that are included within the boundaries of the Tourism PID is included in the Original and Expansion Resolutions and attached hereto. Senate Bill (SB) 804, 87th Texas Legislature (2021), which went into effect on June 14, 2021, revised Section 372.0121 of the Code to clarify the ability of cities to add new hotels into an existing Tourism PID. One of the new provisions affects the way in which the City calculates (or recalculates) the percentage threshold for adding new hotels into the Tourism PID. SB 804 requires the City to update and recalculate each of the percentage thresholds set forth below every time a new hotel property is added to the Tourism PID. Conversely, the prior version of Section 372.0121 only required the City to calculate the impact that the new hotel property had on the pre-existing thresholds. For example, under SB 804, the City has to update and recalculate the appraised value of each and every existing property in the Tourism PID each time that a new hotel is added; whereas, under the prior legislation, the City simply carried forward the values of the existing hotel properties from the year the hotel properties entered into the Tourism PID. Section 372.0121, as revised, allows the City Council to include additional properties in the Tourism PID if (i) the property is a hotel and (ii) a sufficient number of the record owners of the real property currently included and proposed to be included in the Tourism PID have consented to be included in the Tourism PID by signing the original petition to establish the district or by signing a petition or written consent to include property in the Tourism PID. The number of consenting record owners is sufficient if (1) the record owners own more than 60\% of appraised value of taxable real property liable for assessment in the Tourism PID; and either (i) constitute more than 60\0/o of all record owners of taxable real property liable for assessment in the Tourism PID, or (ii) own, in aggregate, more than 60\% of the area of all taxable real property liable for assessment in the Tourism PID. If the addition of the new properties results in these numbers dropping at or below the 60\0/o threshold, then the properties may not be added. Inclusion of the Cambria Hotel, located at 925 Jerome St, Fort Worth, TX 76104, the Crescent West 7th, located at 3300 Camp Bowie Blvd, Fort Worth, TX 76107, and the Home 2 Suites Hotel, located at 6730 NW Loop 820, Fort Worth, TX 76135, meets both of the above -stated elements, therefore the hotels may be considered by the City Council for inclusion into the Tourism PID. First, the Cambria, the Crescent West 7th, and Home 2 Suites are hotel properties. With regard to the second element, the City Council found that the previous two petitions (original and expanded) complied with Section 372.005 (b-1) of the Code because they had met the necessary percentages. The property owners, or their duly authorized representatives, for the new hotel property, have signed a petition requesting inclusion within the Tourism PID. This results in an increase to 86.30% of the appraised value of taxable real property liable for assessment, 72.04% for the area of all taxable real property liable for assessment, and 69.84% of record owners liable for assessment. Because the percentages are still above the 60.00% threshold, the properties meet the second element. Nature of the Improvements: The goals of the Tourism PID focus on increasing the economic impact and enhancing competitiveness in conventions, meetings, leisure and sports tourism, and increasing tourism -related economic activity at all times, including during economic downturns and as inventory grows. The Tourism PID projects include incentives and sales efforts, convention and sports marketing and promotion, site visits and familiarization tours, community arts grants, convention services, event funding applications, operations, research, and administration, all of which benefit the hotels within the Tourism PID. Method of Assessment and Apportionment of Costs: The assessment rate will be an amount equal to 2.00% of the consideration received from the occupancy of any sleeping room furnished by a hotel located within the Tourism PID, with such assessment to be collected in the same manner and in accordance with the same procedures as those established for the collection of the City's Hotel Occupancy Tax, as set forth in Chapter 32, Article II of the City Code, as amended. The entire costs of each improvement and service will be paid from the above -stated assessments and no City funds will be used to pay any portion of such costs unless such funding is approved by the City Council on a case -by -case basis. Estimated Costs of the Improvements and Services: The total estimated costs for the proposed services and improvements for the life of the Tourism PID (approximately two years) will be $16,000,000.00, which includes an estimated cost of $8,000,000.00 for the Fiscal Year 2025-2026 Mid -Year Adjusted Budget. The updated and revised budget and two-year service plan is set forth in more detail below and attached. The final version will be subject to approval by the City Council. The estimated costs of the proposed improvements and services to be provided in subsequent years will be subject to future annual budget and service and assessment plans adopted by the City Council in accordance with the Code. The actual costs of improvements and services will be determined in accordance with the approved budget and service plan to be adopted by City Council and will be paid from Tourism PID assessments. Advisability: Staff recommends that the City Council find that these improvements and services are advisable because they will promote the interests of the City and confer a special benefit on the assessed properties within the expanded boundary of the Tourism PID. Staff recommendation: The Petition has been examined, verified, and found by City staff to meet the requirements of the Code. Therefore, staff recommends that the City Council find that the Petition to include the above -stated three hotel properties meets the requirements of the Code. Tourism PID Mid -Year Adiustments The Tourism PID is funded through a 2% assessment on the consideration received from occupancy of any sleeping room furnished by a hotel in the Tourism PID. Due to the most recent forecast analysis, Tourism PID assessment revenue is now projected to be 3.23% or $250,000.00 more than originally budgeted. The budgeted expenses show an increase in each category line item for the current fiscal year service plan (see table below). Revenue adjustments: Line Items Previously Approved Recommended I Amended to be FY26 Budget Item Mid -Year FY26 Budget Adjusted Adjustment Item PID $7,750,000.00 $250,000.00 $8,000,000.00 Assessments (Totals 11 $7,750,000.0011 $250,000.00II$8,000,000.001 Expenditures adjustments: Line Items to Previously Approved Recommended Amended be Adjusted FY26 Budget Item Mid -Year FY26 Budget Adjustment Item Incentives & $4,540,050.00 $147,500.00 $4,687,550.00 Sales Efforts Marketing and Research 2,154,600.00 70,000.00 2,224,600.00 (Promotion/ Advertising) Site Visits & Familiarization 115,425.00 3,750.00 119,175.00 Tours Cultural Enhancements through Marketing and 577,125.00 18,750.00 595,875.00 promotion of the Arts Operations & 307,800.00 10,000.00 317,800.00 Administration City Administrative 55,000.00 0.00 55,000.00 Fee Totals $7,750,000.00 $250,000.00 $8,000,000.00 Staff supports Fort Worth Tourism PID Corporation and Convention & Visitor Bureau's recommended mid -year budget adjustments. Upon approval of the above recommendations, the total budgeted expenses for FY2025-2026 will be $8,000,000.00. The revised Budget and two-year service plan will take effect upon approval by City Council. The proposed changes to the Tourism PID's FY2025-2026 budget complies with the City's reserve requirements. The Tourism PID properties are located in ALL COUNCIL DISTRICTS. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. d 1-'itL1 M pkize : i] 719 W 03 The Director of Finance certifies that funds will be available from future assessment revenue within the FWPID #18 - Tourism Fund and upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the FWPID #18 - Tourism Fund as appropriated. Prior to an expenditure being incurred, the FWLab Department has the responsibility of verifying the availability of funds. Submitted for Citv Manaaer's Office bv: Oriainatina Business Unit Head: Christianne Simmons 6222 Additional Information Contact: Brady Kirk 8712