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HomeMy WebLinkAboutContract 30264 AMENDMENT NO. 2 TO AGREEMENT TO PARTICIPATE IN TAX INCREMENT REINVESTMENT ZONE NUMBER THREE, CITY OF FORT WORTH, TEXAS This AMENDMENT NO. 2 TO AGREEMENT TO PARTICIPATE IN TAX INCREMENT REINVESTMENT ZONE NUMBER THREE, CITY OF FORT WORTH, TEXAS ("Amendment') is entered into by and between the CITY OF FORT WORTH, TEXAS (the "City") and TARRANT COUNTY COLLEGE DISTRICT ("Taxing Unit'). The City and Taxing Unit hereby agree that the following statements are true and correct and constitute the basis upon which the City and Taxing Unit have entered into this Amendment: A. On December 19, 1995 the City Council of the City ("City Council") adopted Ordinance No. 12324 designating certain real property in the downtown area of the City as Tax Increment Reinvestment Zone Number Three, City of Fort Worth, Texas, (the "TIF District"). On October 30, 2001, the City Council of the City adopted Ordinance No. 14839 expanding the Original TIF to include additional real property in the downtown area of the City contiguous to that comprising the Original TIF (the "Expanded TIF"). Ordinance Nos. 12324 is attached hereto as Exhibit "A". B. On or about May 6, 1996, the City and Taxing Unit entered into an agreement under which Taxing Unit agreed to deposit up to one hundred percent (100%) of Taxing Unit's Tax Increment generated by property located in the TIF District into the TIF District's Tax Increment Fund (the "Participation Agreement"). The Participation Agreement is a public document on file in the City Secretary's Office as City Secretary Contract No. 21824. Taxing Unit does not contribute any Tax Increment generated by property located in the Expanded TIF to the Tax Increment Fund. C. Section ILB of Exhibit "C" to the Participation Agreement provides that Taxing Unit will cease its making deposits into the TIF District's Tax Increment Fund once the TIF District has committed $50 million of its revenue toward project costs, as defined in Section 311.002 of the Texas Tax Code. D. After hearing a presentation by the TIF District's administrator regarding the tentative plans for further development or redevelopment in the TIF District, Taxing Unit wishes to increase the amount of the $50 million project cap, subject to and in accordance with the terms and conditions of this Amendment. NOW, THEREFORE, the City and Taxing Unit, for and in consideration of the terms and conditions set forth herein, do hereby contract, covenant and agree as follows: Amencirnent No.2 to TCCD Participation Agreement re: Downtown TIF Page I 1. Section II.B of Exhibit "C" to the Participation Agreement is hereby deleted in its entirety and replaced with the following: B. Project Cost Limitation. Taxing Unit shall cease its deposit of any of its Tax Increment to the Tax Increment Fund once the maximum amount of "project costs" (as defined in Section 311.002 of the Act) that may be paid through Tax Increment deposits directly and/or financed through the issuance of bonds or other obligations of the City secured by Tax Increment deposits is $72 million (the "Project Cap"); provided, however, that that any tax increment contributions by Taxing Unit to the TIF Fund after the Downtown TIF has committed $50 million toward project costs or other financial obligations shall (1) equal fifty percent (50%) of the Tax Increment and (ii) be reserved solely for new project costs or other financial obligations committed to by the Downtown TIF on or after February 17, 2003 and may not be applied toward any project costs or other financial obligations committed to by the Downtown TIF that were existing before February 17, 2003. 2. All other terms and conditions of the Participation Agreement, shall remain in full force and effect. 3. Capitalized terms used but not identified in this Amendment shall have the same meanings assigned to them in the Participation Agreement. 4. In accordance with Section VIII of the Participation Agreement, a copy of this Amendment will be provided to all TIF Taxing Units. 5. This Amendment contains the final written expression of the City and Taxing Unit with respect to the subject matter hereof. This Amendment may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. EXECUTED as of the later date below: [SIGNATURES IMMEDIATELY FOLLOW ON NEXT PAGE] �.... Amendment No.2 to TCCD Participation Agreement re: Downtown TIF Page 2 �.,.. r � Timm CITY OF FORT WORTH, TEXAS: TARRANT COUNTY COLLEGE DISTRICT: By By: d Rector r is Be 1, M.D. fRe, Rector 7�ssis ssis tant City Mana ner LPresident Board.of Directors 04 Date: ATTEST: ATTEST: w t By: 1 1 11 fill ' 2) i N mxe: obe t J. Mc Jr. City Secretary Title: Secr ry of e Board APPROVED AST FORM/LEGALITY: By- Peter Vaky -- Assistwit City Attorney ?F4 1 C , Amendment No.2 to TCCD Parficip,Aion Agreement re:Downtown'riF, 0h Page 3 ,9 City o Texas 4volvar and council co"Onsunkalflon ................a�rE FERENC UMBER LOG NAME _._. P_._ 7/29/03 **C-1 9673 _ _ . 12TCCD 1 of 2 SUBJECT AUTHORIZE EXECUTION OF AMENDMENT AGREEMENT WITH TAR NT COUNTY COLLEGE DISTRICT FOR PARTICIPATION IN TAX INCREMENT REINVESTMENT ZONE NUMBER THREE, CITY OF FORT WORTH, TEXAS DOWNTOWN TIF) RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute an amendment to agreement with Tarrant County College District (TCCD) increasing the level t which TCCD will contribute tax increment to the Downtown TIF. DISCUSSION: Pursuant to the Downtown TI 's original Project and Financing Plan, all taxing units that have been contributing tax increment revenue to the Downtown TIF limited their participation to a maximum of million in committed project costs by the owntown TIF. Therefore, once the Downtown TIF had committed to or otherwise pledged n received million toward allowable project costs, the taxing units would cease their contributions to Downtown TIF and Downtown TIF would not financially be able to undertake any additional projects. On February 4, 2003, City staff presented the City Council with proposals for the redevelopment of the former Bank One Tower, which was severely damaged in tornado of March 28, 2000, and is currently vacant, as well as the redevelopment of the Tandy Center, which is scheduled to be vacated in 2005, when RadioShack Corporation moves into its new corporate campus on the site the former Ripley Arnold Apartments. In accordance with those proposals, the Downtown TIF's board of directors has entered into leases for public parking spaces in the parking garages of t buildings and into s development agreement for the abatement of asbestos in former Bank One Tower. All three of these agreements are critical in order for the redevelopment projects to financially viable. In order for the owntown TIF to fund these transactions, the million project cost cap must be increased. On February 18, 2003, the City Council adopted Resolution No. 2922 increasing the cap applicable to the City to 7 million, with the understanding that any tax increment contributed by the City to the Downtown TIF once it committed million toward various projects would be reserved r projects undertaken on or after February 1 , 2003. Tarrant County, Tarrant County Hospital District and Tarrant Regional Water District have amended their Interlocal Agreements with the i for participation in the Downtown TIF and agreed to increase their contributions in the same manner, with the County and the Hospital District reserving the additional funding for projects related specifically to the redevelopment of the Bank One Tower and the Tandy Center. TCCD proposes to amend its Interlocal Agreement with the City for participation in the Downtown TIF (City Secretary Contract No. 21824) to provide for additional contributions beyond the million project cap at a rate of fifty percent (50%) of the tax increment generated by property in the Downtown TIF for projects undertaken on or after February 1 , 2003, until such time as the owntown TIF has received $72 million in increment. In order for this amendment to be effective, state law requires that the City Council authorize its execution. City of Fort Worth, Texas "agar and Council Communication DA,TE REFERENCE NUMUE—E—R — Fp�—AGE 7/29/03 *--*C-19673 12TC-CD 2 of 2 SUBJECT AUTHORIZE EXECUTION OF AMENDMENT TO AGREEMENT WITH —TAR R"ANT COUNTY COLLEGE DISTRICT FOR PARTICIPATION IN TAX INCREMENT REINVESTMENT ZONE NUMBER THREE, CITY OF FORT WORTH, TEXAS _KDOWNTOWN TID_ FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this action will have no material effect on it funds. RZ:r . ......... -AMOUN- CENTER Submitted for City Manager's j�U:N:!�_L ��tjN T CITY SECRETARY Office by: Richard Zavala(Acting) 6183 Originating Department Head: David Yett 7623 frar Additional Information Contact: .................... Peter Vr aky 7601 . ...... ............ ............ ..........................