HomeMy WebLinkAboutContract 28906 CITY SECRETARY
C.
CONTRCT NO. Q
AMENDMENT NO. 1 TO A .-Lna�
AGREEMENT TO PARTICIPATE IN
TAX INCREMENT INVESTMENT ZONE NUMBER THREE,
CITY OF FORT WORTH,TEXAS
................. .............
This AMENDMENT NO. I 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 REGIONAL WATER
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 T 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 10, 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 TEF 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 Of as City Secretary
Contract No. 21840. Taxing Unit does not contribute any Tax Increment generated by
property located in the Expanded TIF t o t he Tax Increment Fund.
C. Section II,B 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 TEF District's administrator regarding
the tentative plans for further development or redevelopment in the TEF 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 contr.act, covenant and agree as,,,flollm
M 1ENAniendnientNo,I IoNNaterDistrict sa,
Panicipation Agrm_rkyw"m:Downtown TIF
Page I
1. Section ILB of Exhibit"C"to the Participation Agreement is hereby deleted in its
entirety and replaced with the following:
B. Efoject Cost,Limitation, "I in Unit shall cease its deposit of any
of its Tax Increment t o t he Tax Increment Fund once the maximum,
amount of "project costs" (as defined in Section 311.002 oft
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"); pt2Lj&LdLLiowever that n y t ax increment
, a
contributions by Taxing Unit to the TIF Fund after the Downtown.
TIF has corrimitted $50 million toward project costs or other
financial obligations shall 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 Agn-eement, shall remain in full
force and effect..
3. Capitalized to used but not identified in this Amendment all have the same
meanings assigned to the in the Participation Agreement,
4. In accordance with Section V111 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 T` in
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 instrwwent,
EXECUTED as of the later date below:
[SIGNATURES 11 MEDIATELY FOLLOW ON NEXT PAGE]
Aniendment No. H.to Water District
Participation Agreement re: Downtown TIF
Page 2
P
CITY OF FORT WORTH, TEXAS; TARRANT REGIONAL WATER
:DISTRICT®
Y: .. y: _
Reid Rector Geome W Bannon
Assistant City Manager President
Board of D° ect s
Date: �� Date: +
°
ATTEST: ATTEST:
BY.— By: .
Gloria Pes rsori- Hal So Sparks III
City Secretary Secretary
Board of Directors
APPROVED AS TO FORM/LEGALITY:
By:—Z"
Peter Vaky m
Assistant City Attorney
Amendment No.I to Water DistTict I
Participation Agreement m Downtown TIF
I'q u
P" '�� �fjAyir
Page 3
ORDINANCE NO
.AN ORDINANCE DESIGNATING A CERTAIN AREA AS TAX INCREMENT
REINVESTMENT ZONE NUMBER THREE, CITY OF FORT WORTH, TEXAS,
ESTABLISHING A BOARD OF DIRECTORS FOR SUCH REINVESTMENT ZONE,
AND OTHER MATTERS RELATED THERETO.
WHEREAS, the City Council of the City of Fort Worth, Texas
(the "City" ) was presented a petition submitted by the owners
constituting at least fifty percent (50%) of the appraised value of
the property hereinafter described requesting that said property be
designated as d "reinvestment zone, " as authorized " by the Tax
Increment Financing Act, Chapter 311 of the Texas Tax Code,
Vernon's Texas Codes Annotated- (the "Act" ) ; and
WHEREAS, the City Council of the City desires to promote the
development and/or redevelopment of the property described in such
petition and within the City's jurisdiction, by the creation of a
reinvestment zone as authorized by the Act; and
WHEREAS, in compliance with the Act, the City called a public
hearing to hear public comments on the creation of the proposed
reinvestment zone and its benefits to the City and to the property
in the proposed reinvestment zone; and
WHEREAS, in compliance with the Act, notice of such public
hearing was published in the Fort Worth Star-Telegram, a daily
paper of general circulation in the City, such publication date
being December 11, 1995, a date not later than seven (7) days prior
to the date of the public hearing; and
WHEREAS, notice of such public hearing, in required form and
substance, was provided in writing to the governing body of each
taxing unit that levies real property taxes in the proposed
reinvestment zone, and each such taxing unit has adopted a
Exhibit "A"
r
resolution wherein they have agreed, pursuant to Section 311.003(e)
of the Act, to waive the requirement f or sixty days notice priok to
such public ,hearing; and ,
WHERE-AS, in compliance with the Act, the City made a formal
presentation, in rewired substance and f orm, to the governing body
of each county or school district that levies real property takes
in the proposed reinvestment zone; and
WHEREAS, in compliance with the Act, the City prepared a
preliminary reinvestment zone financing plan and sent a copy of the
plan to the governing body of each taxing unit that levies taxes on
real property in the proposed reinvestment zone; and
WHEREAS, the public hearing was convened at the time and place
f ,
mentioned in the published notice, to wit, on the 19th day of
December, 1995, at 10:00 a.m. , at the Council Chamber's in the City
Hall of -the City Fort Worth, Texas, which hearing was then
closed; and
WHEREAS, the City, at such hearing, invited all owners of
property located within the proposed reinvestment zone,
representatives of all other taxing units, and any other interested
persons and/or their attorneys to appear and contend for or against
-(1) the creation of reinvestment zone, ( ) the boundaries of
the proposed reinvestment zone as described in the boundary
description and depicted in the map, both of which together are
attached hereto as Exhibit " " , ( ) the concept of tax increment
financing, and (4) the appointment of a board of directors for the
4,.
proposed reinvestment one; and
WHERE-AS, the proponents of the reinvestment zone offered
evidence, both oral and documentary, in favor of all of the
2
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foregoing matters relating to the creation of the reinvestment
zone, and opponents, if any, of the reinvestment zone appeared to
contest matters relating to the creation of the reinvestment zone;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
SECTION 1: That the facts. and recitations contained in the
z° le of this ordinance are hereby found and declared to be true
and correct.
SECTION 21s That the City Council, after conducting such
hearing and having heard such evidence and testimony, has made the
following findings and determinations based on the evidence and
testimony presented to it:
(a) That the public hearing on adoption of the reinvestment
zone has been properly called, held, and conducted and
that notice of such hearing has been published as
required by law.
) That all taxing units levying real property taxes within
the reinvestment zone received notice of the 's
intention to create the reinvestment zone and of the
public hearing and that all such taking units, pursuant
to Section 311.003(e) of the Act, have agreed by
resolution to waive the requirement for sixty days notice
prior to such public hearing.
(c) That all taxing units levying real property taxes within
the reinvestment zone received a preliumnary reinvestment
zone financing plan from the City.
(d) That the City timely .made formal` presentations to all
counties and school districts that levy real property
3
taxes within the reinvestment zone as required by the
Act, and that each taxing unit which levies real property
taxes within the reinvestment zone was notified of each
such presentation.
(e) That creation of the proposed reinvestment zone and
improvements made therein will significantly enhance the
value of all the taxable real property in the
reinvestment zone and will be of general benefit for the
City.
(f) That the reinvestment zone, as described in Exhibit "A" ,
hereof, meets the criteria for the creation of a
reinvestment zone as set forth in the Act, including
f
Section 311.005 thereof, in that:
(1) It is a contiguous geographic area located wholly
within the corporate limits of the City; and
(2) The boundaries of the reinvestment zone contain the
same area as the area described in a petition
submitted to the City Council by the owners of
property constituting at least fifty percent (50%)
of the appraised value of the property in the area
according to the most recent certified appraisal
roll for Tarrant County, Texas.
(g) That the total appraised value of all taxable real
property in the reinvestment zone according to the most
recent appraisal roll of the City, together with the
total appraised value of taxable real property in all
i
other existing reinvestment zones within the City,
according to the most recent appraisal roll of the City,
4
does not exceed fifteen percent ( 15%) of the current
total appraised value of taxable real property in the
City and in the industrial districts created 'by the City,
if n .
(h) That reinvestment zone does not contain more than
fifteen percent (15%) of the total appraised value of
real property taxable by Tarrant County or any school
district.
(i) That the development or redevelopment of the property in
the reinvestment will not occur solely through.
private investment in the reasonably foreseeable future.
SECTION 3: That the City hereby creates a reinvestment zone
r,
containing the area described i • the boundary description and as�
depicted in the map, both of which are together attached hereto as
Exhibit " " , and such reinvestment zone shall hereafter be
identified as Tax Increment Reinves ent Zone Number Three, City of
Fort Worth, Texas ( "Zone" or "Reinvestment Zone" ) .
SECTION 4 : That there is hereby established a board of
directors for the Zone which shall consist of nine (9) members. The'
board of directors of the Reinvestment Zone shall be appointed and
shall serve as follows:
(a) Each of the fort Worth Independent School District,
Tarrant County Junior College District and Tarrant County
may appoint one member of the board if such school
district or county has approved the payment of all or
part of the tax increment produced by the unit. The
member of the state senate whose district the Zone is
located (currently Mike Noncrief) is a member of the
5
board (the "State Senate Member" ) , and the member of the
state house of representatives in whose district the Zone
is located (currently Doyle Willis) is a member of the
board, . -except that either may designate another
individual to serve in the member's place at the pleasure
of the member. If the Zone is or shall become located in
more than one senate or house district then the foregoing
shall apply only to the senator or representative in
whose district a larger portion of the Zone is located.
The remaining members of the board shall be appointed by
the City Council. A vacancy on the board shall be
filled as set forth in the Act. If .a taxing unit waives
its right to appoint a member of the board, the City may
then appoint such board member. The initial board of
directors shall be appointed by resolution of the
governing bodies of the City and the taxing units as
provided herein within sixty (60) days of the passage of
this ordinance or within a reasonable time thereafter.
All members appointed to the board shall meet eligibility
requirements as set forth in the Act.
(b) The board members shall serve two year terms; provided,
however, such terms shall be staggered as provided
herein. The initial directors appointed by the City and
the State Senate Member or the designee thereof shall
'serve initial terms commencing on the date of -appointment
and expiring on December 31, 1997 , and all other
directors shall serve initial terms commencing on the
date of appointment and expiring on December 31, 1996.
6
Each year on or before December 31 the City Council shall
designate a member of the board to serve as chairman of
the board of directors f or the next succeeding calendar
year, and the board shall elect from its members a vice
chairman and other °officers as it deems appropriate. The
term of the chairman shall begin on January 1 of the year
immediately following the year the City Council so
designates the chairman.
) The board of directors shall make recommendations to the
City Council concerning the administration of the Zone.
It shall prepare and adopt a project plan and
reinvestment zone financing plan for the Zone and must
submit such plans to the City Council for its approval.
The board of directors shall possess all powers necessary
to prepare, implement and monitor such project plan for
the Zone as the City Council considers advisable. The
board of directors shall prepare an annual report on the
status of the Zone and shall submit such report to the
City as required in the Act.
(d) The board of directors shall adopt goals for the
participation of disadvantaged business enterprises with
respect to the purchase Of supplies,' materials, services
and equipment in accordance with and subject to the
provisions of the Act.
SECTION 5 : That the Zone shall take effect on January ,
°1996, and that the termination of the Zone shall occur on December
2025, or at an earlier time designated by subsequent ordinance
of the City Council in event. the City determines that the. Zone
should be terminated due to insufficient private investment,
accelerated private investment or other good cause, or at such time
as all project costs and tax increment obligations, if any, and the
interest thereon, have been paid in full.
SECTION 6: That Increment Base for the Zone, which is
® the total appraised value of all taxable real property located in
the Zone, is be determined as of January , 1995,. the year in
which the Zone was designated a reinvestment zone.
SECTION 7 : That there is hereby created and established .a Tax
Increment Fund for the Zone which may be divided into such accounts
and subaccounts as authorized by subsequent resolution or
ordinance, into which Increments, less any of the amounts
not required to be paid into the Tax Increment Fund pursuant to the
Act, .are deposited. The Tax Increment Fund and any accounts
and subaccounts are to be maintained in an account at the
depository bank of the City shall be secured in the manner
prescribed by law for Texas cities. In addition, all revenues from
the sale of any obligations hereafter issued the City secured in
whole or wart from the Tax Increments, revenues from the sale of
any property acquired as part of the tax increment financing plan,
and other revenues to be dedicated used in the Zone shall be
deposited'
eposi into such fund, account or subaccount from which money
will be disbursed to pay project costs for the Zone or o satisfy
the claims of holders of such obligations issued for the Zone.
SECTION 8 : That the Zone is designated under Section
311.005(a) (5) of the Act.
8
SECTION 9 : That the City Manager and City Attorney are hereby
authorized to execute and deliver for and on behalf of the City tax
increment agreements with the Fort Worth Independent School
District, Tarrant County, Tarrant County Hospital District, Tarrant
County Junior College District and Tarrant County Water Control and
Improvement District Number One pursuant to 'the provisions of
Sections 311.008 and 311.013 (g) of the Act.
SECTION 10: That if any section, paragraph, clause or
provision of this Ordinance shall for any reason be held to be
invalid or unenforceable, the invalidity or unenforceability of
such section, paragraph, clause or provision shall not affect any
of the remaining provisions of this Ordinance.
SECTION 11: That this Ordinance shall take effect immediately
from and after its passage in accordance with the provisions of the
Charter of the City of Fort Worth and it is accordingly so
ordained.
t1ay G n er
Mayor
9
ATTEST:
Alice. Church
City Secretary
[SEAL]
APPROVED AS TO FORM LEGALITY:
By
Wade Adkins
City Attorney*
Adopted: 12404S
Effective:
i
10
EXHIBIT "A"
TAX INCREMENT REINVESTMENT ZONE NUMBER THREE
(DOWNTOWN TIF)
Beginning at a point of a intersection of projection of the south ROW line of 3rd
and the west ROW line of Henderson SL,thence
Northwesterly along the west ROW line of Henderson St.to a point where said line
intersects with the south ROW line of Weatherford SL,thence
Southwesterly along the south ROW line of Weatherford St and what would be a
projection of the said south line to a point where the projection of said line
intersects.with the west ROW line of Penn ,thence
Northerly along the west ROW line of Penn t which transitions to the south ROW
line of Forest Park Blvd. (where Forest Park Blvd, curves info Weatherford St and
Belknap ,thence
Following the same Forest Park Blvd. ROW line as it curves to westerly, then to
southwesterly to a point where said line intersects e north ROW line of 5th
St.,
Due west along a due west projection of the north ROW line of 5th St. to a point
where this due west line intersects with the centerline of the Clear Fork of the
Trinity River,thence
Following the centerline of the Clear Fork of the Trinity River northeasterly to a
point of intersection with the centerline ofthe West Fork of the Trinity River,
thence
Southeasterly,then easterly, northeasterly along the centerline of the Test
Fork Trinity,River to a point of intersection with the projection of the north
ROB line of Cummings St. (Cummings St. turns westward as depicted on the
TAD tax maps), thence
Easterly along the said projection and north ROW line of Cummings t to a point
ere said line turns southeasterly along the east ROOT line of Cummings t,
thence
Southeasterly along the east ROW line of Cummings St,to a point where said line
intersects with what would be the projection of the north ROW line of Peach St,
thence
Northeasterly along the north ROW line of Peach St. to a point where said line
intersects with the east ROW line of the Santa Fe Railroad,thence
South-southeasterly along the east ROW line of e Santa Fe Railroad to a point f °
intersection with what would be a straight projection of the south I ROW line of 6th
St., thence
Southwesterly along the south ROW line of 6th St. to a point where said line
intersects with the west ROW line of Commerce St,thence
Northwesterly along the west ROW a of Commerce t to a point where said line
intersects with the south ROW line of 5th t,thence
Southwesterly along the south ROW line of t. to a point where said line,
intersects with the east ROW line of Main St,thence
Southeasterly along the east ROW line of Main t to a point where said line
intersects with the south ROW line of 6th St,thence
Southwesterly along the south ROW line of 6th St. to a point where'said li
intersects what would e straight projection o e ROW line f burnett
St., thence
Northwesterly along what would straight projection of the, east ROW line of
Burnett St (west line of Block 1 ) to a point where said line intersects with the
south ROW line of 5th St,thence
Southwesterly along the south ROW line of 5th St. to a point where said line
intersects with what would be a straight projection of the west ROW line of Burnett
St, thence
Northwesterly along the west ROW line of Burnett St. to a point where said line
intersects south ROW line of t,thence
Southwesterly along the south ROW line of 3rd St to a point where said line
intersects with the west ROW line of Henderson St., which is the point of
beginning.
Save and eceot that the following blocks within said perimeter boundary are
Y$A,l n) omitted and excluded from the Reinvestment Zone: Blocks 45R, Courthouse
Block 27, Bloch 24, Block 58, Block 57, Block 8R, Block 64, Block 86, Bloch 87
(Tots 1, 2A, and 2B), in o Worth Original Town Addition, and m
Save and excep that following area is omitted and excluded from the Reinvestment
Zone: Beginning at a point where the north ROW line of Belknap St. intersects the
east ROW line of Henderson St., thence northwesterly along the east ROW line of
Henderson St. to a point where said line intersects the south ROW line of Peach St.,
thence northeasterly along said south ROW line to a point where said line intersects
e south ROW line of Franklin to, thence easterly along the south ROW line of
Franklin t. to a point where said line intersects the west ROW line of Taylor St.,
thence southeasterly along the west ROW line of Taylor Street to a point where said
line intersects the north ROW line of Belknap St thence southwesterly along the
north. ROW line of Belknap St to point where said line intersects the east ROW
line of Henderson St.,which is the point of beginning, and
Save and except that the following area is omitted and excluded from the
Reinvestment Zone: Beginning at a point where the north ROW line of Belknap St,
intersects the east ROW line of Taylor St., thence northwesterly along the east
ROW line of Taylor St to a point where said line intersects the south ROW line of
Franklin St., thence easterly along the south ROW line of Franklin St to a point
where said line intersects the west ROW line of Houston St, thence southeasterly
along the west ROW line of Houston St to a point where said line intersects the
north ROW line of Belknap St., thence southwesterly along the north ROW line of
Belknap St. to a point where said line
i .
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ep
Zone Boundary
a Major Government or Tax Exempt
omitted From Proposed Reinvestment Zone
Exhibit "
The Proposed , Reinvestment Zone
TAX INCREMENT REINVESTMENT ZONE NUMBER THREE
(DO TO TI F)
City Fort Worth, xas
"agor and cou"Cit
DATE REFERENCE NUMBER LOCH NAME FAGE
6/3/03 **C-19605 1 TR 1 f 2
SUBJECT AUTHORIZE EXECUTION OF AMENDMENT AGREEMENT WITH TAR ANT
REGIONAL WATER 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 the
City's agreement with Tarrant Regional Water District (Water District) increasing the level at which the
Water District will contribute tax increment to the Downtown TIF.
DISCUSSION:
Pursuant tote 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$50
million in committed project costs by the Downtown Tl „ Therefore, once the Downtown TIF committed
to or otherwise pledged 50 million toward allowable project costs, the taxing units would cease their
contributions to the Downtown TIF and the Downtown TIF would not financially be able to undertake
any additional projects.
On February 4, 2003, City staff presented the City Council with a proposal for the redevelopment of the
former Bank One Tower, which was severely damaged in the tornado of March 28, 2000, and is
currently vacant. They also approved 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 of the
former Ripley Arnold Apartments. In accordance with that proposal, the Downtown TIF's board of
directors has entered into leases for parking spaces in the parking garages of both buildings and into a
development agreement for the abatement of asbestos in the former Bank One Tower. All three of
these agreements are critical in order for the redevelopment projects to be financially viable.
In order for the owntown TIF to fund these transactions, the 0 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 million, with the understanding that any tax increment contributed by the
City to the Downtown TIF once it had committed 50 million toward various projects would be reserved
for projects undertaken on or after February 17, 2003. The Water District has also m agreed to increase
its contributions to the Downtown TIF in the same manner and has accordingly executed an
amendment to City Secretary Contract No. 21840, which is the agreement with the City pursuant to
which the Water District contributes tax increment revenue to the Downtown TIF. In order for the
amendment to be effective, state law requires that the,,,City Council authorize execution of this
amendment.
City of Fort Worth, Texas
"Agor And council communication
DKT—E REFERENCE NUMBER �10 �NA M E� �P A�GE
6/3/03 **C-19605 12WATER 2 of 2
Ui3J CT AUTHORIZE EXECUTION OF AMENDMENT TO AGREEMENT WITH TARRANT
REGIONAL WATER DISTRICT FOR PARTICIPATION IN TAX INCREMENT
REINVESTMENT ZONE NUMBER THREE, CITY OF FORT WORTH, TEXAS
DOWNTOWN TIF
FISCAL INFORMATION/CERTIFICATION-
The Finance Director certifies that this transaction will have no material effect on City funds.
:r
k
Submitted for City Manager's FUND A11.'COUk,11T CF110 ER AMOUNT CITY SECRETARY
Office y: (to)
Richard Zavala 6183
Originating Department Head:
David Y"ett 7623 (from) APPROVED 06/03/03
Additional Information Contact.
David Yett 7623