Loading...
HomeMy WebLinkAboutContract 28907 a ry SECRETARY ' CO a 03 NTRACT NO AMENDMENT NO. 2 TO CITY OF FORT WORTH AND TARRANT COUNTY HOSPITAL DISTRICT AGREEMENT TO PARTICIPATE IN TAX INCREMENT REINVESTMENT ZONE NUMBER THREE, CITY OF FORT WORTH, TEXAS This AMENDMENT N . 2 TO CITY OF FORT WORTH AND TARRANT COUNTY HOSPITAL DISTRICT 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"), a home rule municipality organized under the laws of the State of Texas and acting by and through Reid Rector, its duly authorized Assistant City Manager and TARRANT COUNTY,TEXAS ("Taxing Unit"), acting by and through Harold Samuels, the duly authorized Chairman of the Tarrant, County Hospital District Board of Managers, The City and Taxing it 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 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 "Original TIF"). Ordinance No. 12324 is attached hereto as Exhibit "A". B. On or about March 28, 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 into the TIF District's Tax Increment Fund ("Participation Agreement"), as specifically provided in that Participation Agreement, The Participation Agreement is attached hereto as Exhibit "B". C. On February 17, 2003, the City Council of the City adopted Ordinance No, 15442 (the "Ordinance") changing the boundaries of Tax Reinvestment Zone #3 (which includes the Original TIF and the amended boundaries as set forth in Ordinance Nos. 14795, 14839, and 15317) and providing for the amended TIF Zone (the"Amended TIF"), said Ordinance attached hereto as Exhibit"C". D. After hearing a presentation by a representative of the City and the Downtown TIF District regarding the tentative plans for additional development or redevelopment of the Amended TIF and an estimate of the general impact of the Amended TIF on property values and tax revenues, Taxing Unit's Board of Managers has been requested to approve the boundary changes as set forth in the Ordinance attached hereto as Exhibit "C" and to increase the maximum dollar amount of project costs to be ............... wj� A mendment No.2 iv'Ywyant Couoy p ....alb;... .... Participation Agreement re:Downtown TIF Page I re a I ....................... financed by'raxing Unit's Tax increment into the Tax Increment Fund, which the parties hereto wish to reduce to writing through this Amendment, NOW, THEREFORE, the City and Taxing C. for and in consideration. of the to and conditions set forth herein., do hereby contract, covenant and agree as follows: 1. The following terms provided. in Section I of the Participation Agreement are hereby amended to be defined as follows: 11TIF District" shall can Tax hicrement Reinvestment Zone Number Three, City of Fort Worth, Texas, designated by City Ordinance No. 12324 on December 19, 1995, expanded by City Ordinance No. 14839 on October 30, 2001, and amended by City Ordinance No. 15442 on February 17, 2003, which Ordinances are incorporated herein by reference for all purposes. "Tax Increment Base" shall mean (i) the total appraised value of all real property taxable by Taxing Unit and located in the Original. TIF on January 1, 1995, (ii) the total appraised value of all real property taxable by Taxing Unit and located in the Expanded TIF on January 1, 2001 and (in) less the total appraised value of all real property deleted in the Amended TIF on February 17, 2003, 2. Exhibit "C", Section II.B., Project Cost Limitation, of the Participation Agreement is hereby amended as follows. The maximum amount of"prqject costs" (as defined in Section 311.002 of the Act) that may be paid through Tax Increment deposits directly mid/or financed through the issuance of bonds or other obligations of the City secured by Tax Increment deposits is a total of$72,000,000, which represents $50,000,000 in project costs as set forth in the original Participation. Agreement, and an additional $22,000,000 reserved solely for new project costs or other financial obligations related directly to the Bank One Tower redevelopment and the Tandy Center redevelopment. Further, Tarrant Comity Hospital [district will not participate in the funding of any project costs or other financial.obligations committed to by the Downtown TIF after February 25, 2003, except those related directly to the Bank One Tower redevelopment and the Tandy Center redevelopment as noted above, even if those projects could be funded within the $50,000,000 maximum amount as provided in the original Participation Agreenient,unless funding of such additional project costs is granted by specific approval of the Tarrant County Hospital District Board of Mmiagers. In regards tote payment of project costs from the additional $22,000,000 reserved solely for those costs associated with the Bank One Tower redevelopment and the Tandy Center redevelopment projects as noted above, Tarrant County Hospital District directs that no one redevelopment project take priority over the other and that each shall share equally in available TIF funding. Arnendment No,2 iu'Varrant County Participation.A. reerneot re:Downtown TIF Page 2 . ......................... All other terms set forth in Section I of the Participation Agreement and their respective definitions, as well as all other provisions 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 the in the Participation Agreement. 4. In accordance with Section VHI 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 this 11-!%ay of 2003: CITY OF FORT WORTH, TEXAS: TARRANT COUNTY HOSPITAL DISTRICT: By:_.J-0i.L,ieL-12m�L........ y® Reid Rector 'Harold"Sainuel&s6�t��- Assistant City Manager Chairman, Tarrant County Hospital District Board of Managers ATTEST: ATTEST: By: By: Gloria Pear n Ronald Patterson City Secret Secretary APPROVED AS TO FORM/LEGALI"ry: APPROVED AS TO FORM*: Peter Vaky Allan S. Graves Assistant City Attorney Assistant District Attorney Amendment No, 2 to Tarrant County Participation Agreement re:Downtown TIC Page 3 .............. ...............4PEsICrc� fit" F, ., I *By law,the District Attorney's Office may only advise or approve contracts or legal documents on behalf of its clients. It may not advise or approve a contract or legal document on behalf of other parties. Our view of this document was conducted solely from the legal perspective of our client. Our approval of this document was offered solely for the benefit of our client. Other parties should not rely on this approval and should seek review and approval by their own respective attorney(s). Amendment No.2 to Tarrant County Participation Agreement re:Downtown TIF Page 4 he EXHIBIT "A" IL ORDINANCE NO._IL-2 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 a "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 cre.ation 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 E i)bi.. A resolution wherein they have agreed, pursuant to Section 311. 003 (e) of the Act, to waive the requirement for sixty days notice prior to such public hearing; and WHEREAS, in compliance with the. Act, the City made a formal presentation, i 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 preamble of this ordinance are hereby found and declared to be to and correct. SECTION 2 : That the City Council, after conducting such hearing and having heard such evidence and testimony, has made the following findings and determinations as 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 b6en published as required by law. (b) That all taxing units levying real property taxes within the reinvestment zone received notice of the City's intention to create the reinvestment zone and of the public hearing and that all such taxing 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 ,heacing. (c) That all taxing units levying real property taxes within the reinvestment zone received a preliminary 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 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 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 any. (h) That the 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 zone will not occur solely through private investment in the reasonably foreseeable future. SECTION 3 : That the City hereby creates a reinvestment zone containing the area described in the boundary description and as depicted in the map, both of which are together attached hereto as Exhibit "A" , and such reinvestment zone shall hereafter be identified as Tax Increment Reinvestment Zone Number Three, it of Fort Worth, Texas (the "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 one 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 in whose district the Zone is , located (currently Mike Moncrief) is a member of the 5 V board (the "State Senate Member" ) , and the member of the sLate 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 all 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 (6 0 ) 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 to 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 for 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 I of the year immediately following the year the City Council so designates the Chairman . (c) The board of directors all make recommendations to the it 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 'pro ject 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. aECTTON 5 : That the Zone shall take effect on January, 1, 1996 , and that the ter-mination of the Zone shall occur on December 31, 2025, or at an earlier time designated by subsequent ordinance of the City Council in the event the City determines that the Zone 7 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 the Tax Increment Base for the Zone, which is the total appraised value of all taxable real property located in the Zone, is to be determined as of January 1, 1995, the year i'n which the Zone was designated a reinvestment zone. SECTION 7 : That there is hereby created and established a Tax Increment Fund fort a one which may be divided into such accounts and subaccounts as may be authorized by subsequent resolution or ordinance, into which all Tax Increments, less any of the amounts not required to be said into the Tax Increment Fund pursuant to the Act, are to be deposited. The Tax Increment Fund and any accounts and subaccounts are to be maintained in an account at the depository bank. of the City and shall be secured in the manner prescribed by law for Texas cities. In addition, all revenues from the sale of any obligations hereafter issued by the City secured in whole or in part 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 to and used in the Zone shall be deposited into such fund, account or subaccount from which 'money will be disbursed to pay project costs for the Zone or to 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. Ray' G n er Mayor 9 r ° ATTEST: Alice Church City Secretary [SEAL] APPROVED AS TO FORM LEGALITY: By: Wade Adkins City Attorney/y /} Adopted: Effective: 10 EXHIBIT "A" TAX INCREMENT REINVESTMENT ZONE NUMBER THREE (DOWNTOWN TIF) Beginning at a point of the intersection of a projection of the south ROW line of 3rd St° and the west ROW line of Henderson St., thence Northwesterly along the we ROW line of Henderson St. to a point where said line intersects with the south ROW line of Weatherford St., 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 St., thence Northerly along the west ROW line of Penn St.which ft-ansitions to the south ROW I'ne of Forest Park Blvd. (where Forest Park Blvd. curves info'Weatherford St. and Belknap St.), thence Following the same Forest Park Blvd. ROW line as it curves to westerly, then to southwesterly to a point where said line intersects with the no ROW line of 5th St., thence 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 of the West Fork of the Trinity River, thence Southeasterly, then easterly, and then northeasterly along the centerline of the West or of the Trinity River to a point of intersection with the projection of the north ROW line of Cummings St. (Cummings St. turns westward as depicted on the TAD tax maps), thence Easterly along the said projection and no ROW line of Curnraings to to a point where said line turns southeasterly along the cast ROW line of Cumm, ings St., thence Southeasterly along the east ROW line of Cummings St. to a point where said line intersects with what would bete protection of the no 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 the to Fe Railroad to a point of intersection with what would be a straight projection of the south ROW line of 6th St., thence All Beginning at a point of the intersection of a projection of the south ROW'line of 3rd St. and the west ROW line of Henderson St.,thence Northwesterly along the west ROW line of Henderson St- to a point where said line intersects with the south ROW line of Weatherford St., 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 SL, thence Northerly along the west ROW line of Penn SL which transitions to the south ROW line of Forest Park Blvd. (where Forest Park Blvd. curves info Weatherford St. and Belknap SQ,thence Following the same Forest Park Blvd. ROW line as it curves to westerly, then to southwesterly to a point where said line intersects with the north ROW line of 5th St.,then ce 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 poirit of intersection. with the centerline of the West Fork of the Trinity River, thence Southeasterly, then easterly, and then northeasterly along the centerline of the West For of the Trinity River to a point of intersection with the projection. of the north ROW 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 SL to a point where said line turns southeasterly along the east ROW line of Cummings St., thence Southeasterly along the east ROW line of Curmnings St. to a point where said line intersects with what would be the projection of the no ROW line of Peach St, thence Northeasterly along the no ROW line of Peach St. to a point where said line intersects with the east ROW line of the to Fe Railroad, thence South-southeasterly along the east ROW line of the Santa Fe Railroad to a point of intersection with what would be a straight projection of the south 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 line of Commerce St. 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 the east ROW line of Main St., thence Southeasterly along the east ROW line of Main St. 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 line intersects with what would be a straight projection of the east ROW line of Burnett St., thence Northwesterly along at would be a 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 with the south ROW line of 3rd St., 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 except that the following blocks within said perimeter boundary are omitted and excluded from the Reinvestment Zone-'- Blocks 45R, Courthouse A, Block 27, Block 24, Block 58, Block 57, Block 8R, Block 64, Block 86, Block 87 (Lots 1, 2A, and 2B), in the Fort Worth Original To Addition, and Save and ex Lept that following area is omitted and excluded from the Reinvestment Zone: Beginning at a point where the no 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 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 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 .rc t eP s (D a e Zone Boundary Major Goyernment or Tax Exempt Omitted From Proposed Reinyestment Zone Exhibit " A " The Proposed Reinvestment Zone' TAX INCREMENT REINVESTMENT ZONE NUMBER TIRE ( DOWNTOWN TIF) • EXHIBIT " C" I . TAXING UNITS' TAX INCREMENT PERCENTAGES A. Fort Worth Independent School District ( "FWISD" ) 1 . Commencing for the tax year 1996 and ending on the earlier of the tax year (a) 2003 or (b) in which bounds or other obligations secured by the Tax Increments are issued, FWISD will deposit into the Tax Increment Fund an amount equal to 1000 of its Tax Increment . 2 . For the remaining term of this Agreement FWISD will deposit into the Tax Increment Fund an amount equal to 1000 of the product of (x) the Captured Appraised Value within FWISD times (y) the lower of the tax rate per $100 valuation levied for the then current tax year by either the City of Fort Worth , or FWISD (the "Alternate Rate" . ) B. Citr of Fort Worth, Tarrant County, Tarrant y Hospital District, Tarrant County Junior Co ege District and Tarrant County Water Control and Improvement District Number One (collectively, the "Other Taxing Units" . ) 1 . For each year during the term of this Agreement,, the Other Training Units will deposio the tax Increment Fund an amount equal to 00 % of their respective Tax Increments as defined in Section I . II. LIMITATIONS ON TAX INCREMENT DEPOSITS A. Deposit Limitation. The total amount of Tax Increments deposited annually into the Tax Increment Fund by all TIF Taxing Units shall not exceed $5, 000, 000 (the "Deposit ' Ceiling" ) , and the amount of each TIF Taxing Unit' s Tax Increment deposit shall not exceed its pro rata share of the Deposit Ceiling . Each TIF Taxing Unit' s pro rata share is the product of $5, 000, 000 times a fraction, the numerator of which is each TIF Taxing Unit' s tax rate and the denominator of which is the sum of the tax rates of i all TIF Taxing Units ; provided, however, FWISD' s tax rate for purposes of its numerator and for purposes of the denominator shall be the Alternate Rate if such rate is then in effect . By way of illustration, set forth on Schedule 1 hereto are examples of each TIF Taxing unit' s pro rata share of the Tax Increment deposits which will be required in the event the Deposit Ceiling is reached. In accordance with Section 311 . 013 of the Act, the TIF Taxing Units shall not be required to pay tax increment into the tax increment fund of the Reinvestment Zone after three (3 ) years from the date the Reinvestment Zone has been created unless : 1 1 . bonds have been issued for the Reinvestment Zone under Section 311 . 015 of the Act to finance trhe Project . 2 . the City has acquired property in the Reinvestment Zone pursuant to the project plan, or 3 . construction of Phase I of the Project pursuant to the project plan has begun in the Reinvestment Zone . B . Project Cost Limitation. 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 obl4�1 i�- O the City secured by Tax Increment deposits is 0 C. Use of Funds 1 . All amounts paid into the tax increment fund shall be used to pay direct project costs and/or - the principal of and interest on bonds or other obligations , secured in whole or in part by tax increment deposits, issued to finance said project costs under the Act, and to pay direct costs properly chargeable under. generally accepted accounting principles to the administration of the TIF District; however, in no event shall any of the amounts paid into the tax increment fund be used to pay any overhead or administrative costs.of City of other agency employees or officials for time spent or services rendered on behalf of the TIF District or with respect to the Project . 2 . No funds will be expended or no bonds or other obligations, secured in whole or in part by tax increment deposits, of the TIF District will be issued to finance project costs of the Project until a final project plan and financing plan has been prepared and adopted by the Board of .Directors of the TIF District and approved by the City Council of the City and (b) the City has been furnished documentation and evidence satisfactory to the Board of Directors of the TIF District and the City to the effect that all final agreements and arrangements for the financing and construction of the Project have been completed and executed . 2 0' STATE OF TEXAS COUNTY OF TAR RANT CITY OF FORT WORTH AND TAR RANT COUNTY HOSPITAL DISTRICT AGREEMENT TO PARTICIPATE IN THE TAX INCREMENT REINVESTMENT ZONE NUMBER THREE, CITY OF FORT WORTH, TEXAS THIS AGREEMENT is made and entered into by and between the City of Fort Wort ( "City" ) , a Texas home-rule munici pality, and the Tarrant Coun:�Y_�ospital Dl� r-71-M ' '. I': I�i , : k 'Taxing Gina E71 )�, of Tarrant CoiiiHy, Texas . WITNES 'SETH: WHEREAS, on December 19, 1995, the Fort Worth City Council approved Ordinance No. 12324 , establishing Tax Increment Reinvestment Zone Number Three, City of Fort 'Worth, Texas ( "TIF District" ) , in accordance with the Tax Increment Financing Act, as amended (V.T.C.A. , Tax Code, Chapter 311 ) (the "Act" ) , to promote development and redevelopment in the downtown area of the City of Fort Worth through the use of tax increment financing; and WHEREAS, City and Taxing Unit wish to enter into an agreement defining the terms and conditions under which Taxing Unit will contribute a portion of its tax increment to the TIF District Tax Increment Fund; NOW THEREFORE, City and Taxing Unit, in consideration of the terms, conditions and covenants contained herein, hereby, agree as follows: I . DEFINITIONS Terms not defined herein shall be construed as defined in the Act (hereinafter defined) , or through normal. usage if not defined in the Act. The following terms shall have the following meanings when used in this Agreement: "Act" shall can V.T.C.A. , Tax Code, Chapter 311 , the Tax Increment Financing Act, as amended. 'Captured Appraised value" shall can the total appraised value of the property located within the TIF District for the year less the Tax Increment Base 'of the TIF Taxing Units . "Project Plan and Reinvestment Zone Financing Plan" shall mean the project and financing plan for the development or redevelopment of the TIF District . "TIF District" shall can Tax Increment R y.g.q ed-rL er, Three City of Fort Worth, Texas , established by the Fort Worth 61_y��Council Ordinance No. 12324 , on December 1 9 , 1995 , a copy Of which ordinance is attached hereto and marked Exhibit "A" . "TIF Taxing Units" shall mean those political subdivisions of the State of Texas authorized to impose ad valorem taxes on property located within the TIF District . "Tax Increment" shall mean the amount of property taxes levied and collected by a TIF Taxing Unit for the year on the Captured Appraised Value of taxable property located in the TIF District. "Tax Increment Base" shall mean the total appraised value of all property taxable by the TIF Taxing Units and located in the TIF District on January 1, 1995 . "Tax Increment Fund" shall mean a fund consisting of all the Tax Increment deposits, all revenues from the sale of tax increment bonds or notes, revenues from the sale of any property acquired as part of the Project Plan and Reinvestment Zone Financing Plan, and other revenues to be used in the development or redevelopment of the TIF District. II . AGREEMENT TO DEPOSIT TAX INCREMENT Pursuant to a Resolution, duly adopted by it governing body, a copy of which is attached hereto as Exhibit "B" , the Taxing Unit annually shall deposit into the Tax Investment Fund the amount as calculated by the method set forth in Exhibit "C" , hereto. III . RESPONSIBILITY FOR ACTS- City and Taxing Unit shall each be responsible for the sole negligent acts of their officers , agents, employees or separate contractors . In the event of joint and concurrent negligence of both City and Taxing Unit, responsibility, if any, shall be apportioned comparatively in accordance with the laws of the State of Texas, without however, waiving any governmental immunity available to City and Taxing Unit, under Texas law and without waiving any defenses of the parties under Texas law. IV. ADMINISTRATION OF AGREEMENT This Agreement shall be administered on behalf of the City by the City Manager 's Office of the City, or the designee thereof. V. DELIVERY ADDRESS Whenever this Agreement requires or permits any consent, approval , notice, request, proposal, or demand from one party to the other, the consent, approval , notice, request, proposal , or demand must be in writing to be effective and shall be delivered to 2 the party intended to receive it at that party 's address shown below: If intended for City, to: Economic Development Director City of Fort Worth 1000 Throckmorton Street Fort Worth, Texas 76102 If intended for Taxing Unit, to: Board of Managers Tarrant County Hospital District 1500 Main Street Fort Worth, Texas 76104 or to such other address as either party may request, in writing, from time to time. VI . GOVERNING LAW AND VENUE This Agreement is made subject to the provisions of the Charter and ordinances of City, as amended; the Texas Constitution, codes, and statutes; and all other applicable state and federal laws, regulations and requirements, as amended. Venue for any cause of action arising hereunder shall lie exclusively in Tarrant County, Texas . VII . TERM This agreement is effective from January 1 , 1996 ,, through December 31 , 2025 . VIII . ENTIRE AGREEMENT/AMENDMENTS This Agreement embodies the complete understanding of City and Taxing Unit, and shall supersede all oral or written previous and contemporary agreements between the parties relating to matters herein. This Agreement may be amended, modified, or supplemented only by an instrument in writing executed by City and Taxing Unit, a copy of which will be provided to all TIF Taxing Units . Any amendment, modification or supplement which adversely affects any other TIF Taxing Unit must be consented to in writing by such TIF Taxing Unit . Any alterations, additions or deletions to the terms of this Agreement required by changes in federal , state or local law or regulations will be automatically incorporated into this Agreement without written amendment, and shall become effective on the date designated by such law or regulation . EXECUTED this the day of , 1996, by City, signing by and through its City Manager, and by Taxing Unit, signing by and through its duly authorized officials . 3 APPROVED AS TO FORM AND LEGALITY; CITY OF FORT WORTH, TZXAS By; By.* Wil a.am w. wood Bob Texr 11 Deputy City Attorney City Manager �I ATTEST: By' 4�42� Al c® Cha�rch City Secretary TAR RANT 0 TY HOS tTAL, DIST C y Mypy urp Chairman Board of anage-r TAR T OUNTY, TEXAS By Tom Vandergri County judge r EXHIBIT "C" ORDINANCE NO. r AN ORDINANCE REDUCING THE BOUNDARIES OF TAX INCREMENT REINVESTMENT ZONE NUMBER THREE, CITY OF FORT WORTH, TEXAS; AND CONTAINING OTHER MATTERS RELATED TO THE ZONE. WHEREAS, pursuant to Ordinance No. 12324, adopted by the City Council of the City of Fort Worth, Texas (the "City') on December 19, 1995, the City created Tax Increment Reinvestment Zone Number Three, City of Fort Worth, Texas, as previously enlarged by Ordinance No. 14795, adopted on October 2, 2001, and Ordinance No, 14839, adopted on October 30, 2001, and as previously reduced by Ordinance No. 15317, adopted on November 5, 2002 (the"Zone"); and WHEREAS, Section 311.007 of the Texas Tax Code (the "Code") allows the City Council to reduce or enlarge the boundaries of an existing reinvestment zone by ordinance or resolution, subject to the limitations provided by Section 311.006 of the Code; and WHEREAS, the City wishes to reduce the Zone by removing all property in the Zone that is located within the property boundaries set forth in Exhibit "A" of this Ordinance (the "property"), which is attached hereto and hereby made a part of this Ordinance for all purposes; and WHEREAS, by operation of Sections 311.006 and 311.007 of the Code, a municipality may change the boundaries of an existing reinvestment zone so long as (i) less than ten percent (10%) of the property within the amended boundaries of the reinvestment zone, excluding any property dedicated to public use, is used for residential purposes. as.defined in Section 311.006(d) of the Code; (ii) the amended bowida.ries of Page I Ordinance Reducing Tax Tncremenr Reinvestment Zonc Number Three, City of Forr Worth,Texas 1 the reinvestment zone will not contain more than fifteen percent (15%) of the total appraised value of taxable real property in the municipality and in the industrial districts created by the municipality; and (iii) the amended boundaries of the reinvestment zone will not contain more than fifteen percent (15%) of the total appraised value of the real property taxable by a county or school district; and WHEREAS, on February 18, 2003 the City Council held a public hearing regarding the reduction of the Zone and its benefits io the City and to property in the Zone and afforded a reasonable opportunity for all interested persons to speak for or against the removal of the Property from the Zone; and WHEREAS, notice of the public hearing was published in a newspaper of general circulation in the City on February 10, 2003, which date was not later than seven (7) days prior to the date of the hearing; and WHEREAS, prior to the public hearing the City provided written notice to all taxing units levying real property taxes within the Zone of the City's intention to remove the Property from the Zone and of the public hearing. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,TEXAS: Section I. FINDINGS. That after reviewing all information before it regarding the removal of the Property from the Zone and after conducting a public hearing regarding the reduction of the Zone and its benefits to the City and to property in the Zone and affording a Page 2 Ordinance Reducing Tar Increment Reinvcstment zone Number Three, City of Fort Worth,Texas . t reasonable opportunity for all interested persons to speak for or against the removal of the Property from the Zone, the City Council hereby makes the following findings of fact: 1.1. The statements, facts, terms and conditions set forth in the recitals of this Ordinance are true and correct. 1.2. Removal of the Property from the Zone will benefit the City by allowing the City to foster development initiatives on and in the vicinity of the Property,as outlined in the public Pre-Council meeting on February 4, 2003 and the City Council meeting of February 18, 2003, by means that would not be available if the Property remained in the Zone("Other Economic Development Initiatives'). 1.3. Beneficial development of the Property is likely to occur more quickly by means of Other Economic Development Initiatives. 1.4. Once the Property is removed from the Zone and developed by means of Other Economic Development Initiatives, the value of property remaining in the Zone is likely to increase, which will benefit both the Zone and the City in general. 1.5. The Property is subject to removal from the Zone pursuant to Section 311.007(a) of the Code. 1.6. With the removal of the Property, less than ten percent (10%) of the property within the Zone, excluding any property dedicated to public use, will be used for residential purposes, as defined in Section 311.006(d) of the Code. 1.7. With the removal of the Property, the Zone will not contain more than fifteen percent (15%) of the total appraised value of taxable real property in the municipality and in the industrial districts created by the municipality. Page 3 Ordinance Reducing Tax increment Reinvcstment Zone Number Three, City of Fort Worth,Texas I.S. With the removal of the Property, the Zone will not contain more than fifteen percent (15%) of the total appraised value of real property taxable by any county or school district. Section 2. REMOVAL OF PROPERTY FROM ZONE. That the City Council hereby reduces the boundaries of the Zone by removing the Property from the Zone, The Zone, as reduced, has been designated under Section 311.005(a)(5) of the Code and shall continue to be known as "Tax Increment Reinvestment Zone Number Three, City of Fort Worth, Texas." With removal of the Property from the Zone, the Zone shall comprise the property depicted and described in Exhibit "B", which is attached hereto and hereby made a part of this Ordinance for all purposes_ Section 3. ZONE BOARD OF DIRECTORS. That the board of directors for the Zone shall remain unchanged and shall continue to conform to the requirements of Section 311.009 of the Code. Page 4 Ordinance Reducing Tax Increment Reinvestment Zone Number Three, City of Fort Worth,Texas Section 4. TERM OF ZONE. That the removal of the Property from the Zone shall take effect upon the adoption of this Ordinance. The Zone, as reduced, shall terminate in accordance with Section 5 of Ordinance No. 12324. Section 5. DETERMINATION OF TAX INCREMENT BASE. That the tax increment base of the Zone, as defined by Section 311,012(c) of the Code, shall be reduced by the taxable appraised value of the Property for the year 1995, Much is the year in which the Property was designated as part of the Zone pursuant to Ordinance No. 12324. The tax increment base for property remaining in the Zone shall remain unchanged. Section 6. TAX INCREMENT FUND. That beginning with the 2003 tax year, each taxing unit which levies real property taxes on the Property shall be relieved of any obligation to deposit the percentage of any tax increment (as defined by Section 311.012(a) of the Code) produced by the .Property that the taxing entity elected to dedicate to the Tax Increment Fund (created and established for the Zone pursuant to Section 7 of Ordinance No. 12324) under a participation agreement with the City, as authorized by Section 311.013(f) of the Code. Page 5 Ordinance Reducing Tax Increment Reinvestment Zone Number Thrcc, City of Fort Worth,Texas Section 7. SEVERABILITY. That if any portion, section or part of a section of this Ordinance is subsequently declared invalid, inoperative or void for any reason by a court of competent jurisdiction, the remaining portions, sections or parts of sections of this Ordinance shall be and remain in full force and effect and shall not in any way be impaired or affected by such decision, opinion or judgment. Section 8. That this Ordinance shall take effect and be in full force and effect from and after its adoption. AND IT IS SO ORDAINED. ADOPTED AND EFFECTIVE: APPROVED AS TO FORM AND LEGALITY: Fay: Peter Vaky Assistant City Attorney Date: 1-2/0 - 03 M&C: e-/3S87 Page 6 Ordinance Reducing Tar,Increment Reinvestment Zone Number Thrce, City of Fort Worth,Texas ,Q A, EXHIBIT "A" LEGAL DESCRIPTION AND MAP OF THE PROPERTY BEING REMOVED Beginning at a point of the intersection of the south ROW line of Belknap St. and the east ROW'line of Taylor SL, thence Northeasterly along the south ROW line of Belknap St. to a point where said line intersects with the westROW line of Throckmorton St., thence Southeasterly along the west ROW line of Throckmorton St4 to a point where said line intersects with the north ROW line of 3rd St., thence Southwesterly along the north ROW line of 3rd St. to a point where said line intersects with the east ROW line of Taylor St., thence Northwesterly along the cast ROW line of Taylor St. to a point where said line intersects with the south ROW line of Belknap St., which is the point of begirunng. ROW 11AW11:11: of bolknap St. West Row Of Thrackmorton SAO O. East ROW of TaVW St < Nag"ROW of 3rd sit <1 el o L r.......... 176,983 sf or 4.06 acres EXHIBIT "B" LEGAL DESCRIPTION AND MAP OF THE ZONE FOLLOWING REMOVAL OF THE PROPERTY Beginning at a point of the intersection of a projection of the south ROW line of 3rd St. and the west ROW line of Henderson St.,thence Northwesterly along the west ROW line of Henderson St. to a point where said line intersects with the south ROW line of Weatherford St., 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 St., thence Northwesterly along the west ROW line of Penn St. which transitions to the south ROW line of Forest Park Blvd. (where Forest Park Blvd. curves into Weatherford St. and Belknap St.),thence Following the same Forest Park Blvd. ROW line as it curves to westerly,'then to southwesterly to a point where said line intersects with the north ROW line of 5th St., thence Due west along a due west projection of the north ROW line of 5th St. to a point where this due west Iine 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 centerline of the west ROW line of Henderson St.,thence Southeasterly along the west ROW line of Henderson St. to a point where said line intersects with the south ROW line of Belknap Street, thence Northeasterly along the south ROW line of Belknap Street to a point where said line intersects with the east ROW line of Cherry St., thence Southeasterly along the east ROW line of Cherry St. to a point where said line intersects with the south ROW line of Weatherford St., thence Northeasterly along the south ROW line of Weatherford St. to a point where said line intersects with the east ROW line of Taylor St., thence Southeasterly along the east ROW of Taylor St. to a point where said. line intersections with the north ROW line of 3`d St.. thence Northeasterly along the north ROW line of 3rd St. to a point where said line intersects with the west ROW line of Throckmorton St.,thence Northwesterly along the west ROW line of Throckmorton St. to a point where said line intersects with the south ROW line of Belknap St., thence Northeasterly along the south ROW line of Belknap St. to a point where said line intersects with the west ROW line of Houston Street, thence Southeasterly along the west ROW line of Houston St. to a point where said line intersects with the south ROW line of Weatherford St., thence Northeasterly along the south ROW line of Weatherford St. to a point where said line intersects with the west ROW line of Commerce St., thence Northwesterly along the west ROW line of Commerce Street to a point where said line intersects with the north ROW line of Belknap St., thence Southwesterly along the north ROW line of Belknap St. to a point where said line intersects with the west ROW line of Houston St., thence Northwesterly along the west ROW line of Houston St.to a point where said line intersects with the south ROW line of Franklin St., thence Westerly along the south ROW line of Franklin St. to a point where said line intersects with the east ROW line of Taylor St., thence Northwesterly along the east ROW line of Taylor St. to a point where said line intersects with the centerline of the West Fork of the Trinity River at the.projection of the east ROW line of Taylor St., thence Southeasterly, then easterly, and then northeasterly along the centerline of the West Fork of the Trinity River to a point of intersection with the projection of the north ROW 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 St. to a point where said line turns southeasterly along the east ROW line of Cummings St.,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 the Santa Fe Railroad to a point of intersects with a north ROW lime of Lancaster Avenue, thence West along the north ROW line of c ter Avenue to a point where said line intersects with e east ROW line of Calhoun t., thence Northwesterly along the east ROW line of Calhoun St. to a point where said line intersects with the o ROW line of 7th St., thence Southwesterly along the north ROW line of t. to a,point where said tine intersects with the west ROW line of Burnett St., thence 'Northwesterly along the west ROW line ofBurnett St. to a point where said Iine intersects with the south ROW line of 3rd St.,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 ofbeginning. watt ROW r S of Kendaftm EE dSe MEEsom FFOOW 6W MEE Esm ROW Ino of EMI ROW W. dW � mom ROW ROW .., (: m g r �OE f WaA ® p (I ! a w.se NwVt ROW W wm or a Y SOW,Raw r." cdr. A" d Cal Sit ;3 l of We.WItWd%k Mom 19 El of L&V*sW Ave ,�_ Jr tiJ PivK , f.tll�isbr AY0. City of ort Worth, Texas � tion [:D:A:T: 3 REFM �CNU�C 2 �LOG�NAM ����� 6 /03 9 1 of SUBJECT AURTHO IZE EXECUTION OF AMENDMENTS TO AGREEMENTS WITH TARRANT COUNTY AND TARRANT COUNTY HOSPITAL DISTRICT FOR PARTICIPATION IN TAX INCREMENT REINVESTMENT ZONE NUMBER THREE, CITY OF FORT WORTH, TEXAS DOWNT OWN TIF RECOMMENDATION It is recommended that the City Council authorize the City Manager to execute amendments to the ` agreements with Tarrant County (County) and Tarrant County Hospital District (Hospital District) increasing the level at which the County and the Hospital District will contribute tax increment to the Downtown TIF. DISCUSSION: 'Pursuant to the Downtown TIF'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 50 million in committed project costs by the Downtown TIF. Therefore, once the Downtown TIF had 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 Rank One Tower, which was severely damaged in the tornado of March 2 , 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 public 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 Downtown TIF to fund these transactions, the 50 million project cost cap must be increased. On February 1 , 2003, the City Council adopted Resolution No. 2922 increasing the cap applicable to the City to $ 2,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 County and the Hospital District have also agreed to increase their contributions in the same manner, reserving the additional funding for projects related to the redevelopment of the former Bank One Tower and the Tandy Center, and have accordingly executed amendments to City Secretary Contract Nos. 21825 and 21823, respectively, which are the agreements with the City pursuant to which the County and the Hospital District contribute tax increment revenue to the Downtown TIF. In order for the amendments to be effective, state law requires that the City Council authorize execution of these amendments. City of ort Worth, Texas "Agar and cou"Cit Cot I U ication FDATE REFERENCE NUMBER LOG NAME PAGE 6/3/03 C-19612 12COUJ 2 of JECT AU.lRTHORIZE EXECUTION AMENDMENTS TO AGREEMENTS WITH TARRANT COUNTY AND TARRANT COUNTY HOSPITAL DISTRICT FOR PARTICIPATION IN TAX INCREMENT REINVESTMENT ZONE NUMBER THREE, CITY OF FORT WORTH, TEXAS DOWNTOWN TIF FISCAL INFORMATION/CERTIFICATION- The INFORMATION/CERTIFICATION- The Finance Director certifies that these transactions will have no material effect on City funds. :r Submitted for City Manager's FUN ACCOUNT C NTFR ANMOUNT CITY SECRETARY Office : (to) Reid Rector 6140 Originating Department Head: David Yett 7623 (from) APPROWD 06/03/03 Additional Information Contact: Peter Yaky 7601