HomeMy WebLinkAboutOrdinance 21289-06-2014 ORDINANCE NO. 21289-06-2014
AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE
CITY OF FORT WORTH AS "TAX ABATEMENT
REINVESTMENT ZONE NUMBER EIGHTY-NINE, CITY OF
FORT WORTH, TEXAS"; PROVIDING THE EFFECTIVE AND
EXPIRATION DATES FOR THE ZONE AND A MECHANISM
FOR RENEWAL OF THE ZONE; AND CONTAINING OTHER
MATTERS RELATED TO THE ZONE.
WHEREAS, pursuant to the City Council's adoption on June 12, 2012 of
Resolution No. 4096-06-2012 (the "Tax Abatement Policy"), the City of Fort Worth,
Texas (the "City") has elected to be eligible to participate in tax abatement and has
established guidelines and criteria governing tax abatement agreements entered into
between the City and various third parties, as authorized by and in accordance with the
Property Redevelopment and Tax Abatement Act, codified in Chapter 312 of the Texas
Tax Code (the "Code"); and
WHEREAS, the City Council desires to promote the development of the area in
the City more specifically described in Exhibit "A" of this Ordinance (the "Zone")
through the creation of a reinvestment zone for purposes of granting a business expansion
tax abatement, as authorized by and in accordance with Chapter 312 of the Code; and
WHEREAS, American Airlines ("Company") wishes to expend or cause to be
expended $55 million in real property improvements for the construction of a new
Integrated Operations Center located in the Zone, and Company intends to install new
taxable tangible business personal property having a value of at least $33 million in such
facility (collectively, the "Improvements"); and
Ordinance No. 21289-06-2014
Page 1 of 5
WHEREAS, Company has applied for real and business personal property tax
abatements from the City in return for the installation of the Improvements in the Zone
and compliance with certain other employment and spending commitments that will
foster economic development in the Zone and the City in general; and
WHEREAS, on June 10, 2014 the City Council held a public hearing regarding
the creation of the Zone, received information concerning the Improvements proposed for
the Zone and afforded a reasonable opportunity for all interested persons to speak and
present evidence for or against the creation of the Zone ("Public Hearing"), as required
by Section 312.201(d) of the Code; and
WHEREAS, notice of the Public Hearing was published in a newspaper of
general circulation in the City on June 2, 2014, which satisfies the requirement of Section
312.201(d)(1) of the Code that publication of the notice occur not later than the seventh
day before the date of the public hearing; and
WHEREAS, in accordance with Sections 312.201(d)(2) and (e), of the Code
notice of the Public Hearing was delivered in writing not later than the seventh day
before the date of the public hearing to the presiding officer of the governing body of
each taxing unit that includes in its boundaries real property that is to be included in the
proposed Zone;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH, TEXAS.
Ordinance No. 21289-06-2014
Page 2 of 5
Section 1.
FINDINGS.
That after reviewing all information before it regarding the establishment of the
Zone and after conducting the Public Hearing and affording a reasonable opportunity for
all interested persons to speak and present evidence for or against the creation of the
Zone, the City Council hereby makes the following findings of fact:
1.1. The statements and facts set forth in the recitals of this Ordinance are true and
correct. Therefore, the City has met the notice and procedural requirements
established by the Code for creation of a reinvestment zone under Chapter 312 of
the Code.
1.2. The Improvements proposed for the Zone, as more specifically outlined in the
Public Hearing, are feasible and practical and, once completed will benefit the
land included in the Zone as well as the City for a period in excess of ten (10)
years, which is the statutory maximum term of any tax abatement agreement
entered into under the Chapter 312 of the Code.
1.3. As a result of designation as a reinvestment zone, the area within the Zone is
reasonably likely to contribute to the expansion of primary employment and to
attract major investment in the Zone that will be a benefit to property in the Zone
and will contribute to the economic development of the City.
1.4. As of the date of Company's application for tax abatement, Company has been
engaged in business operations in the City continuously for at least five (5) years.
Ordinance No.21289-05-2014
Page 3 of 5
Section 2.
DESIGNATION OF ZONE.
That the City Council hereby designates the Zone described in the boundary
description attached hereto as Exhibit "A" and made a part of this Ordinance for all
purposes as a reinvestment zone for purposes of granting business expansion tax
abatement, as authorized by and in accordance with Chapter 312 of the Code. This Zone
shall be known as "Tax Abatement Reinvestment Zone Number Eighty-Nine, City of
Fort Worth, Texas." This project is eligible for business expansion tax abatement
pursuant to Section 6.2 of the Tax Abatement Policy.
Section 3.
TERM OF ZONE.
That the Zone shall take effect upon the effective date of this Ordinance and
expire five (5) years thereafter. The Zone may be renewed by the City Council for one or
more subsequent terms of five (5) years or less.
Section 4.
SEVERABILITV.
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
Ordinance No. 21289-06-2014
Page 4 of 5
in full force and effect and shall not in any way be impaired or affected by such decision,
opinion or judgment.
Section 5.
IMMEDIATE EFFECT.
That this Ordinance shall take effect upon its adoption.
ADOPTED AND EFFECTIVE:(
APPROVED AS TO FORM AND LEGALITY:
B
Peter Vaky ary J r
City
Deputy City Attorney City Sec tary
M&C:-G-19240
Ordinance No.21289-06-2014
Page 5 of 5
EXHIBIT "A"
BOUNDARY DESCRIPTION OF ZONE
DESCRIPTION, of a 6.086 acre tract of land described in situated in the A. J. Huitt Survey,
Abstract No. 709, Tarrant County, Texas and being a part of Lot 1, Block 1, American Airlines
Addition, an addition to the City of Fort Worth, Texas according to the plat recorded in Volume
388-45, Page 97 of the Plat Records of Tarrant County, Texas; said tract being part of that tract
of land described in Warranty Deed to American Airlines, Inc. recorded in Volume 4440, Page
599 of the Deed Records of Tarrant County, Texas; said 6.086 acre tract being more particularly
described as follows (bearing system based on a bearing of South 89 degrees, 57 minutes East
for the south right-of-way line of State Highway No. 183 per deed recorded in Volume 5474,
Page 96 of said Deed Records):
COMMENCING, at a TXDOT monument found in the south right-of-way line of State Highway
No. 183 (a variable width right-of-way); said point being South 89 degrees, 57 minutes, 00
seconds East, a distance of 219.10 feet from the north end of a right-of-way corner clip at the
intersection of the said south line of State Highway No. 183 and the east right-of-way line of
American Boulevard (a variable width right-of-way); said point also being the beginning of a
curve to the right,-
THENCE,
ight;THENCE, in a southeasterly direction, along the said south line of State Highway No.
183 and along said curve to the right, having a central angle of 06 degrees, 30
minutes, 12 seconds, a radius of 2,844.79 feet, a chord bearing and distance of South
86 degrees, 41 minutes, 54 seconds East, 322.73 feet, an arc distance of 322.90 feet
to a point;
THENCE, South 06 degrees, 33 minutes, 12 seconds West, departing the said south
line of State Highway No. 183, a distance of 225.99 feet to the POINT OF
BEGINNING,-
THENCE,
EGINNING;THENCE, South 87 degrees, 59 minutes, 54 seconds East, a distance of 253.48 feet to a point
for corner;
THENCE, South 33 degrees, 55 minutes, 34 seconds East, a distance of 128.23 feet to a point
for corner;
THENCE, South 12 degrees, 06 minutes, 05 seconds East, a distance of 192.79 feet to a point
for corner;
THENCE, South 01 degrees, 27 minutes, 33 seconds West, a distance of 133.92 feet to a point
for corner;
THENCE, South 88 degrees, 35 minutes, 35 seconds East, a distance of 50.17 feet to a point
for corner;
THENCE, South 00 degrees, 22 minutes, 01 seconds West, a distance of 19.62 feet to a point
for corner;
THENCE, North 88 degrees, 35 minutes, 51 seconds West, a distance of 48.81 feet to a point
for corner;
THENCE, South 10 degrees, 29 minutes, 00 seconds West, a distance of 122.91 feet to a point
for corner;
THENCE, South 20 degrees, 03 minutes, 49 seconds West, a distance of 109.50 feet to a point
for corner;
THENCE, North 87 degrees, 59 minutes, 54 seconds West, a distance of 404.23 feet to a point
for corner;
THENCE, North 01 degrees, 07 minutes, 30 seconds East, a distance of 200.63 feet to a point
for corner;
THENCE, North 33 degrees, 30 minutes, 39 seconds East, a distance of 54.53 feet to a point
for corner;
THENCE, North 00 degrees, 56 minutes, 44 seconds East, a distance of 103.75 feet to a point
for corner;
THENCE, North 33 degrees, 04 minutes, 21 seconds East, a distance of 60.72 feet to a point
for corner;
THENCE, North 00 degrees, 57 minutes, 56 seconds East, a distance of 114.49 feet to a point
for corner;
THENCE, North 33 degrees, 33 minutes, 15 seconds East, a distance of 50.92 feet to a point
for corner;
THENCE, North 00 degrees, 56 minutes, 44 seconds East, a distance of 109.32 feet to the
POINT OF BEGINNING;
CONTAINING, 265,084 square feet or 6.086 acres of land, more or less.
Tax Abatement Reinvestment Zone No. 89
Adjacent to 4700 American Blvd
Fort Worth, T
"Exhibit A"
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Colaynght 2014�ity aaffort Words. Unauthorized reproduction is a,violation of ali lica.Ne laws. "I hI s product is(or informational pugmses and may not have been lay rpamd
for or b.e,suitable for lel,al,engineering,or surveying purposes.It doers not represent.arra on-the-ground survey and represents only the approximate relative location ofproperty
boundaries, The Q:ity, offoet Worth assurnes no responsibility for the accuracy ofsaid data.
City of Fort Worth, Texas
Mayor and Council Communication
.. _rv_COUNCIL ACTION: Approved on 6/10/2014 - Ordinance No. 21289-06-2014
DATE: Tuesday, June 10, 2014 REFERENCE NO.: -18240
LOG NAME: 17ARIZ89
SUBJECT:
Conduct Public Hearing and Adopt Ordinance Designating Tax Abatement Reinvestment Zone No. 89, City
of Fort Worth, Texas, for Property Located Adjacent to 4700 American Boulevard for Construction of an
Integrated Operations Center for American Airlines (COUNCIL DISTRICT )
RECOMMENDATION:
It is recommended that the City Council:
10 Conduct a public hearing concerning the designation of Tax Abatement Reinvestment Zone No. 89,
City of Fort Worth, Texas, for property located adjacent to 4700 AmericanBoulevard; and
. Adopt the attached ordinance designating einvest nt Zone No. 89, City of Fort
Worth, Texas, pursuant to and in accordance with Chapter 312 of the Texas Tax Code.
DISCUSSION:
The proposed Tax Abatement Reinvestment Zone No. 89, City of Fort Worth, Texas, is for the property
adjacent to 4700 American Boulevard. American irli (Company) is considering the construction of a
new Integrated Operations Center at this site. The proposed projectwill result in at least $88 million in
real and business personal property investment ($55 million for construction of the facility and 33 million
in business personal property that will be installed in the facility).
As required by Chapter 312 of the Texas Tax Code, a public hearing must be conducted regarding the
creation of a Reinvestment Zone. The exact boundaries of the proposed zone are described in Exhibit
of the attached ordinance. Notice of this hearing was delivered to the governing body of each affected
taxing unit and published in a newspaper of general circulation at least seven days prior to this hearing.
The area encompassing the proposed Zone meets the statutory riri for designation as a Tax
Abatement Reinvestment Zone, pursuant to Chapter 312 of the Texas Tax Code, in that the area i
reasonably likely, as a result of the designation, to contribute to the retention or expansion of primary
employment or to attract major investment in the Zone that would be a benefit to the property and that
would contribute to the economic development of the City.. Further, the improvements sought in the Zone
are feasible, practical and would be a benefit to the land to be included in the Zone and to the City after
any Tax Abatement Agreements, which may be entered into, have expired.
The term of the proposed Zone will be five years from the date of adoption of the attached ordinance and
may be renewed for periods not to exceed five years each.
The proposed Zone is located in COUNCIL DISTRICT 5, Mapsco 56J.
CICl�A 1 II�ICllO11AA TIl1N1 /!'GCTICl/+A TI/'1R1.
Lon e: 17TARIZ89 Page 1 of 2
The Financial Management Services Director certifies that this action will not increase the total
appropriations of City funds.
FUND CENTERS:
TO Fund/Account/C enters FROM Fund/Account/C enters
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Jesus Chapa (5804)
Robert Sturns (212-2663)
Additional Information Contact: Ana Alvarado (212-2680)
LoRname: 17TARIZ89 Page 2 of 2