HomeMy WebLinkAboutOrdinance 21011-10-2013 ORDINANCE NO. 21011-10-2013
AN ORDINANCE DESIGNATING A CERTAIN GEOGRAPHIC
AREA IN THE CITY OF FORT WORTH AS "PROJECT
FINANCING ZONE NUMBER ONE, CITY OF FORT WORTH,
TEXAS" AND PROVIDING AN EXPIRATION DATE FOR THE
ZONE; MAKING CERTAIN FINDINGS RELATED THERETO;
DIRECTING THAT THE TEXAS COMPTROLLER OF PUBLIC
ACCOUNTS BE NOTIFIED OF THE ZONE'S CREATION
WITHIN THIRTY (30) DAYS OF ITS DESIGNATION;
REQUESTING THAT THE COMPTROLLER DEPOSIT
INCREMENTAL HOTEL-ASSOCIATED TAX REVENUES FROM
THE ZONE INTO A SUSPENSE ACCOUNT HELD IN TRUST FOR
THE CITY'S FINANCING OF QUALIFIED PROJECT
ACTIVITIES; PROVIDING FOR NOTIFICATION TO THE
COMPTROLLER IN THE EVENT THAT QUALIFIED PROJECT
ACTIVITIES ARE ABANDONED OR NOT COMMENCED
WITHIN FIVE YEARS OF THE INITIAL DEPOSIT TO THE
SUSPENSE ACCOUNT; AND CONTAINING OTHER RELATED
MATTERS.
WHEREAS, the City of Fort Worth (the "City") had a population of 741,206
persons according to the 2010 Census; and
WHEREAS, Section 351.1015 of the Texas Tax Code authorizes a municipality
with a population of at least 650,000 but less than 750,000 persons, according to the most
recent federal decennial census, to designate a project financing zone from which certain
incremental state tax revenues and, if the municipality elects, certain incremental
municipal tax revenues may be pledged to pay bonds or other obligations issued or
incurred to acquire, lease, construct, improve, enlarge and equip qualified projects that
are located in the zone; and
WHEREAS, the following two (2) locations in the City are "qualified projects"
under Section 351.1015(a)(5) of the Texas Tax Code (each a"Qualified Project"):
(1) the Fort Worth Convention Center, 1201 Houston Street; and
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Ordinance Designating Project Financing Zone Number One,
Ordinance No.21011-10-2013
(2) the multipurpose arena and/or venue including a livestock facility and related
infrastructure anticipated by the 2002 Will Rogers District Conceptual Plan,
which is intended to promote tourism and the convention and hotel industry, to be
(i) located on land currently owned by the City at the southeast corner of the
Harley Avenue and Montgomery Street intersection, which is within or adjacent
to the City's Cultural District, as described in the City's 2013 Comprehensive
Plan, adopted by the City Council pursuant to Ordinance No. 20644-03-2013; (ii)
partially financed by private contributions that equal not less than 40 percent of
the project costs; and (iii) in compliance with Section 351.101.5(a)(5) of the Texas
Tax Code; and
WHEREAS, as authorized by Section 351.1015(a)(4) of the Texas Tax Code, the
City Council wishes to designate an area of the City that is within a three-mile radius of
the center of each Qualified Project as a project financing zone in order to assist in the
financing of costs associated with the payment of bonds or other obligations issued or
incurred to acquire, lease, construct, improve, enlarge, and equip each Qualified Project
(collectively, "Qualified Project Activities");
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH, TEXAS:
Section 1.
DESIGNATION OF ZONE; EXPIRATION.
That the City Council hereby designates the area depicted in the map attached
hereto as Exhibit "A", which is hereby made a part of this Ordinance for all purposes, as
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Ordinance Designating Project Financing Zone Number One,
Ordinance No.21011-10-2013
a project financing zone pursuant to and in accordance with Section 351.1015 of the
Texas Tax Code. This project financing zone shall be known as "Project Financing Zone
Number One, City of Fort Worth, Texas" (the "Zone"). The Zone shall expire on the
thirtieth (30th) anniversary of the effective date of this Ordinance or, so long as there are
no outstanding Qualified Project Activities existing at the time, an earlier expiration date
designated by an ordinance adopted by the City Council after the effective date of this
Ordinance.
Section 2.
FINDINGS.
That after reviewing all information before it regarding the establishment of the
Zone, the City Council hereby makes the following determinations and findings of fact:
2.1. The statements and facts set forth in the recitals of this Ordinance are true and
correct.
2.2. Each Qualified Project constitutes a"qualified project," as such term is defined in
Section 351.1015(x)(5) of the Texas Tax Code.
2.3. The latitude and longitude of each Qualified Project are as follows:
(1) Fort Worth Convention Center, 1201 Houston Street:
Latitude: 32.74100 N; Longitude-97.36840 W
(2) Multipurpose arena and/or venue anticipated by the 2002 Will Rogers
District Conceptual Plan, southeast corner of the Harley Avenue and
Montgomery Street intersection:
Latitude: 32.74970 N; Longitude-97.32790 W
2.4. The boundaries of the Zone encompass an area that is within a three-mile radius
of the center of each Qualified Project.
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Ordinance Designating Project Financing Zone Number One,
Ordinance No.21011-10-2013
Section 3.
NOTIFICATIONS TO COMPTROLLER.
That the City Council hereby directs the City Manager to notify the Texas
Comptroller of Public Accounts (the "Comptroller") of the designation of the Zone
within thirty (30) calendar days of the date of adoption of this Ordinance and to request
the Comptroller (i) to deposit incremental hotel-associated revenue collected by the
Comptroller into a suspense account (the "Suspense Account") pursuant to the terms and
conditions of Section 351.1015 of the Texas Tax Code and (ii) to notify the City in
writing of the date of the first deposit into the Suspense Account. In addition, the City
Manager is hereby directed to notify the Comptroller in the event that Qualified Project
Activities are abandoned or not commenced within five (5) years of the date of the
Comptroller's first deposit to the Suspense Account.
Section 4.
CUMULATIVE NATURE.
That this Ordinance shall be cumulative of all provisions of ordinances of the Code
of the City of Fort Worth, Texas (1986), as amended, except where the provisions of this
Ordinance are in direct conflict with the provisions of such ordinances and such Code, in
which event the conflicting provisions of such ordinances and such Code are hereby
repealed.
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Ordinance Designating Project Financing Zone Number One,
Ordinance No.21011-10-2013
Section 5.
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 6..
EFFECTIVENESS.
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: October 22, 2013
APPROVED AS TO FORM AND LEGALITY:
Ay B Y•Peter Vaky, Deputy Ci ttorney a ser, ty Secretary
M&C: G-18048
/0'22/3
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Ordinance Designating Project Financing Zone Number One,
Ordinance No.21011-10-2013
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City of Fort Worth, Texas
Mayor and Council Communication
UA 1 t: Tuesday, October 22, 2013 REFERENCE NO.: G-18048
LOG NAME: 13PROJECT FINANCING ZONE
SUBJECT:
Adopt Ordinance Designating Project Financing Zone Number One, City of Fort Worth, Texas, and
Requesting that the Comptroller Deposit the State's Incremental Hotel-Associ ted Tax Revenues from the
Zone into a Suspense Account held in Trust for the City's Financing of Qualifi6d Project Activities in the
Zone (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached Ordinance designating Project Financing Zone
Number One, City of Fort Worth, Texas, and requesting that the Comptroller deposit the State's
incremental hotel-associated tax revenues from the Zone into a suspense account held in trust for the
City's financing of qualified project activities in the Zone.
DISCUSSION:
Section 351.1015 of the Texas Tax Code authorizes certain municipalities to designate as a Project
Financing Zone (Zone) an area encompassing a three-mile radius around a "qualified project," defined as
either(1)a convention center facility or(2)a multipurpose arena or venue that includes a livestock facility
and is located within or adjacent to a recognized cultural district.
Once the Zone has been established, incremental hotel-associated tax revenues of the State (primarily
Hotel Occupancy Taxes and sales and mixed beverage taxes from hotels located in the Zone) can be
used by the municipality for the financing of such qualified project(s).
Approval of this Mayor and Council Communication and adoption of the attached Ordinance designates
Project Financing Zone Number One, City of Fort Worth, Texas. The Zone centers on the Fort Worth
Convention Center and the southeast corner of the intersection of Harley and Montgomery Streets at the
Will Rogers Memorial Center, which is the proposed location of the multipurpose arena and/or venue
anticipated by the 2002 Will Rogers District Conceptual Plan, and extends from those centers by no more
than a three-mile radius, as depicted in the map of Exhibit A of the Ordinance. Designation of the Zone at
this time will establish 2013 as the base year upon which the State's hotel-associated tax increment will be
calculated.
The State's incremental hotel-associated tax revenues from the Zone will be held in trust until the arena or
venue project commences. Those State tax revenues may then be used to help finance construction of
the project. If the project has not commenced within five years of the establishment of the Zone, the funds
held in trust will revert back to the State.
Staff anticipates returning to the City Council in the summer of 2014, after the results of a Market and
Feasibility Analysis for Fort Worth's Downtown Hospitality Market are available, with a recommendation on
the participation level by the City.
Logname: 13PROJECT FINANCING ZONE Page 1 of 2
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FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on City
funds.
I
F:;ND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
CERTIFICATIONS:
Susan Alanis 8180
Submitted for City Manager's Office by: ( )
Originating_Department Head: Susan Alanis (8180)
Additional Information Contact: James Mauldin (2438)
Logname: 13PROJECT FINANCING ZONE Page 2 of 2