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HomeMy WebLinkAboutContract 30624 ',�'s^RETARY . AGREEMENT TO PARTICIPATE IN TAX INCREMENT REINVESTMENT ZONE NUMBER TEN, CITY OF FORT WORTH, TEXAS (LONESTAR TIF) This AGREEMENT TO PARTICIPATE IN TAX INCREMENT REINVESTMENT ZONE NUMBER TEN, CITY OF FORT WORTH, TEXAS ("Agreement") is entered into by and between the CITY OF FORT WORTH, TEXAS (the "City") and TARRANT COUNTY HOSPITAL DISTRICT (the "Hospital District"). The City and the Hospital District hereby agree that the following statements are true and correct and constitute the basis upon which the City and the Hospital District have entered into this Agreement: A. On June 15, 2004 the City Council of the City ("City Council") adopted City Ordinance No. 16002 designating certain real property in the northeast area of the City as Tax Increment Reinvestment Zone Number Ten, City of Fort Worth, Texas, (the "TIF District"). The TIF District is informally known as the "Lonestar TIF". Ordinance No. 16002 is hereby incorporated by reference for all purposes. B. Designation of the TIF District will cause development of property in and around the TIF District to occur that would not occur otherwise in the foreseeable future. As a result of designation of the TIF District, Cabela's Retail, Inc. has agreed to construct an approximately 230,000 square foot retail store within the TIF District. It is anticipated that other complementary development in the TIF District will follow. This overall development will result in increased tax revenues and other public benefits for both the City and the Hospital District. C. Pursuant to Section 311.013(0 of the Texas Tax Code, the Hospital District is not required to pay any tax increment into the tax increment fund of the TIF District unless it enters into an agreement to do so with the City. The Hospital District wishes to enter into such an agreement with the City NOWT THEREFORE, for and in consideration of the and conditions set forth herein, the sufficiency of which is hereby acknowledged, the City and the Hospital District do hereby contract, covenant and agree as follows: 1. INCORPORATION OF RECITALS. The parties hereby agree that the recitals set forth above are true and correct and form the basis upon which they have entered into this Agreement. oft oo� County Participation Agreement mum re: Lonestar TIF Page l 2. DEFINITIONS. In addition to any terms defined in the body of this Agreement, the following terms shall have the definitions ascribed to them as follows: Act means the Tax Increment Financing Act, as amended and as codified as Chapter 311 of the Texas Tax Code. Captured Appraised Value in a given year means the total appraised value of all real property taxable by the Hospital District and located in the TIF District for that year less the Tax Increment Base. Prosect Plan means the project plan for the development and/or redevelopment of the TIF District, as adopted by the TIF Board and approved by the City Council of the City. Tax Increment in a given year means the amount of property taxes levied and collected by the Hospital District for that year on the Captured Appraised Value of real property taxable by the Hospital District and located in the TIF District. Tax Increment Base means the total appraised value as of January 1, 2004 of all real property taxable by the Hospital District and located in the TIF District. Tax Increment Fund means that fund created by the City pursuant to Section 311.014 of the Act and Section 6 of City Ordinance No. 16002, which will be maintained by the City, into which all revenues of the TIF District will be deposited, including deposits of Tax Increment by the City and by other taxing units with jurisdiction over real property in the TIF District, including the Hospital District. TIF Board means the governing board of directors of the TIF District appointed in accordance with Section 311.009 of the Act and Section 3 of City Ordinance No. 16002. 3. DEPOSIT OF TAX INCREMENT. Pursuant to a Resolution duly adopted by the governing body of the Hospital District, which Resolution is attached hereto as Exhibit "A" and is hereby made a part of this Agreement for all purposes, and specifically subject to Section 4 of this Agreement, the Hospital District hereby agrees to deposit into the Tax Increment Fund the following amounts in the following years: (i) from 2005 (Tax Increment levied and collected for the 2004 tax year) through 2009 (Tax Increment levied and collected for the 2008 tax year), eighty percent (80%) of the Hospital District's Tax Increment; (ii) from 2010 (Tax Increment levied and collected for the 2009 tax year) through 2014 (Tax Increment levied and collected for the 2013 tax year), seventy percent (70%) of the Hospital D trieE's,-TaK County Participation Agreement re: Lonestar TIFj'� Page 2 n J 9u, Increment; (iii) from 2015 (Tax Increment levied and collected for the 2014 tax year) and each year for the remainder of the term of the TIF District, fifty percent (50%) of the Hospital District's Tax Increment. Such deposits shall be made in accordance with the City's standard administrative procedures relative to all tax increment reinvestment zones administered by the City, but only following receipt of a bill from the City that outlines the City's calculation of the amount of the deposit that is required for that year. 4. LIMITATIONS ON TAX INCREMENT DEPOSITS AND USE OF FUNDS. This Agreement is based on the following conditions, and the City agrees and acknowledges the Hospital District's right to enforce the conditions contained herein by injunction or any other lawful means in the event one or more of such conditions are not satisfied. 4.1. Tax Increment Deposits Capped. Notwithstanding Section 3 of this Agreement, the aggregate Tax Increment to be paid into the Tax Increment Fund by the Hospital District shall not exceed $7,162,551 (the "Hospital District Tax Increment Cap Amount"). 4.2. Certain TIF District Proiect Costs Excluded. The Tax Increment deposited into the Tax Increment Fund by the Hospital District shall be used to pay project costs for infrastructure improvements or other public improvements as set forth and identified in the Project Plan, and shall not include any costs for administration, overhead, or management of the TIF District, or costs for municipal or educational facilities owned by a school district. 4.3. TIF District Expansion. As defined, the TIF District shall include real properties located within the boundaries as described in Ordinance No. 16002. If the TIF District is expanded, the Tax Increment deposited into the Tax Increment Fund by the Hospital District may not be used for any permissible project costs in any portion of the expanded area of the TIF District unless approved by the governing body of the Hospital District as an amendment to this Agreement. 5. TERM. This Agreement shall take effect on the date as of which both parties have executed it and shall expire upon expiration or termination of the TIF District, which currently is the earlier of(i) the date as of which the Hospital District has deposited the Hospital District Tax Increment Cap Amount into the Tax Increment Fund; (ii) December 31, 2025 or an earlier termination date designated by ordinance subsequently adopted by the City Council County Participation Agreement re: Lonestar TIF Page 3 of the City or (iii) the date on which all project costs of the TIF District, including, but not limited to, tax increment bonds and interest on those bonds, have been paid or otherwise satisfied in full. 6. FINAL ACCOUNTING. After all project costs of the TIF District have been paid or at the time of the expiration of this Agreement, the City shall prepare and provide the Hospital District with a final accounting of the funds deposited to and disbursed from the Tax Increment Fund. Any funds remaining in the Tax Increment Fund following the final accounting by the City shall be paid to those taxing units participating in the TIF District in proportion to each taxing unit's share of the total amount of Tax Increment deposited into the Tax Increment Fund. 7. RESPONSIBILITY FOR ACTS. The City and the Hospital District 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 the City and the Hospital District, responsibility, if any, shall be apportioned comparatively with the laws of the State of Texas, with the understanding that neither party waives any governmental powers or immunities or any other defenses available to each individually. 8. NOTICES. All written notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party may subsequently designate in writing, by certified mail, postage prepaid, or by hand delivery: City: Hospital District: City of Fort Worth Tarrant County Hospital District Attn: City Manager ccuytt 1000 Throckmorton Fort Worth, TX 76102 Fort Worth, TX with copies to: the City Attorney and Economic/Community Development Director at the same address OFFICIAL 11COID UP 810" County Participation Agreement • ��1 � re: Lonestar TIF Page 4 9. NO WAIVER. The failure of either party to insist upon the performance of any term or provision of this Agreement or to exercise any right granted hereunder shall not constitute a waiver of that party's right to insist upon appropriate performance or to assert any such right on any future occasion. 10. VENUE AND JURISDICTION. If any action, whether real or asserted, at law or in equity, arises on the basis of any provision of this Agreement, venue for such action shall lie in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas — Fort Worth Division. This Agreement shall be construed in accordance with the laws of the State of Texas. 11. NO THIRD PARTY RIGHTS. The provisions and conditions of this Agreement are solely for the benefit of the City and the Hospital District and are not intended to create any rights, contractual or otherwise, to any other person or entity. 12. FORCE MAJEURE. The parties shall exercise every reasonable effort to meet their respective obligations as set forth in this Agreement, but shall not be held liable for any delay in or omission of performance due to force majeure or other causes beyond their reasonable control, including, but not limited to, compliance with any government law, ordinance or regulation, acts of God, acts of omission, fires, strikes, lockouts, national disasters, wars, riots, material or labor restrictions, transportation problems and/or any other cause beyond the reasonable control of either party. 13. INTERPRETATION. In the event of any dispute over the meaning or application of any provision of this Agreement, this Agreement shall be interpreted fairly and reasonably, and neither more strongly for or against any party, regardless of the actual drafter of this Agreement. OFFICIAL MCOID C11 f "VI County Participation Agreement WA To, re: Lonestar TIF Page 5 14. CAPTIONS. Captions and headings used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 15. ENTIRETY OF AGREEMENT. This Agreement, including any exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement between the City and the Hospital District as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. Notwithstanding anything to the contrary herein, this Agreement shall not be amended unless executed in writing by both parties and approved by the City Council of the City in an open meeting held in accordance with Chapter 551 of the Texas Government Code. 16. COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. EXECUTED as of the later date below: CITY OF FORT WORTH, TEXAS: TARRANT COUNTY HOSPITAL DISTRICT: By: By: ., Dal tsseler Name: qvr pQ �,Sq w� qx if Acting Assistant City Manager Chairman, Tarrant County Hospital District Board of Managers Date: Date. 001CIAL 11COID Ciff NOW County Participation Agreement n "Kia,, re: Lonestar TIF Page 6 ATTEST: ATTEST: t By: By: Martha Hendri Name City Secretary Title: fo j APPROVED AS TO FORM/LEGALITY: APPROVED AS TO FORM*: By: 6L4 h1-1 B,} Peter Vaky Narn :I p y.Ni, Tif����Psdry Assistant City AttZ yAssistant District Attorney M&C: C-2029C q-2/-0� 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). OFFIC,LM Off ROME County Participation Agreement re:Lonestar TIF Page 7 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 9/21/2004 DATE: Tuesday, September 21, 2004 LOG NAME: 17-FIF10AGRMNTS REFERENCE NO.: C-20290 SUBJECT: Authorize Execution of Agreements with Tarrant County, Tarrant County Hospital District, Tarrant County College District, and Tarrant Regional Water District for Participation in Tax Increment Reinvestment Zone Number Ten, City of Fort Worth, Texas (Lone Star TIF) RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute agreements with Tarrant County, Tarrant County Hospital District, Tarrant County College District and Tarrant Regional Water District for Participation in Tax Increment Reinvestment Zone Number Ten, City of Fort Worth, Texas (Lone Star TIF). DISCUSSION: On June 15, 2004, the City Council adopted Ordinance No. 16002 (M&C G-14382), designating the Lone Star TIF. Cabela's Retail, Inc. intends to construct an approximately 230,000 square foot retail store and public exhibition facilities on property located within the TIF. Under state law, a taxing unit is not required to contribute tax increment to a TIF unless that taxing unit enters into an agreement to do so with the municipality that has designated the TIF. Under the proposed agreements, the participating taxing units will contribute tax increment generated by property located within the TIF to the tax increment fund of the TIF, as follows: Tarrant County and Tarrant County Hospital District will contribute 80% from 2005 through 2009, 70% from 2010 through 2014, and 50% from 2015 through the remainder of the term of the TIF, which will expire on December 31, 2025; • Tarrant County College District will contribute 50% annually through the term of the TIF; and • Tarrant Regional Water District will contribute 60% annually through the term of the TIF. Pursuant to Ordinance No. 16002, the City of Fort Worth will contribute 100% from 2005 through 2019 and 90% from 2020 through the remainder of the term of the TIF. Revenue in the tax increment fund may be used for any lawful project cost of the Lone Star TIF, as restricted by state law and the project plan adopted by the TIF's board of directors and approved by the City Council. This property is located in Council District 2. Logname: 17TIF10AGRMNTS Page 1 of 2 FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this transaction will have no effect on City funds. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by_ Dale Fisseler (Acting) (6140) Originating Department Head: Tom Higgins (6192) Additional Information Contact: Ardina Washington (8003) Peter Vaky (7601) Logname: 17TIF10AGRMNTS Page 2 of 2