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HomeMy WebLinkAboutContract 30626 77Y SFr-RETARY rte.r NO. o tea -r, 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 COLLEGE DISTRICT (the "College District"). The City and the College District hereby agree that the following statements are true and correct and constitute the basis upon which the City and the College 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 College District. C. Pursuant to Section 311.013(f) of the Texas Tax Code, the College 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 College District wishes to enter into such an agreement with the City NOW, THEREFORE, for and in consideration of the and conditions set forth herein, the sufficiency of which is hereby acknowledged, the City and the College 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. OFFICIAL IEC081D College District Participation Agreement MY if My re: Lonestar TIF WA Pa ge 1 R "t ML Pa 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 College District and located in the TIF District for that year less the Tax Increment Base. Project 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 College District for that year on the Captured Appraised Value of real property taxable by the College 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 College 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 College 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 AND USE OF TAX INCREMENT. Pursuant to a Resolution duly adopted by the governing body of the College District, which Resolution is attached hereto as Exhibit "A" and is hereby made a part of this Agreement for all purposes, the College District hereby agrees to deposit each year during the term of the TIF District, beginning with the 2004 tax year, fifty percent (50%) of the College District's Tax Increment into the Tax Increment Fund. 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. The College District understands and agrees that the TIF Board may College District Participation Agreement V� � IAl l WORD re: Lonestar TIF ``ji�� � I��� Paget TEX. use revenue in the Tax Increment Fund for any lawful purpose, as restricted by the Act and the Project Plan. 4. 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) December 31, 2025 or an earlier termination date designated by ordinance subsequently adopted by the City Council of the City or (ii) 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. 5. RESPONSIBILITY FOR ACTS. The City and the College 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 College 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. 6. 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 of Fort Worth Tarrant County College District Attn: City Manager Attn: Chancellor 1000 Throckmorton 1500 Houston Street Fort Worth,TX 76102 Fort Worth, TX 76102 with copies to: the City Attorney and Economic/Community Development Director at the same address 10IFFICIA11 WORD Off �� 4���A�� College District Participation Agreement �1� .. HI TEX. re:Lonestar TIF Page 3 7. 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. 8. 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. 9. NO THIRD PARTY RIGHTS. The provisions and conditions of this Agreement are solely for the benefit of the City and the College District and are not intended to create any rights, contractual or otherwise, to any other person or entity. 10. 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. 11. 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 WORD CIff SECRITAR ' College District Participation Agreement re: Lonestar TIFF Page 4 12. CAPTIONS. Captions and headings used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 13. 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 College 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. 14. 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 COLLEGE DISTRICT: B By:y' 6� 42 Dale Fisseler Ardis Bell Acting Assistant City Manager Chairman, Tarrant County College District Board of Trustees Date: q Date: e ATTEST: ATTEST: By: B Y'(� �p' Marty Hendrix R y V. Gonzales City Secretary Vice Chancellor for Financial Services College District Participation Agreement OFFIVIwL REC CND re: Lonestar TIF p CjIff RE RETARY Page 5 F44IB 4"ORTHI EX. APPROVED AS TO FORM/LEGALITY: By: Peter Vaky Assistant City Attorney M&C: C -2 0290 i 1 OFFICIAL RECORD CITY SECHIly College District Participation Agreement f 1. WORTH, 1IL re:Lonestar TIF Page 6 f City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 9121/2004 DATE: Tuesday, September 21, 2004 LOG NAME: 17TIF10AGRMNTS 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