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HomeMy WebLinkAboutOrdinance 17061-07-2006ORDINANCE NO 17061 -07 2006 AN ORDINANCE DESIGNATING A CERTAIN CONTIGUOUS GEOGRAPHIC AREA IN THE CITY OF FORT WORTH AS 'TAX INCREMENT REINVESTMENT ZONE NUMBER TWELVE, CITY OF FORT WORTH, TEXAS CREATING A BOARD OF DIRECTORS FOR THE ZONE, PROVIDING THE EFFECTIVE AND TERMINATION DATES FOR THE ZONE, ESTABLISHING A TAX INCREMENT FUND FOR THE ZONE, AND CONTAINING OTHER MATTERS RELATED TO THE ZONE. WHEREAS, the City Council desires to promote the development of land in that certain contiguous geographic area in the City which is more specifically described In Exhibit A of this Ordinance (the Zone') through the creation of a new reinvestment zone as authorized by and in accordance with the Tax Increment Financing Act, codified at Chapter 311 of the Texas Tax Code (the Code') and WHEREAS, on or about May 12, 2006 the City provided written notice to the governing body of each taxing unit that levies real property taxes in the proposed Zone of (i) the City's intent to establish the Zone, (ii) a description of the boundaries of the Zone, (iii) the City's tentative plans for development of the Zone, and (iv) an estimate of the general impact of the Zone on property values and tax revenues, and WHEREAS, in accordance with the requirement imposed by Section 311 003(e) of the Code, the City provided such written notice more than sixty (60) days prior to the date of the public hearing conducted pursuant to Section 311 003(c) of the Code; and WHEREAS, the City has prepared preliminary project and financing plans for the proposed Zone and provided a copy of those plans to the governing body of each taxing unit that levies taxes on real property in the Zone, as required by Section 311 003(b) of the Code (the 'Preliminary Plans') and Page 1 Ordinance Designating Tax Increment Reinvestment Zone Number Twelve, City of Fort Worth, T xas WHEREAS, in accordance with Section 311 003(f) of the Code, on June 13 2006 the City made a single formal presentation to the governing body of each county and school district that levies real property taxes in the proposed Zone, as agreed to in writing by the Fort Worth Independent School District, which presentation, among other things, included (i) a description of the proposed boundaries of the Zone- (ii) the City's tentative plans for development of the Zone, and (iii) an estimate of the general impact of the Zone on property values and tax revenues, and WHEREAS, on July 18 2006 the City Council held a public hearing regarding the creation of the Zone and its benefits to the City and to property in the Zone and afforded a reasonable opportunity for (i) all interested persons to speak for or against the creation of the Zone, its boundaries or the concept of tax increment financing and (ii) owners of real property in the proposed Zone to protest inclusion of their property in the Zone, as required by Sections 311 003(c) and (d) of the Code and WHEREAS, notice of the public hearing was published in a newspaper of general circulation in the City on July 10 2006 which satisfies the requirement of Section 311 003(c) of the Code that publication of the notice occur not later than the seventh day before the date of the public hearing; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS Page 2 Ordinance Designating Tax Increment Reinvestment Zone Number Twelve, City of Fort Worth, T xas Section 1. FINDINGS. That after reviewing all information before it regarding the establishment of the Zone and after conducting a public hearing regarding the creation of the Zone and its benefits to the City and to property in the Zone and affording a reasonable opportunity for (i) all interested persons to speak for or against the creation of the Zone, its boundaries or the concept of tax increment financing and (ii) owners of real property in the proposed Zone to protest inclusion of their property in 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 the Code. 1.2. The Zone consists of approximately 604 acres of land and the area within the Zone is contiguous. 1.3. The overall existing properties within the Zone are depressed and the area encompassed by the Zone has been in a general state of economic decline for the past twenty five years. 1.4 The Zone contains a substantial number of substandard and deteriorating apartments and other structures in need of demolition. Certain properties located in the Zone will require environmental remediation before new development can occur 1.5. The Zone lacks essential infrastructure to sustain viable development, including but not limited to, water sewer drainage, roads and sidewalks. Existing Page 3 Ordinance Designating Tax Increment Reinvestment Zone Number Twelve, City of Fort Worth, T xas infrastructure was constructed over fifty years ago and will not support additional development. 1.6. Based on the facts set forth in Sections 1.3 14 and 1.5 hereof, as well as on all other information provided to and/or known by the City Council with respect to the area within the Zone and the area in the vicinity of the Zone, the City Council hereby finds that development of the Zone will not occur solely through private investment in the foreseeable future. 17 Taking all facts into consideration, the area within the Zone substantially impairs and arrests the sound growth of the City and constitutes an economic liability and a menace to the public health and safety because of (i) a substantial number of substandard, deteriorated and deteriorating structures, (ii) the predominance of inadequate sidewalk and street layouts, (iii) faulty lot layout in relation to size, adequacy accessibility and usefulness, (iv) unsanitary and unsafe conditions, (v) the deterioration of site and other improvements, and (vi) conditions that endanger life and property by fire or other cause. Therefore, the area within the Zone meets the criteria for designation of a reinvestment zone and satisfies the requirements of Section 311 005(a)(1) of the Code. 1.8. No more than ten percent (10 %) or less of the property in the Zone is used currently for residential purposes, as specified by Section 311 006 of the Code. 1.9 According to the most recent appraisal roll of the City the total appraised value of all taxable real property in the Zone and in existing reinvestment zones in the City does not exceed fifteen percent (15 %) of the total appraised value of taxable real property in the City and in industrial districts created by the City if any Page 4 Ordinance Designating Tax Increment Reinvestment Zone Number Twelve, City of Fort Worth, T xas 1 10. The Zone does not contain more than fifteen percent (15 %) of the total appraised value of real property taxable by any county or school district. Section 2. DESIGNATION OF NEW ZONE. That the City Council hereby designates the Zone described in the boundary description and depicted in the map, both attached hereto as Exhibit A and made a part of this Ordinance for all purposes, as a reinvestment zone pursuant to and in accordance with the Code. This reinvestment zone shall be known as `Tax Increment Reinvestment Zone Number Twelve, City of Fort Worth, Texas. Section 3. ZONE BOARD OF DIRECTORS. That a board of directors for the Zone ( "Board') is hereby created. The Board shall consist of eleven (11) members who shall serve for terms of two (2) years each. Of these eleven (11) members, each taxing unit other than the City that levies taxes on real property in the Zone may but is not required to appoint one (1) member to the Board. After each taxing unit other than the City designates to the City either the name of the member that the taxing unit wishes to appoint or the fact that the taxing unit wishes to waive its right to appoint a member the City Council shall appoint whatever number of members are necessary to fill the remaining positions on the Board. Such members may be members of the City Council. Page 5 Ordinance Designating Tax Increment Reinvestment Zone Number Twelve, City of Fort Worth, T xas Section 4 TERM OF ZONE. That the Zone shall take effect immediately upon the adoption of this Ordinance and terminate on the earlier of (i) December 31 2027 or an earlier termination date designated by an ordinance adopted after the effective date of this Ordinance or (ii) the date on which all project costs, tax increment bonds and interest on those bonds have been paid or otherwise satisfied in full. Section 5. DETERMINATION OF TAX INCREMENT BASE. That the tax increment base for the Zone, as defined by Section 311 012(c) of the Code, shall be the total appraised value of all real property in the Zone taxable by a taxing unit as of January 1 2006, which is the year in which the Zone was designated as a reinvestment zone. Section 6. TAX INCREMENT FUND That a tax increment fund for the Zone (the 'TIF Fund') is hereby established. The TIF Fund may be divided into additional accounts and sub - accounts authorized by resolution or ordinance of the City Council. The TIF Fund shall consist of (i) the percentage of the tax increment, as defined by Section 311 012(a) of the Code, that each taxing unit which levies real property taxes in the Zone, other than the City has elected to dedicate to the TIF Fund pursuant to an agreement with the City authorized by Section Page 6 Ordinance Designating Tax Increment Reinvestment Zone Number Twelve, City of Fort Worth, T 311 013(f) of the Code, plus (ii) the City's contribution of one hundred percent (100 %) of the City's tax increment, as defined by Section 311 012(a) of the Code, subject to any binding agreement executed at any time by the City that pledges an amount of legally available City funds whose calculation is based, in whole or in part, on payment to or receipt by the City of any portion of such tax increment. The TIF Fund shall 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. Revenues in the TIF Fund will be used solely in accordance with Section 311 014 of the Code Section 7 TAX INCREMENT AGREEMENTS. That, pursuant to Sections 311 008 and 311 013 of the Code, the City Manager and City Attorney are hereby authorized to execute and deliver for and on behalf of the City tax increment agreements with taxing units that levy real property taxes in the Zone. Section 8. 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. Page 7 Ordinance Designating Tax Increment Reinvestment Zone Number Twelve, City of Fort Worth, T Section 9 IMMEDIATE EFFECT 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 July 18, 2006 APPROVED AS TO FORM AND LEGALITY By Peter Vaky Assistant City Attorney Date 7 -1 9 - o M &C G 15299 Page 8 Ordinance Designating Tax Increment Reinvestment Zone Number Twelve, City of Fort Worth, T xas EXHIBIT A DESCRIPTION AND DEPICTION OF THE ZONE The tracts to be designated as Tax Increment Reinvestment Zone Number Twelve, City of Fort Worth, Texas for tax increment financing purposes are depicted in the accompanying map and are more particularly described by the following metes and bounds. Being a parcel of land out of, the J Hule Survey Abstract Number 669 the G Hartzog Survey Abstract Number 697 the J Justice Survey Abstract Number 859 the S.P Loving Survey Abstract Number 943 the W.R. Loving Survey Abstract Number 948 the R.R. Ramey Survey Abstract Number 1342, the A. Stinson Survey Abstract Number 1413 the A. Thompson Survey Abstract Number 1499 and the E.S Terrell Survey Abstract Number 1527 situated in the City of Fort Worth, Tarrant County and being more particularly described by metes and bounds as follows. BEGINNING at the intersection of the East right -of way of Interstate Highway 35W and the North right -of way of the T &P Railroad, THENCE with the East right -of way of said Interstate Highway 35W North to the Southwest corner of Lot 16 Dobbins Subdivision, THENCE with the South line of said Dobbins Subdivision, East to the Southeast corner of Lot 9 being in the West right -of way of Evans Avenue, THENCE South with the West right -of way of said Evans Avenue to the projected intersection of the South line Block 3 Mornmgside Terrace Addition with said West right -of way- THENCE East with the South line of said Block 3 to and along the South line of Block 2, Mornmgside Terrace Addition, to the East right -of way of Mississippi Avenue, THENCE with the East right -of way of said Mississippi Avenue, North to the intersection of said East right -of way and the South right -of way of Glen Garden Drive. THENCE with the South right -of way of said Glen Garden Drive to the Southwesterly right -of way of Old Mansfield Road, THENCE with the Southwesterly right -of way of said Old Mansfield Road, Southeasterly to the intersection of the Southwesterly right -of way of said Old Mansfield Road and the Northwesterly right -of way of East Berry Street; Ordinance Designating Tax Increment Reinvestment Zone Number Twelve, City of Fort Worth, T xas THENCE with the Northwesterly and North right -of way of said East Berry Street, Northeasterly and East to the intersection of the North right -of way of said East Berry Street and the Southwesterly right -of way of Vaughn Boulevard THENCE Southeasterly with the Southwesterly right -of way of said Vaughn Boulevard, and Southeasterly to the intersection of said Southwesterly right -of way of Vaughn Street and the Northwesterly right -of way of Wichita Street; THENCE with the Northwesterly right -of way of said Wichita Street, Southwesterly and South to the Southeast corner of the Masonic Home School Addition, THENCE with the South line of said Masonic Home School Addition, West to its Southwest corner and the Easterly right -of way of Mitchell Boulevard, THENCE with the Westerly line of said Masonic Home School Addition and the Easterly right -of way of said Mitchell Boulevard, Northwesterly and North to the intersection of the East right -of way of said Mitchell Boulevard and the South right -of way of said East Berry Street and the Northwest corner of said Masonic Home School Addition, THENCE with the South and Southeasterly right -of way of East Berry Street, West and Southwest to the intersection of the Southerly right -of way of East Berry Street and the Southwesterly right -of way of said Old Mansfield Road, THENCE with the Southwesterly nght -of way of said Old Mansfield Road, Southeast to the Northeast corner of Block 4 O.D Wyatt Addition, THENCE West, Northwest, and Southwest with the North line of said Block 4 to the Northerly right -of way of Briardale Road, THENCE with said North right -of way of Briardale Road, West to the Southeast corner of Block 18, Rolling Hills Addition, THENCE with the East line of said Block 18 North to its Northeast comer* THENCE with the North line of said Block 18 West to its Northwest comer* THENCE with the Westerly line of said Block 18 Southwesterly to the Southwest corner of said Block 18 and the Northwesterly right -of way of said Briardale Road, THENCE with the Northwesterly right -of way of said Briardale Road, Southwesterly to the East corner of Block 17 Rolling Hills Addition, Ordinance Designating Tax Increment Reinvestment Zone Number Twelve, City of Fort Worth, T xas THENCE with the Northeasterly line of said Block 17 Northwesterly to its North most Northeast comer, THENCE with the North and Northwesterly line of said Block 17 West and Southwesterly to the Northwest corner of said Block 17 the Southwest corner of a 2.54 acre tract of land out of the S.P Loving Survey Abstract Number 943 as conveyed to the International Association of Black Professional Fire Fighters as recorded in Volume 14013 Page 423 Deed Records, Tarrant County Texas, and the East right -of way of South Riverside Drive; THENCE with the East right -of way of said South Riverside Drive and the West line of said 2.54 acre tract of land, North to the Northwest corner of said 2.54 acre tract of land, THENCE Northwesterly to the West right -of way of said South Riverside Drive, the Southeast corner of a 0 03 acre tract of land out said J.P Loving Survey- THENCE with the South line of said 0 03 acre tract of land, West to the East most corner of Lot 4 Berry Industrial Park Addition, THENCE with the meanders of the South line of said Lot 4 Southwesterly Westerly and Northwesterly to the West line of said Lot 4 and the East right -of way of Yuma Street; THENCE with the East right -of way of said Yuma Street, South to the Southeast corner of said nght -of way and the North line of a 5 65 acre tract of land out of said J.P Loving Survey- THENCE with the North line of said 5 65 acre tract of land, East to the Northeast corner of a 16 50 acre tract of land out of said J.P Loving Survey and the West corner of Block 2, River Bend Condos, THENCE with the Northeasterly line of said 16 50 acre tract of land and the Southwesterly line of said Block 2, Southeast to the Southwest corner of said Block 2 and the Northwest corner of a 1.27 acre tract of land out of said J.P Loving survey as conveyed to Sunman Development in Volume 16020 Page 132, Deed Records, Tarrant County Texas, THENCE with the South line of said Block 2 and the North line of said 1.27 acre tract of land, East to the Southeast corner of said Block 2, the Northeast corner of said 1.27 acre tract of land and the West right -of way of said South Riverside Drive; Ordinance Designating Tax Increment Reinvestment Zone Number Twelve, City of Fort Worth, T xas THENCE with the East line of said 1.27 acre tract of land, and the West right -of way of said South Riverside Drive, Southeasterly to the Northeast corner of Block A, Grace Temple Addition, THENCE with the North line of said Block A, West to the Northeasterly right -of way of the T &P Railroad, THENCE with the Northeasterly right -of way of said T &P Railroad, Northwesterly to the intersection of the said Northeasterly right -of way of the T &P Railroad and the West right -of way of the International & Great Northern Railroad, and the Southeast corner of Lot 36 Block 4 Morningside Park Addition, THENCE with the Westerly right -of way of said International & Great Northern Railroad and the Southeasterly line of said Block 4 Mormngside Park Addition, Northeasterly to the South corner of the John Randol Addition, THENCE with the East line of said Block 4 Morningside Park Addition and the West line of said Block 2, John Randol Addition, North to the Northwest corner of said Block 2, and being in the West right -of way of Mississippi Avenue, THENCE with the East line of said Block 4 Morningside Addition and the West right -of way of said Mississippi Avenue, North to the North most Northeast corner of Lot 5 said Block 4 Morningside Addition and the South right -of way of an alley- THENCE with the South nght -of way of said alley West to the Northwest corner of Lot 1 Block 2, said Morningside Park Addition, and the East nght -of way of Evans Avenue; THENCE West to the West right -of way of said Evans Avenue, the Southeast corner of Lot 1 Block A, and the Northeast corner of Lot 1 Block 1 said Morningside Park Addition, THENCE with the South line of said Lot 1 Block A, and the North line of said Lot 1 Block 1 West to the Northwest corner of said Lot 1 Block 1 THENCE with the West line of said Block 1 Morningside Park Addition, South to the North right -of way of said T &P Railroad, THENCE with the North right -of way of said T &P Railroad, Northwesterly to the place of beginning, and containing some 3,970 acres of land. Note- This exhibit prepared under 22 TAC § 663.21 does not reflect the results of an on the ground survey and is not to be ed to convey or establish nterest in al property except those ights nd interest implied by the creation or configuration of the boundary of the political subdivision for which it was prepared. Ordinance Designating Tax Increment Reinvestment Zone Number Twelve, City of Fort Worth, T xas City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION Approved on 7/18/2006 Ordinance No 17061 -07 2006 DATE Tuesday July 18 2006 LOG NAME 17TIF12EBERRY REFERENCE NO G 15299 SUBJECT Adopt Ordinance Designating Tax Increment Reinvestment Zone Number 12 City of Fort Worth Texas (East Berry Renaissance TIF) RECOMMENDATION It is recommended that the City Council 1 Hold a public hearing concerning the designation of Tax Increment Reinvestment Zone Number 12, City of Fort Worth Texas for tax increment financing purposes and 2. Adopt the attached ordinance which designates Tax Increment Reinvestment Zone Number 12 City of Fort Worth Texas pursuant to Tax Increment Financing Act, Texas Tax Code Chapter 311 (the Act) and contains specific findings of fact in support thereof DISCUSSION The proposed Tax Increment Reinvestment Zone Number 12, City of Fort Worth Texas being referred to as the East Berry Renaissance TIF (the TIF) is located on approximately 604 acres of land in southeast Fort Worth in Council District 8 The property is bounded by Glen Garden Drive on the northernmost boundary State Highway 287 on the easternmost boundary Riverside Drive east of Ripy Street on the southernmost boundary and Interstate Highway 35 frontage road on the westernmost boundary The exact boundaries of the property are described in Exhibit A of the attached ordinance This area includes major intersections such as Riverside and Berry and Berry and Mitchell and it also includes the Masonic Home of Texas School property The TIF will expire on December 31 2027 or the earlier date as of which all project costs have been paid The TIF is intended to help fund public infrastructure improvements along the East Berry Street Corridor including water sewer drainage roads and sidewalks associated with mixed -use development. In addition demolition environmental remediation and all expenses allowable under the Tax Increment Financing Act are contemplated as needed for area of the TIF Zone identified as ripe for new or redevelopment. The ordinance provides that the City will contribute 100% of its tax increment to the TIF each year during the term of the TIF This public hearing is required by the Act. Notice of this hearing was. (1) delivered to the governing body of each taxing unit that levies real property taxes on property located within the proposed TIF and (2) published in a newspaper of general circulation at least seven days prior to this meeting The proposed area meets the criteria for designation as a reinvestment zone pursuant to the Act because as more specifically set forth in the finds of fact contained in the findings of fact in the attached ordinance the area is underdeveloped blighted and largely unproductive due to the deteriorated site and other improvements and contains unsanitary and unsafe conditions, all of which prevent development from occurring in the area solely through private investment in the reasonably foreseeable future thereby Logname 17TIF12EBERRY Page I of 2 substantially impairing and arresting and contains the sound growth of the City This property is located in COUNCIL DISTRICT 8 FISCAL INFORMATION /CERTIFICATION The Finance Director certifies that this action will have no material effect on City funds TO Fund /Account/Centers FROM Fund /AccounMenters Submitted for City Manager's Office by. Dale Fisseler (6140) Originating Department Head. Tom Higgins (6192) Additional Information Contact: Ossana O Hermosillo (8618) Peter Vaky (7601) Logname 17TIF 12EBERRY Page 2 of 2