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HomeMy WebLinkAboutContract 25242 CITY SECRETARY fn � CONTRACT NO. STATE OF TEXAS § § TAX INCREMENT REINVESTMENT ZONE § PARTICIPATION AGREEMENT COUNTY OF TARRANT § THIS TAX INCREMENT REINVESTMENT ZONE PARTICIPATION AGREEMENT (hereinafter referred to as the "Agreement") is executed and delivered by and between NORTHWEST INDEPENDENT SCHOOL DISTRICT (the "District"), a lawfully created independent school district of the State of Texas operating under and subject to "Applicable District Law," as herein defined, and the CITY OF FORT WORTH, TEXAS (the "City"), a municipality and a home-rule city in the State of Texas, relating to the District's participation in TAX INCREMENT REINVESTMENT ZONE NUMBER TWO, CITY OF FORT WORTH (the "Zone"), a reinvestment zone created by the City under and pursuant and subject to the"Zone Act," as herein defined; WITNESSETH : WHEREAS, the City Council of the City, after due and proper notice and public hearing, adopted on December 19, 1995, the "Zone Creation Ordinance," as herein defined, pursuant to which the City Council created the Zone pursuant to the Zone Act; and WHEREAS, on May 21, 1999, the City of Fort Worth received a petition from Northwest Independent School District and Beechwood Business Park Joint Venture, Beechwood Hospitality Development, L.P., Beechwood Golf Development, L.P., and Roanoke Ranch and Investment Company, property owners of, respectively, a 231.06-acre tract of land and a 281.872-acre tract of land contiguous to the present boundaries of Tax Increment Reinvestment Zone Number Two, Fort Worth, Texas, requesting that the Zone be expanded to include their tracts; and WHEREAS, the Zone Board passed and approved Board Resolution No. 2 on July 15, 1999, recommending that the City Council approve by ordinance expansion of the boundaries of the Zone and adoption of the Amended Project and Financing Plans pursuant to Section 311.007 and 3 11.011 of the Zone Act; and WHEREAS, Section 311.008 of the Zone Act authorizes the City to exercise any power necessary and convenient to carry out the provisions of the Zone Act, including, when consistent with the project plan required by the Zone Act, to acquire, construct, reconstruct, or install public works, facilities, or sites or other public improvements, including utilities, streets, street lights, water and sewer facilities, pedestrian malls and walkways, parks, flood and drainage facilities, parking facilities, or educational facilities that are used or intended to be used jointly by the City and the District in a reinvestment zone created on or before September 1, 1999; and WHEREAS, the Amended Project and Financing Plans will provide that some of the "projects" to be constructed and equipped within and as a part of the Zone and the expansion thereof are educational facilities herein defined as the "Zone School Proj ," the fro DG'lHP Vaa owned, maintained, and operated by the District, in accordance with and subject to the terms and provisions of this Agreement and Applicable District Law; and WHEREAS, the Amended Financing Plan will require the Zone Board to make payments to the District in an agreed amount, not in excess of the "Tax Increment Payments," as herein defined, made by the District and deposited to the "Tax Increment Fund," as herein defined, for the purpose of paying the costs of constructing, equipping, maintaining, administering and/or operating one or more of the Zone School Projects, such funds being dedicated for that purpose to the District under and in accordance with this Agreement; and WHEREAS, the District, as one of the "Taxing Units," as herein defined, and the City are authorized by Section 311.013 of the Zone Act to enter into an agreement pursuant to which the District agrees to make the Tax Increment Payments for the purpose of implementing the Plans; NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and agreements herein contained, the parties hereto agree as follows: ARTICLE I Authority, Definitions, General Provisions Section 1.1. Authority. (a) This Agreement is executed by the District as its written agreement with the City pursuant to the provisions and authority granted to the District in Section 311.013 of the Zone Act, and as the District's written notification of its intention to retain: (i) all Tax Increments levied, assessed, and collected on taxable personal property taxed by it within the Zone; and (ii) all Tax Increments levied, assessed, and collected by the District which are withheld and retained pursuant to Section 2.1 of this Agreement, in response to the requirements of Section 311.013 of the Zone Act. (b) This Agreement is executed by the City pursuant to the power and authority granted in Section 311.008 of the Zone Act, and other law applicable to the City and to this Agreement. (c) This Agreement is binding on the Zone Board of Directors pursuant to Section 311.013 (k) of the Zone Act. Section 1.2. Definitions. Wherever used herein, the following terms shall have the following meanings, unless the context in which used clearly indicates another meaning, to-wit: "Ag,reement"means this Agreement. 2 "Amended Financin Plan" means the amended financing plan adopted and recommended on July 15, 1999, by the Zone Board in its Resolution No. 2 for final approval by the City Council in conformity with the requirements of Sections 311.010 and 311.011 of the Zone Act, and as accepted by the District as required by Section 4.2 (a) of this Agreement, and as the same may be amended from time to time in accordance with the Zone Act and Section 4.3 of this Agreement. "Amended Project Plan" means the amended project plan adopted and recommended on July 15, 1999, by the Zone Board in its Resolution No. 2 for final approval by the City Council in conformity with the requirements of Sections 311.010 and 311.011 of the Zone Act, and as accepted by the District as required by Section 4.2 (a) of this Agreement, and as the same may be amended from time to time in accordance with the Zone Act and Section 4.3 of this Agreement. "Applicable District Law" means the Zone Act as applicable to the District as a Taxing Unit and the Constitution and general laws of the State applicable to the independent school districts of the State, including specifically, but not limited to, Section 403.302, Texas Government Code, and the applicable rules and regulations of the agencies of the State having jurisdiction over any matters relating to the public school systems and school districts of the State, or any interpretation, ruling, order, decree or court decision interpreting existing law or any law enacted during the term of this Agreement which is applicable to the District, provided such interpretation, ruling, order, decree or court decision is made administratively by the Comptroller of Public Accounts of the State of Texas, the Texas Attorney General, or any other State agency, or by a court of competent jurisdiction. "Captured Appraised Value" means the total appraised value of real property in that portion of the Zone that is located in the District, as of January 1 of any year, less the Tax Increment Base of the Zone allocable to the District, as defined herein and contemplated in the Zone Act. "City" means the City of Fort Worth, Texas. "City Council" means the governing body of the City. "County"means Denton County, Texas. "District" means the Northwest Independent School District, a duly incorporated and operating independent school district in the State, having the power to levy, assess, and collect ad valorem taxes within its boundaries, including the Zone. "District Bonds" means any bonds issued by the District for the purpose of paying the Project Costs incurred by the District in constructing and equipping a Zone School Project. "Interlocal Agreement" means the Interlocal Cooperation Agreement between the Northwest Independent School District and the City of Fort Worth, Texas, regarding joint use of the Zone School Projects, attached to this Agreement as Exhibit "A." 3 "Plans"mean, collectively, the Amended Project and Financing Plans. "Project Costs" mean any and all of the items of"project costs" set forth and described in Section 311.002(1) and the other provisions of the Zone Act. "State" means the State of Texas. "Tax Increment" means the total amount of ad valorem taxes levied and collected each year by the District in the Zone on the Captured Appraised Value. "Tax Increment Base"means where applicable either(1) the total taxable value for school tax purposes of all real property located in the original Zone boundaries as designated in the Zone Creation Ordinance and taxable by the District as of January 1, 1995, the year in which the Zone was designated as a reinvestment zone or(2) the total taxable value for school tax purposes of all real property located in the expanded Zone boundaries to be designated in the Zone Expansion Ordinance and taxable by the District as of January 1, 1999, the year in which the expansion of the Zone is to be designated. "Tax Increment Fund" means the special fund bearing that name and created by the City Council in the Zone Creation Ordinance, into which all Tax Increment Payments are to be deposited in accordance with the requirements of the Zone Act. "Tax Increment Payments" means that amount of the Tax Increment that the District agrees to deposit annually to the Tax Increment Fund in accordance with the requirements of Section 2.1 of this Agreement, the Amended Financing Plan, and the Zone Act. "Taxing"mean the County, the District, and the City. "Zone" means "Tax Increment Reinvestment Zone Number Two, City of Fort Worth," created by the City Council in the Zone Creation Ordinance, and to be amended to expand its boundaries, all done and to be done in accordance with Section 3.1 of this Agreement and with the Zone Act. "Zone Act"means Chapter 311, Texas Tax Code, as amended. "Zone Board"means the board of directors of the Zone. "Zone Creation Ordinance" means Ordinance No. 12323, adopted by the City Council on December 19, 1995. "Zone Expansion Ordinance" means Ordinance No. 13889, adopted by the City Council on August 10, 1999, designating the expanded boundaries of the Zone and approving the Plans. "Zone Infrastructure Projects" means transportation, drainage and other public improvements (not including educational facilities) to be constructed, equipped, located, 4 maintained and/or operated by the City or the FW Sports Authority, Inc. in the Zone as a project under the Plans and the Zone Act. "Zone School Project" means any school district educational facilities to be constructed, equipped, located, maintained and/or operated by the District in the Zone as a project under the Plans and the Zone Act, and jointly used by the District and the City as set forth in Section 311.008 of the Zone Act, and in accordance with the Interlocal Agreement attached and fully incorporated into this Agreement as Exhibit "A." "Zone School Project Costs" mean the costs of financing, constructing, equipping, maintaining, administering and/or operating one or more of the Zone School Projects, including any principal or interest on the District's debt issues applicable to such Zone School Projects. "Zone School Site" means the land to be included within the Zone and on which a Zone School Project is to be located and constructed. Section 1.3. General Provisions. (a) The City and the Zone Board, by the City's execution of this Agreement, do not assume, agree to pay, or guarantee the payment of any bond, note, or other financial obligation or undertaking of the District, whether in the form of securities or in other contractual forms, including the District Bonds. (b) The Zone Board and the City hereby dedicate a portion of the Tax Increment Payments, in an amount as set forth in Section 3.2 of this Agreement for Zone School Project Costs, for the purpose of reimbursing and paying to the District all or a portion of the Project Costs incurred by the District in financing, constructing, equipping, maintaining, administering and/or operating one or more of the Zone School Projects, and the parties hereto expressly agree that such amounts are dedicated for such purpose in compliance with and in satisfaction of the requirements of Section 311.014 of the Zone Act. (c) The Zone Board and the City hereby dedicate the remaining portion of the District's Tax Increment Payments, after payment of the Zone School Project Costs as set forth in Section 3.2 of this Agreement, to payment of the infrastructure and other public improvement projects specifically described and set forth in the Plans. (d) The City and the Zone Board expressly agree that any funds which are paid to the District pursuant to Paragraph 3.2 of this Agreement which have not, in the year of receipt, been expended for Zone School Project Costs may be retained by the District in a separate reserve account maintained by the District for such purposes. Such funds may be budgeted and expended in any subsequent year following receipt for such purposes as are set forth in Paragraph 3.1 of this Agreement. (e) The boundaries of the Zone are and shall be those boundaries described in the Zone Creation Ordinance and the Zone Expansion Ordinance. The parties to this Agreement expressly agree that the boundaries of the Zone and the current expansion thereof may not be 5 reduced without the express authorization of the Board of Trustees of the District. The City agrees that the boundaries of the Zone shall not be changed to exclude any Zone School Projects which are located within the boundaries of the of Zone set forth in the Zone Creation Ordinance and Zone Expansion Ordinance unless the Board of Trustees of the District has first approved such boundary change. (f) The parties to this Agreement expressly agree that the Plans shall not be changed to exclude any of the Zone School Projects and the Tax Increment Payments dedicated thereto without the express authorization of the Board of Trustees of the District. (g) The City and the County are not required to contribute any tax increment generated from the areas added to the Zone by the Zone Expansion Ordinance. ARTICLE II Participation in the Zone, Payments,Adjustments, and Retentions Section 2.1. Participation in the Zone. (a) Subject to the terms set forth in Sections 3.2 (a) and 4.3 (b) of this Agreement, the District agrees to participate in the Zone and to make Tax Increment Payments to the Tax Increment Fund annually in amounts calculated in accordance with this Section for the purpose of paying a portion of the Project Costs under the Plans. (b) The District agrees to pay into the Tax Increment Fund an amount of money from the District's property taxes computed according to the methodology set forth below in the succeeding subparagraphs of this Subsection. The annual payment shall be calculated based upon funds generated pursuant to the District's total tax rate on the real property located in the Zone. Notwithstanding anything herein to the contrary, the District's annual tax increment payments shall not exceed the amount based upon the estimated Captured Appraised Value for each year as set forth in the Amended Financing Plan. No District revenues generated by District ad valorem taxation of personal property shall ever be used to calculate the District's deposit in the Tax Increment Fund. i. The calculation of the District's deposit in the Tax Increment Fund shall begin by the District determining the Captured Appraised Value in the Zone as defined in paragraph 1.2 of this Agreement. ii. The District will next calculate the difference between the current year values on the Zone real property and the Comptroller's State Property Division taxable values of real property located within the Zone. The District will determine the Comptroller's State Property Division taxable values of real property located within the Zone by multiplying the prior year's taxable value of real property located within the Zone by the appraisal ratios established pursuant to Tex. Gov't. Code § 403.302. This difference will be subtracted 6 from the Captured Appraised Value. This product will be referred to as the Adjusted Captured Appraised Value. If the Adjusted Captured Appraised Value is zero or a negative number, then the District will not owe any Tax Increment Payment for the year of the calculation. If the Adjusted Captured Appraised Value is a positive number, the District will multiply the Adjusted Captured Appraised Value times the District's current year total tax rate per One Hundred Dollars ($100.00) of assessed valuation. The product of this calculation will be referred to as the preliminary sum, and will be further adjusted pursuant to subparagraphs iii, iv, and v below. iii. The District will next subtract from the preliminary sum an additional amount equal to the uncollected portion of the total tax levy on the Captured Appraised Value for the current tax year. Where the District has received partial payments of taxes said partial payments shall be applied: first, to any penalty and interest due and owing to the District; then to the District's proportionate share of the taxes due on the parcel at issue; and, finally, to the sums owing to the Tax Increment Fund. iv. The District will next subtract from the preliminary sum an additional amount equal to a proportionate share of any tax refunds repaid to taxpayers for real property in the Zone for years in which this Agreement is in effect. In computing the proportionate amount, the District shall retain an amount computed by multiplying the refund amount times the percentage created by dividing the Adjusted Captured Appraised Value calculated pursuant to subparagraph 2.1 (b) ii for the tax year for which the refund is paid, by the total real property taxable values in the Zone for the tax year for which the refund is paid. v. The District will then add to the preliminary sum an amount equal to the uncollected taxes on the Captured Appraised Value that have been received by the District since its last payment to the Tax Increment Fund. In making such payments to the fund, only an amount equal to the collected delinquent taxes will be transferred to the Tax Increment Fund. Statutory penalties and interest and attorney's fees where applicable for delinquent taxes, shall be retained by the District. Any amounts received by the District pursuant to TEX. CONST. Art. VIII§ 1-d(/) shall be retained by the District. vi. The preliminary sum, as further adjusted pursuant to subparagraphs iii, iv, and v, above, and, if applicable, subsection (c) of this section, shall constitute the Tax Increment Payment for the year of calculation. (c) The District shall, in its sole discretion, have the option to use the Captured Appraised Value described in Section 2.1 (b)(i), above, in place of the Adjusted Captured 7 Appraised Value described in Section 2.1(b)(ii), above, in calculating its Tax Increment Payment pursuant to the formula in Section 2.1 (b), above. (d) Notwithstanding any other provision in this Agreement, in the event that, by virtue of Applicable District Law, the District will receive less state funding, or will be required to increase its payment of funds to the State, or to another school district, or school districts, because of, or in any way related to, its participation in the Zone under this Agreement, including but not limited to that the District will not be allowed to deduct all or any part of its estimated Captured Appraised Value from its taxable value as set forth in Section 403.302 of the Texas Government Code, or the District is required to pay all or any part of the Tax Increment to the State or other school districts, the District may retain, from the amount of the payments agreed to be made under Subsection (b) of this Section, the amount necessary to secure for the District an amount equal to the loss of State funding or the increased amount of funds paid to the State or other school districts resulting from the District's participation in the Zone. The resulting amount each year shall constitute the "Tax Increment Payment" for such year and shall be made to the Tax Increment Fund in accordance with the requirements of the Zone Act. It is understood and agreed, however, that part of the consideration for the City's agreement to annex the District's main campus, expand the Zone and include participation by the District in the Zone is the District's agreement hereunder to dedicate 33 1/3% of its Tax Increment Payments to Zone Infrastructure Projects (the Infrastructure Payments). Therefore, in the event that the operation of this Section 2.1(d) results in the District having the right to retain the Infrastructure Payments (whether such right is exercised or not), the District agrees to pay to the City an annual amount equal to the operations and maintenance (non-debt) portion of the City's tax rate multiplied by the appraised market value of the District's property annexed by the City and included within the Zone boundaries as consideration for the extension of municipal services to the District's exempt property. In the alternative, at the District's option, the District may petition for disannexation of the property from the City. In the event of disannexation, the District shall be obligated to pay for water and sewer services provided by the City at the established out-of-city rates. The City and District agree to cooperate fully and in good faith with one another with regard to any and all necessary actions or legal requirements to implement either of these options. For each year in which the District invokes this Subsection to reduce the amounts otherwise to be deposited to the Tax Increment Fund, the District shall serve written notice of the invocation of this paragraph and its calculations of the relevant amount upon the Zone Board and the City on or before the payment due date established under Section 311.103 of the Zone Act. (e) The District may make a demand for reimbursement of funds previously deposited into the Tax Increment Fund, if by virtue of its previous payments into the fund under Subsection 2.1(b) above, Applicable District Law causes the District to receive a reduction in the combined revenues from both local and state sources that the District would have received, or was required to pay, had the District not participated in this Agreement. Any demand for reimbursement shall be accompanied by written explanation showing the calculations underlying the claim for reimbursement and a reference to any rule, statute, or administrative interpretation which explains the calculations. In the event that it receives a claim for reimbursement, the Tax Increment Fund shall, within seven days return the funds claimed for refund to the District. In the event that the City or Zone Board wishes to contest the claim for reimbursement, it may send 8 an objection to the reimbursement request along with the funds claimed for reimbursement to the District. The transmittal of an objection, however, does not relieve the Tax Increment Fund of its obligation to return the funds to the District. In the event that the City or the Zone Board files an objection, the District shall maintain the contested amounts in a reserve account pending the resolution of the dispute. The obligation to reimburse the District for any amount in accordance with this Subsection is limited to, and payable only from, amounts available in the Tax Increment Fund, and if at the time any such payment becomes due there are insufficient funds in the Tax Increment Fund to make such payment in full, the District shall be reimbursed as soon as funds become available and shall have first priority among claims against the Tax Increment Fund. In the event that there is an outstanding reimbursement obligation from the Tax Increment Fund to the District at the time that any Payment is due from the District to the Tax Increment Fund under this Agreement, the District may offset any reimbursement amount against it payment obligation. Provided that notwithstanding the foregoing, in no event shall reimbursements made to the District exceed the actual amount of funds deposited by the District in the Fund. Provided further, that in the event that reimbursement hereunder involves the Infrastructure Payments [as defined in Section 2.1(d)], the District agrees to pay to the City, beginning the year of the reimbursement, an annual amount equal to the operations and maintenance (non-debt) portion of the City's tax rate multiplied by the appraised market value of the District's property annexed by the City and included within the Zone boundaries as consideration for the extension of municipal services to the District's exempt property. In the alternative, at the District's option, the District may petition for disannexation of the property from the City. In the event of disannexation, the District shall be obligated to pay for water and sewer services provided by the City at the established out-of-city rates. The City and District agree to cooperate fully and in good faith with one another with regard to any and all necessary actions or legal requirements to implement either of these options. (f) The payment of Tax Increment Payments, in the amounts calculated and adjusted in accordance with this Section, shall commence during the 1999-2000 school year in accordance with the Plans and the Zone Act and shall continue until the termination of this Agreement in accordance with the provisions of Section 4.3 (b) of this Agreement. (g) This Agreement is expressly conditioned on the approval of the Amended Project Plan, the Amended Financing Plan, the annexation of the Northwest ISD tract to be included in the expanded Zone boundaries and the Settlement Agreement and Mutual Release (Northwest ISD v. City of Fort Worth et al., Cause No. 97-20568-158) by all parties to such agreements or Plans. 9 ARTICLE III Payment of Zone School Project Costs Section 3.1. Constructing, Equipping, Financing, Administering and Operating a Zone School Project. (a) The City agrees, as a precondition to any obligations of the District hereunder, to include in the Amended Project and Financing Plans in form and substance approved by the Board of Trustees of the District a listing of all matters relating to Zone School Projects as may be designated by the District as required by Section 311.011 of the Zone Act. The final description, size, scope, and design of such Zone School Projects shall be solely as determined by the District, provided that the Zone School Projects shall be consistent with the Plans and in accordance with the requirements of the Zone Act. All financing of Zone School Projects shall be provided by the District, and not by the City or County. (b) The District agrees to use the proceeds of the payments defined under Section 3.2 of this Agreement solely for the purpose of paying Project Costs, as defined in the Zone Act, related to constructing, equipping, financing, maintaining, administering and/or operating such Zone School Projects as are designated under Section 3.1(a) of this Agreement. (c) The District shall make annual reports to the Zone Board on the use and prospective use of the funds received hereunder for Zone School Projects. Section 3.2. Payment and Use of Zone School Project Costs. (a) The Parties to the Agreement agree that the District will paid out of the Tax Increment Fund sixty-six and two-thirds percent (662/3%), of the Tax Increment Payments actually received by the Tax Increment Fund for the purpose of paying all or a portion of the Zone School Project Costs as specified in the definition of that term in Section 1.2 of this Agreement. It is specifically understood and agreed by the parties to this Agreement that even though additional or other projects may be included in the Plans, the funds paid to the District from the Tax Increment Fund pursuant to this Agreement shall and may only be used for the District's Zone School Projects. Except for the District's Tax Increment Payments, the District shall have no obligation for any costs or expenses associated with the operation of the Zone, including, without limitation, any obligation to pay or repay any debt issued by the City, the Zone, or the Zone Board relating to the Zone or any costs associated with the operation of Zone or any projects relating thereto. The District shall have no obligation to make contributions to the Tax Increment Fund in the event the City, for any reason during the term of this Agreement, does not contribute its tax increment in accordance with the terms of the Plans. (b) To the extent that the District makes Tax Increment Payments to the Tax Increment Fund in accordance with Section 2.1 of this Agreement, the parties agree that the City shall be paid its 33 `/3% of the Tax Increment Payments dedicated to Zone Infrastructure Projects prior to the District being reimbursed for 66 2/3% of the Tax Increment Payments dedicated to Zone School Projects. 10 (c) The amounts dedicated and required to be paid pursuant to Subsection (a) of this Section shall be paid to the District within seven (7) days of receipt by the Zone Board of the Tax Increment Payments. Such payments shall be made in such manner and to such account as may be designated from time to time by the District in writing. (d) The payment of the amounts required to be paid to the District under Subsection (a) of this Section shall continue for each year in which the District makes a deposit into the Tax Increment Fund. (e) Pursuant to Section 311.014 (d) of the Zone Act, after all project costs and all tax increment bonds or notes issued for the Zone have been paid, any money remaining in the tax increment fund shall be paid to the municipality and other taxing units levying taxes on the property in proportion to the municipality's and each unit's respective share of the total tax increments derived from taxable real property in the zone that were deposited in the fund during the fund's existence. ARTICLE IV Miscellaneous Provisions Section 4.1. Information Notices. (a) The Zone Board shall provide periodic information concerning the status of the Zone and the Plans as may be reasonably requested in writing by the District. (b) Whenever this Agreement requires or permits any consent, approval, notice, request, proposal or demand from one party to another, the consent, approval, notice, request, proposal or demand must be in writing to be effective and shall be deliverable to the party intended to receive it at the addresses shown below: If intended to the District, to: Superintendent of Schools Northwest Independent School District 18501 State Hwy. 114 Justin, Texas 76247-8700 If intended for the City, to: City Manager City of Fort Worth 1000 Throckmorton Street Fort Worth, Texas 76102 11 Section 4.2. Effective Date, Termination of Agreement. (a) This Agreement shall be and become effective on and after the date on which the Plans are accepted by the District and approved by the City Council. Any of the District, the Zone Board, or the City may terminate this Agreement if the Plans have not been approved by the City and accepted by the District by August 31, 1999. (b) Notwithstanding anything herein to the contrary, this Agreement and the District's obligations hereunder [except any obligations of the District to pay for municipal services pursuant to Sections 2.1 (d) and 2.1(e)] shall terminate and shall have no further force or effect on the earlier to occur of(i) December 31, 2025, (ii) an earlier termination date designated by an ordinance adopted subsequent to the Zone Creation Ordinance or (iii) the date on which the District's Zone School Project Costs have been paid in full from the Tax Increment Payments. Section 4.3 Amendments to Plans. No amendments to the Plans involving Zone School Projects or modifying or altering the terms of this Agreement, directly or indirectly, shall be effective until the same are approved and accepted by the District. Other amendments to the Plans may be made in the manner provided by Section 311.011(e) of the Zone Act. Section 4.4. Amendments and Modifications. This Agreement may be modified and amended by written mutual agreement of the District and the City. Section 4.5. No Personal Liability for Zone Board The obligations under this Agreement are binding on the Zone Board in its corporate capacity, and no present or future member or officer of the Zone Board shall have any liability, obligation, or responsibility in their individual capacities for such obligations or failure of the Zone Board to perform such obligations. Section 4.6. Severability. The provisions of this Agreement are severable and the invalidity or unenforceability of any provision hereof shall not affect the validity or enforceability of any other provision. It is the intention of the parties that each provision hereof be construed in a manner designed to effectuate the purposes of such provision to the maximum extent enforceable under applicable law. Section 4.7. Strict Performance Failure of any party hereto to insist on the strict performance of any of the covenants or agreements herein contained or to exercise any rights or remedies accruing hereunder upon default or failure of performance shall not be considered a waiver of the right to insist on, and to 12 enforce by any appropriate remedy, strict compliance with any other obligation hereunder or to exercise any right or remedy occurring as a result of any future default or failure of performance. Section 4.8. Immunity No party hereto waives or relinquishes any immunity or defense on behalf of itself, its trustees, officers, employees or agents as a result of its execution of this Agreement and performance of the covenants contained herein. IN WITNESS WHEREOF, this Agreement�een executed by the District and the City, in duplicate originals on this_,day of ust, 1999. NORTHWEST INDEPENDENT CITY OF FORT WORTH, TEXAS SCHOOL DISTRICT By: 2 By: President, Board of Trustees City Manager ATTEST: ATT ST: LAR lbi -) :2i�z-,, Secretary, Board o Trustees dity Secret APPROVED AS TO FORM: City Attorney (s - &o L? contract Authorization Date 13 TAX INCREMENT REINVESTMENT ZONE PARTICIPATION AGREEMENT by and between NORTHWEST INDEPENDENT SCHOOL DISTRICT and the THE CITY OF FORT WORTH, TEXAS TAX INCREMENT REINVESTMENT ZONE NUMBER TWO, CITY OF FORT WORTH dated as of AUGUST 10, 1999 STATE OF TEXAS § COUNTY OF TARRANT § EXHIBIT "A" INTERLOCAL COOPERATION AGREEMENT BETWEEN NORTHWEST INDEPENDENT SCHOOL DISTRICT AND THE CITY OF FORT WORTH TEXAS THIS INTERLOCAL COOPERATION AGREEMENT is made and entered into by the Northwest Independent School District ("District"), acting by and through its Board of Trustees, and the City of Fort Worth ("City"), acting by and through its City Council. WITNESSETH: WHEREAS, the Texas State Legislature has authorized the use of interlocal cooperation agreements between and among governmental entities; and WHEREAS, this Interlocal Cooperation Agreement ("Interlocal Agreement") is made under the authority granted by and pursuant to the Interlocal Cooperation Act, Texas Government Code, Chapter 791, and as otherwise provided herein, relative to the joint authorization by the District and City to jointly use educational facilities (the "Zone School Projects") to be located in Tax Increment Reinvestment Zone No. Two, City of Fort Worth, Texas (the "Zone") in accordance with Chapter 311 of the Texas Tax Code (the "Zone Act"); and WHEREAS, the governing bodies find that the performance of this Interlocal Agreement is in the common public interest of both parties, that their joint use will be in accordance with Section 311.008 of the Zone Act and of mutual benefit to the District and the City of Fort Worth; and WHEREAS, the parties, in paying for the performance of governmental functions or in performing such governmental functions, shall make payments therefore only from current revenues legally available to each party; and WHEREAS, the District and the City agree that the District's Zone School Projects shall be jointly used by the City for educational, recreational and civic opportunities for its citizens as set out herein. EXHIBIT"A."INTERLOCAL COOPERATION AGREEMENT BETWEEN NORTHWEST I.S.D. AND CITY OF FORT WORTH PAGE 1 NOW THEREFORE, for and in consideration of the mutual agreements contained herein, the parties do hereby agree as follows: I. RESPONSIBILITIES A. In consideration of the mutual covenants of this Interlocal Agreement and other good and valuable consideration, and in accordance with Section 311.008 of the Zone Act, the District shall permit the City to jointly use the Zone School Projects located in the Zone pursuant to the terms of this Agreement. B. The District's Zone School Projects proposed in the Amended Project and Financing Plans include (1) an athletic complex with a football stadium, coliseum, natatorium, baseball, softball, and track facilities, tennis center, multi-purpose building (basketball, gymnastics, wrestling), and related infrastructure; (2) an automotive training complex; (3) additions and renovations/remodeling of the District's Core Campus Facilities and (4) planned new schools. The construction of Zone School Projects is dependent on development in the Zone, the tax increment generated, and the needs of the District. Nothing in this Interlocal Agreement shall be construed as a representation that the District will construct a certain type of facility for joint use by the City. The District and City agree to determine the appropriate joint use of the Zone School Projects described in the Plans. Subject to approval by the District's Board of Trustees, potential joint use of the Zone School Projects by the City include but are not limited to the following: City sports leagues, City meetings and elections, City parks and recreation activities, adult and vocational education, and City performance events. C. The Zone School Projects shall be owned and operated by the District for use as educational facilities and will be primarily used to service the educational needs of the District's students. The scheduling of City use of the Zone School Projects shall be subject to approval by the District's Board of Trustees or its authorized representative. The District and the City shall cooperate in scheduling the joint use of the Zone School Projects by the City. However, in the event of an irreconcilable conflict between the District and City's joint use of the Zone School Projects, the District's use of the Zone School Projects shall prevail. EXHIBIT"A."INTERLOCAL COOPERATION AGREEMENT BETWEEN NORTHWEST I.S.D. AND CITY OF FORT WORTH PAGE 2 The City shall be responsible for all additional costs associated with its joint use of the Zone School Projects as set forth herein, including but not limited to, utilities, maintenance, labor, and security. D. Security shall be the responsibility of each party during its joint use of the Zone School Projects. The City and the District shall perform and exercise all rights, duties and functions and services in compliance with all valid and applicable laws, statutes, codes, regulations and ordinances of the United States, the State of Texas, the County of Tarrant, the Northwest Independent School District, the City of Fort Worth, or other lawful authority with jurisdiction over the premises. E. During the term of this Agreement, the District agrees to obtain at its sole expense liability insurance for school sponsored events and/or activities on the Zone School Projects which the District determines, in its sole discretion, is appropriate. During the term of this Agreement, the City agrees to obtain at its sole expense general liability insurance for City sponsored events and/or activities on the Zone School Projects, or provide evidence of self-insurance programs acceptable to the District. F. Each party shall be responsible for defending and/or disposing of all causes of action arising against the respective party as a result of its use or occupation of the Zone School Projects. It is expressly understood and agreed that in the execution of this contract, neither the District nor the City waives, nor shall be deemed to waive, any immunity or defense that would otherwise be available to each against claims arising in the exercise of governmental powers or functions. II. TERM The term and the termination of this Interlocal Agreement shall be in accordance with the Tax Increment Reinvestment Participation Zone Agreement to which this Interlocal Agreement is attached as Exhibit "A." EXHIBIT"A."INTERLOCAL,COOPERATION AGREEMENT BETWEEN NORTHWEST I.S.D. AND CITY OF FORT WORTH PAGE 3 IN WITNESS WHEREOF, this Interlocal Agreement has been executed by the District and the City in duplicate originals on this & day of , 1999. NORTHWEST INDEPENDENT CITY OF FORT WORTH, TEXAS SCHOOL DISTRICT D l )( t- By: By: ;_� President, Boar of Trustees City Manager ATTEST: AT ST: ;AA, 2#-fZ'r-- Secretary, Board of Trustees by Secreta APPROVED AS TO FORM: Assistant City Attorn //pl(' (5� " 112- �1U Contract Authorization i)a -r7 EXHIBIT"A."INTERLOCAL COOPERATION AGREEMENT BETWEEN NORTHWEST I.S.D.AND CITY OF FORT WORTH PAGE 4 City of Fort Worth, Texas "Clyor And council communication DATE REFERENCE NUMBER LOG NAME PAGE 8/10/99 G-12628 I 02ZONE 1 of 2 SUBJECT PUBLIC HEARING AND ADOPTION OF ORDINANCE ENLARGING THE BOUNDARIES OF CITY OF FORT WORTH TAX INCREMENT REINVESTMENT ZONE NUMBER TWO, APPROVING AMENDED PROJECT AND FINANCING PLANS FOR THE ZONE, AND AUTHORIZING A PARTICIPATION AGREEMENT WITH THE NORTHWEST INDEPENDENT SCHOOL DISTRICT RECOMMENDATION: It is recommended that the City Council: 1. Conduct a public hearing concerning the enlargement of the boundaries of Tax Increment Reinvestment Zone Number Two (the Zone); and 2. Adopt the attached ordinance which enlarges the boundaries of the Zone, approves amender project and financing plans for the Zone as approved by the Zone's board of directors, and authorizes a Participation Agreement with the Northwest Independent School District for the Zone. DISCUSSION: Tax Increment Reinvestment Zone Number Two (TIF No. 2) was created in December 1995 in conjunction with the development of the Texas Motor Speedway. The City and Denton County agreed to participate in the original TIF No. 2, with the tax increment generated being utilized to pay the purchase price of the Speedway and construct other public improvements within the TIF reinvestment zone. Northwest Independent School District (NISD), the other entity which levies taxes within the Zone, chose not to participate. The Speedway, which is owned by the FW Sports Authority, is exempt from property taxes but there are other properties within the TIF reinvestment zone that generate property taxes which go into the TIF Fund. This proposed expansion of TIF No. 2 is being considered as part of a settlement agreement in the lawsuit filed by the NISD contesting the statutory tax exemption for the Speedway. On May 21, 1999, the City received a petition from NISD and property owners in the Beechwood Development to include their properties in an expanded TIF No. 2. The City formally notified other affected taxing units of its intent to consider expansion of the TIF zone (M&C G-12572; Resolution No. 2533; 05/25/99) and set the public hearing date for August 10, 1999. (M&C G-12597; Resolution No. 2550; 07/06/99). The proposed expansion of TIF No. 2 includes the following properties: • The Northwest ISD Central Administration and Campus facility on the southwest corner of the Texas 156 and Highway 114 intersection. • Portions of the Beechwood Development between 1-35W and Texas 156 south of Highway 114 that include the sites of the proposed resort hotel and golf course and areas in which future roadway/infrastructure is planned. City of Fort Worth, Texas Mnagor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 8/10199 G-12628 02ZONE 2 of 2 SUBJECT PUBLIC HEARING AND ADOPTION OF ORDINANCE ENLARGING THE BOUNDARIES OF CITY OF FORT WORTH TAX INCREMENT REINVESTMENT ZONE NUMBER TWO, APPROVING AMENDED PROJECT AND FINANCING PLANS FOR THE ZONE, AND AUTHORIZING A PARTICIPATION AGREEMENT WITH THE NORTHWEST INDEPENDENT SCHOOL DISTRICT • The area in the Speedway development immediately south and southwest of the original TIF district boundaries but north of Highway 114 and west of I-35W. On July 15, the TIF No. 2 board of directors considered and approved amended project and financing plans for the expanded TIF. The plans call for the additional tax increment generated by the NISD's participation to be utilized as follows: 66-2/3% for educational facilities as determined by NISD (which ,est include provision for joint use of the facilities by the City) and 33-1/3% for transportation and other infrastructure projects which will benefit the TIF zone as provided in the TIF project plans approved by the TIF board of directors and the City Council. The City and Denton County are not required to contribute additional increments to the TIF fund. In order for the NISD property to be included in the expanded TIF, the property must be annexed into the City. The annexation is scheduled for consideration as a separate item on the City Council's agenda. The execution of a participation agreement, which outlines the terms and conditions for deposit of the tax increment generated by NISD into the TIF fund, is an additional requirement for NISD participation in the expanded TIF zone. Copies of the agreement and the amended project and financing plans are attached. a1SCAL INFORMATION/CERTIFICATION: ie Finance Director certifies that adoption of the attached ordinance and approval of the participation agreement will not require the expenditure of City funds. Tax increment deposited by the participating taxing units for TIF No. 2 will be expended in accordance with the participation agreements and the TIF project and financing plans approved by the TIF Board of Directors and the City Council. MG:j Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) Mike Groomer 6140 APPROVED Originating Department Head: CITY, vOVhC H . Tom Higgins 6192 (from) 4il3 10 1999 Iditional Information Contact: Chapa 8003City Secreturl of the