HomeMy WebLinkAboutResolution 4498-08-2015 A Resolution
. 4498-08-2015
AVENUE ADOPTING A FUNDING PLAN FOR THE VENUE PROJECT
CONSISTING OF A MULTIPURPOSE ARENA AT THE
INTERSECTION OF HARLEY
AND ADJACENT SUPPORT FACILITIES AND ANY RELATED
INFRASTRUCTURE AND REAFFIRMING THAT THE VENUE
PROJECT WILL SERVE CONTINUNING PUBLIC PURPOSES
AND WILL BE A PUBLIC USE
WHEREAS, on October 22, 2013 the City Council adopted Ordinance No. 21011-10-2013,
designating Project Financing Zone Number One, City of Fort Worth, Texas (the "Zone"), and
requesting the Texas Comptroller of Public Accounts (the "Comptroller") to deposit incremental hotel-
associated revenue from the Zone into a suspense account for use by the City in the payment of bonds or
other obligations issued or incurred to acquire, lease, construct, improve, enlarge and equip qualified
projects, all as more specifically authorized and set forth in Section 351.1015, Texas Tax Code; and
WHEREAS, on July 15, 2014, the City Council adopted Resolution No. 4327-07-2014,
authorizing a City-owned multipurpose arena at the intersection of Harley Avenue and Gendy Street and
adjacent support facilities, and any related infrastructure, collectively, as a venue project (the "Venue
Project") and designating methods of financing for the Venue Project in accordance with Chapter 334,
Texas Local Government Code, as amended; supporting development of the Venue Project in order to
allow the City to host of variety of events benefitting the public; and declaring that the Venue Project
will benefit the City by increasing visitorship and tourism and the offerings available to citizens through
expanded public events space, sporting facilities and entertainment offerings; and
WHEREAS, on August 12, 2014, the City Council adopted Ordinance No. 21374-08-2014,
calling for and ordering a special election to be held on November 4, 2014 at which special election all
qualified voters of the City of Fort Worth would have the opportunity to vote for the purpose of
approving and implementing Resolution No. 4327-07-2014 authorizing the Venue Project and
designating methods of financing for the Venue Project in accordance with Chapter 334, Texas Local
Government Code, as amended; and
WHEREAS, on November 4, 2014, a special election was held at which the qualified voters of
the City of Fort Worth had the opportunity to vote for the purpose of approving and implementing
Resolution No. 4327-07-2014 authorizing the Venue Project and designating methods of financing for
the Venue Project, in accordance with Chapter 334, Texas Local Government Code, as amended; and
WHEREAS, on November 18, 2014 the City Council adopted Resolution No. 4378-11-2014
finding and declaring that the results of such November 4, 2014 election are that the Venue Project was
appr-oved in accordance with. Chapter 334, Texas Local Goverrunent Code, as amended, and that the
City Council is authorized to irnpose (i) an ad-t-nissions tax, on each. ticket sold as admission to an event
held at the Venue Project, at a rate not to exceed ten percent (10%) of the price of the ticket; (ii) as
livestock facility use tax on each stall or pen used. or occupied by livestock during an event held on one
or more consecutive days in wfiich the Venue ProJect is used, not to exceed twenty dollars ($201.00) in
the aggregate per stall or pen rental for any event; and (iii) a parking to on each motor vehicle parking
in a parking facility that serves or will serve the Venue Project, not to exceed five dollars ($5.00) for
each motor vehicle (collectively, the "Venue..l yes"") and
WHEREAS, a non-profit 1,)rivate sector entity has corarnitted to raising and ensuring
contribution of fiffly percent of the estiniated total Venue ProJect cost as well as causing any cost in
excess of the estirnated.total Venue llr( eet cost of$450,000,000 to be paid; and
WHEREAS, under Section 351.1015, Texas 'fax Code, the Venue 11roject is also corlsidered a
"qualified pro'ject" that is eligible to receive fundhig from the City from revenues deposited by the
Comptroller in the suspense account created for the Zone; and
WHEREAS, the City COUD.Cil authorized the City Manager to notify the Comptroller of the
cornmencement of the qualif ied project for purposes of and in accordance with Chapter 35 1, Texas Tax
Code, as ainended;
WHEREAS, on December 9, 2014 the City Cowicil adopted Resolution No. 4387-12-2014.
conunitting to financial participation in, the 'Venue 11rqject in = arn.owit equoall to pifty percent of such
costs of the Venue Protect, not to exceed $225,000,000, from various revenues including:
a. an admissions tax on each ticket sold as adinission to an event held at the Venue Project, at a
rate not to exceed ten percent (10%) of the price of the ticket;
b, a livestock I'acility use tax on each stall, or pen. used or occupied by livestock during an event
held on one or more consecutive days at a designated 1,iwility of the Venue Pro'ject, not to
exceed twenty dollars ($20.00) in the aggregate per stall or pen rental. for any event;
c, a parking tax on each motor vehicle parking in a parking facility that serves or will serve the
Venue Pro'ject, not to exceed five dollars ($5.00) for each motor vehicle;
dw state funds disbursed from the Con nn ptrol I(.x in. accordance with. I iapter 351, Texas Tax Code,,
as aniended;
ea local revenue derived in. accordwice with Chapter 351, 1'exas Tax Code, as amended;
f any other revenue the City of Fort,Worth determines is appropriate,
and the City Counefl wishes to reiterate this intention, to be consistent with. the City Council's guiding
principles that General Fund revenues will. not be used in support.of the Venue I)rqject;
WHEREAS, City Secretary Contract No. 344949 with the Fort Worth Convention and Visitors
Bureau ("CV13") provides for funding of the C: 13"s general inarketing and proinotional, oblig,alions
through an allocation of 47% owl."'I'ax Collections," as defined in the agreenient witb. the ("I VB, and
which explicitly excludes, anion other things, revenue pledged or otherwise designiated for the funding
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ofa "qualified project" such as the Venue Project;
WHEREAS, staff anticipates that reallocation of certain capital expenditures to unencumbered
resources will make available a total of$9,599,250.00 in funds from the Culture and Tourism Fund for
transfer to the Venue Project Fund, as described in Section 334.021, Texas Local Government Code, via
a Mayor and Council Communication this fall;
WHEREAS, beginning in FY2020, it is anticipated that the Venue Taxes will begin being
assessed and will provide a source of revenue for planned debt issues;
WHEREAS, the Venue Taxes are not anticipated to generate significant revenue in the initial
years in which the taxes are collected;
WHEREAS, on June 16, 2015, the Fort Worth City Council approved the issuance of up to
$150,000,000.00 in refunding and improvement bonds, a portion of which will be used to extend the
term for certain Public-Events-related debt to make available revenues from the City's hotel occupancy
tax receipts for making contributions to the Venue Project Fund until Venue Taxes and other revenue
streams become available;
WHEREAS, City staff has been engaged in discussions with the CVB regarding the need to make
a long-term allocation of incremental growth in the City's hotel occupancy tax revenues and a short-
term allocation of additional hotel occupancy tax revenues to assist in making contributions to the
Venue Project Fund;
WHEREAS, City staff and the CVB anticipate executing a Memorandum of Understanding to
memorialize how these allocations will reduce the amount of Tax Collections available under the CVB
agreement and any impacts on the CVB in its general marketing and promotional efforts;
WHEREAS, as result, until 2020, local hotel occupancy tax revenue from the Culture and
Tourism Fund is projected to be available as follows to transfer to the Venue Project Fund to accumulate
reserves, cash-fund certain project obligations, and service future debt issues associated with the project:
FY2015 $2.6 million
FY2016 $1.3 million
FY2017 $1.8 million
FY2018 $3.0 million
FY2019 $3.2 million;
WHEREAS, current projections indicate that, beginning in Fiscal Year 2020,
100% of the local hotel occupancy tax increment from hotels located within Project
Financing Zone No. 1 will be more than sufficient to fund the City's debt service
obligations for debt associated with the Venue Project;
WHEREAS, the City intends to commence expansion of the Fort Worth
Convention Center as a "qualified project" under Section 351.1015 of the Tax Code no
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later than October 22, 2018 (the 5th anniversary of the creation of Project Financing
Zone :9 1) and to noti fy the Coniptroller of the State o�f ']. exas accordingly;
WHEREAS, the City Council intends to adopt a funding schedule to continue to
deposit up to 100% of the local increment of hotel occupancy tax within the boundaries
of Project 1A'inancing Zone No. I beginning in FY2020 and beyond;
WHEREAS, the City staff will review the funding plan with the City's financial
advisors annually and update the funding plan in conJunction with debt issues as they
occur; and
WHEREAS, the City Council in to enter into a Master A. reement with Event
Facilities Fort Worth, Inc. by Decernber 31, 2015 regarding the construction and
operation of the Venue Project,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
1. That the City Council, reaffirrris its position that the City-owned Venue Project
will serve a public purpose and will be a public use that will increase
visitorship and tourisj�v in the City and the offerings available to citizen.s by
expanding public events space, sporting events and. entertainnient offerings, as
stipported by the voters in. the November 4, 2014 special election alpproving
and impletnenting Resolution No. 4327-07-2014 authori zing the Venue Project
and imposition of the Venue Taxes;
2. That the revised funding plan as outlined above is hereby adopted, subject to
annual review;
3. That the City Manager is authorized to prepare and execute an appropriate
Memorandum of Understanding with the Fort Worth Convention and Visitors
Bureau to document the impact of the local contribution to the Project
Financing Zone No. I during the term of its current contract, which is
scheduled to end on September 30, 2022, inclusive of all renewals;
4. That the City Manager is authorized to submit to the City Council appropriate
action items to effect the transfers associated with, Culture and Tourism Fund
as identified above;
5. That the City Manager is auth.orized to prepare the FY2016 -, F 201 budgets
in. accordance with this contribution schedule unless expressly changed by the
City Council; and
E. 'That the City Manager or any Assistant City Manager is hereby authorized to
act on. behalf of the City to implement the funding plan as outlined herein and
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to take whatever additional actions are required to do so.
ADOPTED this 4th day of August 2015.
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By: A 00 000 Cf
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Mary J. Kayser, City Secretary
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