HomeMy WebLinkAboutOrdinance 159771 °.: 'a~
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ORDINANCE NO ~~~
AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE CITY OF
FORT WORTH AS `NEIGHBORHOOD EMPOWERMENT REINVESTMENT
ZONE NO 17 CITY OF FORT WORTH, TEXAS PROVIDING THE
EFFECTIVE AND EXPIRATION DATES FOR THE ZONE AND A
MECHANISM FOR RENEWAL OF THE ZONE, AND CONTAINING OTHER
MATTERS RELATED TO THE ZONE
WHEREAS pursuant to the Crty Council s adoption on April 22, 2003 of Resolution No
2938 (M&C C 19551) and amended on May 27 2003 by M&C G 13984 the City of Fort Worth,
Texas (the `City") has elected to be eligible to participate in tax abatement and has established
guidelines and criteria governing tax abatement agreements entered into between the Crty and
various third parties, as authorized by and in accordance with the Property Redevelopment and
Tax Abatement Act, codified in Chapter 312 of the Texas Tax Code (the `Code ') and
WHEREAS the City Council desires to promote the development of the area m the City
more specifically described in Exhibit A of this Ordinance (the `Zone") through the creation of
reinvestment zone for purposes of granting residential and commercial industrial tax abatement,
as authorized by and m accordance with Chapter 312 of the Code and
WHEREAS on May 27 2003 the Crty Council designated the Woodhaven Area as a
Neighborhood Empowerment Zone by Resolution to promote (1) the creation or rehabilitation of
affordable housing in the zone, or (2) an increase in economic development in the zone or (3) an
increase m the quality of social services, education or public safety provided to the residents of
the zone and
WHEREAS the Neighborhood Empowerment Reinvestment Zone No 17 is located
within the Woodhaven Neighborhood Empowerment Zone and
~-
WHEREAS the Neighborhood Empowerment Zone No 17 will promote the creation of
affordable housing m the zone and an increase in economic development in the zone and
WHEREAS on May 11 2004 the -City Council held a public hearing regarding the
creation of the Zone afforded a reasonable opportunity for all interested persons to speak and
present evidence for or against the creation of the Zone ("Public Hearing"), as required by
Section 312.201(d) of the Code and
WHEREAS notice of the Public Hearing was published in a newspaper of general
circulation in the City on May 4 2004 which satisfies the requirement of Section 312.201(d)(1)
of the Code that publication of the notice occur not later than the seventh day before the date of
the public hearing; and
WHEREAS m accordance with Sections 312.201(d)(2) and (e), notice of the Public
Hearing was delivered in writing not later than the seventh day before the date of the public
hearing to the presiding officer of the governing body of each taxing unit that includes in rts
boundaries real property that is to be included in the proposed Zone
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH, TEXAS
Section 1
FINDINGS
That after reviewing all information before rt regarding the establishment of
the Zone and after conducting the Public Hearing and affording a reasonable
opportunity for all interested persons to speak and present evidence for or against
the creation of 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 Chapter 312 of the Code and
1.2 That the boundaries of the reinvestment zone shall be the boundaries as
described m Exhibit A which is attached hereto and made a part hereof
1.3 The Zone meets the criteria for the designation of a reinvestment zone as set
forth m V T C.A. Tax Code, Section 312.202 as amended, in that the area is
reasonably likely as a~result of the designation to contribute to the retention
or expansion of primary employment or to attract mayor investment in the
zone that would be a benefit to the property and that would contribute to the
economic development of the mumcipalrty
1.4. Future improvements m the Zone will benefit the land included in the Zone
as well as the City for a period m excess of ten (10) years which is the
statutory maximum term of any tax abatement agreement entered into under
the Chapter 312 of the Code
Section 2
DESIGNATION OF ZONE
That the City Council hereby designates the Zone described m the boundary
description attached hereto as Exhibit A and made a part of this Ordinance for all
purposes as a reinvestment zone for purposes of granting residential and
commercial industrial tax abatement, as authorized by and m accordance with
Chapter 312 of the Code The Zone shall be known as `Neighborhood
Empowerment Reinvestment Zone No 17 City of Fort Worth, Texas" The area
within the Zone is eligible for residential and commercial industrial tax abatement
pursuant to Resolution No 2951 and M&C C 19551 and G 13984 as amended.
Section 3
TERM OF ZONE
That the Zone shall take effect upon the effective date of this Ordinance and
expire five (5) years thereafter The Zone may be renewed by the City Council for
one or more subsequent terms of five (5) years or less
Section 4
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.
Section 5
That this Ordinance shall take effect upon its adoption.
AND IT IS SO ORDAINED
ADOPTED AND EFFECTIVE `~~
APPROVED AS ~O FORM AND LEGALITY
By.
Assistant City Attorney
Date
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 5/11/2004 Ordinance No 15977
DATE Tuesday May 11 2004
LOG NAME 05UNIVERSAL REFERENCE NO C-20074
SUBJECT
Public Hearing for Designation of Fort Worth Neighborhood Empowerment Reinvestment Zone No
17 and Tax Abatement Agreement with Universal Health Services and Related Findings of Fact by
the City Council for Properties Located in the Woodhaven Neighborhood Empowerment Zone
(NEZ)
RECOMMENDATION
It is recommended that the City Council.
1 Hold a public hearing concerning the designation of 1 918 acres of vacant land as described in Exhibit
A as Fort Worth Neighborhood Empowerment Reinvestment Zone (FWNERZ) No 17 and
2. Adopt the attached ordinance to designate the area as FWNERZ No 17 pursuant to the Texas
Property Redevelopment and Tax Abatement Act, Tax Code Chapter 312, and
3 Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with
Universal Health Services are true and correct; and
4 Authorize the City Manager to enter into the attached Tax Abatement Agreement with Universal Health
Services for the property listed on Exhibit A in accordance with the NEZ Tax Abatement Policy and NEZ
Basic Incentives as amended
DISCUSSION
REINVESTMENT ZONE
One of the incentives a municipality can provide in a NEZ, according to Chapter 378 of the Texas Local
Government Code is an abatement of municipal property taxes for properties in the NEZ. The subject
property described in Exhibit A is being designated as FWNERZ No 17 so that the City can enter into a
tax abatement agreement under the guidelines set forth in the Tax Code
A public hearing is required by the Texas Property Redevelopment and Tax Abatement Act (the
Act) Notice of today's public hearing was delivered to the governing body of each affected taxing unit, and
published in the newspaper at least seven days prior to this meeting The Act requires the property
receiving a tax abatement to be located in a reinvestment or enterprise zone
The proposed area meets the criteria for the designation of a reinvestment zone contained in Chapter 312
of the Tax Code As a result of the designation the area will contribute to the retention or expansion of
primary employment and attract major investment in the zone that would be a benefit to the property and
contribute to the economic development of the municipality Further future improvements in the zone will
benefit the City after any Tax Abatement Agreements that may be entered into have expired
Logname OSUNIVERSAL Pace 1 ~f 2
The proposed FWNERZ No 17 expires after five years and may be renewed for periods not to exceed five
years
TAX ABATEMENT TERMS.
Kathy Walls President and Sole Proprietor of Universal Health Services is the owner of the property listed
in Exhibit A. The real property is located in the Woodhaven NEZ. Kathy Walls applied for afive-year
municipal property tax abatement under the NEZ Tax Abatement Policy and Basic Incentive (M&C
G13208R, M&C G13580 M&C G13662 and M&C C19551 as amended) The Housing Department
reviewed the application and certified that the property meets the eligibility criteria to receive NEZ municipal
property tax abatement. The NEZ Basic Incentive offers afive-year municipal property tax abatement on the
increased value of improvements to the qualified owner of any new construction within the NEZ. Universal
Health Services will invest, at a minimum $4 415 418 00 to construct a 23 000 square feet Inpatient
Hospice and Palliative Care Facility (Exhibit 'B") in the Woodhaven NEZ. The form of the Tax Abatement is.
attached as Exhibit 'C
Upon execution of the agreement, the total assessed value of the improvement used for calculating
municipal property tax will be frozen for a period of five years starting on January 1 2005 at the estimated
pre-improvement value as defined by the Tarrant Appraisal District (TAD) on January 1 2004 for the
properties as follows
Pre-improvement TAD Value of Improvements $ 0
Pre-improvement Estimated Value of Land $ 240 958
Total Pre-improvement Estimated Value $ 240 958
The municipal property tax on the improved- value of the properties is estimated at $26 735 per year for a
total of $133 675 over afive-year period However this estimate may differ from the actual tax abatement
value which will be calculated based on the TAD appraisal value of the property
The guidelines in the Woodhaven NEZ state that all applicants for NEZ incentives must have a support
letter from the Woodhaven Neighborhood Association and -the Woodhaven Community Development, Inc.
This project has been certified by both entities approving of the project.
In the event of a sale of the property the agreement may be assiged with City Council approval, to the new
owner(s) so long as the new owner(s) meets all of the eligibility criteria as stated in the NEZ Tax
Abatement Policy and Basic Incentives.
Letters were sent to the governing body of each affected taxing unit notifying them of the City's intent to
enter into the tax abatement agreement.
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that this action will have no material effect on City funds
TO Fund/AccountlCenters
FROM Fund/Account/Centers
Submitted for City Manager's Office by: Reid Rector (6140)
Originating Department Head. Jerome Walker (7537)
Additional Information Contact: Sarah Odle (7316)
Lo~name• OSLJNIVERSAL
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