HomeMy WebLinkAboutOrdinance 15325ORDINANCE NO. / ~~
AN ORDINANCE DESIGNATING A CERTAIN CONTIGUOUS
GEOGRAPHIC AREA IN THE CITY OF FORT WORTH AS "TAX
INCREMENT REINVESTMENT ZONE NUMBER SIX, 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.
WHERAS, the City Council of the City of Fort Worth, Texas (the "City") desires
to promote the development of a certain contiguous geographic area m the City, which is
more specifically described m Exhibit "A" of this Ordinance (the "Zone"), through the
creation of a reinvestment zone as authorized by and m accordance with the Tax
Increment Financing Act, codified m Chapter 311 of the Texas Tax Code (the "Code"),
and
WHEREAS, on or about September 13, 2002 the City provided written notice to
the governing body of each taxing umt that levies real property taxes in the 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, the governing body of each county and school distract that levies
real property taxes in the proposed reinvestment zone has waived the requirement
imposed by Section 311 003(e) of the Code that the Crty provide such written notice at
least sixty (60) days prior to the date of the public hearing; and
Page I
Ordinance Designating Tax Increment Reinvestment Zone Number Six,
City of Fort Worth, Texas
WHEREAS, the City has prepared a preliminary financing plan for the Zone and
provided a copy of that plan 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; and
WHEREAS, m accordance with Section 311 003(f) of the Code, the City
previously made a formal presentation to the governing body of each county and school
district that levies real property taxes m the Zone which, among other things, included (i)
a description of the proposed boundaries of the Zone; (n) 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 November 12, 2002 the City held a public hearing regarding the
creation of the Zone and rts 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 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 m a newspaper of
general circulation In the City on November 4, 2002, 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:
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Ordinance Designating Tax Increment Reinvestment Zone Number Six,
City of Fort Worth, Texas
Section 1.
FINDINGS.
That after reviewing all information before rt 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 (u) owners of real property m
the 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.
1.2. Development of the Zone will not occur solely through private Investment In the
foreseeable future.
1.3. Improvements m the Zone, including, but not limited to, those previously outlined
to the City Council and the governing bodies of all other taxing units that levy
real property taxes in the Zone, will significantly enhance the value of all the
taxable real property in the Zone and will be of general benef t to the City
1.4. The area within the Zone is contiguous. Among other things, the area is adjacent
to the Tnnrty River, but views of, access to and enjoyment of the Tnmty River
from downtown Fort Worth is seriously Impeded. In addition, the area within the
Zone contains, among other things, a surface parking lot partially situated within a
flood plain and an abandoned public housing complex of approximately twenty-
Page 3
Ordinance Designating Tax Increment Reinvestment Zone Number Six,
City of Fort Worth, Texas
four (24) acres. Taking all facts into consideration, the area wrthm 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 the
presence of (i) a substantial number of substandard, slum, deteriorated and
deteriorating structures, (ii) faulty lot layout m relation to accessibility and
usefulness by the general public, (iii) unsanitary and unsafe conditions, and (iv)
conditions that endanger life and property by fire or other cause. Therefore, area
wrthm the Zone therefore meets the criteria for designation of a reinvestment zone
and satisfies the requirements of Section 311 005 of the Code.
1.5. No more than ten percent (10%) or less of the property in the Zone is used
currently for residential purposes.
1.6. According to the most recent appraisal roll of the City, the total appraised value of
all taxable real property m the Zone and~m existing reinvestment zones m the City
does not exceed fifteen percent (15%) of the total appraised value of taxable real
property m the Crty and m industrial distracts created by the Crty, if any
1.7. 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 ZONE.
That the City Council hereby designates the Zone described m 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
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Ordinance Designating Tax Increment Reinvestment Zone Number Six,
City of Fort Worth, Texas
with the Code. This reinvestment zone shall be known as "Tax Increment Reinvestment
Zone Number Six, 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 terms of two (2) years each. Of
these eleven (11) members, each taxing umt 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 umt other than the City designates to the City either the name of the
member that the taxing umt wishes to appoint or the fact that the taxing umt wishes to
waive rts nght 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.
Section 4.
TERM OF ZONE.
That the Zone shall take effect upon the adoption of this Ordinance and terminate
on the earlier of (i) November 11, 2036 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 in full.
Page 5
Ordinance Designating Tax Increment Reinvestment Zone Number Six,
City of Fort Worth, Texas
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 m the Zone taxable by a
taxing unit for the year 2002, which is the year m 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 the percentage
of the tax increment, as defined by Section 311 012(a) of the Code, that each taxing umt
which levies real property taxes m the Zone, other than the City, has elected to dedicate
to the TIF Fund under an agreement with the City authorized by Section 311 013(f) of the
Code. The City shall not contribute any percentage of its tax increment produced from
property located m the Zone to the TIF Fund.
The TIF Fund shall be maintained m an account at the depository bank of the City
and shall be secured in the manner prescribed by law for Texas cities. In addition, all
revenues from (i) the sale of any obligations hereafter issued by the City and secured m
whole or m part from the tax increments, (ii) revenues from the sale of any property
acquired as part of a tax increment financing plan adopted by the Board, and (iii) other
Page 6
Ordinance Designating Tax Increment Reinvestment Zone Number Six,
City of Fort Worth, Texas
revenues dedicated to and used in the Zone shall be deposited into the TIF Fund. TIF
Funds 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 m the Zone.
Section 8.
SEVERABILITY.
That if any portion, section or part of a section of this Ordinance is subsequently
declared mvahd, 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 m any way be impaired or affected by such decision,
opinion or~udgment.
Section 9.
That this Ordinance shall take effect and be m full force and effect from and after
rts adoption.
AND IT IS SO ORDAINED.
ADOPTED AND EFFECTIVE // - / 2 ~ D 2
Page 7
Ordinance Designating Tax Increment Reinvestment Zone Number Six,
City of Fort Worth, Texas
APPROVED AS TO FORM AND LEGALITY
By
Peter Vaky
Assistant City Attorney
Date /1-12-02
M&C ~~'l3Fl(T~
Page 8
Ordinance Designating Tax Increment Reinvestment Zone Number Six,
City of Fort Worth, Texas
Exhibit "A"
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Map of Tax Increment Reinvestment Zone Number Six,
City of Fort Worth, Texas
(The Riverfront TIF)
Map and Boundary Description prepared by Gideon Toal, Inc.
Boundary Description of
Tax Increment Reinvestment Zone Number Six,
City of Fort Worth, Texas
(The Riverfront TIF)
Begpmm~g at a point which is the intersection of the south ROW line of Belknap Street and the
West ROW line of Henderson Street m Downtown Fort Worth, Tarrant County Texas, thence
North and northwesterly along the west ROW line of Henderson Street to a point where said line
intersects the current centerline of the Clear Fork of the Trinity River, thence
Easterly along said centerline of the Clear Fork to a point where said centerline intersects a
projection of the east ROW line of Taylor Street, thence
South along the east ROW line of Taylor Street to a point where said line intersects with the south
ROW line of Franklin Street, thence
East along the south ROW Ime of Franklin Street to a point where said line intersects the west
ROW hne of Houston Street, thence
South along the west ROW line of Houston Street to a point where said line intersects the north
ROW line of Belknap Street, thence
East along the north ROW line of Belknap Street to a point where said line intersects the west
ROW line of a Commerce Street to a point where said line intersects the south line of
Weatherford St., thence
West along the south ROW line of Weatherford St. to a point where said line intersects the west
ROW line of Houston St., thence ,
North along the west ROW line of Houston St. to a point where said line intersects the south
ROW line of Belknap St., thence
West along the south ROW line of Belknap St. to a point where said line intersects the east ROW
line of Taylor Street, thence
South along the east ROW lrne of Taylor Street to point where said line intersects the south ROW
line of Weatherford St., thence
West along the south ROW line of Weatherford St. to a point where said line intersects the east
ROW line of Cheery St., thence
North along the east ROW line of Cherry St. to point where said line intersects the south ROW
line of Belknap St., thence
West along the south ROW of Belknap St. to a point where said line intersects the west ROW line
of Henderson St., which is the point of beginning, said area containing approximately 2,770,332
square feet, or 63 6 acres.
Map and Boundary Description prepared by Gideon Toal, Inc.
City of FoYt Worth, Texas
Mayor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
11/12/02 G-13800 12RIVERFRONT 1 of 2
SUBJECT PUBLIC HEARING AND ORDINANCE DESIGNATING TAX INCREMENT
REINVESTMENT ZONE NUMBER SIX, CITY OF FORT WORTH, TEXAS
(RIVERFRONT TIF)
RECOMMENDATION
It is recommended that the City Council
Conduct a public hearing concerning the designation of Tax Increment Reinvestment Zone Number
Six, City of Fort Worth, Texas (Riverfront TIF) as specifically provided in the attached ordinance,
and
2 Adopt the attached ordinance that designates the Riverfront TIF, as specifically provided in the
attached ordinance, and that includes the findings of fact in support of such a designation, and
3 Appoint City Council member Ralph McCloud as chairperson of the Riverfront TIF's Board of
Directors for a term of one (1) year beginning January 1, 2003, as well as for the period of time, if
any, between the date that all initial Board of Directors positions have been filled and December 31,
2002
DISCUSSION
The proposed Riverfront TIF is located in a portion of north downtown Fort Worth adjacent to the Trinity
River and, among other things, includes the eastern half of the Tandy parking lot, the former Ripley
Arnold public housing complex and the Tarrant County Courthouse The exact boundaries of the
property located within the Riverfront TIF are described in Exhibit A of the attached ordinance
Under the City's Economic Development Program Agreement with RadioShack Corporation
(RadioShack) (City Secretary Contract No 27982), which served as a catalyst in RadioShack's decision
to locate its new corporate headquarters in downtown Fort Worth, the City agreed to use reasonable
efforts to create a tax increment reinvestment zone, or TIF, that encompassed the former Ripley Arnold
public housing complex, which RadioShack has an option to purchase from the Fort Worth Local
Development Corporation
The Riverfront TIF will be funded by taxing entities other than the City that elect to contribute all or a
portion of the tax increment generated by property in the TIF as a result of increased property tax
revenues resulting from the redevelopment of Ripley Arnold and the Tandy parking lot. Those TIF
funds will then be used to pay for public projects deemed necessary for redevelopment of property in
the vicinity of Ripley Arnold It is anticipated that TIF funds will also be used to pay for other public
projects that will revitalize that area of downtown The City's increment from property in the TIF will be
used to fund annual economic development program grants to RadioShack pursuant to City Secretary
Contract No 27982
r;h "~':
City of Fort Worth, Texas
Mayor and Council Communication
DATE REFERENCE NUMBER . LOG NAME PAGE
11/12/02 G-13800 12RIVERFRONT 2 of 2
SUBJECT PUBLIC HEARING AND ORDINANCE DESIGNATING TAX INCREMENT
REINVESTMENT ZONE NUMBER SIX, CITY OF FORT WORTH, TEXAS
(RIVERFRONT TIF)
The property within the proposed Riverfront TIF meets the criteria for designation as a reinvestment
zone because, among other things, of the presence of a substantial number of substandard, slum,
deteriorated and deteriorating structures, faulty lot layout in relation to accessibility and usefulness by
the general public; unsanitary and unsafe conditions, and conditions that endanger life and property by
fire or other cause Furthermore, the improvements proposed within the Riverfront TIF, as outlined in
the public hearing and in the preliminary finance plan developed for the TIF, will be a benefit to the land
within the TIF and to the City in general
Section 311 010(f) of the Texas Tax Code requires the City Council to appoint a chairperson to the
TIF's Board of Directors each year for cone-year term beginning the following January 1 In addition,
since designation of the TIF will take effect immediately upon adoption of the attached ordinance, it may
be necessary for the TIF to have a chairperson prior to January 1, 2003 It is recommended that City
Council member Ralph McCloud be appointed as the initial chairperson of the TIF Board
Notice of the public hearing was delivered to the governing body of each affected taxing unit and
published in a newspaper of general circulation at least seven (7) days prior to this meeting
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that this action will have no material effect on City funds.
CB k
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by• (to)
Charles Boswell 6183
Originating Department Head:
David Yett 7623 (from) APPROVED 11/12/02
ORD.# 15325
Additional Information Contact:
Peter Vaky 7601
Tom Higgins 6192