HomeMy WebLinkAboutOrdinance 13919w~'~
ORDINANCE NO. ~ ~ ~ ~
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AN ORDINANCE APPROVING PROJECT AND FINANCING PLANS
FOR TAX INCREMENT REINVESTMENT ZONE NUMBER FOUR,
CITY OF FORT WORTH; TEXAS; AUTHORIZING A TAX INCREMENT
PARTICIPATION AGREEMENT WITH THE FORT WORTH
INDEPENDENT SCHOOL DISTRICT; AND OTHER MATTERS
RELATED THERETO.
WHEREAS, on November 25, 1997, the City Council of the City of Fort Worth, Texas
(the "City") approved Ordinance No 13259, establishing Tax Increment Reinvestment Zone
Number Four (the "TIF Zone") m accordance with Chapter 311 of the Texas Tax Code (the
"Act"), to promote development and redevelopment in the south side medical distract area of the
City through the use of tax increment financing; and
WHEREAS, in accordance with the Act, the TIF Zone's board of directors (the "TIF
• Board") has a roved project and financing plans for the TIF Zone and recommend their
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approval by the City Council, and
WHEREAS, the City and the Fort Worth Independent School Distract wish to enter into
an agreement setting forth the terms and conditions under which the School Distract will
contribute its tax increment into the TIF Zone Tax Increment Fund,
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
SECTION 1 That the facts and recitations contained m the preamble of this ordinance
are hereby found and declared to be true and correct.
SECTION 2. That the project and tax increment financing plans for the TIF Zone, as
• approved and recommended by the TIF Board at its meeting of August 30, 1999, and attached
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• hereto as Exhibit "A", are hereby approved by the City Council.
SECTION 3 That the City Manager and City Attorney are hereby authorized to execute
and deliver for and on behalf of the City a tax increment participation agreement with the Fort
Worth School District, pursuant to the provisions of the Act, in form and substance substantially
similar to the agreement attached hereto as Exhibit "B"
SECTION 4 That if any section, paragraph, clause or provision of this Ordinance shall
for any reason be held to be invalid or unenforceable, the invalidity or unenforceabilrty of such
section, paragraph, clause or provision shall not affect any of the remaining provisions of this
Ordinance.
SECTION 5 That this Ordinance shall take effect immediately from and after its
passage in accordance with the provisions of the Charter of the City of Fort Worth and rt is
• accordingly so ordained.
ADOPTED THIS DAY OF ,~. ,1999.
AT ST.
Gloria Pearson, City Secretary
APPROVED AS TO FORM AND LEGALITY.
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Assistant City Atto
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Exhibit "A
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FORT WORTH, TEXAS
REINVESTMENT ZONE #4
TAX INCREMENT FINANCING DISTRICT
Fort Worth Southside Development District
PROJECT & FINANCE PLAN
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August 30, 1999
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FORT WORTH
TAX INCREMENT FINANCE DISTRICT 4
TABLE OF CONTENTS
PAGE
CHAPTER 1 -INTRODUCTION
Tax Increment Financing 1
Project and Finance Plans 2
TIF Increment 2
Financing the Project 2
CHAPTER 2 -PROJECT PLAN
Background 3
TIF District #4 3
Existing Uses and Conditions 6
Land Use 6
Transportation g
Visual Characteristics 9
Historic Resources 9
Development Concepts 9
Projects by Category 12
Propose Changes of Municipal Ordinances 14
Non-Project Costs 14
Relocation Plan 14
CHAPTER 3 -FINANCE PLAN
Economic Impact Study 16
Tax Increment 1~
Background 1 ~
Projections 19
With and Without TIF 21
Project Financing 24
Project Elements by Category 25
Timeline Profile of Expenditures - 1999 thru 2006 --°-==~'°"~-
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CHAPTER 4 -TIF ENABLING LEGISLATION .
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CHAPTER 5 -APPENDICES ~7 C"n~ ~'~~''~ ~~i~)~
A. Fort Worth Southside Development District Strategic Plan - Executive Summary
B Preliminary Finance Plan
C. Increment Details By Taxing Jurisdiction - Exhibits I through N
D Chronology of Events
E. Ordinance No 12323 Creating Fort Worth TIF Distract #4
F Inter-local Agreements
G Resolution Appointing TIF District Board of Directors
• •
PAGE
EXHIBITS
A. Aerial photograph of neaz Southside of Fort Worth 4
B Map of TIF Boundazies 5
C. Land Use Map 7
D Fort Worth Southside Development District Concept Map 11
E. Graph of Taxable Real Property Value Change - 1994 through 1997 16
F TIF Increment Projections 20
G Tax Revenues With and Without Reinvestment Zone 22
H. Graph of Revenues With and Without Reinvestment Zone 23
I. TIF Increment Projections -Fort Worth Independent School Distract Appendix C
J TIF Increment Projections -Tarrant County Appendix C
K. TIF Increment Projections -City of Fort Worth Appendix C
L. TIF Increment Projections -Hospital Distnct Appendix C
M. TIF Increment Projections -Tarrant County Junior College Appendix C
N TIF Increment Projections -Water Distnct Appendix C
O Project Elements by Category 26
P Project Costing Assumptions 29
Q Project Implementation Timeline - 1998 through 2006 30
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CHAPTER 1
INTRODUCTION
Tax Increment Financing
A Tax Increment Financing District (T1F Distract) is an economic development tool used by
local governments to finance public improvements within a defined geographic area.
TIF Districts are created to strengthen existing positive conditions and attract new development.
The purpose of Fort Worth TIF No 4 is to-
• Attract new investment and encourage revitalization of the near southside of Fort Worth
which is an azea that will continue to decay without TIF financed infrastructure.
• Create redevelopment momentum that will create substantial financial gains to local
taxing ~unsdictions both during and beyond the hfe of the TIF
• Recreate an economically viable, mixed-use, central city neighborhood.
• Leverage the resources and energy of an existing community based revitalization
initiative, Fort Worth South, to recognize the goal of revitalizing the Distract.
• Serve as a catalyst for the revitalization of azeas adjacent to the TIF
The tax increment financing technique was first used in the 1970's m California to revitalize
deteriorated central city neighborhoods. TIF No 4 has been created for the same purpose.
Chapter 311 of the Texas Local Government Code is the legislation that governs Tax Increment
Financing.
A City may make an area eligible for tax increment financing by designating a "reinvestment
zone", also known as a "tax increment finance district" Designation of a TIF district usually
occurs after petitions from the owners of 51% of the assessed value of a certain geographic area
ask the City to create the district. A TIF distract may also be created without a petition of the
owners by direct action of the City Council. TIF 4 was created by such an action to avoid the
time consuming task of securing endorsement from the 1,330 affected property owners.
A TIF distract allows for the tax increment generated from appreciating property values within
the area to be dedicated to new public improvements within the same area. As the assessed
value of property within a TIF district increases over time, an increase in the taxes collected from
the additional value is captured in a tax increment fund. These funds are then used to finance
new public improvements with in the distract.
As specified by State law, a TIF District Board of Direa~ ors~mu"~t be appointed to oversee the
administration of the TIF distract and fund. Addrtionally,~~tate~,la~w re4quires,~th~t project and
finance plans be developed as planning and information tools in,4the ~admristration of the TIF
distract. ':: V t a ~ ~""~ ~ n~~ , ~,' ,x U
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Project and Finance Plans
The Tax Increment Finance Distnct Project and Finance Plans represent a study that projects
the potential sources and uses of tax increment dollars. An economic impact study and
overview is provided in the Finance Plan along with estimates on the potential revenue that will
be available to fund projects. The Finance Plan also outlines how TIF District increment may
be used and shows the time over which expenses will be incurred.
A project plan provides information on the current land uses within the distract and provides
information of the development to occur It also provides information on relocation of
individuals affected by the TIF District and costs associated with non-T]F District public
improvements. General, the items discussed in the Project and Finance Plans meet
requirements specified under State Law that govern Tax Increment Financing.
TIF Increment
TIF Distnct Tax Increment is created when new taxable development occurs within an
established TIF Distnct. After its creation, the appraised value of the TIF Distnct property
becomes the base value for the purpose of Tax Increment Financing. All taxes collected from
that base value continue to flow to the local government entities that tax within the distract.
Taxes collected from new taxable value within the TIF District become the source of the TIF
Distnct tax increment. This increment flows into the TIF District Fund which is managed by
the City's Finance Department.
The amount of increment that is captured in the TIF Distract Fund in dependent on the
participation of local taxing entities. A local taxing entity may choose to participate m Tax
Increment Financing by dedicating a portion of its tax increment to the TIF Distnct Fund. The
participation of an entity in Tax Increment Financing is accomplished through an inter-local
agreement between the entity and the City
Financing the Project
New public infrastructure investments within TIF Distnct #4 are expected to be funded on a
pay-as-you-go basis using available cash increment as it is created. At this time the Distnct
does not expect to use public debt instruments to finance improvements
The Distnct will enter into development agreements with investors, property owners, and
developers to reimburse over time the cash investments they make in new public infrastructure
associated with private development.
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CHAPTER 2
PROJECT PLAN
Background
•
In May 1995 the City Council adopted the Southside Medical Distnct Strategic Plan (see
Appendix A - Southside Medical District Strategic Plan -Executive Summary). This Plan
established the framework upon which the revitalization of 1,400 acres commonly known as the
Medical Distnct, located immediately south of the Central Business Distnct, would move
forward.
The Plan was sponsored by the City of Fort Worth, the Fort Worth Transportation Authonty,
and many private businesses located within the Distnct. This $150,000 two-year planning
initiative was significant m many aspects including the amount of input and review from
citizens, businesses, government, property owners and community stakeholders. It profiled the
history, trends, opportunities and challenges of the neighborhood, and most importantly
established a strategy for implementing the revitalization plan.
The plan envisioned the need to create a TIF to support and encourage pnvate investment. It
would allow the City to use its power of condemnation to acquire private property m order to
carry out anarea-wide redevelopment strategy for the distract. The principal activities of the TIF
Distnct were to provide funding for mayor capital improvements and to provide funding for
public infrastructure which encouraged private investment.
The Plan recognized that improvements m public infrastructure would be needed to attract new
investment. The cost of the required infrastructure exceed the City's normal funding amounts
and the improvements are needed in advance of the City's normal funding cycle
See Exhibit A -Aerial Photo of Fort Worth South
Tax Increment Reinvestment Zone Number Four -Established November 25, 1997
On September 23, 1997, The Fort Worth City Council passed Resolution No 2338 which set
November 25, 1997 as the date for a public heanng to be held before the City Council regarding
the designation of this property as a reinvestment zone At the conclusion of the public hearing
on November 25, 1997 the City Council passes Ordinance No 13259 creating Fort Worth Tax
Increment Reinvestment Zone Number Four
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Prior to the City Council approval, the Zone received support and resolutions-of ~intent'Gto
participate from other taxing entities, including the Fort Worth Inde~erident ~Sch6ol~~Distnat,
Tarrant County, The Tarrant County Hospital Distnct, Tarrant Cou~lty Junior.}C''olilegeySyst m,
and the Tarrant County Water Control District #1 ~~ ~~~ ~J~U'~~~ ~;~~j,~~
The 25 year term of the District took affect on January 1, 1997 It is scheduled to terminate on
December 31, 2022 or when the incremental tax revenues contributed to the Distract reach $60
million, whichever comes first.
See Exhibit B -Map of TIF Boundaries.
•
TIF District #4 has been created to provide funding for new public infrastructure to support the
revitalization and redevelopment of this area. The boundaries of TIF District #4 are slightly
smaller than the Development District, but for practical purposes the two are congruent. Fort
Worth Southside Development District, Inc is a 501(c)(4) non profit development company
that carries the same name as the geographic district. The organization Is commonly known as
Fort Worth South, Inc It was created In May 1995 to drive the revitalization of the area
initiated the creation of Reinvestment Zone 4
Existing Uses and Conditions
The near southslde Is one of the oldest neighborhoods In the City, and has experienced
significant changes to its original characteristics.
The natural topography of the District Is generally flat, with no mayor land forms or drainage
patterns that would provide significant llrrutahons or constraints to development. The physical
attributes of the District are therefore influenced almost exclusively by the historic development
patterns and other human-related factors. Following Is a summary of these characteristics.
Land Use
The Southside Medical District Is a large area consisting of a diversity of land uses
ranging from single-family homes to high-rise medical facilities to industrial and
warehousing uses Exhibit C (Land Use Map) identifies generalized land-use zones.
Following Is a summary of these land uses.
• Mayor medical institutions and associate support uses are generally located In three
core areas as described below Uses In these core areas include high-nse medical
facilities, emergency rooms, doctors' offices, medical supply establishments and
other support services.
The northwest area Is the largest and includes Plaza Medical Center, Cook
Children's Medical Center, Harris Methodist Fort Worth Medical Center, Vencor
Hospital Fort Worth, and Medical Group of Texas. Located In the southwest
quadrant of the District are All Saints Hospital and the Moncrief Cancer Center
John Peter Smith Hospital and Heritage St. Joseph Garden's are located In the
southeast quadrant.
• Retail uses are generally limited to restaurants and small shops In one and two-story
buildings with a noticeable absence of mayor grocery and department stores.
Smaller retail uses are generally located along mayor arterials.
• Recent revitalization along Magnolia Avenue has resulted I the:,development of
significant retail/restaurant uses along this comdor ;%'""',~•~~:= ! '` ~~;''~ `;,.';~1
Office uses are generally associated with and located in cl se p~i~oiximlty ;to~ the
medical institutions. Uses range from small office bulldin s t~o~idarger, ~riid-risse
office buildings "~""""""-°-~~~-~-~~
• Industrial uses are concentrated along the northern and eastern sides of the District.
Uses Include light industrial and warehouse uses.
• Single-family residential uses are generally concentrated In two zones, one south of
Rosedale and the other north of Rosedale
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•
The azea south of Rosedale, particularly that area encompassed by the Fairmount
Historic District, has shown recent signs of revitalization and includes the most
stable neighborhoods of the District. Designation of this area as a National Register
Historic District has contributed to the recent revitalization. While single-family
homes are the predominant land use, multifamily buildings are scattered throughout
the area.
The northern residential zone Is generally less stable and has experienced significant
decline and intrusion of incompatible uses such as industrial. This Is particularly
true for the residential area between Main Street and the railroad tracks, where vacant
land and abandoned buildings predorninate Residential uses are generally linuted
to single-family homes.
Single-family uses are also located east of the Burlington Northern Sante Fe and
Union Pacific Railroad tracks as well as east of Interstate 35
• Multifamily residential uses aze scattered throughout the District and range from
small, independent apartment buildings to a high-rise apartment towers.
Community facilities are public and serrupubllc facilities which serve and promote
the safety, educational welfare, recreational, entertainment and spiritual needs of the
community These uses include the numerous schools and churches that are
scattered throughout the District. Public schools included Trimble Technical High
School, Van Zandt-Guinn Elementary School, DeZavala Elementary School, and
Lilly B Clayton Elementary School, and the Accelerated High School.
• Dedicated park land and recreational facilities aze llrruted to Fire Station Park (1.5
acres), north of Allen and west of Hemphill, and Fairmount Park( 75 acres) In the
Fairmount Historic District.
• Vacant and undeveloped land Is scattered throughout the District. Vacant parcels
tend to be fewer In the areas to the south and immediately adjacent to the hospitals
and In greater number In the Industrial and single-farruly areas to the north and east.
This Is particularly true for the area between Main Street and the railroad tracks.
About 30% of the 1,400 acres is vacant land.
Transportation
The Southslde Medical District currently exists with a framework for roadway, public
transportation, and pazking facilities that offer both challenge and opportunity for the
future The proximity to the CBD, the reconstruction of Interstate 30, the creation of a
rail mass transit terminal at the T&P Depot, and the contln`ued redevelopment=of=-the
District itself, suggests a sI nificant transition enod. ~ ~"~ ~`"'" i ~ :~ f~~~c ^~,f' ~ ~~
Public Transportation In the District is provided by the Frnrt Worth~~Transportatl~n
Authority's five primary bus routes and by MITS vehlcle~. [~`~ia u""~,~N~ ~' +tl ~`~~~o
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Parking in the northwest quadrant Is considered adequate, but future growth In the
medical sector Is requiring consideration of additional parking structures. There are
parking deficiencies around John Peter Smith Hospital and at scattered office or
restaurant locations within the area.
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Visual Characteristics
The visual and landscape quality of an urban environment contributes significantly to the
quality of that environment and the image that people have of that azea. Following is a
beef summary of the visual and landscape characteristics of the District.
• The most significant view within the District is of the downtown Fort Worth
skyline.
• Significant "landmazk" buildings within the District aze limited to high-rise
medical facilities, particularly Harris Methodist, Cook Children's, Plaza Medical,
John Peter Smith and St. Joseph Gardens. In addition there are a number of
significant historical structures.
• Along most arterial streets, inconsistent land uses, azchitectural chazacter,
building set backs, and streetscape treatment contribute to the lack of quality
street environments and the inability of these streets to establish strong urban
form.
• Overall, the District lacks consistency in landscape treatment, resulting in the
absence of readily identifiable image or identity Significant landscaped spaces
are limited to azeas within the campuses of the medical institutions and on a
limited number of tree-lined street in the older residential neighborhoods.
Historic Resources
The Distract has more than 100 structures selected or eligible for the National Resister
of Historic Places.
Development Concepts
Lack of a strong land use policy and supporting zoning has contributed to deteriorating land
values and substantially declining residential base within the District. The conceptual plan for
the revitalization of the Development District is based on the need for a rational land use pattern,
reinforced by zoning It will provide a foundation for growth and stability, as well as a
framework within which both short- and long-range decisions aze made about physical
development of the District. Elements addressed in the plan include land use and
redevelopment opportunities, urban design and open space, and transportation and pazking (see
Exhibit D -Development Concepts)
The Strategic Plan has been developed as a guide for the revitahzation~arad=futureRdevelol
of the District and surrounding neighborhoods. The physical plannng,conc.eptsi~th;at ser
the framework for the plan are as follows 'y" ~ ~ ~ ~~"~- ~•~~ ~ `> ~.':
• Reinforce existing medical institutions by providing opport nrt~ies for expansion
encoura m the develo merit of medical-oriented services m close~'~`i•o'xiriiit' b:.'(~
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• Stabilize and enhance existing viable neighborhoods by encouraging infill or
appropriate uses and prohibiting development of incompatible uses.
• Provide additional opportunities with the development of a rnixed use/residential district
at Hemphill Street and Rosedale Street.
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• Provide an econorruc stimulus for the existing Magnolia Avenue commercial corridor by
encouraging the development of office and residential uses in areas immediately
adjacent to the comdor
• Provide for the development of acommunity-oriented retail center to serve the needs of
Distract employees and residents.
• Encourage the development of high-quality, freeway-oriented commercial development
along the planned realignment of Interstate 30
• Provide for new business growth and job creation within the District through the
establishment of a Technology Park and Vickery Business Distract.
• Provide for long-term, moderately priced hotel accommodations.
• Encourage a stimulus for econorruc revitalization of the Evans Avenue Comdor by
encouraging "freeway" oriented development at the Rosedale Street interchange with
Interstate 35W
• Establish redevelopment opportunities that will serve as a catalyst for the revitalization of
the District and surrounding areas.
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Projects by Category
The following list of projects has been compiled from information in the Southside Medical
District Strategic Plan (Sasaki & Associates -May 1995) and from the ongoing work of Fort
Worth South, Inc.
It is a list of potential public infrastructure projects that support the redevelopment of the
Reinvestment Zone and could be financed by the increment projected over the 25 year term of
the TIF These investments would serve as an incentive for private sector investment.
The nature of this revitalization project will require project and financing flexibility to effectively
stimulate reinvestment. They are grouped by category to suggest the scope of planned
investments.
The following list includes most of, but not all, likely projects.
1 Residenrial
30,000 people work in the Medical District. 2% of that population also live in the area.
A survey of workers indicated that 17% would live in the area if suitable
accommodations were available This factor places new residential construction high on
the list of priorities for the TIF If we are able to bang back residents the other elements
of the master revitalization plan will also begin to develop TIF expenditures will be
made on public infrastructure placed in the public right of way that supports the
construction of new residences, ie curbs, sidewalks, landscaping, fighting, utilities, etc.
Multi-Family, New /Moderate Income Rental Apartment Communities
Multi-Family, New /Market Rate Rental Apartment Communities
Townhomes for Purchase -Oleander Walk -Hurley to College
Single Family Homes -Vintage Collection
2. Retail
As the number of people living m the District grows the need for retail services will also
grow Actually these two sectors will develop together TIF resources dedicated to the
retail sector will focus on encouraging investors to develop those services needed by the
residents and employees of local businesses.
Rosedale / Hemphill Neighborhood Shopping Center
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Infrastructure, utilities, parking ~~,~ ~~ „~ ; ;~, ~:~~''i c,~
Village Square -One acre park with surrounding 10-20, 00-~f ~ret'ail ~F;.~t~r-S!,-W
Plaza with fountain, landmark, landscaping, etc ~~0 1~~~Ui~~ 1~9 ~"l~~~o
3 Business Development Sites
With the enticement of financial support from a TIF we anticipate interest from
developers who see value in developing vacant and underutilized land. Three high
potential projects are identified below
Vickery Boulevard Business District -between Henderson & Main
Hotel conference Center
Technology Park -East of South Main Street
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4 Streetscape /Boulevard / Parkways /Gateways
Magnolia Street -Hemphill to South Main
Oleander Street -Hurley to College
South Main Street -trees, lighting, sidewalks
Rosedale Street -landscaped median & parkway, irrigation, utilities
Vickery Boulevard -landscaped median and parkway
Hemphill Street -landscaping
Pennsylvania/Hattie Streets -landscaping
Henderson Avenue -Intersection & boulevard improvements Pa. & Rosedale
Other Streets - Sumrrut, Eighth, Jennings, Allen, & Evans
Street Furniture
Benches, Public Art, Sculptures, Trash Receptacles, Transit Shelters
Decorative Lighting not included in other projects
Gateway features and signage to signify entry into the Distract at:
Sumrrut Avenue overpass of I-35
Henderson at railroad underpass
Hemphill at railroad underpass
Jennings at railroad underpass
South Main at railroad underpass
Hattie at I-35
Rosedale at I-35
Allen at South Main
Hemphill at Allen
Eighth at Allen
Rosedale at Forest Pazk
5 Parks Goal to create 50 acres of new public & private green spaces
Pocket and linear parks throughout the Distract incorporated into projects
Plant It 2000 treescape -John Denver Foundation, Cancer Survivors Park
Village Square -Plaza features, Gazebo and Landmark Tower
Trimble Technical High School -Recreational Park /Playing fields
Trolley Stops -Within transit linkages to Downtown
6 Schools
The quality of the facilities on the school campus's and m the areas immediately
adjacent to the schools within the Distract need to be improved. TIF funds can be used
to supplement FW Independent School District capital spending tomexpand~ir~np_r-ov~_
supplement these facilities. ~ J~r~~~ ~~~~, ~~_;~~~ ~~rjn
7 Signage !~ ~U~ ~i` ~r~~~rt~~%~~mG~~'
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Employ city wide arterial directional and informational signage; asssuggeszedm ~the~
Linkages Study within Distract.
8 Parking Structures
Village Square -Shared residential & retail parking facility to support Magnolia retail
activities.
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9 Administration
•
Expenses in this category reflect the cost of managing and admunistenng the TIF
District.
Proposed Changes in Municipal Ordinances
At the current time the TIF Distnct does not envision changes in building codes, zoning
categories, or other municipal ordinances. However, the City is developing a new
Comprehensive Plan which will reflect the development concepts and land use suggestions of
Fort Worth Southside Development Distract.
Non-Project Costs
The nature of TIF District #4 is that there will be purchases and investments made across many
use categories and over a large geographic area. TIF #4 is the largest reinvestment zone in
Texas Almost all of the investments made by the TIF will have "non-protect costs", ie
expenditures on related protects that will be receive financial participation from either public or
pnvate entities.
However, it is not possible to quantify the non-protect costs at this time, other than to say that
they are expected to be far greater than the TIF costs on any single protect.
An example of a specific protect that will serve to further define the challenge of identifying
specifically non-protect costs is the State/City protect to widen West Rosedale Street from a
four lane street to a six-lane divided boulevard between Forest Park Boulevard and I-35 The
$36 6 million protect is funded 50/50 by the state and city Funds are not available to landscape
the median and parkway along the new street, estimated to cost $1 6 mullion. The TIF could
chose to participate m the cost of landscaping the new boulevard, but this is an issue for future
consideration by the TIF Board of Directors. If the TIF agreed to assume a portion of the cost
of landscaping on this protect the related non-protect costs would be $36 6 mullion.
Another set of potential investments aze to improve facilities on or adJacent to public school
campuses within the TIF District. TIF expenditures would be made in connection with other
expenditures by the Fort Worth Independent School District. The specific ISD related projects
have not been determined but will be made over time as TIF funding is available and ISD needs
are matched to other developments in the District.
Relocation Plan
As set forth in Section 311 011 in the Tax Increment Financing Act of the Tax Code, the Protect
Plan for the Fort Worth Reinvestment Zone Number Four must include the following element:
A statement of a method of relocating persons to be displaced as aaresult of
implementing the plan. U~~~jC~`~,,IL lrcj~i~~,~~i~
The protect plan anticipates that there will be no residences or busin ss~~~e~ci~strng,~m'.-fir;
the protect development azea of the reinvestment zone when development-actrvitres ~= ~~
commence. If actions by the TIF result in relocation of any persons th~ ~Resdent'al~ `~
Anti-displacement and Relocation Assistance Plan for the City of Fort Worth will
govern their relocation.
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While the need for relocation is not envisioned, it is acknowledged that in the event
such relocation becomes necessary in carrying out the public improvements funded
by this TIF District, such expenses will be the obligation of the District. The
relocation program is adrrunistered by the City's Housing and Human Serves
Department. Should such a need arise, persons may appeal their cases through the
established appeals process.
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CHAPTER 3
FINANCE PLAN
Economic Impact Study
Fort Worth Southside Development District is located immediately south of Downtown Fort
Worth. Its neighborhoods developed early m the City's history and it is now home to Tarrant
County's largest concentration of hospitals and out-patient medical services. Manufacturing
and distribution, residences, retail services and schools give the area a diversity of activities. It is
the Tarrant County's second lazgest employment center with over 30,000 employees (Fort
Worth CBD has 40,000 employees)
Despite its location at the crossroads of regional freeways and dramatic growth of the health
caze industry, taxable real property values in the azea have not yet shown the resurgence since
1994 of either Tarrant County or the City of Fort Worth. Exhibit F illustrates the divergence of
taxable property values since 1994 From 1994 to 1997, Tarrant County taxable real property
values rose 23% City of Fort Worth values rose 16% Fort Worth South values fe118%
u~~~~~9~,~ G'~~~~~G?D
~~~~~~ ~c~~~c~~~a~>~
~~0 1J"~'lL~~~,` ;f ~ Q L~,L~ n
Exhibit E
16
Stakeholders in the revitalization project appreciate low real estate prices and appraised values.
They see the prospects of economic growth in this sleeping market as developers and
consumers become aware of economic opportunities and a community drive powering Fort
Worth South.
Another measure of the depressed market and readiness for redevelopment in this significant
part of the City and region is the high percentage of vacant land. Tax records indicate that 22%
of the privately owned land area in the reinvestment zone is vacant land with no structures of
material value.
The Fort Worth Southside Development District has created aowner-driven program to lift
itself by the bootstraps. With organizational structure similar to Downtown Fort Worth, Inc.,
Fort Worth Southside Development District, Inc has been in existence since 1996 Fort Worth
South is a 501(c)(4) nonprofit, private, member funded operating corporation. It is associated
with a 501(c)(3) nonprofit foundation, Historic Southside, Inc founded in 1985, to support
redevelopment.
A three party effort sponsored by the City of Fort Worth, the Fort Worth Transportation
Authority, and the businesses in the Medical District funded and produced a strategic plan for
the community in May 1995 Goals for Fort Worth South have included creation of a Tax
Increment Financing program for financing of public improvements.
Owners of property in the Southside community believe the area will realize more of its strong
potential for economic development then tax increment financing can be used to attract private
redevelopment. With tax increment financing a developer may construct approved public
improvement and anticipate reimbursement from the future tax flows generated by the
associated development.
Tax Increment
Background
Exhibit F (TIF Increment Projection) presents the projected value of real property in TIF #4
over the 2511fe of the reinvestment zone as well as the projected incremental cash flows that
would flow to the TIF fund assuming full participation by the six taxing jurisdictions.
The exhibit reflects actual 1998 Tarrant Appraisal District (TAD) property values which
exceeded 1997 values by .58% This contrasts with a history of declining values in earlier
years It also reflects the feeling of the community that the trend of declining property
values has fumed posrtrve
The cash flows are a product of the following variables.
• The base year value of real property in the zone,
properties,
• Annual changes in taxable value of the zone,
• Participation of the taxing ~unsdictions,
• Annual changes in tax rates,
• Collection rate
17
•
Looking at the history of Southside appraised value trends and looking forwazd, it is
possible to construct a forecast of rates of change in real property values. The change in
market appraisal expressed in Exhibit F (TIF Increment Projection), and m Exhibits I
through N (TIF Increment Projections for each taxing jurisdiction) which are presented in
the Appendix C, reflect the following factors.
• After years of decline, aggregate taxable real property values determined by TAD
have nsen each year after 1994 for Tarrant County and Fort Worth. Average annual
value increase rates in the City since 1994 have exceeded 5%
• Real property valuations by TAD within the proposed reinvestment zone showed
some recovery of values in 1995, but declines for 1996 and 1997
• Real estate experts estimate that national values of real property have grown 3% to
5% in 1997 and 1998 More distant projections are anyone's guess, if real estate is
to remain an attractive investment alternative, property values need to out pace the
consumer price index, which has been increasing approximately 3% a year
• Because the Fort Worth economy is anticipated to equal or better the growth rate of
the national economy for the intermediate future, real property values in the area
should continue to grow at or above national rates.
• A reasonable forecast for property values in Fort Worth South is that taxable values
will generally nse as regional values rise, but to a lesser extent, based on (a) recent
history of value changes, (b) the aging public infrastructure in the proposed
reinvestment zone and (c) current popular perception among consumers and
developers that the zone is stagnant. A fair long-teen forecast for the Fort Worth
south area, with status quo conditions (no tax increment financing), is for average
annual growth of taxable real property of only 1% into the indefinite future.
• It is possible that market values of real property in the reinvestment zone will dump
at the news of tax increment financing for public improvements within the zone, but
a more conservative forecast is that zone values will rise at a slow 1% rate through
1999 If a positive cash flow for the TIF fund is established in 1998 and 1999, a
new development using TIF funds coup appear on the tax roll in 2001
From 2001 through 2010, average annual change in taxable values of the zone with
tax increment financing is estimated at 5% This represents addition of roughly $9
million (m 1998 dollars) of new real property value in addition to a 1% appreciation
of the previous year's value of the zone This added value could come from any
combination of new construction or appreciation. V~~~~~ ~'}`i~ ~~.,C~~i~~ ~1
Exhibit F assumes that the annual growth rate sl~ws- oer4~%;~~r~ol'isr~%~~20~11 hrough
l., ~~~ u c~~.: U ~~au~v~~;: ~
2015, as current cash flows to the TIF fund may have been,otiliaated fo~ debt service
IS'~ ~~~~ID('pIC1~aJ~ a'~~~bf
on notes of developers with previous projects. opefull~!;. pn.or actvrt in the zone
before this time will have started a trend of priva e investment and future developers
will require diminishing assistance from the TIF fund. For the final five years of the
TIF fund's life, the annual growth assumption settles to a modest 3%, where it
remains for the ten years after the sunset of the TIF fund.
18
Projections
~J
This set of growth rate assumptions implies a conservative (and attainable) volume or real
estate construction in the zone during the life of the TIF program. Assurrung a background
appreciation rate of 1% for real property, the forecast market value of taxable real property
in the zone after twenty-five years can be achieved by taxable new construction during that
time. The forecast cash flow to the TIF fund is approximately $51 million, measured in
1998 dollars.
This ratio of new construction to TIF cash flow is approximately 2.8 1 This ratio is
conservative by companson with the roughly 5 1 ratio of construction to TIF revenue for the
State-Thomas TIF in Uptown Dallas or the 3 6 1 ratio for Mesquite's Rodeo City TIF pro
forma.
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With and Without the TIF
Although Exhibit F presents an accurate simple forecast of real property tax revenue from
the reinvestment zone to the TIF fund and participating junsdictions, Exhibit G presents a
more thorough picture of how the reinvestment zone affects cash flow Exhibit J introduces
supplemental business personal property (BBP) tax flowing to taxing units from the zone
Texas local governments levy ad valorem taxes on two types of property real property and
business personal property A TIF fund is not entitled to any increase in BPP tax at any
time Consequently, when a T1F program succeeds at attracting new investments to the
reinvestment zone, all increases of BPP value aze taxable by the taxing units. The taxing
units retain all the BPP tax.
Exhibit G & H (Tax Revenues With and Without Reinvestment Zone) present this
information in both spreadsheet and graphical formats.
The estimated supplemental BPP tax flowing to taxing units is sufficient to limit the annual
property taxes foregone by the five combined jurisdictions to less than $170,000 in any
year After twelve yeazs, anticipated annual ad valorem tax flowing to participating
jurisdictions will exceed the tax flows anticipated without the reinvestment zone and tax
increment financing.
A more detailed assessment of the BBP factor is covered in the Preliminary Financial Plan
prepazed by Stein Planning and Management (Appendix B)
n~`
~~O~~~l~~ G~~~ ~U4~
C a~i ~~~'~~~G'~5'~°
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.... ,~».,.,......,.........,.4....
21
•
Project Financing
Dunng the formulation of Fort Worth TIF #4, it was never anticipated that the incremental
cash flow from the District would repay municipal bonds sold for the purpose of
constructing new public infrastructure.
It is expected that the TIF District will enter into agreements with private developers to
secure reimbursements for their cost of constructing public infrastructure associated with
their private development project.
It was also anticipated that TIF funds would be spent as they were available to accomplish
the elements of the Project Plan.
As of August 31, 1999 TIF District has entered mto no agreements and has no financial
obligations.
iv)~~'~~C~e, ~, ~plrc',I^~lU~~~~
~I(.; U_~5~.; UUc
(~:l~U`~llr Cr~~~:U`~p~l[~ii~I~C)`/(/~17
~lla JUr~`~i'Ir~~llg ~~u~llllo
24
•
Project Elements by Category
The following hst of projects (Project Elements) compose the Fort Worth TIF #4 Project Plan.
It has been compiled from information drawn from the Southside Medical District Strategic
Plan (Sasaki & Associates -May 1995) and from the ongoing work of Fort Worth South,
Inc.and then stakeholders.
It is a list of potential public infrastructure projects could be financed by the TIF increment and
would serve as incentives for private sector investment. The costing assumptions for these
estimates aze detailed in Exhibit 0 (Project Costing Assumptions).
The projects aze grouped in categories of similar ty. pe. A summary report of costs is attached.
A comparison of projects to be initiated within the first eight years of the TIF District and the
anticipated increment is reflected in Exhibit P (Project Implementation Timeline - 1998 through
2006)
d\:. ~~V7tl ~~.~~. ~. ~..~~'U:r~~~e Y
25
l~J
Project Elements by Category
Exhibit O
1. Residential Development $2,700,000
Multi-Family, New Low Moderate Income Rental Apartment Community $860,000
Multi-Family, New Mazket Rate Rental Community
Village Squaze - 250 to 300 units ($2,500 /unit) $750,000
Boulevard Apartments - 150 units ($2,500 /unit) $380,000
Townhomes for purchase
Oleander Walk -Hurley to College
Public ROW, design, construction, irngation, trees
Three pocket pazks (60'x60') @ $42,000 $130,000
Nine Block Faces on two sides of street @ $15,750 $300,000
Lighting $180,000
Single Farruly Homes -New Infill
Vintage Collection - 50 homes
2,500 lineal feet of Curb, Trees, Sidewalks, Lighting, etc. $100,000
2. Retail Development $900,000
Rosedale / Hemphill Neighborhood Shopping Center $500,000
100,000 sf total including a 35,000 sf Grocery Store and Fast Food Retail
Total Development Cost = $95 /sf
Vacate streets, Infrastructure, Utilities, Pazking
Village Square $400,000
One acre Park space with surrounding 10-20,000 sf retail
Plaza with fountain, landmazk, landscaping, etc.
Land acquisition plus improvements
3. Business Development Sites $10,000,000
Vickery Boulevard Business District $5,000,000
Combined blocks along new Vickery between Henderson & Main
Hotel/Conference Center and Commercial Offices - 500,000 sf
Technology Park - 15 acres, 250,000 sf, 2 to 3 story structures $2,000,000
Total Development Cost - $20 mullion
Adaptive reuse of existing buildings along South Main with expransions ~ ~ r ^~fr~,r
Public Structures ~~~'~~~~;~~~~~~ U`_L~"~-~~~ ~$~ ~ ,000
Other ro ects v~~;,,~ Cr ,,~-rr;;~,4~, 47
p ~ ~` $2 500,000
U C~~ a ~~i~ 1!ru'i~ ~
4. Streetscape /Boulevard / Parkways /Gateways f~ n'rt`~ r~'`~
~'{I~~'~''`V~,.. ~ ~.~~~,8U y,000
Magnolia Street $1,000,000
Extent existing streetscape from Hemphill to South Main
Oleander Street $0
Between Hurley and College -pocket parks and landscaping (See Section 1)
South Main Street $700,000
Trees, lighting, sidewalks - 14 Blocks 400' @ $25,000 on two sides
26
Rosedale Street
Landscaped median and pazkway, street trees, and irrigation
Relocate utilities underground - TU Electnc - TIF contribution unknown
Vickery Boulevard
Landscaped median and pazkway - 16 Blocks @ 400' @ $25,000 x 2
Hemphill Street
Landscaping - 26 Blocks @ 400' @ $25,000 x 2
Pennsylvania / Hattie Streets
Landscaping - 20 Blocks @ 400' @ $25,000 x 2
Henderson Avenue -Total project cost $1.3 million
Intersection Improvements at Pennsylvania - $215,000
Construct four lane boulevard Pruitt to Rosedale - $200,000
Other Streets
Summit Avenue
Eighth Avenue
Jennings Avenue
Allen Avenue
Evans Avenue
Street Furniture
Benches, Public Art, Sculptures, Trash Receptacles, Transit Shelters
Decorative Lighting
$10,000 per Block on two sides of the Street
Lighting not included mother projects
200 Blocks @ $10,000 per block face
Gateway Features
Includes canopy and ornamental Trees, Signage, Monumental Gateway
Structures and Bollards to signify entry into the Distnct.
Summit Avenue overpass of I-35
Henderson at railroad underpass
Hemphill at railroad underpass
Jennings at railroad underpass
South Main at railroad underpass
Hattie at I-35
Rosedale at I-35
Allen at South Main
Hemphill at Allen
Eighth at Allen
$2,500,000
$800,000
$1,300,000
$1,000,000
$500,000
$1,500,000
$1,000,000
$2,000,000
$500,000
Rosedale at Forest Park ~ ~' ._.,._.~.,~..~.
5. Parks
r, ~, (('' rr
ti n~.,~+i~' ID
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Goal of 50 acres of open green space ~~j~ ~~u~~~ ~~~~~ ~(`~~ $12,500,000
Land acquisition @ $250,000 per acre
Landscaping @ $100,000 per acre
Pocket and Linear parks throughout the Distnct Incorporated into projects $250,000
Plant It 2000 -John Denver Foundation - treescape
Cancer Survivors Park
Village Square $250,000
Plaza Features such as Gazebo and Landmark Tower /Carillon
Trolley Stops $500,000
Within District on transit linkages to Downtown
27
6. Schools $15,000,000
Enhance public education facilities at the following locations.
DeZavala Elementary School
Tumble Technical High School
Lilly B Clayton Elementary School
Van Zandt Guinn Elementary School
Accelerated High School
New elementary school campus
7. Signage $100,000
Arterial Directional and Informational Signage
8. Parking Structures $3,500,400
Village Square $3,500,000
Shared Residential & Retail Parking facility associated with Village Square
350 spaces, Two Level, Free to User, Cost - $15,000 /space
9. Administration $Z,a14,444
Expenses associated with managing and administrating the TIE District.
TOTAL $60,000,000
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28
Project Cost Assumptions
Exhibit P
Multifamily Infrastructure Cost
Curbs /Gutters
Trees @ 30' spacing
Sidewalks
Irngation (imtially) to establish trees
$2,500 per dwelling
Pocket Park Assembly (each) $42,000 each
Land Purchase 3,600 sf @ $8 00 per sf $30,000
Landscaping / treescape @ $2.50 per sf $10,000
Irrigation @ $.50 per sf $ 2,000
Parkway Landscaping
Trees at 30' Centers
Imgation
Sidewalks
Parkway Lighting
Lamps
Land Assembly -Parks
Park Land
Landscaping
$15,750 per 400' Block Face
15 per 400' Block Face $ 6,750
400 Linear feet $ 2,000
5' wide @ 400 LF $ 7,000
$10,000 per 400' Block Face
8 per block @ $1,200 ea $10,000
$2.50 per SF - Assumes streets /condemned excess land
$2.50 per SF - Trees, irrigation, etc
Parking Structures
Two Floor Simple concrete frame structure @ $10,000 per space mclu ingacirculation~„
One floor above grade ~~~~~~~~!;~ ~r_~~~LL~~
Three Floor Concrete /Steel Frame @ $12,500 per space ~0~~ e'~~~ G~~~~~
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30
•
EXHIBIT B
STATE OF TEXAS
COUNTY OF TARRANT
TAX INCREMENT REINVESTMENT ZONE
PARTICIPATION AGREEMENT
For
CITY OF FORT WORTH TAX INCREMENT
REINVESTMENT ZONE NUMBER FOUR
Between
CITY OF FORT WORTH AND FORT WORTH I.S.D.
THIS TAX INCREMENT REINVESTMENT ZONE PARTICIPATION
AGREEMENT (this "Agreement") is made by and between the CITY OF FORT WORTH,
TEXAS (the "City"), a home rule municipal corporation located in Tarrant and Denton Counties,
Texas, acting by and through its governing body, the City Council, and its duly authorized City
Manager, and the FORT WORTH INDEPENDENT SCHOOL DISTRICT (the "Distract"),
acting by and through its governing body, the Board of Trustees.
WITNESSETH.
WHEREAS, on November 25, 1997, the City of Fort Worth City Council approved
Ordinance No 13259, establishing Tax Increment Reinvestment Zone Number Four, Crty of Fort
Worth, Texas (the "TIF Zone"), in accordance with the Tax Increment Financing Act, Texas Tax
Code, Chapter 311 (the "Act"), to promote development and redevelopment in the south side
medical district area of the City of Fort Worth through the use of tax increment financing; and
WHEREAS, the City and the District wish to enter into this Agreement defining the
terms and conditions under which the District will contribute a portion of its tax increment to the
TIF Zone Tax Increment Fund, as hereinafter defined,
NOW THEREFORE, the Crty and the District, in consideration of the terms and
conditions and covenants contained herein, hereby agree as follows.
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• •
ARTICLE I.
DEFINITIONS; GENERAL PROVISIONS
Section 1.1. Definitions.
below
(a) As used in this Agreement, the following terms shall have the meanings set out
"Act" means Chapter 311, Texas Tax Code, as amended.
"Agreement" means this Tax Increment Reinvestment Zone Participation Agreement between
the City and the District.
"A~;reement Term" shall have the meaning given to such term in Article V of this Agreement.
"Applicable District Law" means, collectively, (i) the Act as applicable to the District as a
"taxing umt" under the Act, (ii) 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 (iii) the applicable rules and regulations of the agencies
of the State having jurisdiction over any matters relating the public school systems and school
distracts of the State.
"Board" or "Zone Board" means the duly appointed board of directors of City of Fort Worth Tax
Increment Reinvestment Zone Number Four
"Captured Appraised Value" means the total appraised value of real property in the TIF District
that is located m the District, as of January 1 of any year, less the Tax Increment Base of the TIF
District allocable to the District, as defined herein and contemplated in the Act.
"C~" means the Crty of Fort Worth, Texas, together with its successors and assigns.
"District" means the Fort Worth Independent School District, together with rts successors and
assigns.
"District Bonds" means the bonds issued by the District for the purpo~e~of p ng~' the `Pro~~ect
Costs incurred by the District m constructing and equipping the Educatic~nal~' F~clrties~=Proj~ec sN
C ~ ~-1~ __
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"Educational Facilities Projects" means the Fort Worth Independent Schobh~~~ D.rstnct educational
facilities identified in the Plans, which may include elementary school~~-~rn~ ~ - dl~e~s_ehoo'1L2gh
school facilities, to be provided by the District as public free schools and to be constructed,
equipped, and located within the TIF Zone in accordance with plans and specifications
developed and implemented solely by the District.
2
u
"Educational Facilities Project Costs" means the Project Costs of or attributable to the
Educational Facilities Projects, including any direct costs of the Educational Facilities, the
principal of and interest on District Bonds and maintenance and operation costs of the
Educational Facilities (excluding teacher's salaries, administrative costs and other salary costs
not related to the maintenance, repair and upkeep of the Educational Facilities), or
reimbursement thereof, in the amount described in Section 3.2.
"Financing Plan" means the financing plan prepared by the Board, as defined herein, and
approved by the City Council in conformity with the requirements of Section 311 011 of the Act,
and as the same may be amended from time in accordance with the Act and this Agreement.
"Other Project Costs" shall mean those Project Costs as set forth in the Plans other than
Educational Facilities Project Costs.
"Plans" means, collectively, the Project Plan and the Financing Plan.
"Project Costs" means any and all of the items of "project costs" set forth and described in
Section 311 002(1) and other provisions of the Act.
"Project Plan" means the project plan prepared by the Board, as defined herein, and approved by
the City Council in conformity with the requirements of Section 311 011 of the Zone Act, as the
same may be amended from time to time m accordance with the Act.
"State" means the State of Texas.
"Tax Increment" means the total amount of property taxes levied and collected by a Taxing Umt
for the year on the Captured Appraised Value of taxable property located in the TIF Zone.
"Tax Increment Base" means the total appraised value of all real property located in the TIF
Zone that is located in and taxable by the District as of January 1, 1997, the year in which the
TIF Zone was designated as a reinvestment zone, plus the total appraised value of all real
property taxable by the Distract and annexed to the TIF Zone determined as of January 1 of the
year in which the area was annexed to the TIF Zone.
"Tax Increment Fund" shall mean a fund consisting of all the Tax Increment deposits, all
revenues from the sale of tax increment bonds or notes, revenues from the sale of any property
acquired as part of the Plans, and other revenues to be used in the development or redevelopment
of the TIF Zone.
"Tax Increment Pa mens" means, unless the context indicates otherwise, the payments to be
made hereunder by the District into the Tax Increment Fund for the TIF Zone.
"TIF Creation Ordinance" shall mean City Council Ordinance 13259, ad pt~d by the--Ftor-t V~
City Council on November 25, 1997 ~~~~~i~~~/~~~ Cc;~~,~,~i~Q{L
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"TIF Zone" shall mean Tax Increment Reinvestment Zone Number Four, City of Fort Worth,
Texas, established by the City Council Ordinance 13259, on November 25, 1997, a copy of
which ordinance is attached hereto and mazked Exhibit "A"
(b) Terms used herein and not otherwise defined shall have the meamngs ascribed to
them in the Act.
Section 1.2. General Provisions.
(a) The City and the Zone Boazd, 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 District Bonds.
(b) The City hereby dedicates a portion of the Tax Increment Payments, in an amount
not exceeding that set forth in Section 3.2 of this Agreement, for the purpose of reimbursing and
paying to the Distract all or a portion of the Educational Facilities Project Costs. The remainder
of the Tax Increment Payments aze hereby dedicated to payment of other Project Costs under the
Plans and the provisions of the Act. The parties hereto agree that such amounts aze dedicated for
such purposes in compliance with and in satisfaction of the requirements of Section 311 014(b)
of the Act.
(c) The boundaries of the TIF Zone aze those boundaries described in the Zone
Creation Ordinance.
(d) The parties agree that any funds which aze paid to the Distract pursuant to Section
3.2 of this Agreement which have not, in the year of receipt, been expended for Educational
Facilities Project Costs may be retained by the District in a sepazate reserve account maintained
by the Distract for such purposes. Such funds may be budgeted and expended in any subsequent
yeaz following receipt for such purposes as are set forth in Section 3 1 of this Agreement.
ARTICLE II.
PARTICIPATION IN THE ZONE; PAYMENTS, ADJUSTMENTS; AND RETENTIONS
Section 2.1. Participation in the Zone.
(a) The District agrees to participate in the TIF Zone and to make Tax Increment
Payments to the Tax Increment Fund in annual amounts calculated in accordance with this
Section for the purpose of paying a portion of the Project Costs under the Plans.
(b) Subject to the adjustments and retentions that may be required;,-pursuarit~to Cthe
d ~~ Iile~il I, III)~'`1~)
succeeding subsections of this Section, the District agrees to pay into the Tax:Iricrement~.Fitnd 4an
amount equal to 100% of the District's total tax rate levied, assessed and ~ol'~lected~~~nnualuly'~~by
the District on the Captured Appraised Value. ~~ ~~~n ~?ran~
4
(c) If as a result of the application of or a change in Applicable District Law, or for
any other reason, whereby because of its participation in the TIF Zone under this Agreement the
Distract will either (i) receive less State funding, or (ii) be required to increase its payments of
funds to the State, the Distract shall have the right at its option to retain, from the amount of the
payments agreed to be made under subsection (b) of this Section, the amount that is necessary to
offset any negative financial impact on the Distract resulting from its participation in the TIF
Zone.
(d) Each fiscal year, the Distract shall calculate the amount necessary to offset such
negative impact, if any, and shall deduct such amount from the amount of the Tax Increment
Payments required to be made under subsection (b) of this Section. Each such calculation shall
take into account any adjustments to the amount calculated for the previous fiscal year that
should be made in order to reflect the actual impact on the Distract for such previous fiscal year
The resulting amount each year shall constitute the "Tax Increment Payment" for such year in
accordance with Section 311 012 of the Act and shall be made to the Tax Increment Fund. For
each year the District invokes subsection (c) of this Section to reduce the amounts otherwise to
be deposited to the Tax Increment Fund, the Distract shall serve written notice on the City and
the Zone Board of such invocation and the calculations of the adjusted amount on or before the
date of the Tax Increment Payment.
(e) The payment of the Tax Increment Payments, in the amounts calculated and
adjusted in accordance with this Section, shall commence during the calendar year 2000 in
accordance with the Plans and the Act and shall continue until the termination of this Agreement
in accordance with the provisions of Section 5 1 of this Agreement.
Section 2.2. Expansion of Reinvestment Zone Number Four. The District's participation
shall not extend to the Tax Increment on any additional property added to the TIF Zone by the
City after the date of this Agreement unless the District approves the participation.
Section 2.3. Zone Board of Directors. The District shall have the right to appoint one (1)
member to and maintain such member on the Zone Board, in accordance with the Act.
ARTICLE III
PROVIDING THE EDUCATIONAL FACILITIES PROJECTS AND
PAYMENT OF EDUCATIONAL FACILITIES PROJECT COSTS
AND OTHER PROJECT COSTS
Section 3.1. Constructing, Eguinpin~ and Financing of Educational Facilities Projects.
(a) The City agrees, as a precondition to any obligations of~the'Dstract ereunde ~, to
include the Educational Facilities Projects as projects in the Project Plane'and'tl~ie`:1F~rianeri~g >~lan
m form and substance approved by the Superintendent of Schools o~f tlle~iDi~st~`ict~y~~sThe ~nal
~;,~~ U C'L7 ~: uou~UJ'ascu
description, size, scope, and design of the Educational Facilities P o~ eets ~, shalh;~be~ ~solel~ as
determined by the District. ~ ''' ~~~~15p
5
•
(b) The District agrees to commence and complete the construction and equipment of
the Educational Facilities Projects in accordance with the timing contemplated in the Plans.
(c) 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 by the Act, related
to Educational Facilities Projects, including, without limitation, consultant's fees and other costs
and expenses of the Distract incurred m connection with the execution and delivery of this
Agreement.
(d) At the written request of the Zone Board, the District shall make information
available to the Zone Board on the use of funds received hereunder for the Educational Facilities
Project Costs. The District shall make an annual report or presentation to the Zone Board at a
meeting of the Zone Board on the use and prospective use of the funds received hereunder for
Educational Facilities Projects Costs.
Section 3.2. Payment and Use of Educational Facilities Project Costs.
(a) The City agrees that it will pay, or cause the Zone Board to pay, to the District,
from the Tax Increment Fund, an annual amount equal to 50% of the Tax Increment Payments
deposited into the Tax Increment Fund for that year by the District, for the purpose of paying all
or a portion of the Educational Facilities Project Costs. If the District contributes no payments to
the Tax Increment Fund, it shall be entitled to no payment from the Tax Increment Fund.
(b) The amounts dedicated and required to be paid pursuant to subsection (a) of this
Section shall be paid to the District within 60 days of deposit of Tax Increment Payments by
participating taxing amts into the Tax Increment Fund by wire transfers for the District's account
to the banking institution holding the District's debt service fund created for the payment and
security of the District Bonds or general fund, as applicable, accompanied by instructions with
respect to the deposit of such amounts into such funds, with notice of any such transfer to be
given to the District.
(c) The payment of the amounts required to be paid to the District under subsection
(a) of this Section shall continue until the termination of this Agreement in accordance with
Section 5 1 of this Agreement.
(d) To the extent necessary under applicable law, the City and the District shall enter
into a mutually acceptable interlocal agreement for the point use of educational facilities funded
hereunder in accordance with the Act.
(e) The amounts deposited by the District into the Tax Increment Fund hereunder
which are not paid to the District for Educational Facilities Project C~stsrshal~l~,~b`e~~used~ for Other
Project Costs of the TIF Zone m accordance with the Plans or as o~h~rw.~~seb"~~ut o~, ~ze'dJ~b~ the
Act. ~ ~i; ~lli ~i~ ~"Lf~ ~'i~~~~°~~~~
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6
• •
ARTICLE IV
OBLIGATIONS OF CITY AND
REINVESTMENT ZONE NUMBER FOUR ZONE
Section 4.1. Financing of Project Costs. The District shall participate in the payment of
Project Costs only to the extent described in this Agreement. The City and the Boazd shall be
entitled to enter into any other agreements to pay Project Costs, principal and interest on bonds,
and other obligations from the tax increments paid into the Tax Increment Fund. without the
consent of the Distract.
The City and the TIF Zone reserve the nght to impose yield restrictions and enter into
covenants with the holders of bonds and notes of the City and/or the TIF Zone with respect to the
investment and reinvestment of funds received from the District's participation if, in the opinion
of nationally recognized bond counsel, such action is necessary to avoid the classification of
such bonds and notes as "arbitrage bonds" under the provisions of the Internal Revenue Code of
1986 as amended to the date of this Agreement.
ARTICLE V
TERM AND TERMINATION
Section 5.1. Agreement Term. This Agreement shall become effective as of the date of the
final signature hereto, and shall remain in effect until the eazlier to occur of the following:
(a) the date on which the Plans have been fully implemented and all Project Costs,
tax increment bonds, interest on such tax increment bonds and all other obligations, contractual
or otherwise, of the City or TIF Zone payable from tax increment collected on the Captured
Appraised Value of the property within the TIF Zone have been paid in full, or
(b) the termination date for the Zone as set forth in the Zone Creation Ordinance,
without respect to any amendments to the Zone Creation Ordinance; or
(c) an eazlier termination date designated by an ordinance subsequent to the Zone
Creation Ordinance,
(d) on the date on which the aggregate amount of funds deposited to the TIF Fund by
all taxing units participating m the TIF Zone equals $60,000,000
Section 5.2. Notwithstanding anything herein to the contrary, this Agreement shall be null and
void if not approved and executed by both the District and the City by August 31, 1999
(~ ](tip ~~~}(^`rC~;l~~l
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•
ARTICLE VI.
MISCELLANEOUS
Section 6.1. Severability. Except as provided in this subsection, in the event any term,
covenant or condition herein contained shall be held to be invalid by any court of competent
jurisdiction, such invalidity shall not affect any other term, covenant or condition herein
contained, provided that such invalidity does not matenally prejudice either the District or the
City with regard to the rights and obligations of each contained in the valid teens, covenants or
conditions hereof. In the event that any teen, covenant or condition shall be held invalid and
affects in any manner the limitations on the Distnct's contributions or participation as described
in Section 2.1(c), then this Agreement shall be voidable by the District and the District shall have
no further liability for any incremental or other payments as may otherwise be provided in this
Agreement, nor shall the District have any right to receive further payments from the Tax
Increment Fund.
Section 6.2. Entire Agreement. Thrs Agreement embodies the entire agreement and
understanding between the parties and supersedes all other agreements and understandings
between the parties relating to the subject matter hereof. This Agreement represents the final
agreement between the parties and may not be contradicted by evidence of pnor,
contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral
agreements between the parties.
Section 6.3. Written Amendment. This Agreement may be amended only by wntten
instrument duly executed on behalf of each party
Section 6.4. Notices. All notices required or permitted hereunder shall be in writing and shall
be deemed delivered when actually received or, if earlier, on the third (3rd) day following
deposit in a United States Postal Service post office or receptacle with proper postage affixed
(certified mail, return receipt requested) addressed to the respective other part at the address set
forth below or at such other address as the receiving party may have theretofore prescribed by
notice to the sending party
C~ ' Fort Worth Independent School District
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Section 6.5. Nonwaiver. Failure of any party hereto to insist on the stnct performance of any
of the agreements herein or to exercise any nghts or remedies accruing hereunder upon default or
failure of performance shall not be considered a waiver of the right to insist on, and to 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 6.6. Assignment. Except for the City's right to assign and delegate this Agreement
and the performance of obligations to the Board, no party shall assign this Agreement at law or
otherwise without the pror written consent of the other party and no party shall delegate any
portion of its performance under this Agreement without the written consent of the other party
Section 6.7. Successors. This Agreement shall bind and benefit the parties and their legal
successors. This Agreement does not create any personal liability on the part of any director,
officer, agent, or employee of the City, or the TIF Zone or the Zone Board, or any trustee,
officer, agent, or employee of the Distrct.
Section 6.8. No Waiver of Immunity. No party hereto waives or relinquishes any immunity
or defense on behalf of itself, its trustees, officers, employees, and agents as a result of its
execution of this Agreement and performance of the covenants contained herein.
Section 6.9. Governing Law. This Agreement shall be governed by and shall be construed in
accordance with the laws of the State of Texas.
Section 6.10. Amendment to Plans. No amendments to the Plans shall be effective until the
same are approved and accepted by the District.
APPROVED AS TO CITY OF FORT WORTH, TEXAS
FORM AND LEGALITY:
By•
David Yett
Assistant City Attorney
ATTEST
By
Gloria Pearson
City Secretary
By•
9
Mike Groomer
Assistant City Manager
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FORTWORTH INDEPENDENT
SCHOOL DISTRICT
By•
Gary J Manny
President, Board of Education
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City of Fort Worth, Texas
a
M~Ayor and Council Cammun~cAt~on
DATE REFERENCE NUMBER LOG NAME PAGE
8/31/99 G-12649 02PROJECT 1 of 1
SUBJECT ADOPTION OF ORDINANCE APPROVING THE PROJECT PLAN AND THE FINANCING
PLAN FOR TAX INCREMENT REINVESTMENT ZONE NO 4 (SOUTHSIDE/MEDICAL
DISTRICT TIF) AND AUTHORIZING A PARTICIPATION AGREEMENT WITH THE FORT
WORTH INDEPENDENT SCHOOL DISTRICT FOR THE ZONE
RECOMMENDATION
It is recommended that the City Council adopt the attached ordinance approving the Project Plan and
Reinvestment Zone Financing Plan for Tax Increment Reinvestment Zone No 4 (Southside/Medical
District TIF) and authorizing a Participation Agreement with the Fort Worth Independent School District
for the Zone
DISCUSSION
The Southside/Medical District TIF was created by the City Council by ordinance on November 25,
1997
State law (Tax Code 311 011) requires that the Board of Directors of the TIF (Board) prepare and adopt
a project plan and a reinvestment zone financing plan and submit the plans to the City Council It is
anticipated that the Board will adopt the Project and Financing Plans at its August 30, 1999 meeting
and recommend their approval by the City Council Copies of the adopted Project and Financing Plans
will be provided to the City Council
In addition to approving the Project and Financing Plans, adoption of the attached ordinance would
authorize the City Manager to execute a Participation Agreement with the Fort Worth Independent
School District (FWISD) containing the terms and conditions for FWISD's participation in the
Southside/Medical District TIF A copy of the proposed agreement will be provided to the City Council
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies this action will have no material effect on City funds
MG k
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
~Pp~OVED
Mike Groomer 6140 ~e
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Additional Information Contact:
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