HomeMy WebLinkAboutOrdinance 13821•i 4~~ .,
ORDINANCE NO ~382~
AN ORDINANCE APPROVING A PROJECT PLAN AND REINVESTMENT
ZONE FINANCING PLAN FOR TAX INCREMENT FINANCING
REINVESTMENT ZONE NUMBER TWO, CITY OF FORT WORTH,
TEXAS, MAKING A FINDING REGARDING FEASIBILITY;
DELEGATING POWERS TO THE BOARD OF DIRECTORS OF THE
REINVESTMENT ZONE; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City established Tax Increment Financing
Reinvestment Zone Number Two, City of Fort Worth (the"Zone") and
established a Board of Directors (the "Board") for the Zone to
promote development in the Zone pursuant to Ordinance No. 12323
approved by the Fort Worth City Council on December 19, 1995, in
accordance with the Tax Increment Financing Act, Chapter 311 of
the Texas Tax Code, Vernon's Texas Codes Annotated (the "Act");
and
WHEREAS, the Board on March 17, 1999, prepared and adopted a
Project Plan and Reinvestment Zone Financing Plan for the Zone;
and
WHEREAS, the Project Plan and Reinvestment Zone Financing
Plan are substantially consistent with the preliminary plan
developed for the Zone, prior to the Zone's creation; and
WHEREAS, in compliance with the Act, the Board hereby submits
the Project Plan and Reinvestment Zone Financing Plan for the
Zone, attached hereto as Exhibit "A", the City Council for its
approval in accordance with the Act; and
WHEREAS, as the Board has respectfully advised and
recommended approval of the Project Plan and Reinvestment Zone
Financing Plan by the City Council in order to promote development
of the Zone, and
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH, TEXAS
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SECTION 1.
That the facts and recitations contained in the preamble of
this ordinance re hereby found and declared to be true and
correct
SECTION 2
That the Project Plan and Reinvestment Zone Financing Plan
submitted to the City Council and attached hereto as Exhibit "A"
is hereby found to include all information required under Section
311 011 of the Tax Increment Financing Act, Chapter 311 of the
Texas Tax Code, Vernon's Texas Codes Annotated (the "Act")
SECTION 3
That in accordance with the Act, the City Council has
reviewed the Project Plan and Reinvestment Zone Financing Plan and
hereby finds the Project Plan and Reinvestment Zone Financing Plan
to be feasible, and to conform to the City's master plan
SECTION 4
That in accordance with the Act, the City Council hereby
approves the Project Plan and Reinvestment Zone Financing Plan
attached hereto as Exhibit "A"
SECTION 5
That the City Manager is hereby directed to notify the
governing body of each taxing unit that taxes real property
located in the Zone of the City's approval of the Project Plan and
Reinvestment Zone Financing Plan, and to transmit to each
governing body copies the Plans
SECTION 6
That pursuant to Section 311 010 of the Act the Board is
hereby delegated full authority to enter into all agreements that
the Board considers necessary or convenient to implement the
Project Plan and Reinvestment Zone Financing Plan adopted by this
ordinance and to achieve their purposes, provided however, that
the Board shall not have the power of eminent domain, shall not
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have the power to issue bonds or notes, and shall not have the
power to restrict the uses of property in the Zone pursuant to
subsection (c) of the Section 311 010 of the Act. Further, that
the Chairman or Vice-Chairman of the Board shall be authorized to
sign such agreements as may be approved by the Board
SECTION 7
That if any section, paragraph, clause or provision of this
Ordinance shall be for any reason held to be invalid and
unenforceable, the invalidity or unenforceability of such section,
paragraph, clause or provision shall not affect any of the
remaining provisions of this Ordinance
SECTION 8
That this Ordinance shall take effect immediately from and
after its passage and it is accordingly so ordained
ATTEST
Gloria Pearson
City Secretary
Date-
AD"OPTED ~(- `" ~~
EFFECTIVE ~~ ~~-!~
APP VED AS TO FORM AND LEGALITY
Assistant City torney
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Kenneth Barr
Mayor
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FORT WORTH TEXAS
REINVESTMENT ZONE NUMBER TWO
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FINANCING DISTRICT
~ (SPEEDWAY TIF DISTRICT)
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December 1998
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EXECUTIVE SLJIyIMARY
Introduction
A Tax Increment Financing District (TIF District) is an economic
development tool used by local governments to finance public improvements
within a defined area. TIF Distracts are created to strengthen existing
positive conditions and attract new investments. Chapter 311 of the Local
Government Code is the legislation that governs Tax Increment Financing.
A Crt ma make an area known as a "reinvestment zone". Desi anon of a
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TIF Distract occurs either by direct action of the City or after petitions from
the owners of 51 % of the assessed value of a certain area asks the Crty to
create the distract.
~ When a TIF District is created, a base value of real property within the
district is established. A TIF District allows for tax increment generated
from new value from within the area to be dedicated for use for public
improvements As the assessed value of property within a TIF District
~( increases over time due to new development and appreciation, the taxes
from the additional value is captured in a tax increment fund. These funds
are then used to finance public improvements within the TIF District.
As specified by State law, a TIF Distract Board of Directors must be
' appointed to oversee the administration of the TIF District and fund.
Additionally, State law requires that project and finance plans be developed
,~ as planning and information tools in the administration of the TIF District.
Project and Finance Plans
The TIF District Project and Finance Plans project the potential uses of TIF
District increment for financing of public improvements or projects in an
area. An economic impact study and overview is provided m the Finance
Plan along with estimates on the potential revenue that will be available to
provide financing for projects The Finance Plan also outlines how TIF
District increment may be used and shows the timing in which expenses will
be incurred.
Fort Worth Tax Increment Finance District Number 2: Executive Summary
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A project plan provides information on the current land use within the
district and provides information on the development to occur It also
provides information on relocation of individuals affected by the TIF
District and costs associated with non-TIF District public improvements
Generally, the items discussed in the Project and Finance Plans meet
requirements specified under State Law that govern Tax Increment
Financing.
TIF District Increment
TIF District tax increment is created when new taxable development occurs
within an established TIF District. When created a TIF Distnct's appraised
value sets a base value for the purposes of tax increment financing. All
taxes collected from that base value would continue to flow to the local
government entities that tax within the district. Taxes collected from new
taxable value within the TIF District after it is created are the source of TIF
District tax increment. This increment flows into the TIF District Fund that
is managed by the City's Finance Department.
The amount of increment that is captured in the TIF District Fund is
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 District Fund. The participation of an entity
in tax increment financing is accomplished through aninter-local agreement
between the entity and the City of Fort Worth.
Tax Increment Reinvestment Zone Number Two, Fort Worth, Texas
In October 1995, the City of Fort Worth received a petition from the
property owner requesting that a 950-acre tract of land (generally located on
the northwest corner of the intersection of State Highway 114 and I-35W) be
designated as a reinvestment zone for tax increment financing ("TIF")
purposes in support of the development of the Texas Motor Speedway (the
"Speedway")
On October 17, 1995, the Fort Worth City Council passed Resolution No
2100 which set December 19, 1995 as the date for a public heanng to be
held before the Crty Council regarding the designation of this property as a
reinvestment zone At the conclusion of the public hearing on December 19,
1995 the City Council passed Ordinance No 12323 creating Fort Worth Tax
Increment Reinvestment Zone Number Two (the "Zone")
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Fort Worth Tax Increment Finance District Number 2: Executive Summary
The Zone took effect on January 1, 1996 and is scheduled to terminate on
f December 31, 2025 or at an earlier time when all obligations associated with
the purchase of the Speedway are met. The earlier termination may occur by
subsequent ordinance of the City Council.
The City of Fort Worth and Denton County have chosen to participate in the
TIF District by contributing 100% of rts incremental real property taxes to
the TIF District Fund. Northwest ISD, a third taxing entity with jurisdiction
over property within the TIF District chose not to participate in the TIF
District.
The Project
The Speedway is a 1,200-acre development including a 1 5-mile racing oval
' and seating for up to 150,000 spectators (A complete description of the
project components and costs can be found m the Project and Finance Plan.)
As a component of the development, the FW Sports Authority, Inc a
nonprofit industrial development corporation created under authority of
Texas law by the City of Fort Worth (the "Sports Aurthorrty"), will own the
Speedway The primary purpose of the Zone is to provide a mechanism for
_ the purchase of the Speedway as a public improvement by the Sports
r~ Authority and to provide for the development of future public improvements
within the TIF District boundaries
Financing the Project
The purchase of the Speedway by the Sports Authority shall be in the
manner described by the Purchase Contract entered into by Texas Motor
Speedway, Inc ("TMS") and the Sports Authority The contract calls for
annual payments to be made from available TIF Increment, if any, to TMS
for a total purchase price of $20 million.
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accomplished in a two step process First TMS will be eligible to receive
r annual base payments. These base payments will be based on the schedule
as provided in the Purchase Contract found in the TIF Financing Plan.
Second, TMS will be eligible to receive annual increment payments up to
100% of the remaining amount m any given year The distribution of these
funds will be based on the goals set forth in the Purchase Agreement for
contracting opportunities between TMS and its subsidiaries and Fort Worth
and Fort Worth based Minority/Women Business Enterprises. The targeted
Fort Worth Tax Increment Finance District Number 2: Executive Summary
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goals include the use of Fort Worth companies for 25% and Fort Worth
M/WBE for 15% of all local discretionary business opportunities Actual
annual increment payments will be based on the schedule as provided in the
Purchase Contract.
The TIF Distnct Board will review the annual contracting to determine the
appropnate amount of the annual increment payments to be distributed and
to decide how to use any increment not secured toward the purchase of the
Speedway The use of funds not secured toward the purchase of the
Speedway may be spent on public improvement projects within the TIF
District.
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Fort Worth Tax Increment Finance District Number 2: Executive Summary '
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SECTION 1: Introduction & Background
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Introduction & Back~ro~und_
' In October 1995, the City of Fort Worth received a petition from the
property owner requesting a 950 acre tract of land (generally located on the
northwest corner of the intersection of State Highway 114 and I-35W) be
designated as a reinvestment zone for tax increment financing ("TIF")
`~ purposes in support of the development of the Texas Motor Speedway (see
Exhibit "A")
~ The Speedway is a 1,200-acre development including a 1 5-mile racing oval
and seating for up to 150,000 spectators. As a component of the
development, the FW Sports Authority, Inc , a nonprofit industrial
development corporation created under authority of Texas law by the City
of Fort Worth (the "Sports Authority"), will own the Speedway The
primary purpose of Fort Worth Tax Increment Reinvestment Zone Number
Two (the "TIFD" of the "Zone") is to provide a mechanism for the purchase
'~ of the facility as a public improvement by the Sports Authority and to
provide for the development of future public improvements within the TIFD
i~ boundaries
TAX INCREMENT REINVESTMENT ZONE NUMBER TWO
ESTABLISHED: DECEMBER 1995
On October 17, 1995, the Fort Worth City Council passed Resolution No
2100 which set December 19, 1995 as the date for a public hearing to be
held before the City Council regarding the designation of this property as a
reinvestment zone At the conclusion of the public hearing the City Council
passed Ordinance No 12323 creating the TIFD
The Zone took effect on January 1, 1996 and is scheduled to terminate on
December 31, 2025 or at an earlier time designated by subsequent ordinance
of the City Council
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Fort Worth Tax Increment Finance District Number 2: Project Plan
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Fort Worth Tax Increment Finance District Number 2 Project Plan
~ SECTION 2: Existing Uses & Conditions
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Existing Uses & Conditions
Depicted in Exhibit A is the current area that encompasses the Zone At the
time the petition seeking creation of the Zone was submitted to the Crty, (i)
the use of the property was agricultural, a completely undeveloped
greenfield and was not serviced by any utility infrastructure and had no
street or drainage ihfrastructure within TIF boundaries.
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Fort Worth Tax Increment Finance District Number 2. Project Plan
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SECTION 3: Proposed Improvements 8~ Uses
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~, Proposed Improvements And Uses
The Project
As stated previously the Zone was created to support the development of the
Speedway The use of TIFD increment in support of the development of the
Speedway will be as outlined in the Master Agreement between the City of
Fort Worth and Texas Motor Speedway, Inc ("TMS") Per this agreement,
the City of Fort Worth, through the Sport Authority, using TIFD increment
will purchase the Speedway (Initial Improvements) over the 30-year life of
the TIFD for a total price not to exceed $20 million. The ability of TMS to
secure TIF increment for payment of the facility is outlined in the Master
Agreement and rs directly tied to the contracting of Fort Worth and Fort
Worth Minority and Women Owned Enterprises by TMS TIF increment
~~ not secured as payment for the purchase of the Speedway will be used for
future improvements of the public facility and public infrastructure within
the TIFD boundaries as outlined in the finance plan.
The Speedway is a 1,200 acre development which is projected to include a
1 5 mile racing oval, seating for 150,000 spectators, 205 luxury suites,
concessions, ticket booths, garage areas, souvenir facilities, hospitality
tents, a krtchen/catermg facility, shower/restroom facilities, an on-site
hospital, and other developments The cost of the initial development of the
Speedway is an estimated $110 million. TMS, a fully owned subsidiary of
Speedway Motorsports, Inc will be responsible for financing all initial
improvements Exhibit B shows the proposed improvements and layout of
'~ the Speedway
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Fort Worth Tax Increment Finance District Number 2. Proiect Plan
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Initial Improvements
The construction value of the initial improvements is approximately $110
million. Specific components of these improvements are identified on the
attached site plan (see Exhibit C)
At the heart of the Speedway is a 1 5 mile oval racing track with four 24
degree -banked turns to accommodate both Indy car and stock car racing.
The track will be partially surrounded by approximately 150,000 grandstand
seats to be positioned along the "front straight" and in asemi-circular
arrangement from a point approximately midway through "Turn 4", across
the start finish line, to a point approximately midway through "Turn 1" as
~' well as a portion in the center of the "back straight" Concession areas,
ticket windows, and entrance gates will be constructed around the perimeter
of the main oval
Above the grandstands between turns 1 and 4 are 205 luxury suites These
air conditioned, fully furnished suites will offer dining facilities, restaurant
style catering, large screen televisions and an excellent view of the race
from a point high above the speedway These suites will be accessed via
several elevator towers
~ The infield area (inside the 1 5-mile oval) includes a number of facilities
Auto garage facilities for race event preparation, an area for a tare mounting
facility and a fueling station to be operated by Unocal In addition to the
"Winner's Circle", a small quarter (.25) mile track will accommodate
"Legends Car" racing events The infield also houses an onsite hospital for
race contestants, and complete shower/restroom facilities Finally, a "Road
- Course" (length to be determined) will support smaller club racing events
~' and possibly International Motor Sports Association (IMSA) racing events
as well as, possibly, Sports Car Club of America (SCCA) type racing
events
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The mrtial improvements will also
souvenir shops, and hospitality tents.
located adjacent to the facility, will
include akitchen/catering facility,
A 10,000 square foot office building
be used primarily for administrative
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Fort Worth Tax Increment Finance District Number 2. Project Plan
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Construction of the initial improvements began in August of 1995, with the
initial NASCAR race held at the Speedway in April 1997
Future Improvements
Future improvements to the Speedway are being contemplated. However,
the timing of these improvements is dependent upon a number of factors,
primarily market conditions, race demands, and the presence of adequate
transportation infrastructure
Project improvements that could occur on public facilities and infrastructure
could include installation of as many as 100,000 additional grandstand
seats to fully encircle the main oval, additional parking facilities for the
public, general upkeep of existing facility items worn over time, and
additional public works infrastructure within the TIFD boundaries.
Private investment and improvements which have been completed include
corporate offices for TMS and private condominiums with views of the
racetrack. A corporate office tower for the TMS and other tenants that
offers view of the racetrack is currently under construction.
Future private developments within the TIFD may include additional office
space, a "Legends Car" manufacturing facility, and an industrial park
including distribution (warehouse) and manufacturing facilities
Tax increment for the District is dependent on this private development, the
TiF funds available for the purchase of the Speedway and upgrade of public
facilities will be dependent on the cost and timeliness of these investments.
Fort Worth Tax Increment Finance District Number 2. Project Plan
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Fort Worth Tax Increment Finance District Number 2: Project Plan
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~ SECTION 4: Non-Project Costs
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f` Non-Protect Costs
The Speedway when completed will be the second largest sporting venue in
the United States In support of the initial development of the Texas Motor
Speedway, the City of Fort Worth provided financial support for two public
works prod ects
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" The City of Fort Worth financed the building of a ring road that will
~~ encircle the speedway This road will be a traffic feeder to provide visitors
easy access between interstate and state highways and the venue This road
will also provide an approximate boundary line for the TIFD The City of
Fort Worth expended approximately $4 1 million, or 58% of the cost to
construct the ring road.
'" The second public works project which is not part of the TIFD project cost
is the extension of water and wastewater lines to serve the development.
:~ The Crty of Fort Worth spent approximately $4 0 million to provide water
and wastewater service to the Speedway The extension of these lines will
open a large area to new development not previously served by water and
wastewater
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Private development to occur within the TIFD not funded through tax
increment that are related to the Speedway include the condominium
development and the office tower development adjacent to the Speedway
The total value of these developments is estimated at over $75 0 million.
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Fort Worth Tax Increment Finance District Number 2. Proiect Plan
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Fort Worth Tax Increment Finance District Number 2. Pro'ect Plan
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SECTION 5: Relocation Plan
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Relocation Plan
As set forth in Section 311 011 in the Tax Increment Financing Act of the
Tax Code, the Project Plan for the Fort Worth, Texas Reinvestment Zone
Number Two must include the following element:
A statemenr of a method of relocating persons to be displaced as a
result of implementing the plan.
The project plan anticipates that there will be no residences or
businesses existing in the project development area of the
reinvestment zone when development activities commence. If actions
by the TIF result in relocation of any persons, the Residential Anti-
displacement and Relocation Assistance Plan for the City of Fort
Worth will govern their relocation.
While the need for relocation is not envisioned during the term of the
TIFD, relocation of individuals was necessary in acquiring property
for the development of the Speedway The costs associated with the
relocation of property owners are the obligation of the TIFD and are
included in the purchase price to be paid by the TIFD
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Fort Worth Tax Increment Finance District Number 2 Project Plan,
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Fort Worth Tax Increment Finance District Number 2: Pro'ect Plan ~
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SECTION 1: Economic Impact
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Fort Worth Tax Increment Finance District Number 2: Pro'ect Plan
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I ECONOMIC IMPACT
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A. Increased Tourism and Entertainment Related Business
Auto racing, particularly stock car racing, is the largest growing
spectator sport in America according to recent newspaper and
magazine publications (such as Forbes and Sports Illustrated
Communities, which are home to large. super speedways, have, in the
past, experienced significant increases m tounst and entertainment
related business
Past studies have shown that, unlike fans that attend games between
professional sports teams, 45% of fans attending a mayor racing
event are from outside the Host City's metropolitan area. TMS has
confirmed that its recent experience substantiates this data.
Experience in other parts of the United States has established that
fans reserve rooms in local motels and hotels, eat in local restaurants,
~~ make purchase from local retailers, and frequent other entertainment
venues
A study commissioned by the Charlotte Convention and Visitor's
Bureau, Charlotte, North Carolina, found that out of town fans
attending racing events at the Charlotte Motor Speedway contribute
$200 million to the local community annually By way of
comparison, the study determined that the Carolina Panthers (NFL)
and Charlotte Hornets (NBA) contribute a combined $110 million
annually (This study was based on an estimate of direct spending by
race fans and did not include any estimates based on "multiplier
~` effects ")
Fort Worth Tax Increment Finance District Number 2. Finance Plan
4.
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$0
Hornets (NBA) OPanthers (NFL) ^Speedway
(Note The calculation for the Carolina Panthers is an estimate of the
economic impact of an NFL franchise on the Charlotte area based on
economic impact of NFL franchises m other cities. The Carolina
Panthers are currently playing outside the Charlotte area.)
B. Increased Tax Base
It is anticipated that there will be a substantial increase m taxable real
property as a result of the Speedway development. This increase in
taxable real property within the TIFD will be the basis on which tax
increment will be derived. It is estimated that this increase could
reach over $120 million by the end of the TIFD term.
As a result of this increase in taxable real property, Northwest ISD,
which is not participating in the TIFD by contributing tax increment,
could receive an estimated $44 million in tax revenue directly from
private developments wrthm the TIFD over the 30-year period (see
Table 1)
In addition to the real property improvements that will compnse the
Speedway, it is anticipated that the facility will also add
approximately $3 million in taxable personal property (equipment,
inventory & supplies) to the local tax -base Combined tax revenues
levied on this personal property annually are estimated to average
approximately $100,000 (see Table 2}
Fort Worth Tax Increment Finance District Number 2. Finance Plan
Annual Economic Impact Comparison
Charlotte, N.C.
5
It is anticipated that the area immediately adjacent to the Speedway
" and surrounding property will experience new development once the
Speedway is operational Potential development includes• Gas
stations, convenience stores, discount retail chains, restaurants,
hotels, motels, automotive service centers, automotive supply (parts)
~1 stores, grocery stores, and fast food chains
In addition, certain automotive related industries are attracted to
speedway sites Tire and wheel manufacturers, engine and
transmission design and manufacturing firms, automotive and
motorcycle testing operations, and automotive restoration specialists
would benefit from being located in close proximity to the
Speedway
As a direct result of the events to be held at the Texas Motor
~~ Speedway, a large impact will be felt in the local sales tax revenues
The Crty of Fort Worth receives sales tax revenue for both its
General Fund and Crime Control and Prevention Fund and The
Transportation Authority ("The T") An estimate of the amount of
sales tax to be generated can be found on Table 3
C. Employment Opportunities
In addition to hundreds of fobs created during construction of the
Speedway, the operation may employ up to 125 persons on a full
time basis. Should a "Legend's Car" manufacturing facility be
constructed in the future, full time manufacturing and auto mechanic
..r personnel will be hired. During race events, as many as 6,000
persons will be hired as parking attendants, concession and catering
attendants, program and souvenir salespersons, ticket takers, security
personnel, and many other tasks
In addition to employment at the Speedway, additional employment
opportunities will be generated due to increased usage of related
~\ tourism and entertainment businesses, hotels, motels, and restaurants.
It is anticipated that overnight express delivery services such as
Federal Express will also have fully staffed facilities at the
Speedway Medical personnel will be needed to staff the
Speedway's on site hospital facility
.~
Fort Worth Tax Increment Finance District Number 2. Finance Pian
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®. Fund Raising Opportunities
Local civic, religious, and educational organizations will have the
opportunity to raise funds by selling programs, worlang in
concessions, or other race day activities. At other SMI facilities
these types of organizations have been able to raise substantial sums
of money during race events
E. Vocational and Internship Opportunities
Students will have numerous opportunities for vocational and
internship training. TMS and Speedway Motorsports, Inc employ a
number of persons who began as interns at other speedways located
throughout the country
F. Regional Economic Impact
A thorough assessment of the economic impact of the Texas Motor
Speedway was conducted by the University of North Texas' Center
for Economic Development and Research was completed in 1996
and can be found in Appendix "A".
Fort Worth Tax Increment Finance District Number 2: Finance Plan
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TABLE 1
Texas Motor Speedway:
Economic Impact: Northwest ISD
For the Years 1996-2025
ASSUMPTIONS -
1 Private Projects will be subject to advalorem tax.
1997 new value =condominiums value
1998 new value =incremental value of stadium club
1999 new value =full value of stadium club
2. Tax Rate of Northwest ISD
^ Tax Rate 1.67581
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Appreciation
Factor
Year Existing
Appraised
Value Appraised
New
Value Captured
Appraised
Value Tax
Increment
Generated
0 1996 $ 4,750,000 $ 1,424,378 $ 6,174,378 $ 103,471
0 1997 $ 6,174,378 $ 37,509,542 $ 43,683,920 $ 732,059
0 01 1998 $ 44,120,759 $ 1.,500,000 $ 45,620,759 $ 764,517
0 01 1999 $ 46,076,967 $ 28,500,000 $ 74,576,967 $ 1,249,768
0 01 2000 $ 75,322,736 $ - $ 75,322,736 $ 1,262,266
0 015 2001 $ 76,452,578 $ - $ 76,452, 578 $ 1,281,200
0 015 2002 $ 77,599,366 $ - $ 77,599,366 $ 1,300,41.8.
0 015 2003 $ 78,763,357 $ - $ 78,763,357 $ 1,319,924
0 015 2004 $ 79,944,807 $ - $ 79,944,807 $ 1,339,723
0 015 2005 $ 81,143,979 $ - $ 81,143,979 $ 1,359,819
0 02 2006 $ 82,766,859 $ - $ 82,766,859 $ 1,387,015
0 02 2007 $ 84,422,196 $ - $ 84,422,196 $ 1,414,756
0 02 2008 $ 86,110,640 $ - $ 86,110,640 $ 1,443,051
0 02 2009 $ 87,832,853 $ - $ 87,832,853 $ 1,471,912
0 02 2010 $ 89,589,510 $ - $ 89,589,510 $ 1,501,350
0 02 2011 $ 91,381,300 $ - $ 91,381,300 $ 1,531,377
0 02 2012 $ 93,208,926 $ - $ 93,208,926 $ 1,562,004
0 02 2013 $ 95,073,104 $ - $ 95,073,104 $ 1,593,245
0 02 2014 $ 96,974,566 $ - $ 96,974,566 $ 1,625,109
0 02 2015 $ 98,914,058 $ - $ 98,914,058 $ '1,657,612
0 02 2016 $ 100,892,339 $ - $100,892,339 $ 1,690,764
0 02 2017 $ 102,910,186 $ - $102,910,186 $ 1,724,579
0 02 2018 $ 104,968,389 $ - $104,968,389 $ 1,759,071
0 02 2019 $ 107,067,757 $ - $107,067,757 $ 1,794,252
0 02 2020 $ 109,209,112 $ - $109,209,112 $ 1,830,137
0 02 2021 $ 111,393,295 $ - $111,393,295 $ 1,866,740
002 2022 $ 113,621,160 $ - $113,621,160 $ 1,904,075
0 02 2023 $ 115,893,584 $ - $115,893,584 $ 1,942,156
0 02 2024 $ 118,211,455 $ - $118,211,455 $ 1,980,999
0 02 2025 $ 120,575,684 $ - $120,575,684 $ 2,020,619
Total Taxes: $ 44,413,989
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TABLE 2
TIF Reinvestment Zone No. 2
Economic Impact: Personal Property Tax Revenue Projections
For the Years 1996-2025
ASSUMPTION:
1 Appraised Value of Speedway Personal Property=$3 million
Personal TAX REVENUES
Factor Year Value Fort Worth County 1SD
0 1996 $ 3,000,000 $ 27,750 $ 7,677 $ 47,664
0 1997 $ 3,000,000 $ 26,925 $ 7,677 $ 47,664
0 01 1998 $ 3,030,000 $ 27,194 $ 7,754 $ 48,141
0 01 1999 $ 3,060,300 $ 27,466 $ 7,831 $ 48,622
0 01 2000 $ 3,090,903 $ 27,741 $ 7,910 $ 49,108
0 01 2001 $ 3,121,812 $ 28,018 $ 7,989 $ 49,599
0 01 2002 $ 3,153,030 $ 28,298 $ 8,069 $ 50,095
0 01 2003 $ 3,184,560 $ 28,581 $ 8,149 $ 50,596
0 01 2004 $ 3,216,406 $ 28,867 $ 8,231 $ 51,102
0 01 2005 $ 3,248,570 $ 29,156 $ 8,313 $ 51,613
0 015 2006 $ 3,297,299 $ 29,593 $ 8,438 $ 52,387
0 015 2007 $ 3,346,758 $ 30,037 $ 8,564 $ 53,173
0 015 2008 $ 3,396,960 $ 30,488 $ 8,693 $ 53,971
0 015 2009 $ 3,447,914 $ 30,945 $ 8,823 $ 54,780
0 015 2010 $ 3,499,633 $ 31,409 $ 8,956 $ 55,602
0 015 2011 $ 3,552,127 $ 31,880 $ 9,090 $ 56,436
0 015 2012 $ 3,605,409 $ 32,359 $ 9,226 $ 57,283
0 015 2013 $ 3,659,490 $ 32,844 $ 9,365 $ 58,142
0 015 2014 $ 3,714,383 $ 33,337 $ 9,505 $ 59,014
0.015 2015 $ 3,770,098 $ 33,837 $ 9,648 $ 59,899
0 015 2016 $ 3,826,650 $ 34,344 $ 9,792 $ 60,798
0 015 2017 $ 3,884,049 $ 34,859 $ 9,939 $ 61,710
0 015 2018 $ 3,942,310 $ 35,382 $ 10,088 $ 62,635
0 015 2019 $ 4,001,445 $ 35,913 $ 10,240 $ 63,575
0 015 2020 $ 4,061,467 $ 36,452 $ 10,393 $ 64,529
0 015 2021 $ 4,122,389 $ 36,998 $ 10,549 $ 65,497
0 015 2022 $ 4,184,224 $ 37,553 $ 10,707 $ 66,479
0 015 2023 $ 4,246,988 $ 38,117 $ 10,868 $ 67,476
0 015 2024 $ 4,310,693 $ 38,688 $ 11,031 $ 68,488
0.015 2025 $ 4,375,353 39,268 79 11,196.53 $ 69,516
Total Revenues $ 964,302 $ 274,712 $1,705,596
Average Revenues $ 32,143 $ 9,157 $ 56,853
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TABLE 3
Texas Motor Speedway:
Economic Impact: Taxable Sales Projections
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For the Years 1996-2025
Appreciation
Factor
Year Total Estimated
Taxable
Sales Projected
Sales Tax
City Projected
Sales Tax
Crime Dist. Projected
Sales Tax
Transportaion
0 1996 $ 26,400,000 $ 264,000 $ 132,000 $ 132,000
0 1997 $ 26,400,000 $ 264,000 $ 132,000 $ 132,000
0 01 1998 $ 26,664,000 $ 266,640 $ 133,320 $ 133,320
0 01 1999 $ 26,930,640 $ 269,306 $ 134,653 $ 134,653
0 01 2000 $ 27,199,946 $ 271,999 $ 136,000 $ 136,000
0 01 2001 $ 27,471,946 $ 274,719 $ 137,360 $ 137,360
0 01 2002 $ 27,746,665 $ 277,467 $ 138,733 $ 1.38,733
0 01 2003 $ 28,024,132 $ 280,241 $ 140,121 $ 140,121
0 01 2004 $ 28,304,373 $ 283,044 $ 141,522 $ 141,522
0 015 2005 $ 28,728,939 $ 287,289 $ 143,645 $ 143,645
0 015 2006 $ 29,159,873 $ 291,599 $ 145,799 $ 145,799
0 015 2007 $ 29,597,271 $ 295,973 $ 147,986 $ 147,986
0 015 2008 $ 30,041,230 $ 300,412 $ 150,206 $ 150,206
0 015 2009 $ 30,491,849 $ 304,918 $ 152,459 $ 152,459
0 015 2010 $ 30,949,226 $ 309,492 $ 154,746 $ 154,746
0 015 2011 $ 31,413,465 $ 314,135 $ 157,067 $ 157,067
0 015 2012 $ 31,884,667 $ 318,847 $ 159,423 $ 159,423
0 015 2013 $ 32,362,937 $ 323,629 $ 161,815 $ 161,815
0 015 2014 $ 32,848,381 $ 328,484 $ 164,242 $ 164,242
0 015 2015 $ 33,341,106 $ 333,411 $ 166,706 $ 166,706
0 015 2016 $ 33,841,223 $ 338,412 $ 169,206 $ 169,206
0 015 2017 $ 34,348,841 $ 343,488 $ 171,744 $ 171,744
0 015 2018 . $ 34,864,074 $ 348,641 $ 174,320 $ 174,320
0 015 2019 $ 35,387,035 $ 353,870 $ 176,935 $ 176,935
0 015 2020 $ 35,917,841 $ 359,178 $ 179,589 $ 179,589
0 015 2021 $ 36,456,608 $ 364,566 $ 182,283 $ 182,283
0 015 2022 $ 37,003,457 $ 370,035 $ 185,017 $ 185,017
0 015 2023 $ 37,558,509 $ 375,585 $ 187,793 $ 187,793
0 015 2024 $ 38,121,887 $ 381,219 $ 190,609 $ 190,609
0 015 2025 $ 38,693,715 $ 386,937 $ 193,469 $ 193,469
Total $ 9,481,538 $ 4,740,769 $ 4,740,769
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Fort Worth Tax Increment Finance District Number 2: Finance Plan
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SECTION 2: Description of
T Project Improvements
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Fort Worth Tax Increment Finance District Number 2. Finance Plan
~' II. DESCRIPTION OF PROJECT IMPROVEMENTS
13
~, A. ln~t~allmprovements
The initial improvements constituting the project well be
r` development and purchase of the Speedway The Speedway is a
~- 1,200 acre development including a 1 5 mile racing oval, seating for
150,000 spectators, 205 luxury suites, concessions, ticket booths,
~~ garage areas, souvenir facilities, hospitality tents, a kitchen/catenng
facility, shower/restroom facilities, an on-site hospital, and other
~~ developments The construction value of these improvements are
described below
Texas Motor Speedway
Cost to Build ($ in millions)
Land $10
:,~ Site Work 12
Track, Walls, Fences 20
~~ Restrooms, Offices, Concess~
Number of Seats
- Estimated Cost per Seat
~~ Total Grandstand
Number of Suites
Estimated Cost per Suite
Total Suites
ons, Ticket Booths 20
150,000
200
30
205
90 000
18
~\ TOTAL $110
~~ B. Future Speedway lmprovements
Market conditions, race demands, and the need to upgrade facilities
and infrastructure within the TIFD will determine future protect
improvements Project improvements that could occur on public
facilities and infrastructure could include installation of as many as
100,000 additional grandstand seats to fully encircle the main oval,
~_ additional parking facilities for the public, general upkeep of existing
_ facility items worn over time, and additional public works
infrastructure within the TIFD boundaries.
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SECTION 3: Tax Increment Projections
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Fort Worth Tax Increment Finance District Number 2: Finance Plan
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III. TAX INCREMENT PROJECTIONS
~~
A. Background
`~ This section will outline the estimated tax Increment to be denved
l"!' from the TIFD As stated in the in Pro ect Plan the establishment of
J
tax increment to provide funding for the project is dependent on
~' private investment within the TIFD The timeliness of Investment,
which is taxable within the TIFD, dictates the financing of the
'~ purchase of the Speedway
The forecast of estimated TIF increment is based on both initiated
~/ development and on assumptions of annual appreciation of property
B. Tax Increment
The initiated developments include a luxury condominium tower
valued at approximately $38 million and the development of a
stadium club wrth an estimated value of $30 million.
This amount tax increment to be derived will be from the Incremental
l taxes dedicated by both the City of Fort Worth and Denton County
_ over the life of the TIFD Both entities have dedicated 100% of Its
~ real property taxes on the increased taxable value The dedication of
these funds was memorialized through an inter-local agreement
between both entities
The base value of the TIFD is $4 75 million. This is the appraised
~' value of the real property within the TIFD boundaries at the time the
"' District was created. The taxes collected on this amount will
continue to flow to each taxing entity even if tax increment is being
contributed.
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The total tax increment estimated for the 30-year life of the TIFD is
$28,925,284 This amount is made up of $22,507,824 from City of
Fort Worth and $6,417,460 from Denton County
The estimated annual tax increment to be generated annually in total
and from each taxing entity is outlined on the following three charts.
Fort Worth Tax Increment Finance District Number 2. Finance Plan
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Fort Worth Tax Increment Finance District Number 2: Finance Plan
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Texas Motor Speedway:
TIF INCREMENT PROJECTIONS
For the Years 1996-2025
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ASSUMPTIONS: -
1 TIF Base Appraised Value $4,750,000
2. Tax Rates of Participating Entities (assumes 100% tax increment contribution).
City of Ft. Worth (1998) 0 8975
Denton Co (1998) 0.2559
Total Tax Rate 1 1534
Appreciation
Factor
Year
TIF Base
Value Appraised
Total
Value Captured
Appraised
Value Tax
Increment
Generated
0 1996 $ 4,750,000 $ 6,174,378 $ 1,424,378 $ 16,749
0 1997 $ 4,750,000 $ 43,683,920 $ 38,933,920 $ 449,064
0 01 1998 $ 4,750,000 45,620,759 $ 40,870,759 $ 471,403
0 01 1999 $ 4,750,000 $ 74,576,967 $ 69,826,967 $ 805,384
0 01 2000 $ 4,750,000 $ 75,322,736 $ 70,572,736 $ 813,986
0 015 2001 $ 4,750,000 $ 76,452,578 $ 71,702,578 $ 827,018
0 015 2002 $ 4,750,000 $ 77,599,366 $ 72,849,366 S 840,245
0 015 2003 $ 4,750,000 $ 78,763,357 $ 74,013,357 $ 853,670
0 015 2004 $ 4,750,000 $ 79,944,807 $ 75,194,807 $ 867,297
0 015 2005 $ 4,750,000 $ 81,143,979 $ 76,393,979 $ 881,128
0 02 2006 $ 4,750,000 $ 82,766,859 $ 78,016,859 $ 899,846
0 02 2007 $ 4,750,000 $ 84,422,196 $ 79,672,196 $ 918,939
0 02 2008 $ 4,750,000 $ 86,110,640 $ 81,360,640 $ 938,414
0 02 2009 $ 4,750,000 $ 87,832,853 $ 83,082,853 $ 958,278
0 02 2010 $ 4,750,000 $ 89,589,510 $ 84,839,510 $ 978,539
0 02 2011 $ 4,750,000 $ 91,381,300 $ 86,631,300 $ 999,205
0 02 2012 $ 4,750,000 $ 93,208,926 $ 88,458,926 $ 1,020,285
0 02 2013 $ 4,750,000 $ 95,073,104 $ 90,323,104 $ 1,041,787
0 02 2014 $ 4,750,000 $ 96,974,566 $ 92,224,566 $ 1,063,718
0 02 2015 $ 4,750,000 $ 98,914,058 $ 94,164,058 $ 1,086,088
0 02 2016 $ 4,750,000 $ 100,892,339 $ 96,142,339 $ 1,108,906
0 02 2017 $ 4,750,000 $ 102,910,186 $ 98,160,186 $ 1,132,180
0 02 2018 $ 4,750,000 $ 104,968,389 $ 100,218,389 $ 1,155,919
0 02 2019 $ 4,750,000 $ 107,067,757 $ 102,317,757 $ 1,180,133
0 02 2020 $ 4,750,000 $ 109,209,112 $ 104,459,112 $ 1,204,831
0 02 2021 $ 4,750,000 $ 111,393,295 $ 106,643,295 $ 1,230,024
0 02 2022 $ 4,750,000 $ 113,621,160 $ 108,871,160 $ 1,255,720
0 02 2023 $ 4,750,000 $ 115,893,584 $ 111,143,584 $ 1,281,930
0 02 2024 $ 4,750,000 $ 118,211,455 $ 113,461,455 $ 1,308,664
0 02 2025 $ 4,750,000 $ 120,575,684 $ 115,825,684 $ 1,335,933
Total TIF Incremented Generated $ 28,925,284
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Fort Worth Tax Increment Finance District Number 2 Finance Plan
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Texas Motor Speedway:
TIF INCREMENT PROJECTIONS City of Fort Worth
For the Years 1996-2025
ASSUMPTIONS•
1 TIF Base Appraised Value: $4,750,000
2. Tax Rates of City of Fort Worth (assumes 100% tax increment contribution)
1997 Tax Rate
1998 Tax Rate
0 92
0 8975
Appreciation
Factor
Year
TIF Base
Value Appraised
Total
Value Captured
Appraised
Value Tax
Increment
Generated
0 1996 5 4,750,000 $ 6,174,378 $ 1,424,378 $ 13,104
0 1997 $ 4,750,000 $ 43,683,920 $ 38,933,920 $ 349,432
0 01 1998 $ 4,750,000 45,620,759 $ 40,870,759 $ 366,815
0 01 1999 $ 4,750,000 $ 74,576,967 $ 69,826,967 $ 626,697
0 01 2000 $ 4,750,000 $ 75,322,736 $ 70,572,736 $ 633,390
0 015 2001 $ 4,750,000 $ 76,452,578 $ 71,702,578 $ 643,531
0 015 2002 $ 4,750,000 $ 77,599,366 $ 72,849,366 $ 653,823
0 015 2003 $ 4,750,000 $ 78,763,357 $ 74,013,357 $ 664,270
0 015 2004 $ 4,750,000 $ 79,944,807 $ 75,194,807 $ 674,873
0 015 2005 $ 4,750,000 $ 81,143,979 $ 76,393,979 $ 685,636
0 02 2006 $ 4,750,000 $ 82,766,859 $ 78,016,859 $ 700,201
0 02 2007 $ 4,750,000 $ 84,422,196 $ 79,672,196 $ 715,058
0 02 2008 $ 4,750,000 $ 86,110,640 $ 81,360,640 $ 730,212
0 02 2009 $ 4,750,000 $ 87,832,853 $ 83,082,853 $ 745,669
0 02 2010 $ 4,750,000 $ 89,589,510 $ 84,839,510 $ 761,435
0 02 2011 $ 4,750,000 $ 91,381,300 $ 86,631,300 $ 777,516
0.02 2012 8 4,750,000 $ 93,208,926 $ 88,458,926 $ 793,919
0 02 2013 $ 4,750,000 $ 95,073,104 $ 90,323,104 $ 810,650
0 02 2014 $ 4,750,000 $ 96,974,566. $ 92,224,566 $ 827,715
0 02 2015 $ 4,750,000 $ 98,914,058 $ 94,164,058 $ 845,122
0 02 2016 $ 4,750,000 $ 100,892,339 $ 96,142,339 $ 862,877
0 02 2017 $ 4,750,000 $ 102,910,186 $ 98,160,186 $ 880,988
0 02 2018 $ 4,750,000 $ 104,968,389 $ 100,218,389 $ 899,460
0 02 2019 $ 4,750,000 $ 107,067,757 $ 102,317,757 $ 918,302
0 02 2020 $ 4,750,000 $ 109,209,1.12 $ 104,459,112 $ 937,521
0 02 2021 $ 4,750,000 $ 111,393,295 $ 106,643,295 $ 957,124
0 02 2022 $ 4,750,000 $ 113,621,160 $ 108,871,160 $ 977,119
0 02 2023 $ 4,750,000 $ 115,893,584 $ 111,143,584 $ 997,514
0 02 2024 $ 4,750,000 $ 118,211,455 $ 113,461,455 $ 1,018,317
0 02 2025 $ 4,750,000 $ 120,575,684 $ 115,825,684 $ 1,039,536
Total TIF Incremented Generated $ 22,507,824
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Fort Worth Tax Increment Finance District Number 2. Finance Plan
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Texas Motor Speedway:
TIF INCREMENT PROJECTIONS Denton County
For the Years 1996-2025
ASSUMPTIONS. -
1 TIF Base Appraised Value• $4,750,000
2. Tax Rate of Denton County (assumes 100% tax increment contribution)
1998 Tax Rate
0.2559
Appreciation
Factor
Year
TIF Base
Value Appraised
Total
Value Captured
Appraised
Value Tax
Increment
Generated
0 1996 $ 4,750,000 $ 6,174,378 $ 1,424,378 S 3,645
0 1997 $ 4,750,000 $ 43,683,920 $ 38,933,920 $ 99,632
0 01 1998 $ 4,750,000 45,620,759 $ 40,870,759 $ 104,588
0 01 1999 $ 4,750,000 $ 74,576,967 $ 69,826,967 $ 178,687
0 01 2000 $ 4,750,000 $ 75,322,736 $ 70,572,736 $ 180,596
0 015 2001 $ 4,750,000 $ 76,452,578 $ 71,702,578 $ 183,487
0 015 2002 $ 4,750,000 $ 77,599,366 $ 72,849,366 $ 186,422
0 015 2003 $ 4,750,000 $ 78,763,357 $ 74,013,357 $ 189,400
0 015 2004 $ 4,750,000 $ 79,944,807 $ 75,194,807 $ 192,424
0 015 2005 $ 4,750,000 $ 81,143,979 $ 76,393,979 $ 195,492
0 02 2006 $ 4,750,000 $ 82,766,859 $ 78,016,859 $ 199,645
0 02 2007 $ 4,750,000 $ 84,422,196 $ 79,672,196 $ 203,881
0 02 2008 $ 4,750,000 $ 86,110,640 $ 81,360,640 $ 208,202
0 02 2009 $ 4,750,000 $ 87,832,853 $ 83,082,853 $ 212,609
0 02 2010 $ 4,750,000 $ 89,589,510 $ 84,839,510 $ 217,104
0 02 2011 $ 4,750,000 $ 91,381,300 $ 86,631,300 $ 221,689
0 02 2012 $ 4,750,000 $ 93,208,926 $ 88,458,926 $ 226,366
0 02 2013 $ 4,750,000 $ 95,073,104 $ 90,323,104 $ 231,137
0 02 2014 $ 4,750,000 $ 96,974,566 $ 92,224,566 $ 236,003
0 02 2015 $ 4,750,000 $ 98,914,058 $ 94,164,058 $ 240,966
0 02 2016 $ 4,750,000 $ 100,892,339 $ 96,142,339 $ 246,028
0 02 2017 $ 4,750,000 $ 102,910,186 $ 98,160,186 $ 251,192
0 02 2018 $ 4,750,000 $ 104,968,389 $ 100,218,389 $ 256,459
0 OZ 2019 $ 4,750,000 $ 107,067,757 $ 102,317,757 $ 261,831
0 02 2020 $ 4,750,000 $ 109.,209,112 $ 104,459,112 $ 267,311
0 02 2021 $ 4,750,000 $ 111,393,295 $ 106,643,295 $ 272,900
0 02 2022 $ 4,750,000 $ 113,621,160 $ 108,871,160 $ 278,601
0 02 2023 $ 4,750,000 $ 115,893,584 $ 111,143,584 $ 284,416
0 02 2024 $ 4,750,000 $ 118,211,455 $ 113,461,455 $ 290,348
0 02 2025 $ 4,750,000 $ 120,575,684 $ 115,825,684 $ 296,398
Total TIF Incremented Generated. $ 6,417,460
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Fort Worth Tax Increment Finance District Number 2: Finance Plan
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SECTION 4: Prod ect Costs & Flnancing
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Fort Worth Tax Increment Finance District Number 2: Finance Plan
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IV. PROJECT COSTS AND FINANCING
A. Background
This section will outline the method by which purchase of the Texas
Motor Speedway will be accomplished and will provide an outline of
the costs associated with purchase of the Speedway and future
improvements within the TIFD to be financed with tax increment. At
no time will the TIF District use bonded indebtedness to finance any
public improvement project. TIFD financing and spending will be
strictly based on annual increments secured and will follow the
procedures set out in this document.
The City of Fort Worth, TMS and the Sports Authority have entered
into a series of agreements concerning the development of the
Speedway These agreements outline the various components
involved and roles to be played by each entity in the development.
One result from these agreements was the creation of the Zone to
provide a mechanism by which the Sports Authority will purchase
the Speedway and all related public infrastructure and property
B. Purchase Agreement
The "Purchase Agreement" between the Sports Authority and TMS
outlines the procedure by which TIFD funds will be used to purchase
the public improvements (Texas Motor Speedway) A complete copy
of the purchase agreement can be found in Appendix "B"
According to the Purchase Agreement, the Speedway will be
completely financed by TMS then purchased by the Sports Authority
for $20 million from TIFD tax increment. For the purpose of this
document it is assumed that 100% of the TIF Increment generated
each year will go toward the purchase of the Speedway until the
purchase price is reached. As outlined in the Master Agreement
between the City of Fort Worth and TMS the TIFD will terminate at
the end of its 30-year term or once the $20 million purchase price
reached, which ever occurs first.
Fort Worth Tax Increment Finance District Number 2. Finance Plan
The distribution of funds for the purchase of the Speedway will be
accomplished m a two step process First TMS will be eligible to
receive annual base payments These base payments will be
calculated, paid and credited toward the purchase puce on the
following scale
• For each of the tax years 1997 through 2001, the Annual
Base payments during each year shall be 80% of the
amounts deposited during each year, respectively, m the
TIFD
• For each of the tax years 2002 through 2006, the Annual
Base payments during each year shall be 60% of the
amounts deposited during each year, respectively, in the
TIFD
• For each of the tax years 2007 through 2016, the Annual
Base payments during each year shall be 50% of the
amounts deposited during each year, respectively, in the
TIFD
• For each of the tax years 2017 through 2026, the Annual
Base payments during each year shall be 30% of the
amounts deposited dunng each year, respectively, m the
TIFD
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Second, TMS will be eligible to receive annual increment payments
up to 100% of the remaining amount in any given year The
distribution of these funds will be based on the goals set forth in the
Purchase Agreement for contracting opportunities between TMS and
its subsidianes and Fort Worth and Fort Worth based
Minority/Women Business Enterprises The targeted goals include
the use of Fort Worth companies for 25% and MWBE for 15% of all
local discretionary business opportunities.
Fort Worth Tax Increment Finance District Number 2. Finance Plan
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The distribution of these funds will be made on the following
schedule
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1997
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• For eac
Incremental Payment shall be equal to 5% of the amount
<~ deposited during each year to the TIFD Fund for each 25%
of the targeted goal that is met.
• For each of the tax years 1997 through 2001, the Annual
Incremental Payment shall be equal to 10% of the amount
' deposited during each year to the TIFD Fund for each 25%
~
~ of the targeted goal that is met.
• For each of the tax years 1997 through 2001, the Annual
Incremental Payment shall be equal to 12 5% of the amount
deposited during each year to the TIFD Fund for each 25%
of the targeted goal that is met.
~' • For each of the tax years 1997 through 2001, the Annual
Incremental Payment shall be equal to 17 5% of the amount
deposited during each year to the TIFD Fund for each 25%
., of the targeted goal that is met.
The TIFD Board will review the annual contracting to determine the
appropriate amount of the annual increment payments to be
,~~ distnbuted
Current estimates show that the $20 million will be reached in Year
~ " 23" of the TIFD if 100% of the captured increment is secured
,
-- annually toward the purchase of the Speedway
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amount o
A complete breakout o
and annual incremental payments can be found on the following
charts Additionally, an overall annual payment schedule is provided.
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Texas Motor Speedway:
Annual Base Payment Estimates
For the Years 1997-2026
Year Percentage
of Increment for
Base Payment
TIF
Increments Totai
Annual Base
Payment
1997 80% $ 16,749 13,399 41
1998 80% $ 449,064 359,251 07
1999 80% $ 471,403 377,122.67
2000 80% $ 805,384 644,307 39
2001 80% $ 813,986 651,18875
2002 60% $ 827,018 496,210 52
2003 60% $ 840,245 504,146 75
2004 60% $ 853,670 512,202.03
2005 60% $ 867,297 520,37814
2006 60% $ 881,128 528,676 89
2007 50% $ 899,846 449,923.22
2008 50% $ 918,939 459,469 55
2009 50% $ 938,414 469,206 81
2010 50% $ 958,278 479,138 81
2011 50% $ 978,539 489,269 45
2012 50% $ 999,205 499,602.71
2013 50% $ 1,020,285 510,142.63
2014 50% $ 1,041,787 520,893 34
2015 50% $ 1,063,718 531,859 07
2016 50% $ 1,086,088 543,04412
2017 30% $ 1,108,906 332,67172
2018 30% $ 1,132,180 339,653 87
2019 30% $ 1,155,919 346,775 67
2020 30% $ 1,180,133 354,039 90
2021 30% $ 1,204,831 361,449 42
2022 30% $ 1,230,024 369,00713
2023 30% $ 1,255,720 376,715 99
2024 30% $ 1,281,930 384,579 03
2025 30% $ 1,308,664 392,599 33
2026 30% $ 1,335,933 400,780 03
;~~ Total TIF Increment Base Payments: 13,217,705 44
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Fort Worth Tax Increment Finance District Number 2: Finance Plan
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Texas Motor Speedway:
Annual Increment Payments Estimate
For the Years 1997-2026
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Year Percentage
of Increment for
Base Payment
TIF
Increments Totai Annual
Increment
Payment
1997 20% $ 16,749 3,349 85
1998 20% $ 449,064 89,812.77
1999 20% $ 471,403 94,280 67
2000 20% $ 805,384 161,076 85
2001 20% $ 813,986 162,79719
2002 40% $ 827,018 330,807 01
2003 40% $ 840,245 336,097 84
2004 40% $ 853,670 341,468 02
2005 40% $ 867,297 346,918.76
2006 40% $ 881,12$ 352,451.26
2007 50% $ 899,846 449,923.22
2008 50% $ 918,939 459,469 55
2009 50% $ 938,414 469,206 81
2010 50% $ 958,278 479,138 81
2011 50% $ 978,539 489,269 45
2012 50% $ 999,205 499,602.71
2013 50% $ 1,020,285 510,142.63
2014 50% $ 1,041,787 520,893.34
2015 50% $ 1,063,718 531,859 07
2016 50% $ 1,086,088 543,04412
2017 70% $ 1,108,906 776,234 02
201$ 70% $ 1,132,180 792,525 71
2019 70% $ 1,155,919 809,143.23
2020 70% $ 1,180,133 826,09311
2021 70% $ 1,204,831 843,38198
2022 70% $ 1,230,024 861,016 63
2023 70% $ 1,255,720 879,003 9$
2024 70% $ 1,281,930 897,35107
2025 70% $ 1,308,664 916,06510
2026 70% $ 1,335,933 935,153 41
Total TIF Increment Base Payments: 15,707,578 16
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Texas Motor Speedway:
Financing Plan• $20 Million Speedway Purchase
For the Years 1997-2026
Year Purchase
cost of
Speedway
I
TIF
ncrements Speedway
Purchase
Balance
1 $ 20,000,000 $ 16,749 $ 19,983,251
2 $ 19,983,251 $ 449,064 $ 19,534,187
3 $ 19,534,187 $ 471,403 $ 19,062,784
4 $ 19,062,784 $ 805,384 $ 18,257,399
5 $ 18,257,399 $ 813,986 $ 17,443,413
6 $ 17,443,413 $ 827,018 $ 16,616,396
7 $ 16,616,396 $ 840,245 $ 15,776,151
8 $ 15,776,151 $ 853,670 $ 14,922,481
9 $ 14,922,481 $ 867,297 $ 14,055,184
10 $ 14,055,184 $ 881,128 $ 13,174,056
11 $ 13,174,056 $ 899,846 $ 12,274,210
12 $ 12,274,210 $ 918,939 $ 11,355,271
13 $ 11,355,271 $ 938,414 $ 10,416,857
14 $ 10,416,857 $ 958,278 $ 9,458,579
15 $ 9,458,579 $ 978,539 $ 8,480,040
16 $ 8,480,040 $ 999,205 $ 7,480,835
17 $ 7,480,835 $ 1,020,285 $ 6,460,550
18 $ 6,460,550 $ 1,041,787 $ 5,418,763
19 $ 5,418,763 $ 1,063,718 $ 4,355,045
20 $ 4,355,045 $ 1,086,088 $ 3,268,957
21 $ 3,268,957 $ 1,108,906 $ 2,160,051
22 $ 2,160,051 $ 1,132,180 $ 1,027,871
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~~•1,180,133 $ (1,308,181)
25 $ (1,308,181) $ 1,204,831 $ (2,513,012)
26 $ (2,513,012) $ 1,230,024 $ (3,743,036)
27 $ (3,743,036) $ 1,255,720 $ (4,998,756)
28 $ (4,998,756) $ 1,281,930 $ (6,280,686)
29 $ (6,280,686) $ 1,308,664 $ (7,589,350)
30 $ (7,589,350) $ 1,335,933 $ (8,925,284)
(Shaded area represents Year in which 520 million purchase price is reached.)
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Fort Worth Tax Increment Finance District Number 2: Finance Plan
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~ C. Future Public Improvements
~~ Any funds not secured by TMS for the purchase of the Speedway will
become available for public project financing within the TIFD The
TIFD Board will approve all projects and funds to be used to finance
~~ these projects A complete listing of the public improvement projects
is outlined below with a description of the project.
~, 1 Restroom & Shower Facilities -The Speedway has an extensive public
campground facility that is capable of hosting thousands of visitors at one
hme. There is a great need to increase the number of public restroom and
shower facilities to serve those visitors.
2. Additional Grandstand Seating - A future improvement to the Speedway
may be the addition of grandstand seating in order to provide for up to
250,000 spectators. The investment needed to complete this type of
~, improvement would be large. Consequently, this improvement would
probably involve a combination of both TIFD increment and private
funds. The cost associated with this type of improvement could reach $20
million.
3 Drag Strip Facility -Original plans contemplated the possibility of a
NHRA drag strip facility at the Speedway Public infrastructure
associated with this type of facility could be great.
~ 4 Short Track Racing - Original plans contemplated the possibility of short
~
`, track racing outside or within the current racing oval. The cost associated
~' v~nth this type of development could be substantial.
5 Additional Signage -Signs throughout the facility are important to
promote traffic flow and provide information for visitors. The size of the
overall development creates a need to continually increase, improve and
upgrade signage throughout the property
Additionally, the TIF Board acknowledges the need of infrastructure
improvements surrounding the Speedway outside the TIFD boundaries.
Consequently, access issues related to traffic problems during major racing
events may necessitate the expansion of current TIFD boundaries.
Fort Worth Tax Increment Finance District Number 2. Finance Plan
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Fort Worth Tax Increment Finance District Number 2• Finance Plan
City of Fort Worth, Texas
M,JAyar and Council CammunicAt~on
DATE
6/1/99 REFERENCE NUMBER
G-12577 LOG NAME
02SPEED PAGE
1 of 1
suB~ECT ADOPTION OF ORDINANCE APPROVING PROJECT PLAN AND FINANCING PLAN
FOR TAX INCREMENT REINVESTMENT ZONE NO 2 (SPEEDWAY TIF)
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 2 (Speedway TIF)
DISCUSSION
The Speedway TIF was created by the City Council by ordinance on December 19, 1995
State law (Tax Code 311 011) requires that the Board of Directors (Board) of the TIF prepare and adopt
a project plan and a reinvestment zone financing plan and submit the plans to the City Council On
March 17, 1999, the Board adopted the Project and Financing Plans and recommended their approval
by the City Council Copies of the project and finance plans are attached
In addition to making' the requisite statutory findings and approving the Project and Financing Plans,
adoption of the attached ordinance would expressly grant authority to the Board to enter into
agreements that are necessary or convenient for the implementation of the Project and Financing
Plans, pursuant to Tax Code Section 311 010(a) The Board would not, however, have the power of
eminent domain, the power to issue bonds or notes, or the power to restrict property uses in the Zone
pursuant to Tax Code Section 311 010(c)
FISCAL INFORMATION/CERTIFICATION.
The Director of Finance certifies that 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: e~) APPROVED
CITY COUNCIL
Mike Groomer 6140
Originating Department Head:
JUN 1 1999
Tom Higgins 6192 (from) Y
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Additional Information Contact: City Secretary of the
l~a7as
of Fort 7Jorth
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Jay Chapa 8003
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