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Ordinance 13603
y ORDINANCE NO. ~ ~ ~ p .~ AN ORDINANCE APPROVING A PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN FOR TAX INCREMENT FINANCING REINVESTMENT ZONE NUMBER THREE, 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 Three, City of Fort Worth (the "Zone") and established a Board of Directors (the "Board") for the Zone to promote development or redevelopment m the Zone pursuant to Ordinance No 12324 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 September 17, 1998, 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, pnor 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", to 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 Crty Council m order to promote development or redevelopment of the Zone; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS 1 ~, SECTION 1 That the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. SECTION 2 That the Protect 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 Protect Plan and Reinvestment Zone Financing Plan and hereby finds the Protect 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 Protect 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 Protect Plan and Reinvestment Zone Financing Plan, and to transmit to each governing body copies of 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 Protect 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 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 Section 311 010 of the Act. Further, that the Chairman or Vice-Chairman of the Board shall be authorized to sign such Agreements as maybe approved by the Board. 2 e;~~ . r t 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 unenforceabilrty 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. Kenneth Barr Mayor A EST Iona Pearson City Secretary APPROVED AS TO FORM AND LEGALITY Wade Adkins, City Attorney By' Ce:e:C~" Assistant City Attorn Adopted. /~ - ~, G ~ Effective • /~- - (o -- 9 g' 3 City of Fort Worth, Texas M'Ayor And Council CammunicAtian Date Reference Number Log Name Page 10/6/98 G-12353 12TIF 1 of 1 Subject ADOPTION OF ORDINANCE APPROVING PROJECT PLAN AND FINANCING PLAN FOR TAX INCREMENT REINVESTMENT ZONE NO 3 (DOWNTOWN 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 3 (Downtown TIF) DISCUSSION The Downtown TIF was created by the City Council by adoption of Ordinance No 12324 on December 19, 1995 State law (Tax Code 311 011) requires that the Board of Directors of the TIF prepare and adopt a project plan and a reinvestment zone financing plan and submit the plans to the City Council On September 17, 1998, the Board adopted the Project and Financing Plans and recommended their approval by the City Council The City Council received a briefing on the content of the Plans at the Pre-Council session on September 22, 1998 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 Finance Director certifies that this action has no material effect on City funds MGj Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) D ROVE PP A Mike Groomer 6140 /~ p ~/ ~(~ pp~~ '(' o~ '~ Originating Department Head: '`~`~' V~ 1 1 V Wade Adkins 7623 (from) QC~ ~ ~ Additional Information Contact: au~aJ ,~ +e., l'~ Citp Secrefarg aI thea ~ ~'e~eas ' Wade Adkins 7623 ~xt ~ai C~tp of I ~cfopted OCdir;~an~e IVo. ~~ ~ PROJECT 8e FINANCING PLAN Fort Worth, Texas Reinvestment Zone'Number Three North Downtown Tax Increment Financing District' • • OF CONTENTS Adopting Ordinance =~~~°~~~ Author's Preface -Purpose 8~ Vision EXECUTIVE Sl9IVIIVIARY Forecast Private Development TIFD Improvement Costs ~ PR®.9ECT PLAN `~ulasa ~~ Page I iv 2 5 Section I Purpose and Background I - 1 Section II Proposed Uses and Improvements II - 1 Section III Proposed Uses and Improvements 111 - 1 Section IV Summary of Private Development & TIF Infrastructure Costs IV - 1 Section V Proposed TIF Boundary Adjustments V - 1 Section VI Current & Proposed Zoning VI - 1 Section VII Relocation Plan VII - 1 ^ FINANCING PLAN Foreword i-iii CHAPTER 1 -ECONOMIC FEASIBILITY STUDY Section 1 Tax Increment Projections (Summary) 2 Section 2 Development Potential (Projected market demand) 20 Section 3 Tax Increment Analysis 29 CHAPTER 2 -PRO-FORMA Section 1 Revenues 58 Section 2 TIFD Expenditures 63 Section 3 Pro-Forma Summary Spreadsheets (per 2 Revenue Scenarios) 66 Section 4 Revenue Flow Comparisons (with and without TIF) 72 CHAPTER 3 -METHODS OF FINANCING Legislative Index 75 Appendix A -Analysis of Downtown Fort Worth Parking Garage Scenarios A-1 Appendix B -Parking Garage Scenario Plans B-1 ADOPTING ORDINANCE ORDINANCE NO. ~ ~ ~ 0 -J • AN ORDINANCE APPROVING A PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN FOR TAX INCREMENT FINANCING REINVESTMENT ZONE NUMBER THREE, CITY OF FORT WORTH, TEXAS, MAHING 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 Three, City of Fort Worth (the "Zone") and established a Board of Directors (the "Board") for the Zone to promote development or redevelopment m the Zone pursuant to Ordinance No. 12324 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 September 17, 1998, pxepared 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 creatron, and WHEREAS, in compliance v~nth the Act, the Board hereby submits the Project Plan and Reinvestment Zone Financing Plan for the Zone, attached hereto as Exhibit "A", to 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 or redevelopment of the Zone; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS 1 ~FC'TION 1 That the facts and recitations contained in the preamble of this ordinance are 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 O11 of the Tax Increment Financing Act, Chapter 311 of the Texas Tax Code, Vernon's Texas Codes Annotated (the "Act"). ~E TC' ION 3 That m accordance with the Act, the City Council has reviewed the Prol ect Plan and Reinvestment Zone Financing Plan and hereby finds the Project Plan and Reinvestment Zone Financing PIan 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 Protect Plan and Reinvestment Zone Financing Plan, and to transrrut to each governing body copies of 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 Prod ect 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 have the power to issue bonds or notes, and shall not have the power to restrict the uses of property m the Zone pursuant to subsection (c) of 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 Boazd. • 2 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 unmediately from and after its passage and it is accordingly so ordained. Kenneth Barr Mayor ATTEST Glona Pearson • City Secretary APPROVED AS TO FORM AND LEGALITY Wade Adkins, City Attorney By C;~'Ct~' \ Assistant City Attorn Adopted. /~. - ~ ~ ry' ~ Effective. • 3 r -1 t. J ~ PURPOSE 8c VISION ~utune ?3e~:~eea~~r ea~rce~~it ~Ca~a Reinvestment Zone Number Three was created to facilitate redevelopment of the TIF District and stimulate revitalization of the Central Business District (CBD). The Project Plan which follows describes proposed uses and improvements projected to occur within the zone through the ultimate build-out of the TIF District. This build-out scenario is based on a feasibility study that is presented ih the Financing Plan and is guided by a growth model that envisions how the CBD can achieve it's highest potential. This growth model, the Future Development Concept Plan, projects a balanced build-out of the TIF District invigorated by a strong, revitalized core which attracts significant new development to the core periphery A computer generated abstraction of this model appears to be tethered. above the CBD cityscape in the above graphic and elsewhere throughout this document. The manner in which the elements of this model are finked together illustrates the relationship between the various components that are anticipated to play a role in the build-out of the TIF District. These components are the Central Core {yellow, orange and red), core-peripheral developments (blue}, and linkage developments (green). The size of the individual elements represents the projected development densities and the positioning of the Central Core at the nucleus of the model signifies its importance to the overall build out of the CBD The future success of initial TIF-generated redevelopment efforts (red) currently underway in the Central Core is vital to the long-term stability and feasibility of the CBD as a multifunctional urban center Public improvements have been proposed in the following plans that complement initial redevelopment efforts and provide ongoing growth support of future individual efforts. These coordinated improvements are mutually reinforcing and can create a multiplier effect to the good of the whole CSD Through these improvements, the TIF District plans aim to help guide the future development of the Fort Worth CBD to its highest potential. T 7~~ ~~ EXECUTIVE SUMMARY Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District EXECUTIVE SUMMARY The Tax increment Finance District (TIED) Project and Financing Plans basically represent a planning study that projects TIF revenues from the long-range build-out of the TIFD and demonstrates the feasibility of using tax increment financing to pay for public improvements needed for redevelopment of the area An economic feasibility study and financial pro-forma form the bulk of the study, but really only support the final plan, which in the end, is very similar to the preliminary financing plan which was approved by Council in establishing the TIFD in December 1995. The documents are long on numbers as is the nature of a feasibility study #hat documents how tax revenues are projected to be generated over a 20 year period There is also some duplication of information between the Project and the Financing Plan since the two documents were produced one following the other over a two year period This necessitated an update and summary of the Project Plan to be incorporated in the first chapter of the later Financing Plan Finally, the documents are more involved than say a traditional land use plan because they contain all the requirements of state TIF enabling legislation The following executive summary is provided to assist your review of the two documents It contains a brief paragraph summarizing contents and a bulleted outline of the most significant facts found in each document. • PROJECT PLAN The Project Plan, (the smaller document), presents a picture of the land uses and forecast development activity that is projected to generate tax revenues over the 30- year life of the TIFD It begins with a review of existing conditions in the TIED and culminates with a summary of projected private development projects FINANCING PLAN The larger Financing Plan document presents an economic feasibility study It details projected market demand for forecast development activity within the TIFD and then documents a detailed analysis of tax increments and parking revenues projected to result. It also projects costs for public improvements which could likely occur throughout the life of the TIFD and compares projected revenue streams to the projected timing of these costs, finding that the TIFD would generate enough revenue to cash flow the financing of needed public improvements using tax increment financing The Financing Plan culminates with a cash flow pro-forma and includes the executive summary of a study of costs and yields associated with the construction of a proposed parking garage C] FORECAST PRIVATE DEVELOPMENT: =` ^ MAPS 1 1 & 1.2 -lists private developments which are forecast in the TIFD The Project Plan forecasts $438 million of new taxable development to occur within the reinvestment zone during the life of the TIFD This includes both, • Initiated or Proposed Developments -development projects that have been begun or have been proposed by their property owners since the creation of the TIFD, and • projected Development Activity -development activity forecast to likely be a part of the ultimate build-out of the TIFD over the next twenty years. ^ INITIATED OR PROPOSED DEVELOPMENTS -totaling $89 million are proposed to be completed before the year 2002. • Based on the preliminary TIF financing plan, which identified supporting TIF infrastructure improvements, three development projects have been undertaken since the TIFD was initially formed and are currently completed. A fourth, Continental Plaza Parking Garage, is currently under construction and presents an opportunity for shared parking. Proposed are an historic hotel and central plaza retail/office projects. • As a result of these initial developments, 10 % of the total improved property value _ which is projected to be added within the reinvestment zone through the projected ultimate build-out of the TIFD will be added to the tax rolls by 1999 • This $44 million of initial private investment means that this TIFD is developer driven with known development projects which will generate the first tax increments to fund TIFD improvements. • Private developments which have been initiated in the Central Core since formation of the TIFD include • 270,000 SF of Retail/Entertainment -Fort Worth Outlet Ctr & Sundance East • 55,000 SF of Office -Wells Fargo Building • Continental Plaza Parking Garage '~ ^ PROJECTED DEVELOPMENT ACTIVITY- private development, which is not underway or proposed, has been projected in accordance with the build-out scenario provided in the Future Development Concept Plan. (Map 1.2) • This growth model envisions a strong revitalized Central Core which attracts significant new development in the core periphery, where large land areas can be assembled to accommodate land intensive uses such as in-town residential, corporate campus, Public Market and office parks. ~; • The Plan projects that a balance of uses will evolve with new development being divided equally between office, retail and residential uses and will be residentially driven. That is, residential development is projected to lead future retail and office development which results in the most conservative development scenario Page 2 Completed: ~~ '4 Core Base Core Expansion Proposed or Underway Pure Core Expansion - Core Perrph~ery Linkage ©evefopment A Sundance East AMC Palace B Wells Fargo Building H ~ Fort Worth Outlet Square S4(CP~+ Continental Plaza Garage X 4 Bass Performing Arts Hall Proposed: Cat 4 `Central Plaza Retail/Office T1 Tarrant County Family Courts LE Fort Worth Library Expansion HH 40 room Historic Hotel) CC City Center Parking Gara (improvements) Page 3 r Nlap 1 s1 =Initiated and Proposed ~De~r~lopmer~~s .~~.~=~~~Y~ ~or~ ~'as~ Core Exp~.r~s(a~ proposed €~r ~~c(ervv~ ~~a~~re ~~~~ Exp~a~s(on ® Core ~erc~hery ~(nkage Deve(opra~en~ Page 4 I~lllap 1.2 ~utur~ ~~~r~!®p~me~nt Co~l~ce~p~ Playa TIED IMPROVEMENT COSTS: 0 ^ TABLE 1.29 -summarizes anticipated public improvement project costs of the TIFD • In establishing the TIFD, the taxing entities established a total limit for all tax contributions of $50 million. The improvements projected in Table 1.29 could be funded within this current total limit on tax contributions. • The $50 million of public improvements summarized on Table 1.29 are forecast through total build-out of the TIFD in accordance with the Future Development Concept Plan which anticipates build-out in 2015. • These improvements form an improvement plan which includes both specific initial public improvements and general on-going infrastructure improvements iri support of $438 million of forecast private development. Each dollar of public improvement costs yields $8. 77 in private improvements. ^ INITIAL PUBLIC IMPROVEMENTS -are needed to complement the $89 million in initial private development which is projected to be completed before the year 2002. _ • The majority of these initial public improvements will be constructed in the .implementation of the Circulation and Parking Concept Plan which will provide forwell-planned stable growth of the Central Core of the CBD • $35 million of initial private developments, which have been completed since the TIFD was formed, were undertaken based on this planning. • Implementation of the Circulation and Parking Concept Plan will: • Provide linkages necessary to unify existing activity centers and initial private developments into a vibrant multi-functional center • Solve common parking problems existing currently in the Central Core before they worsen. - Provides long term parking solutions. - Provides short term parking solutions. • Include the following public improvements: - Use Easement of the Tandy Subway & Parking Lot - Construction and/or leasing of Central Parking Garages - Construction of 3'~ Street Pedestrian Corridor 8 Trolley Stops - Construction of a Central Plaza Open Space Page 5 • Table 1.29. Estimated Project Improvement Costs Estimated Project Improvement Costs Type of Improvement (In millions of Current. Inflated Dollars) TIF and Parking Management $4 9 3rd Street Pedestrian Cooridor $2 1 Subway (Trolley) $3 4 Tarrant County Horse Fountain $0.2 Public Market Feasibility Study $0 1 • Parking (inc{uding leasing facilities) $22.6 General on-going street, drainage, utility, and streetscape improvements, public market improvements and historic site rehabilitation $16.7 Total $50 0 • Page 6 ~~ ~. • Coordinate with Stockyards (Main St.) and Cultural District (7th St.) Connections Trolley connections to Intermodal Transportation Center • i i 1 a ~A 1~~~Q~LI (~~..` `~~~~~ 1~r ~Y ~. Map 1 7 Circulation and Parkil~g Concept Plan ~ Subway ~ Subway Station ~~ Commuter Rail - Ord St. Pedeatrlan Streetacape Corridor • ~ ~ • Trolley Stopa O O O O Trolley Route Ezletln~ Urban Plaza ® Central Core Parklap CaraQes and Tandy Parkia~ Lot Proposed Central Plaza Page 7 ~• PROJECT PLAN Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District • Fort Worth Texas Reinvestment Zone Number Three • North Downtown Tax Increment Financing District TABLE OF CONTENTS Paae CHAPTER I -PURPOSE AND BACKGROUND Tax Increment Finance District (TIF) I-1 Tax Increment Reinvestment Zone Number Three (Downtown TIF District) I-1 General Purpose of the Downtown Tax Increment Finance District I-4 Some Trends Downtown Must Overcome I-4 Summary of Advantages I-5 • CHAPTER II -EXISTING USES & CONDITIONS Existing Uses II-1 Existing Conditions II-1 Existing Infrastructure 11-7 CHAPTER III -PROPOSED USES ~ IMPROVEMENTS Project Plan Overview III-1 Emerging Development Trends III-6 Future Development Concept Plan III-8 Proposed Uses III-13 Proposed Improvements III-16 Initial Private Development III-16 i Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District ~~ Projected Private Development Activity III-20 Public Infrastructure Improvements III-30 CHAPTER N -SUMMARY OF PRIVATE DEVELOPMENT & TIF INFRASTRUCTURE COSTS IV-1 CHAPTER V -PROPOSED TIF BOUNDARY ADJUSTMENTS V-1 CHAPTER VI - CURRENT ~ PROPOSED ZONING Current Zoning VI-1 Proposed Zoning VI-1 CHAPTER VII -RELOCATION PLAN VII-1 ll CHAPTER I • PURPOSE AND BACKGROUND • Fort Worth Texas Reinvestment Zone Number Three • North Downtown Tax Increment Financing District CHAPTER I -PURPOSE AND BACKGROUND TAX INCREMENT FINANCE DISTRICT (TIF) RECOMMENDED IN THE 1993 DOWNTOWN STRATEGIC ACTION PLAN The 1993 Downtown Strategic Action Plan was adopted by Downtown Fort Worth, Inc., the Fort Worth City Council, and the Fort Worth Transportation Authority in the Fall of 1993 The same three agencies sponsored the plan The plan resulted from atwo-year planning process that involved substantial input and review from citizens, government officials, and Downtown stakeholders Community leaders realized that Downtown is critical to the overall economic health and image of greater Fort Worth The Downtown Plan envisioned that a TIF would be needed to finance several major Downtown "infrastructure" and historic site projects, including ^ Public parking and the connecting systems (trolley and subway) ^ Central Plaza and Parking Garage ^ Special pedestrian and straetscape systems • ^ A Public Market ^ Street and utility adjustments associated with major projects ^ TIF planning and administrative costs ^ Historic Site rehabilitation costs The Plan recognized that this major public infrastructure would be needed in order for Downtown to attract new investments The costs 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 In the short term, major private financing is available for an outlet center, expansion of the Sundance retail area, and construction of a major new Performing Arts Hall Infrastructure, in the form of parking facilities, pedestrian connections, and subway system upgrades, is critical to these short term private investments TAX INCREMENT REINVESTMENT ZONE NUMBER THREE (DOWNTOWN TIF DISTRICT) ESTABLISHED IN DECEMBER 1995 The Tax Increment Reinvestment Zone Number Three (Downtown TIF) wasestablished by the Fort Worth City Council Ordinance No 12324, on December 19, 1995 Prior to City Council approval, the Zone received support and resolutions of intent to participate from other taxing entities, including the Fort Worth Independent School District, Tarrant County, the Tarrant County Hospital District, Tarrant County Junior College System, I-1 Fort Worth Texas Reinvestment Zone Number Thr®e North Downtown Tax Increment Financing District and the Tarrant County Water Control District #1 The reinvestment zone was petitioned by over 50% of the property owners under the provisions of Section 311 005(a)(5) Vernon's Tax Code. The zone took affect on January 1, 1996 and is scheduled to terminate on December 31, 2025 (30 years), or at an earlier time designated by subsequent ordinance of the City Council I-2 L' o~~~ ~ti ~ n S'~ ~~~ Add Courthouse Block to TIF Omit "Cassidy" Area from TIF r: • ~ - it d ~~ Zone Boundary Major Government or Tax Exempt Omitted From Proposed Reinvestment Zone !-3 Tax Increment Reinvestment Zone Number Three Proposed 1996 Boundary Adjustments Fort Worth Texas Reinv®stm®nt Zone Number Three North Downtown Tax Increment Financing District GENERAL PURPOSE OF THE DOWNTOWN TAX INCREMENT FINANCE DISTRICT ^ Attract investment and redevelopment that will not occur without the TIF financed infrastructure. ^ Use some of the new ad valorem tax revenue (the "increment") to fund the required public infrastructure ^ Generate new anchors for Downtown that will create redevelopment momentum and tax base that survives the TIF term. ^ Create net financial gain to local governments during the first 6 to 10 years of the TIF and substantial financial gains after the 10th year ^ Capture the "metropolitan visitor," more tourists, and conventions. ^ Create a quality urban environment that will assure that Downtown attracts its competitive fair share of corporate office, government office, and other commercial developments. Also, this same urban environment will help achieve the goal of attracting up to 1 % of the Fort Worth residential inventory to the Downtown area. SOME TRENDS DOWNTOWN MUST OVERCOME The TIF infrastructure and corresponding private investments will create a momentum of investment that will help Downtown overcome certain negative circumstances and trends. ^ Downtown can no longer depend on traditional developments such as speculative office buildings and department stores. Even traditional anchors, such as banks and utility companies have continued to undergo substantial downsizing ^ Corporate downsizing and expanding telecommunications ^ Home based shopping ^ Greatly increased numbers of suburban office parks ^ Many businesses are locating their "back office" functions in less expensive buildings ^ Some corporations are not attracted to the "campus° locations I-4 Fort Worth Texas Reinvestment Zone Number Three • North Downtown Tax Increment Financing District ^ Growing "edge cities" are now engaged in offering attractive incentive packages to businesses SUMMARY OF ADVANTAGES Note Exact square footages and dollar amounts below are subject to change as part of the financial feasibility testing prior to fhe September 9996 TIF Board Meefing But, the comparative magnitude of numbers reflects advantages of the T1F ^ Compared to the bleak growth projections without the TIF (projected in the Arthur Andersen Report), the local taxing entities would receive approximately $40,000,000 more in ad valorem tax revenue over the first 20-year period of the TIF • $94,000,000 with the TIF • $54,521,073 without the TIF ^ Establishes new anchors for attracting ongoing downtown investments into the next decade Estimate over 3,500,000 SF of development with the TIF over the 20-year period, compared to 1,400,000 SF without TIF ^ Attracts a retail and entertainment customer base that is substantially a net gain to City of Fort worth -attracting the "Metropolitan Visitor " Adds over 1,000,000 SF of retail and entertainment during the 20-year period with over 300,000 SF added by year 2000 This compares to 140,000 to 200,000 SF total without the TIF ^ The redeveloped urban environment enables the City to retain existing businesses and attract its fair share of business growth and corporate relocation prospects ^ The TIF accomplishes major_public projects and public amenities that would otherwise not be possible Assures continuance and enhancement of the subway and remote parking • Interface with proposed "Downtown Circulator" and connection to Intermodal Transportation Center • Available for general public use, but without the operation burden to local government Provides financing of downtown public parking for short term and special uses (750 spaces minimum) • Essential to support expanding retail, historic restorations, Performing Arts Hall, and related I-5 Fort Worth Texas R®investm®nt Zone Numb®r Thre® North Downtown Tax Increment Financing District • Replaces some of the spaces that will be lost with construction of Performing Arts Hall and retail expansions • Builds the Downtown Central Plaza • Extension of streetscapes, landscaping, lighting, and other amenities on all major pedestrian core streets in the subject area • Development of Downtown signage and information system for pedestrians and motorists • Other required infrastructure ^ Provides funding mechanism to attract major business relocations or other economic development initiatives ^ The TIF and proposed private investments are supported by local owners, investors, and corporations with long term commitments to Fort Worth and Downtown They will make sure it works. ^ Direct Jobs Created • Total of 550+ full time direct jobs in retail and entertainment during first five years of development. • Total of over 2700 one year construction jobs, or an average of over 540 construction jobs per year for first five years Note. This does not include • Offrce jobs attracted to office spaces • Indirect jobs (multiplier effects) • Jobs created in supplier industries ^ The major investors provide means (capital and soft costs) to "front end° the infrastructure costs ^ The County and FWISD begin to receive financial gains in 2006 and they lose little or no revenues from 1995 to 1998 because no private investments are planned without the TIF and no significant appreciation is anticipated without the TIF I-6 CHAPTER II • EXISTING USES & CONDITIONS • Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District CHAPTER II -EXISTING USES ~ CONDITIONS EXISTING USES Depicted in Map 1a are the current boundaries of The North Downtown Tax Increment Financing District (T!F) Two minor boundary adjustments are proposed and discussed in Chapter V of this report. The North Downtown TIF contains the core of the Central Business District. It is at the focus of business activity, downtown commerce, retail and entertainment activities It is a center of employment for the Fort Worth area and the seat of government for the region It is becoming a cultural center of the region and most important, is the symbol of the region !t contains a wide variety of activities concentrated in ahigh-density environment. Existing uses in the T1F currently include office, government, parking, commercial, retail, restaurant, entertainment, hotel, and residential As can be seen in Map 2a, 29 percent of the area contained within the perimeter • boundaries of the TIF could be classified as "Built Core " This is the area where most of the improved property value of the TIF is currently concentrated The remaining area contained within these boundaries is either non-taxable (23%) or currently underdeveloped and is being used for surface parking or is vacant. This underdeveloped area, 48% of the total land area, represents potential sites for future project development within the TIF This Future Development Project Area represents approximately 62 percent of the taxable land area contained within the perimeter TIF boundaries. The majority of this underdeveloped land is located in the periphery of the CBD core As can be seen in Map 3a, there are few structures in this area Built up portions of the TIF are concentrated in the CBD core Densities are greatest in the southwest quadrant of the core, where office buildings are concentrated both within and adjacent to the TIF boundaries EXISTING CONDITIONS Maps 4a and 5a illustrate the TIF land area divided into quadrants for study purposes Existing conditions within the TIF, including existing infrastructure, were analyzed per these study areas The condition of existing infrastructure was investigated by consulting City of Fort Worth utility maps and utility master plans • ll-1 i `' ,\. r,~j'~~~ ~ °~ ~ ~' J;,'~ ,. ....,~r ~ ~ ,!". .:~~ f f~ ;~ ~% ~"'~~ I i k and~'~ est Fork) jl ~%~ 1/ ~ ;~~~ 1 a. TIF District Boundary 2~/ ~ TIF Zone Boundary - - PID Zone Boundary Major Government Ownerships Omitted fom Porposed Reinvestment Zone eh St. 4~i' [7 ..==''~- /~~~~ r ~~~. ~~., s Q~~ ~~~ s r .\ f ~ ~.c.;.r~~ *a~f`Y i , qty .: w< :.C j ~r^ .~ ,f' ~n',t~ /~.'.H i I-2 • 4R~Y ELK~AP TgERF~RD • 2a. Built vs. Underdeveloped Land Areas r r a Non-Taxable Properties 23% TIF Area Built Core Area 29% TIF Area 38% Taxable TIF Area 'HWY 287 ^ Ma'or New Future Pro'ect Develo ment Areas 48% TIF Area J J P 62% Taxable TIF Area Core Expansion Underway I I-3 • II-4 3a Existing ~u~lt Form o TIF District Study Quadrants • Study Quadrants are defined to evaluate private development and infrastructure needs • All quadrants are influenced by the existing central core which includes intensive office, retail, governmental and support uses. • Condition of existing infrastructure in each Study Quadrant was investigated in preparation of Future Development Concept Plan La-5 4a TIF District Study Quadrants • II-6 5a TIF District Study Quadrants Fort Worth Texas Reinvestm®nt Zone Numb®r Three North Downtown. Tax Increment Financing District...... EXISTING INFRASTRUCTURE Context The NW Quadrant is the largest portion of the TIF with approximately 164 acres. Existing anchors, uses in underdeveloped areas, and influences on future development in this study quadrant are listed at the bottom of Map 6a. The zoning in the area is equally split between "J" (Light Industrial) and "H" (Central Business District) with pockets of "D" (Multi-Family) Streets and Drainage Generally, the streets within this quadrant are acceptable except for a few places (usually side streets) which need resurfacing The primary drainage pattern for this area is toward the river There are major drainage lines running down Henderson (30"/36"), Cherry (15") and Taylor (24") According to a study of the storm drainage system for Downtown conducted by Albert H Halff Associates in 1982 (the "Halff Study"), there appears to be some flooding problems along Henderson at Peach, Bluff, Belknap and Weatherford The majority of this quadrant is found within the Minor (North) Henderson Street/Bluff Street System. The system's problems are aging, undersized pipes in poor condition There is also a significant portion of the watershed with a nonexistent storm drainage system. Utiliti®s Water is readily accessible to the NW Quadrant through a 20" line on the west side of the area, a 36" line on Second, a 36" line on Burnett, and 12" lines on Henderson and Florence. According to the Water System Master Plan (1987), there are no plans to add any lines that are 12" or larger until after the year 2010 The sewer system, with some lines built in the 1920's, is less adequate than the water system. The most important condition affecting the NW Quadrant is the M-42 line, running from the Hospital District to the river Sewer lines are routed in mid-block easements within most of this quadrant and would need to be moved in the event of a multi-block development. U I1-7 ^ Anchors Include • Tandy Center Office Towers and Proposed Fort Worth Outlet Square • Tandy Technological Center • Miller's Insurance Building • County Government Buildings ^ Underdeveloped Areas Include • Grade level parking north of First United Methodist Church • Large, mostly vacant area west of Henderson could accommodate land intensive uses Other Influences on Development: • Tandy Tech Garage planned for expansion • Tandy Subway and Parking Lot could link area west of Henderson to Central Core • The Ripley Arnold Public Housing area has potential for redevelopment in a fashion that would improve the quality and/or quantity of public housing while making the area more compatible with Downtown redevelopment • View corridor of western gateway terminates where Henderson bends northward • II-8 6a Northwest Study Quadrant Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District Special Stre®tscape The majority of the special streetscape occurs within the eastern 1/3 of this quadrant, from Burnett to Main, and includes the Tandy Tech Center, the Library, The Outlet Mall, Houston, and Main Streets. Included are trees, tree grates and pavers. NE Study Quadrant Context The NE Quadrant is comprised of approximately 59 acres. Existing anchors, uses in underdeveloped areas, and influences on future development in this study quadrant are listed at the bottom of Map 7a. Most of the areas east of Jones are industrial in nature with a residential pocket along Bluff Most of the area is zoned "J" (Light Industrial), with some Commercial (H, G, and E) and Residential (B and D) The area along the river north of Bluff is floodplain Streets and Drainage _ The streets within this quadrant are in good shape with the exception of a few of the ~- purely residential streets north of Belknap Flooding does not appear to be a major problem in this area, although there are a few problem spots, namely Weatherford at Calhoun, Elm and Pecan and Bluff at Commerce. This quadrant is within the Crump/ Fourth Street System which has been noted for its aging, undersized lines that are generally in poor condition Utilities The primary water main within this quadrant is found along Bluff (24"), Jones (24" concrete), a 36" line on Belknap from Jones to the west, and a 12" line on First. Other lines within this quadrant are 6" and 8" lines The sewer system includes the 21" deep line (D-100) along Commerce, a 54" line (M-282) that runs east/west under Bluff until Bluff intersects with Jones, and a 100' deep 48" line that runs from southeast to southwest across the quadrant. New sewer lines have been placed in Bluff, which alleviates any problems with moving lines to accommodate new development in that area. However, almost every block within the quadrant has sewer lines located in mid-block easements which would have to be addressed for multi-block developments I I-9 ^ Anchors Include • Tarrant County Courthouse and County Complex • City Center Office Towers Underdeveloped Areas Include • Vacant areas with Bluff views ^ Other Influences on Development: • Eastern gateway to CBD via Belknap/Weatherford pair • Future County expansion • Attractive bluff views into Trinity Greenbelt Corridor and North Fort Worth • II-10 7a Northeast Study Quadrant Fort Worth T®xas Reinvestment Zone Number Three North. Downtown Tax Increment Financing. District Special Str®®tscape The only special streetscape in this area is found along Main Street and around the Tarrant County Administration Building. Streetscape elements in these areas include pavers, landscaping, flags, decorative lighting, and banners. Context The SW Quadrant is the smallest of the four quadrants, comprised of approximately 23 acres. Existing anchors, uses in underdeveloped areas, and influences on future development in this study quadrant are listed at the bottom of Map 8a. The zoning within the quadrant is primarily "H" (Central Business District) with some "J" (Light Industrial) Streets and Drainage The streets are in good condition throughout this quadrant. Houston, Throckmorton and Sixth are the primary bus spines for Downtown. Although there are some large storm water lines in this area on Throckmorton, Houston and Fifth, there are also flooding problems. Flooding tends to occur at Sixth and Taylor, Fifth and Taylor, Fifth and Throckmorton, and Fourth and Throckmorton Part of the problem with the flooding is that some of the most intense development within Downtown occurs in this quadrant, which causes capacity problems due to aging lines in poor condition Most lines have a capacity of a 2- year storm or less. Other problems are not directly related to poor lines in the area, but insufficient capacity downstream. At the time of the Halff Study in 1982, both lines in Houston needed to be replaced Utiliti®s Water is sufficient for Downtown needs. Within this area, there is a 36" line on Second and a 12" line on Taylor; all others are 8" Due to the anticipated demands of the Performing Arts Hall and surrounding area, a new 42" sewer main has been placed in Fourth Street, which will alleviate capacity problems indicated on the City of Fort Worth 1987 Wastewater Master Plan In addition, there are relatively few blocks (3) with sewer lines in the alley, which can be an additional expense for full-block developments. II-11 ^ Anchors Include • Fort Worth Public Library and Expansion • Bank One • Fort Worth Star-Telegram • Sanger Lofts ^ Ot s • • • • Underdeveloped Areas Include • Scattered grade level parking lots which will have to be replaced when developed • Underutilized retail and office buildings, both within this quadrant and on its perimeter her Influences on Development: Tandy Center Office Towers and Proposed Fort Worth Outlet Square Sundance Square retail and entertainment district Sundance West residential complex The Electric Building residential project adjacent on the southwest The vacant Texas Building on southern perimeter The Blackstone Hotel on the southeastern perimeter Large concentration of office towers along southern perimeter could create parking demand issues The future Cassidy Residential development The new Wells Fargo office building II-12 8a Southwest Study Quadrant Fort Worth T®xas R®investment Zone Number Three North..Downtown.Tax Increment Financin District „~ Sp®cial Streetscape Due to the intensity of development within this area, and its exposure to some highly visible developments, there is a high percentage of special streetscape. Special streetscape elements can be found in Sundance Square, around Bank One and the Church on Main and along the Throckmorton/Houston bus spines. These elements include pavers, landscaping, decorative lighting, and banners as well as furniture provided by some vendors in the area. Cont®xt The SE quadrant of the TIF is bound by the railroad tracks to the east. This area covers approximately 56 acres. Existing anchors, uses in underdeveloped areas, and influences on future development in this study quadrant are listed with Map 9a. Streets and Drainage Streets within the quadrant are generally in good shape Second Street needs to be rebuilt and the railroad spur which is in the ROW needs to be removed Realignment of Third, which veers into Second between Calhoun and Grove, will require street reconstruction The SE Quadrant falls within the Seventh Street System and the Crump/Fourth System in the study The Seventh Street System appears in the heart of Downtown within the most intense development areas. Due to undersized and aging infrastructure, most of this area only has the capacity to handle a 2-year storm event. Potential flooding areas include Weatherford at Calhoun, and Jones at Second The eastern half of the Quadrant falls within the Crump/Fourth Street Systems. Flooding occurs just off-site, east of the railroad tracks on Third, which could affect flooding problems upstream as well Others occur along Second Street at Terry, Pecan and Grove. These flooding problems would occur with a 5-year storm and are due to lines that are undersized and in poor condition Utiliti®s Many of the sewer and water lines in this area are 75 years old However, the 1987 Water System Master Plan does not show any major new lines planned until after 2010 Any new development would have to be evaluated on a project by project basis Primary water mains are located in Commerce (12"), Jones (24" concrete), and First (12") II-13 Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District The sewer system dates back to 1915 in some area.. According to the 1987 Wastewater System Master Plan, there is a potential capacity problem by the year 2000 in the 21" deep line (D-100) located in Commerce In addition, most of the sewer lines within this Quadrant are in the alleys, which would have to be moved in the event of development. Special streetscape Since a majority of this area is somewhat removed from the more active areas of Downtown, and since it is largely zoned "J" (Light Industrial), it has very little streetscape amenities. Most of the streetscape found here links new projects, including Sundance East, City Center, the Performing Arts Hall and along Main Street. The streetscape in these areas consists of pavers, landscaping, decorative pedestrian- scale lighting, banners, and street furniture There is also some landscaping at the Spur 280 gateway into Downtown • II-14 ^ Anchors Include • City Center Office Towers • Sundance East entertainment district • Performing Arts Hall ^ .Underdeveloped Areas Include • Large areas of grade level parking which will have to be replaced when developed • Railroad spur down Second Street Other Influences on Development: • Hillside Residential Development will be adjacent to this quadrant on the east • Southeastern gateway to the CBD via Fourth, Fifth; Sixth, Seventh Streets entry gateway ~ _.. ,. LI-15 9a Southeast Study Quadrant CHAPTER III PROPOSED USES & IMPROVEMENTS c: Fort Worth Texas Reinvestment Zone Number Three • North Downtown Tax Increment Financing District CHAPTER III -PROPOSED USES & IMPROVEMENTS PROJECT PLAN OVERVIEW Downtown Fort Worth Strategic Action Plan, The Project Plan for the North Downtown Tax Increment Finance District (TIF) represents an integral part of a larger public planning process which has been ongoing in the pursuit of the revitalization of Downtown Fort Worth It is most directly linked to the Downtown Fort Worth Strategic Action Plan, which called for the creation of the TIF in 1993 The Project Plan details future development which is forecast to occur within the reinvestment zone during the life of the TIF This includes both development projects that have begun or have been announced since the creation of the TIF and development projects that are forecast to likely be a part of the ultimate build-out of the TIF area over the next twenty years The growth model used to project build-out of the TIF area is the Future Development Concept Plan Specifically, the Future Development Concept Plan was created in response to planning objectives established for future downtown development in the Downtown Fort Worth Strategic Action Plan Among the objectives which provided the most guidance are the following ^ Establish an In-Town Residential Community ^ Capture Metropolitan Visitors via unique retail and entertainment venues ^ Attract an Outlet Mall and a Public Market as retail anchors and community activity generators ^ Expand Day/Night activity areas and build on the current successful Retail Core and Entertainment District. ^ Maintain and expand the Pedestrian-Friendly street level environment and improve Gateways to Downtown ^ Strengthen Pedestrian Corridors and Linkages and provide interface with proposed "Downtown Circulator " ^ Assure continuance and enhancement of Subway and Remote Parking ^ Provide Public Parking and Open Space essential to complement expansion of the Central Core via Central Parking Garage(s) III-1 DOWNTOWN FORT W ~RTH STRATEGIC ACTION PLAN FINAL DRAFT- SEPTEMBER 1993 ili-2 Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District • TIF is Developer Driven The North Downtown Tax Increment Finance District has been created through the joint efforts of a public/private partnership Petitioned by property owners who owned over 50% of the appraised property value of the area, the City of Fort Worth created Reinvestment Zone Number Three The zone was created to implement tax increment financing as a mechanism to stimulate revitalization of the Central Business District and facilitate redevelopment which would otherwise not be economically possible Based on a preliminary TIF financing plan, which forecast private development projects and identified supporting TlF infrastructure improvements, several private developments were initiated recently in the zone by Sundance/City Center Development Company and Tandy Corporation These private investments have been committed in good faith in the belief that the preliminary TIF improvement plan will be implemented As a result, 10 percent of the total improved property value, which is projected to be added within the reinvestment zone through the projected ultimate build-out of the TIF, is currently under construction and nearing completion This means that this TIF is developer driven with known development projects that will generate the first tax increments to fund TIF improvements Additionally, two sizable nontaxable projects, the Fort Worth Library expansion and the Nancy Lee and Perry R. Bass Performance Hall, will positively impact future development within the reinvestment zone Tarrant County is seriously considering expansion to include a Family Justice Center and related parking faci{ities What Recent Private Investments Can Mean Ultimately Recent private investments in the reinvestment zone are highlighted in red and classified as Core Expansion Proposed or Underway on Map 1 b These developments are of such high quality that when they are added to developments currently existing within the central core of the CBD, the cumulative affect approaches a critical mass that can ^ Establish the foundation for a revitalized Central Core, and ^ Attract significant development in the Core Periphery A revitalized Central Core that is economically and functionally strong can serve as a powerful engine to drive future expansion of the larger CBD Core Potential exists for the assemblage of large enough underdeveloped land parcels within the boundaries of the TIF to facilitate major future development projects in the Core Periphery If attracted by a revitalized Central Core, these peripheral developments could help provide economic stability and support further economic growth in a mutually reinforcing relationship with the Central Core Maps 2b and 3b illustrate currently emerging development trends within the Central Core which could both attract and III-3 Fort Worth T®xas Reinv®stment Zone Number Three North Downtown Tax Increment Financing District benefit from such reinforcing peripheral development within the TIF But for implementation of well-planned TIF inftastructure, initial individual investments will not be coordinated nor reinforcing and the critical mass required to achieve Downtown's fullest multi-functional potential will not be realized. Clearly, the timing for TIF intervention that can help ensure the greater results is critical A multiplier effect can be achieved if the TIF acts early to complement initial private investments as was planned in the preliminary financing plan. U r 111-4 ~ ~ F~~~~nt Private 9nve~trn~nt >-: ` Core Base Core Expansion Proposed or Underway Future Core Expansion Core Periphery Linkage Development • ~ornpleted, A Sundance East AMC Palace B Wells Fargo Building H Fort Worth Outlet Square S4(CP)+ Continental Plaza Garage X Bass Performing Arts Hall Proposed CR Central Plaza Retail/Office T1 Tarrant County Family Courts LE Fort Worth Library Expansion HOB 40 room Historic Hotel) CC City Center Parking Garages (improvements) A DOWNTOWN RESIDENTIAL base is becoming reality ENTERTAINMENT AND RETAIL are being reestablished as day/night activities Downtown ~ AMULTI-FUNCTIONAL CENTER can become unified if pedestrian linkages can be established and parking problems solved before they worsen "But for" proposed TIF improvements, Downtown cannot achieve its fullest multi-functional potential 0 III-6 2b Emerging Development Trend Resodent~ai ~~~ Hotel Retai I • III-7 3b Emerging ®evel®pment Trend Fort Worth Texas R®investment Zone Number Thre® North Downtown Tax Increment Financing District FUTURE DEVELOPMENT CONCEPT PLAN The Future Development Concept Plan is intended to illustrate a growth model of how the core of the Central Business District of Fort Worth can achieve its highest potential The result sought would be development of the CBD Core into amulti-functional urban center that is unique within the Dallas/Fort Worth Metroplex. The unique and high quality of this kind of urban center would allow the Fort Worth CBD to compete with any city, urban or suburban, for the best of retail, office, entertainment, residential, and even corporate campus development opportunities. Central Core The Future Development Concept Plan envisions a strong revitalized Central Core and ,.~°~ a continuation of the high quality environment and amenities which have been recently invested here Map 5b shows areas within the Central Core where Core expansion is announced or underway in red and areas in the southwestern quadrant of the TIF projected for future Core expansion in yellow The key positioning of the Central Core at the nucleus of the growth model is indicative of its role in attracting future growth in the Core Periphery Core Periphery The Future Development Concept Plan exploits the potential that exists in the Core Periphery for the assemblage of large land areas to accommodate land intensive uses such as corporate campus, R & D office park, public market and in-town residential development. These areas are shown in blue on Map 5b As indicated above, these major future developments are both attracted by and supportive of the uses being developed in the Central Core Linkag,_® D®velo mR ants These development areas are shown in green on Map 5b linking Core Periphery developments with the Centraf Core. These developments do one or both of the following ^ Realize development opportunities from locational adjacencies that link new core peripheral developments to the built core Facilitate core peripheral development that could not develop "but for" these linkage developments. III-8 Map 5b Future ®~e~~!®~p~rn~r~t C®~~~~~pt P~~a~ 0 Core Base Core Expansl~n proposed or Underway Future Core Expansion Core F'erlphery Linkage ®evelopr~ent III-9 Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax. Increm®nt Financing District Sphere sizes shown on Map 5b represent development densities of projected future developments. As can be seen in the computer generated model of the Future Development Concept. Plan, future development appears geographically balanced ~J III-10 Fort Worth Texas Reinvestment Zone Number Three . North Downtown Tax Increment Financing District Plan Assumptions Time Table Twenty Year Development Schedule/Thirty Year Financing Schedule Private development projects and supporting infrastructure are shown for a twenty year period The TIF term was established for a thirty year term in order to give flexibility for achieving optimal financing arrangements. Urban Design/Historic Preservation This Project Plan focuses on land uses, development capacities, required infrastructure and alternative locations for major developments On a project by project basis, this plan does not specifically address important urban design and historic preservation issues. A partial summary of urban design objectives that came out of the Downtown Strategic Action Plan are listed below These considerations should be incorporated into all TIF Development and Infrastructure Projects at the time of detailed planning and design Historic Preservation Much of Downtown Fort Worth's recent success is attributed to its unique character which combines historic buildings with properly scaled new developments The historic resources give Downtown a human scale, identity with heritage, authenticity, and a very user friendly "feel " Developments associated with the TIF should continue to respect these historic resources Adaptive reuse and appropriate design treatment of historic resources should be an integral part of TIF project designs. Development Scale The scale of building developments (height and volume) should also respect existing successful patterns in Downtown For example, the height and scale of retail developments immediately adjacent to the Central Plaza should not exceed 4 to 6 levels of height. TIF development intensities in this report have taken into account these scale and size issues Street Level Activity Street level land uses and storefronts should include retail, entertainment, customer service, and other uses that help assure a continuity of street level activity Avoid street level uses that create "dead" areas especially in the retail core Be sure that "linkage" uses continue this street level vitality Avoid Barriers Avoid large multi-block structures that create barriers, either visual or physical III-11 Fort Worth Texas R®inv®stment Zone Number Thre® North Downtown Tax Increment Financing District Pedestrian Environment As developments occur, it is critical to provide attractive and comfortable "streetscapes° that incorporate landscaping, lighting, street furniture, special pavements, and public transit stops where appropriate. These pedestrian connections are critical to maintaining user comfort, safety, and connections between activity zones and connections to parking TIF projects should continue the streetscape quality that has begun on several core area streets in recent years. Where possible, pockets of green space or plazas should accent the pedestrian system. Trinity River Greenbelt TIF developments adjacent to the Trinity River Corridor should provide pedestrian linkage and orientation to the greenbelt. Courthouse Views Certain strategic °Courthouse mew" corridors are important considerations in the specific design of projects. Parking Parking needs have been evaluated with each development projected in the build-out of the Future Development Concept Plan. Each use projected was parked at market demand rates. On-street parking was not considered and it was assumed that all existing parking facilities either are at capacity now or will be before future developments projected in the Future Development Concept Plan occur Total parking needs per TIF Study Quadrants were then analyzed .Partial TIF participation in the construction of one small parking garage per Study Quadrant was then determined based on several preliminary policies that considered the level of developer participation, the ability to amortize the cost of garage construction proportional to Project Development land areas, and the proposed facility's response to circulation and parking planning goals. Parking facilities were designed as second level parking decks in retail areas to encourage as much on-grade retail expansion as possible and strengthen pedestrian linkages to the Central Core. Parking garages were limited to two stories in height everywhere but for locations which would not interfere with view corridors of the Courthouse At the time of compilation of the Financing Plan, preliminary results from a parking assessment study, which is now being prepared for Downtown Fort Worth, Inc., will be available to better define future parking needs within the TIF III-12 Fort Worth Texas Reinvestment Zone Number Three • North Downtown Tax Increment Financing District PROPOSED USES The Future Development Concept Plan is the model used to project the ultimate build- out of the TIF, based on a feasibility study which will be presented in the Financing Plan As can be seen in graphic 6b, this model projects a balance of uses will evolve with new development being divided almost equally between office, retail, and residential uses. The North Downtown TIF development program includes 1,600 units of added housing*, 1,238,600 square feet of office space*, 1,103,000 square feet of retail space'`, which beaks down as follows • 270,000 square feet Core Expansion of Retail Underway • 36,000 square feet Core Expansion of Retail Planned • 75,000 square feet Hotel • 300,000 square feet Public Market • 172,000 square feet Future Core Expansion of Retail (Outlet Center expansion and other) • 250,000 square feet associated with future major developments *Tax Increment Feasibility Analysis, North Downtown Fort Worth, Scenario 1, Gideon Toal Management Services, June 16, 1996. A comparison of the bar graphs in graphics 7b-9b reveals that residential and retail developments are projected to lead office development. All of the housing units are projected to be built during the first ten years of the TIF, while most of the retail and office space that is not already announced or underway is projected to be completed in the period following the first ten years of the TIF • III-13 Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District 6b. LAND USES by S.F. AFTER REDEVELOPMENT ,.,,.~,. ® Retail o Office (34%) Residential a III-14 Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District- . 9b. RESIDENTIAL DEVELOPMENT • 8b. RETAIL REDEVELOPMENT and NEW DEVELOPMENT 400 ._...,~.__. Total Square ~ Retail Square Feet _ Feet: sDO '' 1,102,949 ~ 300 N 100 $i ~ 17 j(. } 1 ~~ G `114 ""p'S 1:. 6 0 1099 1897 1999 1999 3000 2001 1002 2007 200{ 2005 3000 2007 2006 2009 2010 ZOff 3013 301 3014 Yeu BOR Source: Gideon Toal Management Services • III-15 Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District ~. PROPOSED IMPROVEMENTS Initial Private Develog_ment (To Occur Before 2002) Initial private development is shown on Map 10b It is important to realize that these initial private investments (totaling $89 million) will generate the first revenues for the TIF Their success is vital to the future expansion of the entire TIF Complementary TIF public improvements must be undertaken to ensure the success of these projects as they were initially planned. Core Expansion Planned or Underway Three development projects have been undertaken since the TIF was initially formed These private developments are currently completed or nearing completion. These projects were undertaken in good faith based upon a commitment to complement them with TIF public improvements within the TIF District. A fourth project, the Central Plaza Retail/Office Sundance project, is envisioned for construction in conjunction with the proposed TIF Central Plaza project. Additionally, two existing residential projects, Sundance West Apartments and the Sanger Lofts, will generate tax increments which will impact initial TIF revenues. Both of these projects will be put on the tax roles at full value for the first time when their current tax abatements expire soon after year 2002. The appreciation of these properties' values, which has occurred since these projects were built, will generate tax increments for the TIF Private developments, which have been initiated or proposed in the Central Core since formation of the TIF, are as follows ^ Sundance East AMC Palace (105,000 Net SF) ^ Sundance East Office Building at Fourth & Main (55,000 Net SF) ^ Fort Worth Outlet Square (165,000 Net SF) ^ Central Plaza Retail (72,000 Net SF) (proposed) ^ Continental Plaza Parking Garage (700 spaces for Bass Hall) ^ SW Commercial Development (40 room Historic Hotel) ^ City Center Parking Garages (1,T20 spaces for shared use) Though not private developments; two sizable nontaxable projects, the Fort Worth Library expansion and the Nancy Lee and Perry R. Bass Performance Hall, will impact future development within the reinvestment zone significantly ^ Fort Worth Library Expansion (50,000 SF) ^ Nancy Lee and Perry R. Bass Performance Hall (2,052 seats) • Tarrant County Family Justice Center III-16 x,: ~~ ~- a.:;~; • Core Base Core Expansion Proposed or Underway Future Core Expanslon Core Periphery Linkage Development Completed. A Sundance East AMC Palace B Wells Fargo Building H Fort Worth Outlet Square S4(CP)+ Continental Plaza Garage X Bass Performing Arts Hall Proposed: CR Central Plaza Retail/Office T1 Tarrant County Family Courts LE Fort Worth Library Expansion HH 40 room Historic Hotel) CC City Center Parking Garages (improvements) III-17 10b Initiated and Proposed Developments Fort Worth Texas Reinvestment Zone Numb®r Three North Downtown Tax Increment Financing. District Sundance East AMC Palace The AMC Palace Theatre block, located between Commerce, Calhoun, Third, and Fourth Streets, is an entertainment and retail complex. Opening in the Summer of 1996, it boasts anine-screen AMC movie theatre (40,000 SF), a Barnes and Noble Bookstore (28,000 SF), Big Time Texas (20,000 SF), a venue for musical entertainment; and a 4,400 SF Mediterranean restaurant, called Angeluna. The complex also includes 11,000 SF~of office space above the retail Sundance East Office Building at Fourth ~ Main This building is currently nearing completion It will house the Wells Fargo Bank, office and retail space. Of the 55,000 SF of total space, approximately 44,000 SF is dedicated to the bank and other office space. Retail areas on the ground floor occupy 11,000 SF of space in the building Two retail tenants have been announced Mi Cocina Restaurant and AT&T Phone Store. Negotiations are underway for the remaining space. Fort Worth Outlet Square The Fort Worth Outlet Square is the result of a dramatic transformation of the old Tandy Center retail mall, first built in 1977 It will now house a new outlet mall, complete with ice skating rink and food court. There is approximately 165,000 SF dedicated to retail space, with stores such as Speigel, Computer City, Mi Casa and Nine West included on the retail roster Taco Bell and Subway sandwich shop will also be among the 35-40 expected Outlet Square retailers. Central Plaza Retail and Office Based on the TIF goal to build a Central Plaza open space on two blocks which they own between Third and Fourth and Houston and Commerce Streets, the Sundance organization and Bowen Properties have envisioned plans to construct 72,000 SF of retail and office space in two buildings which would flank the Central Plaza on its east and west perimeters. Ground floors would be devoted to 36,000 SF of retail space, which is planned to open onto the plaza. Above the retail, is planned 36,000 SF of office space and residential on floors 3-5 on the east side u III-18 Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District _ Short Term Core Periphery and Linkage Developments In addition to the above described private developments which have been announced or are underway currently in the Central Core of the TIF, the Project Plan anticipates one residential and two small office developments will be undertaken on Core Periphery and Linkage Development tracts during the first five years of the TIF The residential development is projected to be constructed in the Core Periphery in four phases between 1997 and 2001 Taken together, the two small office developments are projected to provide 62,750 SF of space for garden office/courthouse service use The sites for these projects are among the sites described on pages III-20, III-22, and III-23 These projects are further described as follows ^ In-Town Residential Project (1,000 t DU) ^ One garden office/courthouse service building (31,375 SF) ^ One garden office/courthouse service building (31,375 SF) III-19 Fort Worth Texas Reinv®stment Zone Number Three North Downtown Tax Increment Financing District PrQj®ct®d Private Dev®lopment Activity Private development, which is not underway or announced, has been projected in accordance with the build-out scenario provided in the Future Development Concept Plan The build-out scenario used in the Future Development Concept Plan is based on a feasibility study in which typical development projects were land planned for suitable areas within the TIF to meet the market demands projected in the feasibility study These areas, Future Project Development Areas, are shown on map 11 b The Project Plan is not intended to be site specific for future development projects that are not underway or announced Rather, it is intended as a general model of ultimate build-out of the TIF which is feasible and likely, based on a detailed analysis of existing site qualifications for a number of sites within the TIF for each. type of land use projected This site analysis included an evaluation of infrastructure needs compared to existing and projected infrastructure systems as shown on City infrastructure master plans. Core Periphery and Linkage D®velopment Sit®s There are multiple alternative sites within the Core Periphery and Linkage Development areas of the TIF that can accommodate the following projected uses. ^ 1 Corporate Campus Development (514,850 SF) ^ 1 R&D Office Park (328,000 SF) ^ Garden Office/Courthouse Service (104,750 SF) ^ 1 Public Market (300,000 SF) ^ Entertainment Commercial/Retail (295,000 SF) ^ 1 In-Town Residential Development (1,000+ Units) ^ 1 In-Town Residential Development (500+ Units) Corporate Campus Map 12b locates three Core Periphery sites which could accommodate a corporate campus development of 500,000+ square feet. Both the northwestern site and the eastern site provide large enough areas which could be assembled so that parking garages of four stories or less could be used to park the project. The site at Henderson and Third Street would provide a corporate user with a gateway view (viewing north along Henderson) that terminates at this campus site. This site would require a parking garage of eight stories to accommodate 500,000+ square feet of office. The site could possibly benefit from its adjacency to the Tandy Tech Garage and adjacent parking lot, which are planned for garage expansion. A fourth site is possible within the southwestern quadrant of the Central Core. I U-20 48,04 .r°'~ ELKNAP TkERFpRD • 11b. MAJOR PROJECT DEVELOPMENT AREAS (AFTER 1996) ~; .:.sx ..;; ; _ , ,; }~ As, , ~~t :- HWY 287 III-21 Fort Worth Texas Reinvestment Zone Number Three North Dovmtown Tax Increment Financing District R 8~ D Office Park Map 12b locates the same three Core Periphery sites shown in Map 11 b. as possible sites for a research and development office park of 300,000+ square feet. On each of these sites, two story office buildings and parking garages could be used to accommodate aloes-profile office park. Garden Office/Courthouse Service Map 13b locates three sites which are situated to provide easy access to the Courthouse and supporting City and County facilities. Each of these sites has access provided via Belknap and/or Weatherford Streets. Public Market Map 14b locates four possible sites for the proposed Public Market. The northwestern site is large enough to easily accommodate the outdoor sales areas and parking required for a public market of this size. The other two sites, while smaller, are large enough to accommodate the market with little multilevel parking needed If needed, this parking could be incorporated into facilities needed to provide shade for open air sales areas. Both of the smaller sites offer the major attraction of being situated at gateways to the CBD which could be exploited. Entertainment Commercial/Retail Three Linkage Development sites appear on Map 15b ,which could provide opportunities for expansion of the existing entertainment districts at Sundance Square, Sundance East, and the Performance Hall The northernmost site could also link to one of the Public Market sites shown in Map 14b The southernmost site could provide a "backstage" entertainment, theater, and arts district extension ftom the Performance Hall This site also benefits from adjacency to a major gateway to the CBD, which could be exploited in the development of entertainment commercial uses. One such use projected is a 75,000 SF hotel In-Town Residential Map 16b locates four Core Periphery sites that would be suitable for residential development. The two larger sites provide enough land for assemblages that could accommodate a development of 1,000+ dwelling units, while the two smaller sites could accommodate a residential community of 500+ units. The eastern site benefits from its adjacency to the planned Hillside development on its eastern boundary and the possibility of retail/entertainment expansion on its west as projected in map 15b If built n1-22 Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District at this site, the residential development could serve as the primary "self contained" market for this adjacent retail development. The large site in the northwest corner of the TIF benefits from adjacency to the Tandy Parking Lot and Subway, which could link a residential development located here to the Central Core The two smaller sites in the northeast corner of the TIF have compatible existing residential neighborhoods to the northeast. The westernmost of these two sites also could benefit from views north from the bluffs overlooking the Trinity River Future Core Expansion Sites Shown in yellow on Map 17b are sites projected to provide future expansion of the Central Core These are located in the southwestern quadrant of the TIF The following uses are projected for these sites. ^ Outlet Center Expansion (105,000 SF) ^ Ground level retail of projected office building (28,000 SF) ^ Mid-rise office building with supporting parking levels (200,000 SF) ^ Miscellaneous retail on grade (39,000 SF) III-23 I ~~ a / 1. ~ t aep"p~f ' " ;, ~~`^..i_; fir, .~,~ - ... \,,~ j .y,. ~. rJ ', y ,%-~ r i ` ~ ~ M ~ ~ ,.. ~,,~~z~ f , ~~~ ~~ ..,- .~:> ~~<. x EELKNAP,- ~.. n. .~sx~ ~ FOR~..~ . (w~ ~ say ~ ; ~.~,~ ~..i.~ t, „1 ;a:;~~ ~`~ ^~::^~ ~ r t ~!''~.~'~'x,,,~.3 /'~, F ~ ,~ rye y . ~ - ~~.d ip ..! d 3 "^°` Y i~ d i"• ~ ~ f ~ .~.'` y Fly{BTH, ST . .j.,f$} ~~~.° , l , a ~ ,.i r ~ ....t'::.,. 12~. ppgppRA1eE ARK .~.~.~ ~.,~., K', 7, `... ~ P {:;.... R&D pFF AND,~RN ATIVE SITES , ~~ ALT f u1-2~ ~,.. • 4gp4 ~ i~~ ~u j, ,• , f j t_ ` 1 5 i t f j t A. ~... ~ r~E~f`\ i ~M ;: BELKNAP WE,gT~,ERF pR D 13b. GARDEN OFFICE AND COURTHOUSE SERVICE ALTERNATIVE SITES r ~ ~-'. a r f~'~ `~ ~ ..... 4 , fs; .s~ f ,.~.:: Y ~ c. ~'' .. ~~... ~..".i . "'`~ f;_°'.°;-~...,._., HWY 287 III-25 4gp4 . ..- ..~--' /~ ~~ ~.,..,- ,4 t ~? ;~ a,.r~~ ~. >, ~;, (lJ~,(: l "Nr ~~~N -,r •, ~r f' 4? , } yj j: f f ~ S!' C~ !' ~d. ~ r 'ill 14b. PUBLIC MARKET ;; i1 ALTERNATIVE SITES ' ' ,~~ r Jl ~ .¢<. X I , 'Y .~,~~.. (I ' . •~ SAT KE RF~~D I, ~ ~ '~ . s i I I-26 ..-=~~ r ~~ .~ S 4g~4 -.~.. . `'s v~ ~-~ .~° '~ is E ~~^~ ~ ~~ i r. ~-;~~' F' ~' J ~, J~ t l~ f !~ p ~i A ~!, V~ Iy ! 1 }' ;'~ # ; F GV v~ y i ~% r,r ~t< r s ~ 7~ ~rf.~ r ;y a. ,~ :, ,;. rF gEL , . ~, .~ .. -~ . ~ K :~.. z~3~ s ~~ ~ NA p.. .~ Y f' Y }f ~~ <. 'r-.. .....' ... f ,-l .. ~ ~ 2 ' ~ ~ 1 FJw ~~ }QT~ . a ~«,y` 17,1 ~ ~ ~„^H ~~ -- • i. ~ 5:..:> #,.'• ,,_ ._.. • "IiWY 287 ..;Y' j ~- °k :r i 15b FUTURE ENTERTAINMENT `~~- COMMERCIAL/RETAIL ALTERNATIVE SITES ~`'{~~ (AFTER 2002) III-27 r~ 4¢a~q . .~; 4,~ -mss f ,`, ~,r .- , ,' ~ `~ I ~ ~• t ~ Ntf, ~i' }1r,,~ 1 a '~ _Tpy~N gESIDEN ~ :: r• Ifib, IN SITES ALTEgN ATIVE ~-••~°~EATHERFO,~D i '` `_~ t.-.-.j it~. <. t. ..f .. .... +~t.. J r.K,~c ze7 111-2~ Core base ~.~ Core Expansion Announced or Underway Future Core Expanseon Coro Periphery _ LAn~cage ®eve~oprraent • III-29 17b future C®re Expansi®n Fort Worth T®xas Reinvestment Zone Number Three North Downtown Tax Increment Financing District- PUBLIC INFRASTRUCTURE IMPROVEMENTS The North Downtown TIF Project Plan provides for a maximum of $50 million of public infrastructure improvements through build-out of the Future Development Concept Plan in 2014 These pubic improvements are forecast to be matched with approximately $438 million in private investments within the reinvestment zone For each dollar invested in public improvements, there is forecast to be improvements valued at $8.77 that will be built within the reinvestment zone via private investments. Initial Public ImQrovemeRt$ Approximately $24 million of these improvements are scheduled to be completed during the first six years of the program to complement the $89 million in initial private development which will be completed before the year 2002. The majority of these initial public improvements (including historic site improvements) will be constructed in the implementation of the Circulation Concept Plan shown in Maps 18b and 19b Circulation and: Parking Concept Plan r vements ro osed in the Circulation and Parkin Concept Plan and The public imp o p p 9 shown. in Map 18b, are intended to solve common parking problems existing currently in the Central Core of the CBD and provide linkages that will reinforce and unify existing activity centers and initial private developments of the TIF into a vibrant multi- functional center They will meet objectives of the Downtown Fort Worth Strategic Action Plan to strengthen pedestrian corridors and linkages, maintain and expand the pedestrian-friendly street level environment, assure continuance and enhancement of the Tandy Subway and remote parking facility, and provide public parking and open space essential to complement expansion of the Central Core via a Central Plaza and central parking garage(s) Pedestrian linkages, open space and an interface with the proposed Downtown Circulator are proposed in the Circulation and Parking Concept Plan shown in Map 18b The Plan also provides solutions to solve both long and short term parking problems before they worsen Circulation and Parking Concept Plan Appli®d As can be seen in Map 19b, the proposed public improvements are strategically located to link and serve a majority of the activity centers and destination generators that are currently existing, recently developing, and/or planned for the future expansion in the Central Business District. These initial public improvements include the following III-30 • • f.. .~-- -- Coordinate with Stockyards (Main St.) and Cultural District (7th St.) Connections Trolley connections to , Intermodal Transportation Center Map 18b Circulation and Parki r Subway ~ Subway Station a,~ Commuter Ball 1~ Ord SL. Pedeatrtan Strnetacape Corridor • ~ ~ • Trolley Stopa O O O ~ Trolley Route EzlaUng Urban Plaza ® Central Core Parkiag Garages and Taady Parking Lot Proposed Central Plaza Z ~ ' c, t ,' 1 ~ Q ~~ °~~ `moo ~~- 1;~~ ~~~ o~-- ~~ ~~~ ~. Concept Plan IIf-31 444 '~ ~ ~..~ ~ ~ Coordinate with Stockyards ~,, (Main St.) and Cultural District (7th St.) Connections Trolley connections to Intermodal Transportation Center 'HWY. 287 19b. Circulation and Parking Concept Plan Applied ~ Underutlil:ed Bulldlnes - Subwy ~ Subway station ~~ Commuter Rail a Social/Co.. t• 9rd St. Pedestrian Streetscape Corridor • s St . Ottlce Concentration • ~ ~ op Trolled 0000 Trolled Route Rasldenttal Coacentratlon Urban Plasa Oestlnatfon Generators ® Central Plasa~Parkln~ Cara~e3 Lot ktn d P ® Entertainment/Befall ~ ar ~ and 7an Retafl ® Entartatt-ment r~ ~+f,r ~s ti..~j 1.j 1 ~''f.~. ..` ~: ~.. III-32 ~~ r Fort Worth Texas Reinvestment Zone Number Three . North Downtown Tax Increment Financing District Third Street Pedestrian Corridor The Third Street Pedestrian Corridor is primarily a streetscape project linking existing and planned activity centers throughout the TIF The Third Street Corridor provides linkage from proposed residential developments west of Henderson, the Public Library, the Fort Worth Outlet Center, Sundance West, Sundance East, City Center Tower, and the proposed Hillside residential development east of the railroad The corridor will also serve as a primary east/west route through Downtown for the projected rubber tire trolley Improvements will extend from the eastern boundary of the TIF to the western boundary at Henderson Street, where the corridor will enhance the western gateway to the CBD Improvements include landscaping, brick pavers, decorative lighting, and consistent street furnishings such as benches, tree grates, and trash receptacles Street trees and trolley stop shelters are also proposed A majority of the improvements will be completed by 2001 Central Parking Garages The Central parking garage(s) will provide downtown public parking for short term and special uses to address current parking deficits in the Central Core These parking garage spaces are essential to support expanding entertainment and retail businesses, historic restorations, the Performing Arts Half, and related uses The parking garage(s) may also replace some of the spaces that will be lost with construction of the Central Plaza, the Performing Arts Hall, and retail expansions. Upon completion of a separate Analysis of Potential Parking Garage Sites, it is now recommended that a Central Parking Garage be located on two blocks spanning Taylor Street between Lamar, Throckmorton, Third and Fourth Streets. It is anticipated that the project will be configured with two to three levels of parking below grade topped by a five-story extension of the existing Bank One Garage This configuration could be expanded one block to the west at a future time This project site could yield 750 - 1,000 parking spaces There may be additional parking garage spaces leased from private sector owners of parking structures within the TIFD boundaries. Tandy Subway and Parking Lot The Tandy parking lot and subway improvements are an essential solution to the increasing parking needs of the Outlet Square and an expanding Central Core. The immediate need is for safety and mechanical improvements to be made to ensure continued usage of the subway These include some placement and regrading of the track itself and improvements to the tunnel Other improvements that are a priority are the subway cars and wait stations Future improvements include resurfacing and landscaping the parking lot adding trees, lighting, a security system, and a fence III-33 Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District The upgrading of the subway and parking areas will connect with the future north-south trolley system to provide a complete north-south movement system from the Tandy Subway Parking and Courthouse area all the way south to the proposed Intermodal Transportation Center Tarrant County Shared Parking Garage Tarrant County proposals for construction of a 500-car parking garage in conjunction with a proposed new Family Courts building to be located within the TIF boundaries affords the TIF an opportunity to secure future public parking though participation in the costs of this parking facility Plans tentatively call fora 3-4 level parking garage to be constructed on the lower floors of the Family Courts Building with perhaps a portion of the garage to be below grade. This project is forecast to be initiated in 2000 1~J III-34 • • • 5' x 5' ~ac~ Id~Rb~1~N ~~ ~toCwl~c oiV ~or~u~~t'~ st,,o+ '~ Wt~t ~I~;rx1~1cAZ, St~lDR~/Nt ~Y57~M -- ORNhM~i~TiM• '~ ~'`~' ~iC~KT ~tticTURG' INt'~t l3lkrlri~ CcE~xR~cAt~ ~' l~NC~t wit C~6`t~~ T C7 Third Street Corri~, III-36 Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District Additional Initial Public Improvements Tarrant County Historic Horse Fountain Restoration If the TIF boundaries are amended to bring the Tarrant Count Courthouse into the TIF, consideration can be given to TIF funding participation in the restoration of the historic Horse Fountain to the southeast lawn of the Tarrant County Courthouse If this site is added to the reinvestment zone, TiF funding could complement other funding sources to help replace the bronze equestrian statue and restore the fountain, as is being proposed by Tarrant County and supported by the Tarrant County Historical Commission Implications of Initial Public Improvements The use of tax increment financing as proposed herein accomplishes major public projects and public amenities that would otherwise not be possible Implications of the investment in just the initial public improvements are significant to the expansion of both public and private sectors' investments in Downtown Addresses Current Parking Problems These improvements assure continuance and enhancement of the Tandy Subway and remote parking facility, and allow for its interface with the proposed "Downtown Circulator" and future connection to the Intermodai Transportation Center The TIF improvement plan makes these facilities available for use by the general public, but without the operation burden to local government. Tax increment financing also provides financing of downtown public parking for short term and special uses at proposed central parking garages. The garages are essential to support expanding entertainment and retail businesses, historic restorations, the Performance Hall, and related uses The garages will also replace some of the spaces that will be lost with construction of the Performance Ha!! and retail expansions. Continues Comfortable, Pedestrian-Friendly Street Level Environment Building the Central Plaza Open Space and the Third Street Pedestrian Corridor will continue the comfortable, pedestrian-friendly street level environment which is essential to attract shoppers and other visitors back downtown General streetscape improvements, lighting, signage, and other amenities which will be added throughout the TIF will further ensure the quality environment necessary to allow and encourage future expansion of the Central Core of Downtown III-37 Fort Worth T®xas Reinvestment Zone Number Three North Downtown Tax Increment Financin District Attows and Encourag®s Future Core Expansion Collectively, construction of the initial public improvements will implement the Circulation and Parking Concept Plan and provide for well-planned expansion of the CBD Core. The initial private developments which are currently underway or have been announced were undertaken based on this planning Without these public improvements to complement and accommodate the growth which will be realized from these developments, the sum of the parts could be much less than the whole, as these individual efforts would not be unified into amutually-reinforcing whole. Rather than working in concert, the individual developments could end up competing for limited parking resources. In this scenario, the future growth of the CBD Core could become constrained from congestion and lack of coordination, causing the redevelopment engine to choke and stall In contrast, implementation of the initial public improvements will expand parking resources and provide the linkages and coordination necessary to unify initial private developments resulting in well-planned, stable growth of the Central Core. Map 24b depicts the development of a strong multi-functional Central Core where TIF improvements have linked the individual developments so that they mutually reinforce one another as interrelated parts of a unified whole. -~ lil-38 . ~ Core base K. Core Expansion Proposed or Underway Future Core Expansion Core Periphery _ ~ L~n~cage Deveioprnent III-39 24b ®eve~ ®pec~ Can t ral C~ re Fort Worth Texas R®investment Zone Number Thr®e North Downtown Tax Increment Financing_ District -= ~®neral Ongoing Infrastructure Imp~yernents and Historic Site Rehabilitation In addition to the specific initial public improvements described above, the TIF improvement plan includes general street, drainage, utility, streetscape, and parking and historic site rehabilitation improvements which will be constructed throughout the TIF District to complement private development as it occurs. These public improvements are designed to fully meet the long term infrastructure needs of the entire TIF area and to encourage the preservation and rehabilitation of historic sites within the TIFD They include. Streets Although streets within the TIF are generally in good condition, the TIF improvement plan anticipates a signiflcant amount of street reconstruction will be required due to utility construction with new development. Street reconstruction is projected to occur most often when utility lines or duct banks are placed under the street. This situation is projected to require street reconstruction in all but one of the Future Development Project Areas. Street reconstruction will also be required in association with removal of the rail spur currently located in Second Street. New street construction will be required with the realignment of Second and Third Streets between Calhoun and Grove Streets in accordance with the 1994 Downtown Strategic Action Plan suggestion that this angled section be removed, and Third Street become atwo-way street. Projected street improvements do not include any street widening Drainage T(F financed drainage improvements will be limited principally to the reconstruction of inlets where flooding problems occur and the extension of storm pipe from the development projects to existing and future trunk lines Approximately half of the Future Development Project Sites will require off-site extension of lines to points of entry on either future trunk lines which are proposed in the drainage master plan prepared by Albert Halff Associates or to points of entry on existing trunk lines where the additional capacity will be acceptable Water Water availability, access, and pressure have not been a problem with any development within the Downtown area to date. It is anticipated that new water lines will not be necessary in any Future Development Project Areas except for the area of the Northwestern Quadrant west of Henderson Street, where additional 8" water lines will be needed to tap into an existing 20" main, and the Southeastern Quadrant, where 6" and 12" lines will be required to replace aging water lines. III-40 Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District Sewer Sewer improvements will be dependent on the actual configuration of each development. Since many sewer lines are located in mid-block alleys, sewer line relocations will have to be addressed on a project by project basis. However, in calculating TIF infrastructure costs, none of the typical future development scenarios projected any conflicts with the current placement of sewer lines except in the area of the Northwestern Quadrant west of Henderson Street and the northernmost area of the Northeastern Quadrant. Aging lines in the Southeastern Quadrant will need to be replaced also Replacement lines will be a minimum of 8" and will connect to existing deep trunk lines that outfall to the Trinity River Special Streetscape Streetscape plays an important role in the overall TIF plan serving as a unifying force, bringing the entire district together visually and providing pedestrian linkages throughout the TIF Therefore, the TIF improvement plan includes an aggressive program of paving and streetscaping Streetscape elements will include brick pavers, decorative, pedestrian-scale lighting with attached banners, street trees, furnishings such as benches and waste receptacles, signage, and, where needed, trolley stops for the future rubber-tired trolley "Downtown Circulator " Parking Although the Fort Worth Zoning Ordinance does not require parking be provided for uses in the CBD, parking needs have been evaluated with each development projected in the build-out of the Future Development Concept Plan Each use projected was parked at market demand rates Total parking needs per TIF Study Quadrants were then analyzed Partial TIF participation in the construction of one small parking garage per Study Quadrant was then determined, based on several preliminary policies that considered the level of developer participation, the ability to amortize the cost of garage construction proportional #o Project Development land areas, and the proposed facility's response to circulation and parking planning goals The resulting level of TIF participation in the construction of future parking garages has been rolled into the general infrastructure costs of each projected development effected on the TIF Development and Infrastructure Projects lists of Tables 3.2-3 3 of the Project Plan It is expected that this preliminary projection of these costs will be modified in the Financing Plan, where tabulations of infrastructure costs are actually first required At the time of compilation of the Financing Plan, preliminary results from a parking assessment study, • which is now being prepared for Downtown Fort Worth, inc., will be available to better define future parking needs within the TIF lli-41 Fort Worth Texas Reinvestment Zon® Number Three North Downtown Tax Increment Financing District ~, There may be additional parking spaces leased from private sector owners of parking. structures within the TIFD boundaries. Historic Site Rehabilitation The goal is to encourage the preservation and rehabilitation of historic sites within the tax increment finance district. The City of Fort Worth approved incentives for highly significant buildings within downtown which historic sites within the TIFD may not make application Because the restoration and conversion of these buildings is significant to the success of the district, incentives for restoration of the historic facades are included in the plan 111-42 i CHAPTER IV • SUMMARY OF PRIVATE DEVELOPMENT & TIF INFRASTURCTURE COSTS Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District CHAPTER IV -SUMMARY OF PRIVATE DEVELOPMENT &TIF INFRASTRUCTURE COSTS Table IV-a outlines the TIF Development projects (not including TIF infrastructure) Table IV b outlines the proposed TIF Infrastructure projects. 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LL. to % '~t rj .'~ 0. .~ ~~ y Q ~~.. • Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District Table IVb Estimated Project Improvement Costs Estimated Project Improvement Costs Type of Improvement (In millions of Current Inflated Dollars) TIF and Parking Management $4 g 3rd Street Pedestrian Cooridor $2 ~ Subway (Trolley) $3 4 Tarrant County Horse Fountain $p 2 Public Market Feasibility Study $0 1 • Parking (including leasing facilities) $22 6 General on-going street, drainage, utility, and streetscape improvements, public market improvements and historic site rehabilitation $~6.7 Total $50 0 • !V-3 • CHAPTER V PROPOSED TIF BOUNDARY ADJUSTMENTS • Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax Increment Financin District CHAPTER V -PROPOSED TIF BOUNDARY ADJUSTMENTS It is anticipated that one residential development proposed within the current TIF Zone will require an incentive program which is not compatible with TIF legislative requirements. In order to be economically feasible, the site for a future multi-story residential project, called the "Cassidy," will need to be removed from the TIF Zone so that other incentives might be considered for this project. A boundary revision to delete or "donut" the site of the future residential development is recommended Another boundary revision proposed is to add the site of the Tarrant County Courthouse so that it is included within the TIF This boundary revision will facilitate consideration of TIF funding participation in the restoration of the historic Horse Fountain to the southeast lawn of the Tarrant County Courthouse If this site is added to the reinvestment zone, TIF funding could complement other funding sources to help replace the bronze equestrian statue and restore the fountain, as is being proposed by Tarrant County and supported by the Tarrant County Historical Commission Both boundary revisions proposed herein are shown on Map 2 1 must be done by Ordinance or Council Resolution V-1 f N.. ~_ N r r~~~ =.:.-- ' ~ i t '' ~ ~~ ~ ~ ~^ .~ i ./ ~ wq~ %' Trinity Rive ~ k and Best F,bric,) IJ ~j 4, S „~~. ` f ; ~~ ~ ;. ~~ ~Y. ~ d. arrant County go ~.;~ `~ ,~ '` Courthouse to the TIF V+ :, ;- , ,.-- Vw~ „ h, r .. ..t ,~;r'r. ~ ~ .. -.,~ w ~ .. ~« s4' ~ ~' '" ',. ~' C ; ~..; Delete site of ~ o 3rd '~"a ` ~'~~.~'"~;Y~~'c`~ '~'°~ ~ a v % _~,•:~:F,f ~~<~~ $eh St. proposed Cassidy, ~ ~~~~,~~'~>~w...,. ~ ~'`~~ ~N~u ~~ ~~w..~ ~Y ~ 1 .~,,.., i A~ .,: E~NA~ Project from t~lfe`~`'1'll"-~`y~~ i:L ~~ ~ s~~f c„ti, ~ ~~~~~i,~~i+~~~•~~F r , ~ .A;~,A~ '- << ; . ~ ,~,~~:` ~.--.....;~ H1YY 287 Zone Boundary r+ r"~r~J ~, r, „~,; + ~ _ ,• - Major Government or Tax Exempt ',.~~r~~.' ~` -~ ~ -' Omitted from Proposed Reinvestment Zone l ~ ~~~ ~~~''v~~` ~~; ~' °4 s'1 #~1 rs: z,f't` r 2.1 Proposed 1996 Boundary Adjustments for Tax Increment Reinvestment Zone Number Three V-2 CHAPTER VI • CURRENT & PROPOSED ZONING • Fort Worth Texas Reinvestment Zone Number Three • North Downtown Tax Increment Financing District CHAPTER VI -CURRENT & PROPOSED ZONING CURRENT ZONING As shown on Map 2.2, zoning within the TIF District has evolved into a mix over time. However, the City has created "H" Central Business District specifically for the CBD As specified in the Fort Worth Zoning Ordinance, "It is the purpose of the "H" Central Business District to provide a specific Central Business District zone for the more intense use of all commercial uses permitted in previous commercial districts, providing Tess restrictive height and area regulations, and such uses accessory thereto " PROPOSED ZONING The Project Plan recommends that future zoning changes on portions of the TIF east of Henderson Street be to "H" Central Business District. A slight modification in the zoning boundary description that was originally envisioned for the CBD, "H" Central Business District is also proposed The Project Plan recommends that the geographical boundaries considered for the CBD, "H" Central Business District be extended northward from Bluff Street to the centerline of the Trinity River to make a more natural boundary The Project Plan further recommends the City consider the TIF area west of Henderson Street for "D" Multi-Family, "G" Commercial or "PUD," Planned Unit Development, zoning as may be appropriate when development plans are submitted for consideration for development in this area The Project Plan outlines future development based upon the adopted zoning ordinances, as recommended for revision above and shown on Map 2 3 Changes to the Fort Worth Zoning Ordinance may be proposed in the future in order to establish design guidelines for planned commercial and residential development within the,zone. Other than the revision of the TIF boundary described below, no other ordinance changes are planned at this time • VI-1 4gp4 . f. ~ 2.2 Existing Zoning ~ 0 One Pamily Residential HO Two Family DO Multi-Family EO Commercial © Commercial ~J Central Business District Business, H(storic & Cultural Ll~ht industrial ®H LIQh! Industrial. Historic k Cultural 0-1 Fioodpiain 0-2 Floodplain BELKNAP ~EATkERFpRD ~J VI-2 4g,04 ~LKNAP TFi~RF pRD • 2 3 Proposed Zoning HWY 287 VI-3 • CHAPTER VII RELOCATION PLAN r: Fort Worth Texas Reinvestment Zone Number Three • North Downtown Tax Increment Financing District CHAPTER Vli -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 Three must include the following element: 1. A statement 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 Areas of the reinvestment zone when development activities commence. If actions by the TIF result in relocation of any persons, their relocation benefits will be governed by the Residential Antidisplacementavd Relocation Assistance Plan for the City of Fort Worth . While no relocations are currently envisioned, it is acknowledged that in the event such relocations become 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 administered by the City's Housing and Human Services Department. Should such a need arise, persons may appeal their cases through an established appeals process. • VIt-7 ~ FINANCING PLAN Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District n LJ • TABLE OF CONTENTS Page Foreword i-iii CHAPTER 1 -ECONOMIC FEASIBILITY STUDY Overview 1 Section 1 Tax Increment Projections (Summary) 2 Forecast Development 2 Public Infirastructure Improvements 10 TIF Increment Potentials 18 Implications for Financing of Required Infrastructure 19 Section 2 Development Potential (Projected market demand) 20 Residential Potential .20 Retail Potential 22 Office Potential 26 Section 3 Tax Increment Analysis 29 Forecast Development .29 Development Costs 31 Value of New Construction 32 Assessed Value of New Construction 33 Initial Assessment Base 35 Incremental Value 35 Improved Land Values 37 Incremental Taxes 39 Parking Revenues 41 Sales Tax Increments 50 Public Improvements 52 CHAPTER 2 -PRO-FORMA Overview 55 Financing Model 55 Financial Feasibility 56 Pro-Forma Assumptions 57 Section 1 Revenues 58 Projected TIF Development Activity-Scheduled Lists 58 TIF Tax Increment Projections 61 Parking Revenue Projections 62 Section 2 TIFD Public Improvements Needs 63 Section 3 Pro-Forma Summary Spreadsheets (per 2 Revenue Scenarios) 66 Section 4 Revenue Flow Comparisons (with and without TIF) 72 CHAPTER 3 -METHODS OF FINANCING Methods and Sources of Financing 74 Duration of the Zone 74 Legislative Index. 75 Appendix A -Analysis of Downtown Fort Worth Parking Garage Scenarios .A-1 Appendix B -Parking Garage Scenario Plans B-1 List of Tables, Graphs & Maps p~ CHAPTER 1 -ECONOMIC FEASIBILITY STUDY Section 1 Tax Increment Projections (Summary) 2 Map 1 1 Initiated and Proposed Developments 3 Map 1.2 Future Development Concept Plan 6 Map 1 3 Future Project Development Areas ~ 7 Table 1 4 Residential Development , , 9 Table 1 5 Retail Redevelopment and New Development . , g Table 1 6 Office Development 9 Map 1 7 Circulation and Parking Concept Plan 11 Map 1 8 Preliminary Recommendations for Alternative Parking Garage Sites by Barton-Aschman Associates, Inc. 15 Section 2 Development Potential {Projected market demand) Zp Table 1 9 Residential Development Table 1 10 . Retail Redevelopment and New Development 20 25 Table 1 11 Office Development. 27 Section 3 Tax Increment Analysis 29 Table 1 12 Table 1 13 Anticipated Taxable New Construction Develo C 30 pment osts (per Square Foot) 31 Table 1 14 Table 1 15 Net Present Value of Anticipated Taxable New Construction Assessed Values of Anticipated New Construction 32 Table 1 16 Assessed Values of Property within the TIFD 34 36 Map 1 17 Table 1 18 Improved Land Values Built and Redeveloped Land Areas Estimated Tax Rates 38 Table 1 19 Annual Incremental Funds Generated from the TIFD 39 40 Table 1.20 Assumptions for Parking NOI Calculations 42 Table 1.21 Parking NOI Calculations Central Core Garage -Phase 1 43 Table 1.22 Table 1.23 Parking NOI Calculations Central Core Garage -Phase 2 Parking NOI Calculations Family Justice Center Gar , 44 Table 1.24 age Parking NOI Calculations for SW Expansion of Commercial 45 Office/Retail Garage 46 Table 1.25 Parking NOI Calculations for Tandy t Garage 47 Table 1.26 Parking NOi Calculations for Tandy J Garage 48 Table 1.27 Parking Revenues Projections 49 Table 1.28 Sales Tax Revenue Study 51 Table 1.29 Estimated Project Improvement Costs 53 r1 ~J CHAPTER 2 -PRO-FORMA Section 1 Revenues 58 Table 2 1 Projected TIFD Development Activity (Chronological List) 58 Table 2.2 Projected TIFD Development Activity Through 2005 59 Table 2.3 Projected TIFD Development Activity Through 2015 60 Table 2 4 TIF Tex Increment Projections 61 Table 2 5 Parking Revenue Projections 62 Section 2 TIFD Public Improvement Needs 63 Table 2 6 Projected TIFD Public Improvement Needs (Chronological List) 63 Table 2 7 Projected TIFD Public Improvement Needs Through 2004 64 Table 2 8 Projected TIFD Public Improvement Needs Through 2015 65 • Section 3 Pro-Forma Summary Spreadsheets (per 2 Revenue Scenarios) 66 Graph 2 9 Costs vs Property Tax Increments and Parking Revenues 66 Graph 2 10 Costs vs All Tax Increments and Parking Revenues 67 Table 2 11 TIF Pro-Forma Summary (w/Sales Tax and w/o Debt Financing} 68 Table 2 12 TIF Pro-Forma Summary (w/Sales Tax and w/ Debt Financing) 69 Table 2 13 TIF Pro-Forma Summary (w/o Sales Tax and w/o Debt Financ'g)70 Table 2 14 TIF Pro-Forma Summary ~w/o Sales Tax and w/ Debt Financ'g) 71 Section 4 Revenue Flow Comparisons (with and without TIF) 72 Graph 2 15 Revenue Flow Comparisons (Total Revenue Stream) 72 Graph 2 16 Revenue Fiow Comparisons (Individual Revenue Streams) 73 • i Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing Distriict FOREII~ORD Overview The 1993 Downtown Strategic Action Plan envisioned that a tax increment financing district (TIED) would be needed to finance several major Downtown infrastructure and historic site projects, including. • Public parking and the connecting systems (trolley and subway) • Central Plaza and Parking Garages • Special pedestrian and streetscape systems • A Public Market • TIF planning and administrative costs • Historic site rehabilitation costs • The North Downtown Tax Increment Finance Distract was created through the joint efforts of a public/private partnership Petitioned by property owners who owned over 50% of the appraised property value of the area, the City of Fort Worth created Reinvestment Zone Number Three and a preliminary financing plan was prepared The zone was created to implement tax increment financing as a mechanism to stimulate revitalization of the Central Business District and facilitate redevelopment which would otherwise not be economically possible The use of tax increment financing as proposed herein accomplishes mayor public projects and public amenities that would otherwise not be possible But for implementation of well planned TIED infrastructure, individual investments which have been initiated since formation of the TIED will not be coordinated nor reinforcing and the critical mass required to achieve Downtown's fullest multi-funtional potential will not be realized Clearly, the timing for TIF intervention that can help ensure the greater results is critical A multiplier effect can be achieved if the T(FD acts early to complement initial private investments as was planned in the preliminary financing plan Project and Financing Plan In compliance with legislative requirements for creation of a tax increment finance district, Gideon Toal Management Services, Inc was asked to prepare a project plan and a financing plan for the North Downtown Tax Increment Finance District The Draft Project Plan was presented to the TIED Board in August 1996 Page i Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District Revisions were then made to the Draft Project Plan and are incorporated herein the Financing Plan The major revisions which were made to the Draft Project Plan included updating projected development activity and required infrastructure improvements to reflect additional development projects which have been recently announced within the TIFD and to incorporate a more focused investigation of future parking needs within the TIFD Preliminary results from a parking assessment study being prepared for Downtown Fort Worth Inc. by Barton Aschman Associates (BAA) were considered and used to refine TIFD parking needs which were projected in the Draft Project Plan. Also because parking improvements are so important and especially critical to the early success of revitalization efforts, Gideon Toal Management Services undertook, in association with BAA, a separate parking study to further investigate the site of the proposed Central Garage and to project parking revenues associated with the various garages proposed in the Draft Project Plan. The executive summary from this parking study is included in the Appendix of this Financing Plan The Financing Plan explores the feasibility of using tax increment financing to pay for public improvements and historic site rehabilitation needed to support redevelopment and stimulate revitalization of the CBD Section One of Chapter 1 updates forecast development and public infrastructure improvements from the Draft Project Plan. The remainder of Chapter 1 presents an economic feasibility study which details projected market demand and documents a detailed analysis of projected tax increments Chapter 2 presents; in tabular form, a TIFD Pro-forma which can be used for executive summary purposes, and Chapter 3 describes methods and sources of financing. Tax Increment Financing Section 311 of the State Tax Code, commonly called The Tax Increment Finance Act, provides for municipalities to create "reinvestment zones" within which various public works and improvements can be undertaken, using tax increment bonds or notes to pay for those improvements At the time an area is designated a reinvestment zone for tax increment financing, the total appraised value of real property in the zone is designated as the "tax increment base." Taxing units levying taxes in the zone during its life are limited to tax revenues derived from this original base Public improvements and historic site rehabilitation are made in the area to attract ®' and complement private development that would not otherwise occur or which. would otherwise occur at a much later date As new development is added to the Page ii . Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District tax rolls, total assessed valuations rise This rise in new value is called the "captured appraised value" and revenues generated by taxes on the captured appraised value are the "tax increment." These tax increments are deposited into a TIF trust fund which is used to pay for the public improvements Once the public improvements are paid for, the TIFD is dissolved and the full amount of the taxes collected in the area are kept by the taxing jurisdictions Tax increment financing involves the pledging of future real property taxes generated by accelerated new development to fund the public infrastructure improvements which make the development and the resulting taxes possible Procedurally, tax increment financing requires 1) qualifying the area as an eligible reinvestment area, 2) defining the boundaries of the tax increment district; 3) "freezing" the assessed value of land and improvements within the district as of the last assessment date, 4) diverting real property taxes generated by increases in the assessed • value above the "frozen" base to a tax increment fund, and 5) using the tax increment fund to pay for improvements as needed or as a repayment source for revenue bonds • Page iii .] CHAPTER1- ECONOMIC FEASIBILITY STUDY Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District CHAPTER 1-ECONOMIC FEASIBILITY STUDY Section One summarizes the results of the tax increment projections and discusses potential approaches to funding the required improvements. The market demand for residential, retail and office development within the TIFD is explored in Section Two The market demand analysis which supports the tax projections was based on the likely build-out of the Future Development Concept Plan presented in the Project Plan. The feasibility study done previously by Arthur Anderson and Associates served as a point of departure and was updated to reflect recent events and developing trends emerging within the CBD Although new developments were projected individually along a 20-year time line to approximate build-out of the TIFD, aggregate projections for 10-year periods are likely to more accurately reflect project development in later years for projected developments which are predicted and currently unknown Ultimate build-out densities were limited by parking needs to support new growth The most conservative build-out scenario was pursued throughout the market analysis Section Three details the tax increment analysis The following projections of development and tax revenues are subject to change As underlying conditions in the national and regional economy change, the pace and value of the new development project for the TIFD may shift. Future property tax rates are particularly difficult to predict and' thus the projected tax increments are subject to change. The analysis of future tax increment funds is dependent on along series of projections, assumptions and other inputs so the report should be reviewed in its totality Neither this report nor its conclusions may be referred to or included in any prospectus or part of any offering made in connection with private interests to the public without the express written approval of Gideon Toal Management Services, Inc 1401 Henderson Fort Worth, Texas 76102-6026 • Page 1 SECTION 1 - TAX INCREMENT PROJECTIONS • • Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District SECTI®IV 1 - TIC Ii~CREIVIEIVT PR®JECTIONS (Summary) This section describes the proposed project and summarizes the results of the tax increment analysis, which is detailed in Section 3 Forecast ®evelo~rrtent The Project Plan details future development which is forecast to occur within the reinvestment zone during the life of the TIFD This includes both, 1 Initiated or Proposed Developments -development projects that have been begun or have been proposed by their property owners since the creation of the TIFD, and 2 Projected Development Activity -development projects that are forecast to likely be a part of the ultimate build-out of the TIFD area over the next i twenty years Initiated or Proposed ®eveloprnents Based on the preliminary TIF financing plan, which forecast private development projects and identified supporting TIF infrastructure improvements, several private developments were initiated recently in the zone by SundancelCity Center Development Company and Tandy Corporation These private investments have been committed in good faith in the believe that they would be complemented with public improvements within the reinvestment zone as proposed in the preliminary TIF improvement plan As a result, ten percent of the total improved property value which is projected to be added within the reinvestment zone through the projected ultimate build-out of the TIFD is currently under construction and nearing completion This means that this TIF is developer driven with known development projects which will generate the first tax increments to fund TIF improvements Complementary TIF public improvements must be undertaken to ensure the success of these projects which total over $35 million in initial private investments Initial private development is shown on Map 1 1 Page 2 ;~~,;. ~,~a ~- . ~~~~~ ~~~ Dore Base Core Expansion P~-aposed or Underway !`uture Core Expansion Core periphery Linkage Development Completed: A Sundance East AMC Palace B Wells Fargo Building H Fort Worth Outlet Square S4(CP)+ Continental Plaza Garage X Bass Performing Arts Hall Proposed: CR Central Plaza Retail/Office T1 Tarrant County Family Courts LE Fort Worth Library Expansion HH 40 room Historic Hotel) CC City Center Parking Gara~ (improvements) Page 3 Map '1.1 Initiated and Prapo~ed Developments Fort Worth, Texas Reinvestment Zone Number Three North Downtown. Tax Increment Financing District Core Expansion Underway or Proposed Three development projects which have been undertaken since the TIFD was initially formed are currently completed or nearing completion Two projects which have been envisioned by TIFD property owners are proposed for near term construction. Additionally, two existing residential projects, Sundance West Apartments and the Sanger Lofts, will generate tax increments which will impact initial TIF revenues. Both of these projects will be put on the tax roles at full value for the first time when their current tax abatements expire soon after year 2002 The appreciation of these properties' values which has occurred since these projects were built will generate tax increments for the TIFD Private developments which have been initiated or proposed in the Central Core since formation of the TIFD are as follows Map Development Project Label • Underway or Completed -'~ A Sundance East AMC Palace (105,000 Net SF) B Sundance East Office Building at 4th & Main (55,000 Net SF) H Fort Worth Outlet Square (165,000 Net SF) S4(CP)+ Continental Plaza Parking Garage (700 spaces) for Bass Hall HH SW Commercial Development (40 room Historic Hotel) CC City Center Parking Garages (1,120 spaces for shared use} Proposed CR Central Plaza Retai!/Office {72,000 Net SF) Though not private developments, three sizable nontaxable projects will impact future development within the reinvestment zone significantly These are Underway X Nancy Lee and Perry R. Bass Performing Arts Hall (2,052 seats) Proposed T1 Tarrant County Family Justice Center LE Fort Worth Library Expansion (50,000 SF) Page 4 Fort Worth; Texas Reinvestment Zone NumCSer Tiiree~-~~Y North Downtown Tax Increment Financing District ~s 4: rM Hw +~P. k s. ,~.; ,~, ..l ~' '~~ .~ ,.a4~. 'Gx~., ~~. :fir :, 4 ~, r ,. ~,,. ~~, 9 Projected Development Activity through Zone Build-Out Private development, which is not underway or announced, has been projected in .~_ accordance with the,. build-out scenario provided in the, Future.,Development _ _,_w,; F ,.: Concept Plan. This growth model projects that a balance of uses will evolve with new development being divided almost equally between office, retail and residential uses. A computer generated model of the Future Development Concept.Plan shown.in Map,~1:2 projects.a geographically balanced~build-out of -..,.r.. the TIFD based on a strong revitalized central core which attracts significant new development in the core`periphery` This build-out scenario is based on a feasibility- study it which typical development projects were land planned for suitable areas vvithin the TIFD to meet the market demands projected in Section 2, {;~r, Development Potential; of this report. These areas, Future Project Development Areas, are shown on Map 1 3. The Project Plan is not intended to be site specific for future development projects which are not underway or proposed. Rather, it is intended as a general model of ultimate build-out of the TIFD"which is feasible and likely, based on a detailed analysis of existing site qualifications for a number of sites within the TIFD for each° type of land use projected Core Periphery' and Linkage Development Sites There are multiple alternative sites within the Core Periphery and Linkage Development areas of~the TIFD that can accommodate the following projected• , uses: , ~, s, _. • 1 Corporate Campus Development (514,850 SF) • 1 R&D Office Park (328,000 SF) ` • Garden Office/Courthouse Service (104,750 SF) • 1 Public Market (300,000 SF) • Entertainment Commercial/Retail (270,000 SF) • 1 Business.Hotel .(133 rooms)(75,000 SF) • 1 In-Town Residential Development (1,000+ Units) • 1 In-Town Residential Development (500+ Units) ~.~ fi,~ ~. ,. -~--.~. ~ ~s ,: ~ . ~. _a...~; ~_~ .~ S, to si 1» ~ 9 ~. .~,~.. ' ~ Page 5 ,~ ~~1-~ for. e B Core expansion Proposed or Un:derwav Future fore Expansion. Core ~er~p(~er~ 9r,_~=1 L~nkac~e Development • Page 6 iWlap 1.~ Future ~w~!®p~ment Co~n~e~pt Plan i ,/~ i ,/ / ~ i/ l~~'_ ~~ ~/ ~/ /~ ~~a, ~' ~~ - Wi`t`-V f{ ~ „7 a C~~. ~ o ~ o ~ ~ ~ O V ~: 0 hr.. ~ ~ ~ :fn7 ~/ ~~p ~~ ~~ ~~ ~~ Core Periphery ~.~ Linkage Development Future Core Expansion .~ ~~ ~~ „- ; f r ~ ~; i , ` f "''v ~~,,~ j~, Ma 1 3 FUTURE PROJECT " ' ~7! ~'~' :' p ~ ;~~`-/ DEVELOPMENT AREAS '~ 1~ ~j (AFTER 1996) 'l~f ~~~~Q ~~~~~~ ~1 ~~ ~~. Page 7 ~: Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District Future Core Expansion Sites Shown in yellow on Maps 1 1-1 3 are sites projected to provide future expansion of the Central Core These are located in the southwestern quadrant of the TIFD The following uses are projected for these sites • Outlet Center expansion (105,000 SF) • Mid-rise office building with supporting parking levels (200,000 SF) • Ground level retail of projected office building (28,000 SF) • Miscellaneous retail on grade (39,000 SF} Development Pace To estimate tax increments, several development scenarios were considered which differ in their projections of the pace of future residential, office and retail development. Scenario I was selected as the mast likely development scenario As can be seen in Charts 1 4 -1 6, Scenario I is residentially driven That is, residential development is projected to lead retail and office development, with the exception of development already underway or proposed within the TIFD This results in the most conservative development pace Scenario l is based on observations of current market trends regarding development activity locally and the emerging development trend Downtown towards the reestablishment of retail and entertainment activities which could well serve amufti-family housing lifestyle Scenario I projects no major corporate office development during the first ten years of the TIFD It pushes the development of a corporate campus and R & D office park out to the fast years of the twenty-year build-out projection in order to be conservative Also, it is believed that the likelihood of attracting these uses only increases with time due to the cumulative effect that TIF improvements will have on the Downtown environment. Alternative development scenarios project a corporate campus user and other office users being attracted earlier in the life of the TIFD, which could happen as easily as not. In these alternative scenarios where office uses occur earlier, higher tax increments result primarily due to the high assessed value of major office developments These early office alternative scenarios can be constructed vv~th either an accelerated or delayed development pace for residential and subsequent retail development. Both would yield higher tax increments than Scenario I, with the accelerated pace yielding the most optimistic results Page 8 Table 1 4 RESIDENTIAL DEVELOPMENT Total Square ati Residentlel Square Feet ~o Feet 1,344,810 200 $ Total D.U.e: too ® 7,825 a ~2r 1997 1999 leap 2s0o 2001 2002 tow toot Zoos 2001 2007 tow MOe 20/a 2011 20u 2ou 20u m/s Yeei Butt .w Sao LL 1w e Table 1.5 RETAIL REDEVELOPMENT and NEW DEVELOPMENT Total Square Feet 1,102,949 ~rre ivn 1980 1989 2000 2001 20w 20w 2001 2005 2000 2007 20w 2009 2010 2011 2012 2017 2011 Yer 8ua stall Retail Square Feet (` Page 9 Souree: Gideon Toal Management Senkea Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financin District Public infrastructure Improvements The North Downtown TIF Project Plan provides for a maximum of $50 million of funding for public improvements through build-out of the Future Development Concept Plan in 2015 This improvement plan includes both specific initial public improvements and general on-going infrastructure improvements. These public improvements are proposed to both. 1 Complement initial private development and ensure revitalization of a strong Central Gore, and , 2. Fully meet the long term circulation, parking, utility, and physical amenity needs of the area to attract new investments and complement these projected private developments as they occur Initial Public Improvements __ Approximately $24 million of initial public improvements are needed to be completed during the first six years of the program to complement the $89 million in initial private development which will be completed before the year 2002 The majority of these initial public improvements (including historic site improvements) will be cons#ructed in the implementation of the Circulation and Parking Concept Plan and will provide for well-planned expansion of the CBD Core. The initial private developments which are currently underway were undertaken based on this planning Without these public improvements to complement and accommodate the growth which will be realized from these developments, future growth of the CBD Core could become constrained from congestion and lack of coordination, causing the redevelopment engine to choke and stall Implementation of the initial public improvements will expand parking resources and provide the linkages and coordination necessary to unify initial private developments and result inwell-planned, stable growth of the Central Core The public improvements proposed in the Circulation and Parking Concept Plan and shown in Map 1 7, are intended to solve common parking problems existing currently in the Central Core of the CBD and provide linkages that will reinforce and unify existing activity centers and initial private developments of the TIFD into a vibrant multi-functional center The Plan provides solutions to solve both long and short-term parking problems before they worsen. The proposed public improvements are strategically located to link and serve a majority of the activity centers and destination generators which are currently existing, recently developing and/or planned for the future expansion in the Central Business District, These initial public improvements are listed.on the following pages Page 10 ~°"'/ Coordinate with Stockyards (Main St.) and Cultural District (7th St.) Connections Trolley connections to Intermodal Transportation Center 1 i .~ ~ ^l`~`tQ ~ ~/~ ~ o `~`~~ ..'"~ d Q ~G~' p O~~ Q ~~ l'Q~~OQ ~~-' ~~~ ~~ .. ft~- ~~ y~}\°~Mw~. Map 1 7 Circulation and Parking Concept Plan _ Subway ~ SubRa~ S4Uon a~~ Commuter Rail Srd St. Padeatrlaa Straetacapa Corridor • 1 ~ • Trolled Stops O O O O Trolled Route 6:1sGnd Urbaa Plass ® Central Core Parking Garade,~ and Tandy ParklaL Lot Prepoaed Ceatsal Plarn Page 11 Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment i=inancin District Tandy Subway and Parking Lot The Tandy parking lot and subway improvements are an essential solution to the increasing parking needs of the Outlet Square and an expanding Central Core These improvements assure continuance and enhancement of the Tandy Subway and remo#e parking facility, and aliowfor its interface with the proposed "Downtown Circulator" and future connection to the Intermodal Transportation Center The TIF improvement plan makes these facilities available for use by the general public, but without the operation burden to local government. The immediate need is for safety and mechanical improvements to be made to ensure continued usage of the subway These include some placement and regrading of the track itself and improvements to the tunnel Future improvements include parking lot improvements and upgrading the Subway system and existing wait stations 3~d Street Pedestrian Corridor The 3'd Street Pedestrian Corridor is primarily a streetscape project linking existing and planned activity centers throughout the TiFD and planned residential areas adjacent to the TIFD The corridor will also serve as a primary east/west route through Downtown for the projected "Downtown Circulator" trolley The pedestrian corridor w-Il continue the comfortable, pedestrian-friendly street level environment which ~s essential to attract shoppers and other visitors back downtown Cents! Plaza Open Space The goal is to provide a central gathering space on a 40,000 SF plaza, with retail along Houston and Commerce that will open onto the plaza as well as the street. Due to its central location within the retail and entertainment core of the CBD, its proximity to the proposed trolley car/pedestrian corridor, and the activity already occurring along Main Street, it is anticipated that the Plaza wi!! be a popular spot for shoppers, downtown workers and tourists alike Page 12 Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District Central Parking Garage(s) The Central parking garage(s) will provide downtown public parking for short term and special uses to address current parking deficits in the Central Core These parking garage spaces are essential to support expanding entertainment and retail businesses, historic restorations, the Performing Arts Hall, and related uses. The parking garage(s) may also replace some of the spaces that will be lost with construction of the Central Plaza, the Performing Arts Hall and retail expansions. Upon completion of a separate Analysis of Potential Parking Garage Sites, it is now recommended that a Central Parking Garage be located on two blocks spanning Taylor Street between Lamar, Throckmorton, 3`d and 4th Streets. It is anticipated that the project will be configured with two to three levels of parking below grade topped by a five story extension of the existing Bank One Garage This configuration could be expanded to the west one block at a future time This project site could yield 750 - 1,000 parking spaces. There may be additional parking garage spaces leased from private sector owners of parking structures within the TIFD boundaries. Tarrant Count Shared Parkin Gara e Y 9 9 Tarrant County proposals for construction of a 50o car parking garage in conjunction with a proposed new Family Courts building to be located within the TIFD boundaries affords the TIFD an opportunity to secure future public parking through participation in the costs of this parking facility Plans tentatively call for a 3-4 level parking garage to be constructed on the lower floors of the Family Courts Building, with perhaps a portion of the garage to be below grade This project is forecast to be initiated in 2000 Tarrant County Historic Horse Fountain Restoration Tarrant County proposes restoration of the historic Horse Fountain to the southeast lawn of the Tarrant County Court House Although currently adjacent to the TIFD, TIF funding participation in the restoration project is included in the Financing Plan. Public Market The public market which was proposed in the Downtown Strategic Action Plan will require TIF funding to become reality Envisioned is a nonprofit venture of 300,000 square feet with portions operating as an open air public market. TIF funding is targeted for physical improvements during construction of the market and for conducting a feasibility study in 2002. Page 13 • Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District General On-going Infrastructure Improvements and Historic Site Rehabitation In addition to the specific initial public improvements described above, the TIFD improvement plan includes general street, drainage, utility, streetscape, parking and historic site rehabilitation improvements which will be constructed throughout the TIF District to complement private development as it occurs These improvements are designed to fully meet the long term infrastructure needs of the entire TIFD area and to encourage the preservation and rehabilitation of historic sites within the TIFD Perhaps most significant among these are the following Special Streetscape Streetscape plays an important role in the overall TIFD plan serving as a unifying force, bringing the entire district together visually and providing pedestrian linkages throughout the TIFD Streetscape improvements, lighting, signage and other • amenities will be added throughout the TIFD to further ensure the quality environment necessary to encourage future expansion of the Central Core Parking Although the Fort Worth Zoning Ordinance does not require parking be provided for uses in the CBD, parking needs were evaluated with each development projected in the build-out of the Future Development Concept Plan Each use projected was parked at market demand rates specific to Downtown Fort Worth Total parking needs per TIFD Study Quadrants were then analyzed Partial TIF participation in the construction of one parking garage per Study Quadrant was then determined based on several preliminary policies that considered the level of developer participation, the ability to amortize the cost of garage construction proportional to Project Development land areas, and the proposed facility's response to circulation and parking goals The resulting level of proposed TIF participation in the construction of future garages was rolled into the general infrastructure costs of each projected development effected m the Project Plan In preparing the Financing Plan, preliminary results from a parking assessment study prepared for Downtown Fort Worth Inc by Barton-Aschman Associates (BAA) were considered and used to refine TIFD parking needs which were projected in the • Draft Project Plan Preliminary recommendations of the BAA Parking Assessment Study are shown on Map 1 8 Recommended Alternative Parking Garage Sites These sites were proposed for consideration for the location of new garages because of their favorable location with respect to access and parking deficits Page 14 mendation5 gor gecom Sites prelitnin~'ry Garage MaP 1.8 parkinan Assoctat'~s, In,c. A~ter~ative by Barton-Aschm .~ goua~l ~~~ f ;~r ~~~~ ~~ '~-~,... Page Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District projected from known development expansion They do not reflect parking demand from future developments projected in the ultimate build-out of the TIFD according to the TIFD Project Plan. Additionally, BAA qualified these recommendations by proposing that feasibility and cost studies be done to further qualify some of the sites recommended Accordingly, and because parking improvements are so important and especially critical to the early success of revitalization efforts, Gideon Toal Management Services undertook, in association with BAA, a further investigation of alternative sites for the proposed Central Garage and a study to project parking revenues associated with the various garages proposed in the Draft Project Plan Of the many sites investigated, four were selected for further study via a comparative analysis which included the site which had been proposed for the Central Garage in the Downtown Strategic Action Plan between 3`d and 4th Streets on either side of Main Street. This study resulted in the recommendation of the new location for the Central Parking Garage identified above and the parking revenues projected in Section 3 of this report. The executive summary from this parking study ~s included in Appendix A. • There may be additional parking spaces leased from private sector owners of parking structures within the TIFD boundaries Historic Site Rehabilitation The goal is to encourage the preservation and rehabilitation of historic sites within the tax increment finance district. The City of Fort Worth approved incentives for highly significant buildings within downtown which historic sites within the TIFD may not make application Because the restoration and conversion of these buildings is significant to the success of the district, incentives for restoration of the historic facades are included in the plan • Page 16 Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District Administrative Costs For the first two years, it is anticipated that the TIFD will borrow funds for administrative expenses from friendly private lending sources, such as TIFD property owners. The funds from these borrowings will be used for the purposes of paying the TIFD's administrative expenses including finalizing the project plan and the financing plan, and the planning, engineering, design, administrative and legal expenses associated with establishing the district, completing these plans and implementing developer agreements as needed. These borrowings could be reimbursed out of the City of Fort Worth portion of the tax increment fund. Once the district has income generated by tax increments, administrative expenses could be paid directly out of the available tax incremental income on apay-as-you-go basis. Projected administrative costs are reflected in Tables 2.6 -2.8 in Chapter 2, Section 2. Likely Timing of Infrastructure Costs While still somewhat tentative, the likely timing when related costs or monetary obligations are to be incurred is as follows Fiscal Year Scenario 1 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Post 2005 2,104,112 300,000 6,190,201 6,692,910 7,915,700 802,197 3,781,738 3,541,204 2,270,355 837,023 15.564,560 TOTAL 50,000,000 Note Data in current, inflated dollars The detailed schedule of the individual infrastructure items is shown in Table 1 29 in Section 3 Without these improvements, development in the TIFD would be delayed and some of the desired land uses would not be feasible Page 17 • Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District Tax Increment Potentials The proposed tax increment reinvestment zone outlined on Map 1 3 includes 310 acres The 1995 assessed value of properties within the TIFD, the "initial assessment base", was $311,016,002 After excluding abated properties, the assessed value of taxable properties was $297,834,061 The annual tax increment to be generated in 1996 and received in 1997 is estimated to be $179,780, growing to $19,148,585 generated by 2014 The cumulative tax increment over the first 20-year period of the TIFD is estimated at $149 5 million These estimates assume continuation of existing (1996 estimated) tax rates, a conservative assumption given trends to higher nominal tax rates They also assume 100% participation by the five taxing jurisdictions Estimated tax rates and detailed tax increment projections are shown by taxing jurisdiction in Tables 1 18 and 1 19 in Section 3 Table 1 8' PROJECTED TAX INCREMENT REVENUES FISCAL YEARS 1996-2015 • Fiscal Year Scenario 1 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 • TOTAL 0 179,780 1,027,711 1,328,008 2,274,709 2,385,674 3,227,707 4,078,995 5,358,457 5,852,372 7,338,862 7,898,362 8,816,669 9,373,627 10,482,079 12,162., 322 15,600,868 16,207,160 16,707,740 19,148,585 149,449,686 Note Data in current, inflated dollars Source Gideon Toal Management Services Page 18 Fort Worth, Texas Reinvestment Zone Number Three _ North Downtown Tax Increment Financinct District Implications for Financinct of Required Infrastructure Comparing the timing of tax increments with the cost of needed infrastructure improvements reveals a difference in scheduling. between the timing of expenditures and the revenues to meet those costs Major infrastructure improvements are needed in the early years in advance of the accumulation of significant tax revenues which new developments will generate The need for early funding suggests the need for debt financing, using the future tax increment revenues along with parking revenues as portions of the repayment stream. Typically, tax increment financing relies on the future revenue stream from tax increments on anticipated new development and property appreciation over the base assessed values Gurrently, revenue bond purchasers, institutional fenders and other investors all are showing a strong aversion to risk and a preference for greater certainty of repayment. While the initial developments underway in this TIFD provide more certainty of repayment to possible bond purchasers than the more typical TIF, tax increment bonds would be much more marketable once the project is well underway with an established history of generating significant tax increments. In the early stages of development when the up-front financing is required, it will be difficult to market tax increment bonds without some sort of guarantee Investors will want to see a guarantee from the municipality, the major developers or a third party insurer before relying an unproven tax increment revenues for repayment. This suggests that financing of TIF improvements will be accomplished via a combination of means whereby TIF bonds are likely used only after a revenue stream has been well established At this future date, TIF bonds could be used to take out interim financing which had been provided during the initial years of the TIED ~J Page 19 • • SECTION 2 - DEVELOPMENT POTENTIAL (PROJECTED MARKET DEMAND) • Fort Worth, Texas Reinvestment tone Number Three North Downtown Tax Increment Financinca District SECTION 2 -DEVELOPMENT POTENTIAL (Projected market demand) Residential Potential Market Demand The Downtown Fort Worth Strategic Action Plan established as a goal the attraction of one to three percent of the Fort Worth housing inventory to the Downtown area. The Fort Worth Planning Department projects a city housing inventory of 240,500 dwelling units for 2015, the year in which the Project Plan projects build out for the TIFD One percent of this number would result in 2,400 dwelling units locating in the Downtown area over the next twenty years The Project Plan projects the construction of 1,600 multifamily housing units within the TIFD boundaries during this period. The market for residential development Downtown has been demonstrated by the success of Sundance West, the Sanger Lofts and the Electric Building recently constructed in downtown Fort Worth Based upon the market acceptance of these developments and the success of in-town residential developments in comparable cities, the Arthur Anderson market analysis found that the development of 300 to 500 market-rate units Downtown prior to 2003 would be supportable. if in-town residential development were to occur at this pace throughout the twenty year period which is projected for build-out of the TIFD, 1,100 units would be built Downtown. However, the Anderson Report concluded that with proper inducement, this initial build out could be increased to a pace of development similar to the experience of other cities where joint private/public sector efforts have addressed such issues as security and infrastructure The most readily available experience on which to base this expanded in-town residential development is that of the State-Thomas TIFD adjacent to downtown Dallas There, the TIFD assisted with the cost of infrastructure for several in-town residential developments in a manner similar to that which is proposed herein. On the basis of current and anticipated market conditions there, M/PF Research prepared a detailed market analysis for the proposed adjacent Cityplace TIFD in 1993 M/PF projected a market potential of 200 to 250 multi-family units and Hammer, Siler, George Associates assumed an average pace of 250 units per year from 1993 through 2003 for the Cityplace TIFD Page 20 • Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District Timing (1Sr 10 years) Approximately sixty-five percent of the 1,344,810 square feet of in-town residential development projected is forecast to be absorbed during the first ten years of the TIED This development schedule is based on an average annual absorption of 135 dwelling units per year, starting in 1998, for a total of 1,065 units during the first ten years According to a market analysis done by M/PF Research, 200 dwelling units can be expected to be absorbed annually by the Fort Worth City Center submarket through 1998, based on an assumption that this submaket will continue to capture its current rental market share of approximately five percent of the city The Project Plan assumes that in the initial years of the TIFD, the majority of these units will be located within the TIFD because of the momentum for residential development which is building there as entertainment and retail uses are being reestablished within the Central Core • (Beyond 10 years out) Another 560 dwelling units are projected for absorption m the TIFD at an annual rate of 135 units through 2009 CJ Page 21 Fort Worth Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District Retail Potential Market Demand The Arthur Anderson Report of 1993 projected that without the TiFD, there would be no demand for new hotel development and a market demand for only 100,000 to 150,000 SF of new retail space for the ten years ending in 2003. This projection, which was made prior to the construction of either the Sundance East project or the Fort Worth Outlet Mall, has already been exceeded almost two-fold. It was partially based on an assumption that there might be 300 in-town residential units built during the next ten years, an estimate that is quadrupled herein. While the projections of the Anderson Report obviously do not reflect the post-TIF retail market for Downtown, the report does acknowledge that retailing represents the most induceable form of demand and suggests that the ability to induce demand determines whether the retailing base of a Downtown veil( expand or simply serve the needs of Downtown employees. Further, it notes that the success of Sundance Square reflects the potential to induce demand by attracted patrons to the Downtown area as a result of a unique retailing mix and environment and strong management. In analyzing Sundance retailers and retailers who have been successful in other Downtown retail environments, the Anderson Report observes that certain success factors appear to be key in ensuring a strong retailing base. Among these are the following three 1 The development of a critical mass of retailers which can attract shoppers from outside the CBD Concentrating the retailers within an identifiable area is key to creating. that mass. 2. Centralised management which establishes times, promotions, maintenance, policies and sets a standard in terms of customer expectations. 3 A unique mix of retailers and environment that provides a market position which draws demand from more than the Downtown employment base including home-based shoppers, visitors and tourists. ~J Page 22 • Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District The Anderson Report indicates that the experience of other cities shows that the complexion of Downtown build-out can be drastically altered if a change in direction is made to public policy It also suggests the following actions would have the greatest potential to influence an expanding retail base Downtown • Development of a greater critical mass of destination uses, including both retail and cultural uses • An increase in centralized retail management. • In-town residential development. • Developing incentives that would allow Downtown to compete on an even footing for development by equalizing parking costs, using write down mechanisms, and providing for extraordinary security The Project Plan envisions a strong, expanding retail base for Downtown. This vision expands the projections of the Anderson Report based on both recent and future trends projected for Downtown, including the projection of stronger in-town residential development as noted above If hotel development and the proposed Public Market are included as retail projects, the total retail space projected • through build-out of the TIFD is 1,102,949 SF Retail developments, which have occurred since the Anderson Report was drafted, play a significant part in effecting these higher projections Based upon the formulation of the TIFD and a commitment to make the common improvements necessary to support expansion, both the Fort Worth Outtet Center and the Sundance East complex have gone forward Both of these recent developments incorporate all three of the success factors cited above Additionally, they represent, along with the Fort Worth Performance Hall, the development of a critical mass of destination uses- as described above The Project Plan envisions three major types of retail expansion in the build-out of the TIFD. Recent expansion of the existing base in the Central Core, including the two recent projects cited, accounts for one-forth of the total retail projected in the build-out of the TIFD The largest portion, representing 27% of the total retail build-out projected, is the proposed Public Market, the development of which was endorsed by the Downtown Fort Worth Strategic Action Plan and is subsidized by improvements proposed by the TIFD Another 23% of the total retail build-out projected is expansion from the Sundance entertainment and retail complexes northeastward (linking the proposed public market), southeastward (forming a theater/arts district adjacent to the new performance hall and Sundance East • entertainment complex) and at the proposed Central Plaza. Southeastward expansion could include atheater/arts district as is envisioned in the Downtown Fort Worth Strategic Action Plan It could be comparable to the Dallas examples of the West End and Deep Ellum entertainment/retaii districts and form another Page 23 Fort Worth,.. Texas Reinvestment Zone Number Three North Downtown Tax Increment Financin4 District destination use to complement the Performance Hall, the Public Market, the Sundance Square Complex and the Outlet Mall The remaining 25% of the retail build-out projection is split between expansion of outlet-type retail, a small hotel and miscellaneous expansion on-grade throughout the Central Core and in support of future in-town residential and R & D Office Park projects. Over eighty percent of the projected retail would benefit from centralized management and at least seventy-five percent adds to the critical mass of destination uses for Downtown. Timing (1~ 10 years) Over half of the retail space projected through TIFD build-out (623,245 SF) is forecast to be built during the first ten years of the TIFD Of this, 270,000 square feet, or 43%, is already built. If the envisioned Central Plaza Retail .project is considered, then almost half of the retail space projected to come on line in the first ten years {49%) is planned or built. The majority of the retail space projected for construction in the first ten years, 530,745 square feet, or 85%, has been projected for retail development in accordance with the development schedules of the respective property owners. A hotel in the Southeast Quadrant accounts for another twelve percent of the total retail space projected in the first ten years. This leaves only three percent (3%) of the total retail space projected in the first ten years which is speculative with no projects specifically identified or envisioned by the land owners. This three percent is represented by 17,500 square feet of miscellaneous retail on grade in the Central Core. It could also be built out as on- grade retail within the in-town residential neighborhoods projected for construction in the first ten years (Beyond 10 years out) Between the years 2006 and 2015, 479,704 square feet of retail space is projected to be built. Sixty-three (63°r6) is the proposed 300,000 square foot Public Market. Twenty-one percent (21 %), or 100,000 square feet, is entertainment commercial/retail which is projected to be built as an either an expansion from the Sundance Square and Sundance East projects northeastward, linking the proposed Public Market, or as a southeastward expansion from Sundance East and the Performance Hall as a theater/entertainment district incorporating the gateway to the CBD from the east. Six percent of the remaining 16°~ is projected as on-grade retail at the only office building which has been projected for construction in the Central Core, in the Page 24 • • Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District Southwest Quadrant. Four percent is 25,000 square feet of expansion of retail in the blocks bound by Throckmorton and Main from 5th to 6th; The remaining six percent is 30,000 square feet, probably a restaurant, that is projected to be built within a corporate campus or R & D Office Park. Table 1 10 RETAIL REDEVELOPMENT and NEW DEVELOPMENT 400 300 1st 10 Years - 56% Beyond 1st 10 Years - 44% Total S. F 1,102,949 m ti c m m 200 m ~ L rn ~ • 100 0 ® Outlet Type/Public Market ®Misc. Retail on Grade 8 on Corp. Campus ~ Entertainment/Arts Retail s Hotel 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Built Source: Gideon Toal Management Services Page 25 Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District Office Potential Market Demand The Arthur Anderson Report of 1993 found no market support for new speculative office for the ten years ending 2002. Correspondingly, the Project Plan includes only office space which has been constructed since formation of the TIFD for the period ending 2002. However, the Anderson Report did indicate that the best hope for Downtown to see appreciable construction of office space would be to attract a corporate campus Given the high quality environment and critical mass that can be formed with the aid of TIF, it is reasonable to assume that at least one corporate campus user could be attracted to a site within the TIFD boundaries as part of the ultimate build-out of the TIFD The Project Plan envisions almost half of the office space projected within the TIFD during the second ten years to be built as part of this corporate campus development. Similarly not accounted for in the Anderson study, is future expansion of the County government, which is the second largest land owner downtown. In acknowledgment of this major use, we have projected 8% of the total office build- out will be in support of Courthouse functions. Reinforcing this projection is the County's August 1996 announcement of their plans to build a new Family Courts building within the TIFD The total office space projected through build-out of the TIFD is 1 2 million square feet. Of this total, approximately 154,000 SF, or 12%, is projected to be built during the first ten years of the TIFD Timing (1ST 10 years) Thirty-six percent (36%) of the office space projected in the Project Plan during the first ten years of the TIFD is currently under construction and nearing completion the Wells Fargo Building built at 4~h and Main. Projected for build-out as part of the retail/office mix during the first ten years is 36,000 SF of second story office space There are also two small garden office buildings projected to be built during the first ten years of the TIFD These are Garden Office/Courthouse Service linkage developments and account for 62,750 square feet between them. (Beyond 10 years out) Another two small office buildings complete the garden office/courthouse service space projected for the TIFD with 42,000 square feet of space The first major Page 26 • Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District office building projected to be built after the initial ten years of the TIED is expected to expand the Central Core in the Southwest Quadrant. This block is projected for five levels of office space in a multi-story retail/office/parking building. This accounts for 200,000 square feet, or 18% of the 1,084,850 square feet of office space projected for this period The remaining seventy-eight percent, is split between the R & D Office Park and the Corporate Campus which are projected to be attracted to the Core Periphery These projects sites are interchangeable However if the corporate campus occurs at sites west of Henderson or east of Grove Street, it is assumed that there is enough lower-priced land to amortize the parking garages that will be needed to support the office buildings here without TIF incentive participation in the garages Atypical campus plan configuration of two nine-story office buildings supported by two four-story parking garages could be accommodated at these sites If the corporate campus is located to take advantage of the gateway view terminating at the site at Third and Henderson Street, then TIF incentives are provided via parking participation via building half of the Tandy-planned parking garages, 1)Tech Addition (finishing out the Tech garage) and 2)Tech 2 (building a garage similar to the existing Tech Garage on the Tandy-owned lot west of it) The one corporate campus development of • 514;850 square feet accounts for almost half (48%) of the office space projected during this period. The 328,000 square feet R & D Office Park represents the remaining 30% of the total office space projected during this period Table 1 11 OFFICE DEVELOPMENT 'Government office and other government services not shown 600 aoo • d ti °c N N ~ O ~ t fA ~ 200 1st 10 Years 12% Beyond 1st 10 Years - 88% Total S. F 1,238,000 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Built ® Mid-Rise Office ~ Garden Office m Corporate Campus ~ R&D Office Park Source: Gideon Toal Management Services Page 27 ~. Fort Worth, Texas Reinvestment Zone Number Three - North Downtown Tax Increment Financin4 District RETAIL & OFFICE DURING 1ST 10 YEARS Of the 776,995 square feet of retail and office space projected for construction during the first 10 years of the TIFD, 325,000 square feet, or 42°~, is already completed. 622,000 square feet, or.80%, is owned and planned for development by either Tandy or Sundance/City Center • Page 28 • :~ SECTION 3 - TAX INCREMENT ANALYSIS Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District SECTION 3 -TAX INCREMENT ANALYSIS This section documents the detailed analysis and inputs used to generate the tax increment revenue estimates which were summarized in Section 1 As discussed earlier, tax increment financing involves• 1) designating an eligible redevelopment area as a tax increment reinvestment zone, 2) soliciting participation of the five taxing jurisdictions; 3) setting the assessment base a# the level of the most recent assessment; and 4) diverting tax revenues generated by the increase in assessed value to a tax increment fund for funding public improvements. Thus, future tax increment revenues depend on four elements. 1) the timing and value of new developments, 2) appreciation of existing land and improvements, 3) the value of existing improvements that are demolished to make way for new development (none forecast), and 4) future tax rates Forecast Development Table 1 12 indicates the potential timing of the development program described in Section 1, based on the market analyses of Section 2. The amount of development is shown by type for the year in which it will be completed. For example, the 165,000 square feet of outlet retail listed in 1996 is projected for completion before December 31, 1996 The basis of the development program used to generate Table 1 12 is two-fold. That is, it is partially based on: 1 actual known development activity which has been completed since formation of the TIFD in December 1995 or is currently underway or has been proposed by TIFD property owners, and, 2. it is partially based on projected development activity which relies upon conservative estimates of supportable development that will likely occur through build-out of the TIFD L~J Page 29 Table 1 12 'ANTICIPATED TAXABLE NEW CONSTRUCTION 1996-2015 LAND USE Year I Outlet Sundance Corporate R&D Market Type Other Garden Mid -Rise Campus Office Supporting Rate Abatement Built Center Retail Retail Hotel Office Office Office Park Parking Multi -Family Roll Off (Sq. Ft.)/1 (Sq. Ft.) (Sq. Ft.) (Sq. Ft.) (Sq. Ft.) (Sq. Ft.) (Sq. Ft.) (Sq. Ft.) (No. Sp.) (Units) (Units)/2 0 0 0 0 0 0 0 0 0 0 0 1996 133,650 105,000 0 0 0 55,000 0 0 0 0 0 1997 31,350 0 0 0 0 0 0 0 0 0 0 1998 0 0 0 0 0 0 0 0 1,000 400 0 1999 0 0 0 0 0 0 0 0 0 0 0 2000 0 36,000 0 0 0 36,000 0 0 0 238 0 2001 0 0 0 0 0 0 0 0 233 0 59 2002 0 0 104,745 0 62,750 0 0 0 0 226 0 2003 0 0 0 0 0 0 0 0 0 0 0 2004 0 120,000 17,500 0 0 0 0 0 346 201 59 2005 0 0 0 75,000 0 0 0 0 0 0 0 2006 0 31,650 0 0 0 0 0 0 64 231 0 2007 0 0 42,648 0 0 0 0 0 0 0 0 2008 0 28,000 0 0 0 0 0 0 0 329 0 2009 0 0 25,588 0 42,000 200,000 0 0 315 0 0 2010 0 0 21 818 0 0 0 514,850 0 1,047 0 0 2011 0 0 0 0 0 0 0 0 414 0 0 2012 0 0 0 0 0 0 0 0 0 0 0 2013 0 0 30,000 0 0 0 0 328,000 0 0 0 2014 0 0 0 0 0 0 0 0 0 0 0 2015 TOTAL 165,000 320,650 242,299 75,000 104,750 291 000 514,850 328,000 3,419 1,625 118 1/ Although the FIN Outlet remodel was complete in 1996, anticipated taxable square footage is broken into 1996 and 1997 per random factor to estimate continuing interior finish out work and to attempt conservative revenue projections. 2/ These units were built prior to the TIF base year but were abated from the tax rolls. In the year after their tax abatements roll off, the incremental appreciation on their 1995 assessment value will generate TIF increments. Source: Gideon Toal Management Services Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financin4 District _ Development Costs The value of the future development is estimated based on average construction costs for the type and price range of the supportable development, as follows: Table 1 13 Development Costs Land Use Construction Cost Outlet Retail $124 per square foot Sundance Type Retail $150 per square foot Other Retail $130 per square foot Public Market Retail $63 per square foot Hotel $89 per square foot Garden Office (without elevator) $100 per square foot Midrise Office $120 per square foot (without parking or curtain wall system) Corporate Campus Office $130 per square foot (without parking) R & D Office Park $130 per square foot (with parking) Supporting Parking $7,140 per space (above grade garage) Market-Rate Apartments $47,000 per unit Value of New Construction Table 1 14 projects the future value of new development in constant 1996 dollars. Over the 1996-2014 period, approximately $359 7 million of new development is projected to be built on TIFD properties under the Scenario1 development program Page 31 O O N O O W n N O M O n O M 0 0 0 0 0 0 O MO OMN n ~nMQ O? <M R N tOMOM O~ W ~ O W W O O W N f n t O R f r O N W J Q nfA W (A W W N ROf ~N~O O v~ /M v~ F NnN ^N nn~v nv sf fD f0 ~ O f0 t7 W ~n W r N fn i0 fD O H W W n N O ~ W W V) f A M n N W M M M M r M r M n M R N f T N M N N M M M M M M M M M M M M q t r O O O O O O n 0 0 0 0 0 0 0 0 0 0 0 0 0 M M M M M M C M M N M M M M M M M M M M n ~ C m N W 9 d 0 W N n N f0 C M M M zap O L` O O O O O W O N O n O n 0 (' ~ O O O O O O MMMO MN MO Mn M W MM MMMM Mfg ~ O ~ r W ~O a0 W W W C O fT N n fA C ~ LL -Cj T N ~ ~ ~ 10 ~ f0 4. ]CC ~ i~ W r O fA O N M i n n ~ ~ v en vs en w » M ~M rn o000oooooWOOOOOOOOOO co _ (n M M M O M M N M M O M W M M O W W M M M O f0 W fn r N f7/ N r S ~~ c ~ m ~ vWi v n u~i ~ 0_ O~O '7 10 N < N a{fA N Z m M ~ ~n i w W N an M n M ~ ~ fp y ~ ~ w 00000000000000000000 o o m tO- o ~' W ~ MMMMMMMMMMMMMMMMMMOM O o O ~ ? ~ N p ~ `LL G 7 O v _ O O oo M ~ ~ (` l0 f0 O N N NM ~Oa f°~ < v M C N fn W ~ m ~ M U W m d c0 ~ '0 N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O a~ a C N m e MMMMMMf9MMMMMMMMO MMfAM ~ m Ua 7 O ~~m~i ~ c°7 _ m c ~E °i d u aEfto m m a i ¢ m y m$ ~, ~ a ? m UVOM tO ~ W m > > M M M c L > m m ~ cU 2 M ai o _W ^ 00000000000000000000 M M M M M o M M M M M M M M o M M M M M 0 o ~.om d c c m ~ d~ m OUJ O O N O O N 7 m p C ~ C f/JHU ~ mm cm ~ a~ C O M O M D O a C €~ Y y Y ~ M M M O (A ~ d iq N L C r d O N p 0 C Q W (0 N r Q j~ y m L 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 M M M M M M M O M M M M M M O M M M M M O O ~ ~ (p f p y C O l d d m N e ^ i O O W O O N M m 0 C_ C N m d m ~'rl ~~ Y 7 0 d dL.. U i mml Uy n o N N n v m nx;c m m '~ d ac ,~ m~ ~~ m v o ~F-E mo acM ?~ m UOo M M _ tl9 o~a° >.c ~ Eo ~ ` 10a mc ?~ y E c oy ~To dim rn~ i ~M ~ ~ m C m C (~ G C y G 0000000000 0000000000 MMMMMMMMMMOMMMMMMMMM O o c °' m 7 C (Q O m N m mEd i c a 3 ~ a ~ u v~ y pp Z W ~ N po ' N U C m ~• W a N 0 N O (` W fD m O U a N ~~ a tT N T m 7 "m' O C m d F U =~ W M f0 M O N_ YYC N N d ~, l` C ~ C N L a N l0 d :O N X N ~ M f0 m N ~ W m C d m N N :~ (0 ~ p m m d m> ~' C J m- ~ N m m N N w m T C L d C N O ~ C A~ m Z M 00000000000000000000 MMMMMMMN MO MM<M C R MMO M o n ndYN mm a od; rL W'~ ~` O)~ N« 0 0 l0 L C V W O N ~ M O W W ~ :-~ 0 0 E C 7 m N C m 3 C 2 p •C U C m~ C T O O 3 _ W LL ~ n c N~ O ~ } Q F V C• 7 O O" ~ N m C L m m 0 u1 - ul F~ O O' W fn ~ m0 f0 N N M W fn M N 1A M N M R l ~ O C ~~O' m 3 m mo C N d ~L Z OEM ~ M M MM M ~ . 7p0. ~j ~ m W f~, ~~t N V J ~ (pp ( > O m m y c U c N y C N W L m O C O o m N N E ~ O m a 3~ .1 c U ( ~ d 00000000000000000000 MMMMMOMMMOMOMOMMMMMM 0 o ~ ~ o m ~ m ~ a= c ~ ri m;aa aMV~ ~~'y T~ G m 0 0 ~n o in o fa m v ~ m ~ a W m a= LL I~N c o ~ o O O R O ~ ~ y N m .' _' vi i f/1 (.1 ~ Y ~ a y `o w t mF- C« Ea m N " ' Q a T m~ ~~ ~ O n N W M N y ,e m 0 ~p c d w m,Q 0 m wQ d a Z^ O` O .... 7 W y M ~ M M M M a Of « (0 r m N `~ C a " N N t ~ W ' C~ m C~ U A ~ ~ 0 ~ ~ L m V N { ~pp {9 ll O U~ W N C (6 X~ d C~ ~ F O O m __ _ N N 3 0 N{ 9 N N O I f O L C W d m j ~~ ' Z Q a ` O NO 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 M 00 ~ MMMMMMMMMMMMMMMMM N ~ ~ - C~ ~~ d E~ N d ~"'~ L O~ m y m LL~ ' m~ 1~ T (O C m 'YO W C C Q ~ C O y; U O O C O W' ~' W N p(~ (NO_fn0. M N O.L.. d d N O c m N N p y C aa._._ a m ` a m C ~ m L W f O N M l O M U d a a a a a U a i N~ U u m 7 7 m~ 7 7 7 m a N Z C - M M m C L C C m m C C C C O O m m O 3 m mF- mC7 7 cU c ~. } m N 10 n W O f O N M a N f D n W 01 O r N M~ Oa fA fT fA Of 0000000000 rrr rr 01 fA fA (71 Of 0000 O 0000000000 r r r r r N N N N N N N N N N N N N N N c~ Z m N c m v m C O v N Page 32 Fort Worth, Texas Reinvestment Zone Number Three - North Downtown Tax Increment Financing District Assessed Value of New Construction Assessment policies in Tarrant County set building assessments at 100 percent of fair market value, roughly equal to construction costs for new construction. Assessed values are established as of January 1 of the tax year Thus, development in 1996 goes on the tax rolls for Tax Year (TY) 1997 Table 1 15 inflates the constant dollar assessed value projections for the Scenario 1 development program with an assumed rate of two percent annual inflation. Page 33 • • • Table 1 15 ASSESSED VALUE OF ANTICIPATED NEW CONSTRUCTION Years 1996-2015 Total in Total in Constant 1996 Current, Inflated Tax Year (1) Dollars (2) Dollars 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total $0 $28,627,000 $6,679,412 $27,426,800 $0 $21,019,526 $2,178,677 $30,621,652 $0 $34,376,043 $6,675,000 $16,171,647 $5,544,240 $19,819,933 $33,775,540 $77,242,420 $2,955,960 $0 $46,540,000 ~0 $359,653,850 $0 $28,627,000 $6,813,000 $28, 534, 843 $0 $22,752,211 $2,405,435 $34,484,954 $0 $40,277,013 $7,977,243 $19,713,147 $6,893,566 $25,136,467 $43,692,262 $101,919,733 $3,978,333 $0 $65,167,236 $0 $438,372,444 (1) As of January 1 (2) From Table 1 14 Note Assumes two percent annual inflation in construction costs Source Gideon Toal Management Services Page 34 Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financin4 District Initial Assessment Base The initial assessment base for the tax increment fund is the TY 1995 assessed value of $297,834,061 for taxable properties within the TIFD The current total appraised value of taxable real property in the zone is $303,903,596 (the TY 1996 assessed value) based on preliminary TAD valuations. Incremental Value Estimated Annual Captured Appraised Value of the Zone Table 1 16 combines the projections of values for new construction and the value of existing land and improvements for the Scenario 1 development program. Beginning in 1998, the previous year's assessed value is increased by one percent annual inflation until year 2000, when it is inflated 1 5 % From year 2001 on, the previous year's assessed value is increased by two percent annual inflation to approximate the TAD policy of annual reassessment. The value of newly constructed buildings is added to the appreciated property value to provide an estimate of annual assessed value The incremental assessed value is calculated then by subtracting the initial assessment base from the projected total assessment base The incremental assessed values are shown in Table 1 16 and represent the estimated captured appraised value of the zone during each year of its existence. Under the Scenario 1 development program, the incremental assessed value is projected to increase from $6, 069, 535 i n TY 1996 to $665, 361, 043 i n TY 2015 ~; Page 35 Gideon Toal, Inc. DOWNTOWN FORT WORTH TIF Basic Proforma .Table 1 16' (ASSESSED VALUE OF PROPERTY WITHIN THE TAX INCREMENT DISTRICT Tax Years 1995-2015 Previous Year Current Year Value of Periodic Value of Value of Total Existing Appreciation Existing New Assessed Tax Year (1) Development Rate (2) Development (3) Construction (4) Value Less Incremental Assessment Assessed Base (5) Value 1995 0.000 297,834,061 0 297,834,061 297,834,061 0 1996 297,834,061 0.000 303,903,596 0 303,903,596 297,834,061 6,069,535 1997 303,903,596 0.000 303,903,596 28,627,000 332,530,596 297,834,061 34,696,535 1998 332,530,596 0.010 335,855,902 6,813,000 342,668,902 297,834,061 44,834,841 1999 342,668,902 0.010 346,095,591 28,534,842 374,630,433 297,834,061 76,796,372 2000 374,630,433 0.010 378,376,737 0 378,376,737 297,834,061 80,542,676 2001 378,376,737 0.015 384,052,388 22,752,211 406,804,599 297,834,061 108,970,538 2002 415,813,898 0.020 433,139,475 2;405,436 435,544,911 297,834,061 137,710,850 2003 435,544,911 0.020 444,255,810 34 484,954 478,740,764 297,834,061 180,906,703 2004 482,255,742 0.020 495,415,834 0 495,415,834 297,834,061 197,581,773 2005 495,415,834 0.020 505,324151 40,277,013 545,601164 297,834,061 247,767103 2006 545,601164 0.020 556,513,187 7,977,243 564490,430 297,834,061 266,656,369 2007 564 490,430 0.020 575,780,239 19,713,148 595,493,387 297,834,061 297,659,326 2008 595,493,387 0.020 607 403,255 6,893,566 614,296,821 297,834,061 316,462,760 2009 614,296,821 0.020 626,582,757 25,136,468 651719,225 297,834,061 353,885,164 2010 651 719,225 0.020 664 753,610 43,692,263 708,445,873 297,834,061 410,611,812 2011 708,445,873 0.020 722,614 790 101,919,733 824,534,523 297,834,061 526,700,462 2012 824,534,523 0.020 841,025,214 3,978,333 845,003,547 297,834,061 547 169 486 2013 845,003,547 0.020 861,903,617 0 861,903,617 297,834,061 564,069,556 2014 861,903,617 0:020 879141,690 65,167,236 944,308,926 297,834,061 646,474,865 2015 944,308,926 0.020 963,195,104 0 963.195.104 297,834 061 665.361.043 Total 438,372,446 11,965,443,051 5,710,927 770 (1) As of January 1 f (2) Assumes reassessment each year (3) Reflects no loss in value due to demolition. Includes taxable value only (excludes abated properties). in years 2002 and 2005 additional value is added to reflect properties that have come off abatement. Assumes one percent annual increase. in assessed property values starting in 1999 and 2000, increasing to 1.5% in 2001 and 2% from 2002 on. (4) From Table 1 15 (5) Assumes tax base is established as of January 1 1995 Source: Gideon Toal Management Services Working Document for Internal Review Page 36 Fort Worth, Texas Reinvestment Zone Number Three. North Downtown Tax Increment Financing District Improved Land Values Map 1 17 provides a comparison between improved property values in the TIFD before and after forecast reinvestments in the zone are made. Improved land values for future development are shown in dollars of the year in which projects are forecast to be built while current improved land values are expressed in 1995 dollars per the base Tarrant Appraisal District (TAD) appraisal for the TIFD The largest portion of the TIFD base appraisal of $311 million is concentrated in the Built Core Area where improved land values were appraised at $275 million. The 1995 base value of currently underdeveloped land was $36 million, representing only 11 6 % of the total TIFD base value It is easy to see why these currently underdeveloped land areas have been designated as Future Project Development Areas in the Project Plan as they account for 94%, or approximately $392 million, of the $439 million of value which is projected to be added to the TIFD The outlined tracts on Map 1 17 indicate where $47 million is currently being invested in expansion of the Central Core of the TIFD The value per square foot of this Core Expansion Underway is slightly higher than the current average value per square foot of improved land in the Central Core, as would be expected for projects built of similar density at current construction costs. However, the projected value per square foot of Future Project Development Areas is considerable less than the 1995 base value per square foot for the Built Core Area. $138 (future dollars)/SF versus $160 (1995 dollars)/SF respectively} This reduction is both an indication of the reduced density of projected development from densities currently existing in the Built Core and an affirmation of the attempt to build conservative projections into the Project Plan presented herein. Page 37 • r i ~ r jr i ~.-..mot _ r1 • ~; ~; ,f-- ~~~ ~~: > ~ ,tip -~ ' y. !~ P _~ ~""rr z.~, .,. ~~~' _• Map 1 17 Improved Land Va r~¢ Built and Redeveloped ~'~~ ~'~ Land Areas ~, o /, I r ~t/y ,~~ Ii Non-Taxable Properties ~! i ~-~~ ~ ~ ~/~:' 1995 BASE TAD APPRAISAL (1~J95 Dollars) ,,~~ :r r ,,,-:~ Built Core Area ~275M ($160/SF) • Future Project Development Areas ~36M ($13/SF) "~, (Currently Underdeveloped Land) Current TIF Base Value $311M "~'"v; ~ ~`~/ / ~ ~ per,,,' ~7I-- /~ ~~. ~i ~•= ~" yr ~~ ~~ ~~f~~ "~,,~ C~~ ~~ ~ ~~ ULTIIvIATELZ' DEVELOPED TIF/FUTURE DEVELOPMENT CONCEPT PLAN (Future Dollars) .• Core Expansion Underway $47M ($181/SF) • .; • Future Project Development Areas ~392M ($138/5F) Future Project Development Areas and ~439M ($147/SF) -` Core Expansion Underway Page 38 Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financin~a District Incremental Taxes The tax revenues generated by the incremental assessed value are calculated by multiplying the incremental assessed value by the then current property tax rates of participating jurisdictions. Fiscal Year 1996 tax rates are estimated as follows: Table 1 18. Estimated Tax Rates Tax Rate per =100 Jurisdiction of Assessed Value City of Fort Worth $0 9500 Fort Worth Independent School District $1 4550 Tarrant County $0.2650 Hospital District $0.2341 Junior College 0.0577 Total $2.9618 Over the past eight years, the combined tax~fate has increased 44 percent from $2.05 in FY 1988, in response to falling values in the overall assessment base. Over the 20-year projection period, we have assumed conservatively that the nominal tax rates will remain constant despite this recent historic trend toward higher rates. Taxes generated against Tax Year 1996 values as of January 1, 1996 are due and collected at the beginning of 1997, during Fiscal Year 1997 The projected incremental assessed value of the Scenario 1 development program would yield $179,780 in incremental tax revenues generated in FY 1996, growing to $19,707,994 by FY 2015, as shown in Table 1 19 Assuming the above tax rate holds constant, a total of $169 2 million in incremental tax revenuers would be generated during the FY 1996-2015 period. For more information regarding tax rates used in feasibility study projections, also see Pro-Forma Assumptions on page 57 ~k Page 39 • • • Table 1 19' ANNUAL INCREMENTAL FUNDS GENERATED FROM THE TAX INCREMENT DISTRICT Fiscal Years 1996-2015 Fiscal Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Incremental City of Assessment Fort Worth Value (1) $0.95/$100 0 0 6,069,535 57,661 34,696,535 329,617 44, 834, 841 425,931 76,796,372 729,566 80,542,676 765,155 108, 970, 538 1,035,220 137,710,850 1,308,253 180, 906,703 1,718,614 197, 581,773 1,877,027 247,767,103 2,353,787 266, 656, 369 2,533,236 297,659,326 2,827,764 316,462,760 3,006,396 353,885,164 3,361,909 410,611,812 3,900,812 526, 700, 462 5,003,654 547,169,486 5,198,110 564,069,556 5,358,661 646, 474, 865 6,141, 511 665,361,043 6,320,930 TOTAL 5,710,927,770 54,253,814 (1) From Table 1 16 (2) Based on Fiscal Year 1996 estimated tax rates Source: Gideon Taal Management Services Fort Worth ISD $1 455/$100 0 88,312 504,835 652,347 1,117, 387 1,171,896 1,585,521 2,003,693 2,632,193 2,874,815 3,605,011 3,879,850 4,330,943 4,604,533 5,149, 029 5,974,402 7,663,492 7,961,316 8,207,212 9,406,209 9,681,003 83,093,999 Tarrant County $0.265/$100 0 16,084 91,946 118,812 203,510 213,438 288,772 364,934 479,403 523,592 656,583 706,639 788,797 838,626 937,796 1,088,121 1,395, 756 1,449,999 1,494,784 1,713,158 1,763,207 15,133,959 Hospital District $0.234/$100 0 14,203 81,190 104,914 179,704 188,470 254,991 322,243 423,322 462,341 579,775 623,976 696,523 740,523 828,091 960,832 1,232,479 1,280,377 1,319,923 1,512,751 1,556,945 13,363,571 Junior College $0.058/$100 0 3,520 20,124 26,004 44,542 46,715 63,203 79,872 104,926 114,597 143,705 154,661 172,642 183,548 205,253 238,155 305,486 317,358 327,160 374,955 385,909 3,312,338 Annual Total (2) $2.962/$100 0 179,780 1,027,711 1,328,008 2,274,709 2,385,674 3,227,707 4,078,995 5,358,457 5,852,372 7,338,862 7,898,362 8,816,669 9,373,627 10, 482, 079 12,162, 322 15,600, 868 16,207,160 16,707,740 19,148, 585 19, 707, 994 169,157,681 Year Tax Received 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Fort Worth, Texas Reinvestment Zone Number Three _ North Downtown Tax Increment Financing District Parking Revenues Because adequate parking facilities are so critical to the well-planned, stable growth of the CBD Core, the TIFD improvement plan includes the construction of several parking garages or the leasing of parking spaces in existing or proposed parking garages. It is envisioned that these facilities will provide public parking for both short-term and monthly contract parking. Parking revenues from their use can be used to help retire the debt for construction of these facilities. Tables 1.20 -1.27 project net operation income (NO1~ from each of these proposed facilities and the annual parking revenue increments projected to accrue during the build-out of the TIFD Assumptions used in constructing the NOI pro-forma follow ~t Page 41 Table 1.20 Assumptions for Parking NOI Calculations I. Expenses: A. $425 per space (1, 2) includes general maintenance, utilities and attendants (biggest expense) B $10/space (2) is allocated for reserves that include "big ticket" and infrequent items such as painting the garage II. Income• A. There is a 50/50 split between contract monthly and transient short-term parking 50% of the spaces have been dedicated to transient parking since the garage will serve an entertainment district. The primary source of income for a garage should come from the contract parkers i $90/month was used for contract rent. This figure is increased from the 1994 $75/month estimate (3) due to inflation and location of garage, and is less than current monthly rates. ii Transient rates are based on a (conservative) 2 car turnover per space per day at $3 75 per turnover This rate is based on current downtown observations of 2 5 turnover (1) and 4- 4 5 turnovers (2) when nights are included However, nights and weekends are not included in these calculations per note B iii Validation figures are based on users who have tickets validated at the garage owners' businesses The transient parking rate is figured at $1 5Q per 3 hours, equaling $4 50 per space per weekday To be conservative, calculations assume validated parking nets $1 per 3 hours on validation compared to $4 50 per 3 hours on non-validated transient parking Assuming 1 validation for 3 hours/sp/weekday results in a loss of $3 50 per day x 260 weekdays x the number of spaces for validation B With all income figures, it is assumed that evenings after 5 p m and weekends are free per current Sundance parking policy The standard parking industry practice of overselling involves using 10% of the contract spaces for transient parking, thus double-dipping these spaces This practice was not applied to these calculations to be conservative Sources 1 Lillian Gillem with Sundance Parking 2. Barton-Aschman Associates 3 Elmer Grammer, A Assured Parking Page 42 Table 1.21 Central Core Gara a-PH 1 F~cpense: $425 per space $10/sp. reserves annual expense monthly expense Income: contract ~50% rent (c~$90/mo. annual tncome monthly contract income transient ~50% income/space/weekday income/day annual transient income monthly transient income Yr 2001 786 spaces 100% G~25% ~35% ~55% 2 yrs. initial limos. 1 yr $325,550 I r Sz zQ $ $333,210 $27,768 383 $34,470 $413,640 $227,502 $34,470 $8,618 $12,065 $18,959 383 $7.50 $2,872.50 $746,850 $62,238 Notes spaces spaces avg. person spends $3.75 to park; 2 person tumovedspace/day (per L Giilem) assumes nights/weekends are free income/day 260 daystyr validation factor transient pkg rate: $1.50/3 hrs=$4.50/sp/weekday validated parking nets $1/3 hrs on validation vs. $4.50 annual validation x $1 $348,530 per 3 hrs on transient. Assumes 1 validation for 3. hrs./sp/wl monthly validation x $1 $29,044 losing $3.50/day x 260 weekdays x # spaces for validation (~D55% annual monthly 1 yr contract total $413,640 $34,470 $227,502 transient total $746.850 $62,238 X410.768 subtotal $1,160,490 $96,708 $638,270 less validation $348.530 $29.044 $191.692 gross annual income $811,960 $67,663 $446,578 (ess expenses $333•ZIQ $27,768 $183.2 net income $478,750 $39,896 $263,313 Source: Gideon Toal Management Services Page 43 Table 1.22 Central Core Garage Expansion-PH 2 Expense: @100% $425 per space $10/sp. reserves annual expense monthly expense Yr 2004 358 spaces Notes @25% @35% @55% initial limos. 1 yr 2 yrs. $152,150 3 580 $155,730 $12,978 Income• contract @50% rent @$90/mo. annual income monthly contract income 179 $16,110 $193,320 $106,326 $16,110 $4,028 $5,639 $8,861 179 $7.50 $1, 342.50 $349,050 $29,088 spaces transient @50% income/space/weekday income/day annual transient income monthly transient income validation factor annual validation x $1 ~onthly validation x $1 contract total transient total subtotal less validation gross annual income less expenses net income spaces avg. person spends $3 75 to park; 2 person turnovedspace/day (per L. Gillem) assumes nights/weekends are free income/day 260 days/yr transient pkg rate. $1.50/3 hrs=$4.50/sp/weekday validated parking nets $1/3 hrs on validation vs. $4.50 $162,890 per 3 hrs on transient. Assumes 1 validation for 3 hrs./sp/wt $13,574 losing $3 50/day x 260 weekdays x # spaces for validation @55% annual monthly 1 yr $193,320 $16,110 $106,326 $349 050 $29.088 $191.978 $542,370 $45,198 $298,304 $162 890 3 74 $89.590 $379,480 $31,623 $208,714 $155 730 12 78 85 65 $223,750 $18,646 $123,063 Source: Gideon Toal Management Services • Page 44 Table 1.23 Famil Justice Center Gars a-T1' Expense: $425 per space $10/sp. reserves annual expense monthly expense @100% 2 yrs. $106,250 $2.~.Q4 $108,750 $9,063 Income: contract @50% rent @$90/mo. annual income monthly contract income transient @50% income/space/weekday income/day annual transient income monthly transient income validation factor annual validation x $1 monthly validation x $1 Yr 2001 250 spaces @25% @35% @55% initial limos. 1 yr 125 $11,250 $135,000 $74,250 $11,250 $2,813 $3,938 $6,188 125 $7 50 $937.50 $243,750 $20,313 Notes spaces spaces avg. person spends $3.75 to park; assumes nights/weekends are free income/day 260 days/yr transient pkg rate: $1.50/3 hrs=$4.50/splweekday validated parking nets $1/3 hrs on validation vs. $4.50 $113,750 per 3 hrs on transient. Assumes 1 validation for 3 hrs./sp/H $9,479 losing $3.50/day x 260 weekdays x # spaces for validation annual monthly contract total $135,000 $11,250 transient total $243,750 $.0.313 subtotal $378,750 $31,563 less validation $113.750 $9479 gross annual income $265,000 $22,083 less expenses $18.750 X6,963 net Income $156,250 $13,021 Source: Gideon Toal Management Services @55% 1 yr $74,250 $208,313 $62.563 $145,750 $85,938 ~F~ fF Page 45 Table 1.24 SW Expansion of Comm. Off./Ret.-W' Expense: @100% 2 yrs. $425 per space $221,850 $10/sp. reserves $5,22.0 annual expense $227,070 monthly expense $18,923 Income: contract @50% 261 rent @$90/mo. $23,490 annual income $281,880 monthly contract income $23,490 transient @50% 261 income/space/weekday $7.50 income/day $1,957.50 annual transient income $508,950 monthly transient income $42,413 validation factor annual validation x $1 $237,510 monthly validation x $1 $19,793 • Yr 2010 522 spaces @25% @35% @55% initial limos. 1 yr $155,034 $5,873 $8,222 $12,920 annual monthly contract total $281,880 $23,490 transient total $508 950 $42 413 subtotal $790,830 $65,903 less validation $237 510 1~ 9.793 gross annual income $553,320 $46,110 less expenses $2070 $18.92 net income $326,250 $27,188 Source. Gideon Toal Management Services • 55% 1 yr $155,034 $279.923 $434,957 13 6 $304,326 $12$89 $179,438 Notes spaces spaces avg. person spends $3.75 to park; assumes nights/weekends are free income/day 260 days/yr transient pkg rate. $1.50/3 hrs=$4.50/sp/weekday validated parking nets $1/3 hrs on validation vs. $4.50 per 3 hrs on transient. Assumes 1 validation for 3 hrs./sp/w losing $3.50/day x 260 weekdays x # spaces for validation Page 46 Table 1.25 Tandy-I ~ Yr. 2011 172 spaces Expense: @100% @25% @35% @55% 2 yrs. initial limos. 1 yr $425 per space $73,100 $10/sp. reserves $1.720 annual expense $74,820 monthly expense $6,235 Income: contract @50% 86 rent @$90/mo. $7,740 annual income $92,880 $51,084 monthly contract income $7,740 $1,935 $2,709 $4,257 transient @50% 86 income/space/weekday $7.50 income/day $645.00 annual transient income $167,700 monthly transient income $13,975 validation factor annual validation x $1 $78,260 monthly validation x $1 $6,522 @55% annual monthly 1 yr contract total $92,880 $7,740 $51,084 transient total $167,700 $13.975 $92.23 subtotal $260,580 $21,715 $143,319 less validation $78.260 $6 522 $43,043 gross annual income $182,320 $15,193 $100,276 less expenses $L4,$24 $6.235 $41,151 net income $107,500 $8,958 $59,125 Source: Gideon Toal Management Services Notes spaces spaces avg. person spends $3.75 to park; assumes nights/weekends are free income/day 260 days/yr J transient pkg rate: $1.50/3 hrs=$4.50/sp/weekday validated parking nets $1/3 hrs on validation vs. $4.50 per 3 hrs on transient. Assumes 1 validation for 3 hrs./sp/~ losing $3.50/day x 260 weekdays x # spaces for validatior LJ Page 47 Table 1.26 Tandy-J Yr 2012 403 spaces Notes Expense: @100% @25% @35% @55% 2 yrs. initial limos. 1 yr $425 per space $171,275 $10/sp. reserves $~ , annual expense $175,305 monthly expense $14,609 Income: contract @50% 202 spaces rent @$90/mo $18,135 annual income $217,620 $119,691 monthly contract income $18,135 $4,534 $6,347 $9,974 transient @50% 202 spaces income/space/weekday $7.50 avg. person spends $3.75 to park; assumes nights/weekends are free income/day $1,511.25 income/day annual transient income $392,925 260 days/yr monthly transient income $32,744 validation factor transient pkg rate: $1.50/3 hrs=$4.50/sp/weekday validated parking nets $1/3 hrs on validation vs. $4.50 annual validation x $1 $183,365 per 3 hrs on transient. Assumes 1 validation for 3 hrs./sp/wK monthly validation x $1 $15,280 losing $3.50/day x 260 weekdays x # spaces for validation . @55% annual monthly 1 yr contract total $217,620 $18,135 $119,691 transient total $392 925 2 44 $216.109 subtotal $610,545 $50,879 $335,800 less validation $183 365 5 280 100 851 gross annual income $427,180 $35,598 $234,949 less expenses $175 305 $14.609 X96 8 net income $251,875 $20,990 $138,531 Source: Gideon Toal Management Services • Page 48 ~~~ ~~ ~ s ~ V ry N ~ $e O • ~ ~~ ~ ' q Z ~ R 6 0 ~~ ~ ' mm O O y H a O N ~pp ~ ~ 1'1 Cl Op t'1 O ~O ~ N ~ e e „ ^^ a S~ O ~Sj ~ y 8 O ~:~ O ~a ~ m ~ ~~ ti ~3 ~ ~a x 's$ ~ ~ ~~ ~ ~~ ~ ~~ "s ~~ s m~ ~ ' 3~ - ~ ~~ a S 8 ~ ~ ~ ~ ~ ~ x 0 0 ~ o ~ 0 o p o ~ o o ~ ~ ~ r r = u ~ ~ ~; $ Page 49 • SALES TAX REVENUE STUDY C Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financin4 District Sales Tax Increments A large portion of the initial investments which have been made in the TIFD since its formation have been for uses which are sales tax generators. Of these initial developments, 270,000 square feet of floor space has been built for retail and entertainment uses. Both the Fort Worth Outlet Center and the Sundance East entertainment and retail complex will generate significant amounts of new sales tax for the first time since formation of the reinvestment zone. Additional retail development is proposed for construction in the zone in the near term These newly generated sales taxes can be tracked as sales tax increments which are created out of the TIFD These initial private investments provide atwo-fold source of revenues to the City by generating both property taxes and sales tax. Because the sales taxes which are generated from private reinvestment in the zone are so dependent on the successful revitalization of ashopper-friendly Central Business District, the implementation of the TIFD improvement plan, and particularly the proposed initial public improvements, is doubly important. For this reason, it is recommended that the City consider affording additional protection to this future source of revenues by considering the accumulation of sales tax increments as an offset to discretionary participation in the initial debt financing of the critical initial public improvements. To facilitate this consideration, Table 1 28 projects sales tax increments through the projected build-out of the TIFD LJ Page 50 O~~ O CO I` M O O M O r 00 00 00 O r 00 ~ 00 Of OrN~N00chNNI~N~t~~CO~Nd'o~ ~' m ON OOODI~~AOM~r(~rOOC01~Nr OMO ~ O ' 7M 'M N ~ N ~ ~ m ~ ~ C O f QIC r ~ N ~O~MI d C7 CO Q>OOrI~OtndONtAI~00~hO'7O 1 OD ~ } . C 1~t1y ~A (O CO I~O~O)MM~~tn tO l~CpOOa- N O~ y~~ r r r N N N N N N M M M ~ CO fA J N OOrONM(O(Of~fOhMf~(O(OOOrtl9f~f~ 1` d OOM~r~Cpl~tnsttn VO~rrl~Otp00I~ MOr~d'd'M pM(O~AOOCOdN ' 07 'ej m 3+r ~ O~ C ' dOMf~tnMOOOCO~~tOtOf~Cfll~r~fD d o ~ N ;~ I~(p00O1'AN~'MOCOO~O ttI~00OOr OrrNM~O~I~I~OCOrM~(OCOON 1~ ~! 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O t0 t0 t0 <D CO O .~. ~"~ o ~~ MMMMtnI[Sd~Ml~CO V Q~MNNNO~ ' e 3 O •~~d'~I~I~Cp(pO~O~NM~a0OO0NN NNMM~~tno0a0a0O0C~0~O R N ~ NNNN ~f ~ 7 O U -~ N 0 0 0 0 0 0 0~~~~~ M M r d d d d~ OOOOOO~f d' V ~O)~td'Md'tt V ~t~t > V-m OOOOOOh1~NNODIO~ArOO)dO~O? ~ N'p OOOO(DCOOOaOMsfl~~rNNNNN - d11. ' I~I~I~t~OOrr^~'~ppNu~CpOOOMM 3 R R,1~ NNNNMMet V'~~u')dOC)OOOOO ~ ~~ r r r ~ r U ~ c LL o00oooo~nooooaooaoaooooo o~ _ '<u T m N 0 o v oo~nvoaor o o o ti ~Omcoo~noo o er a~ 'p d1 O cp ~t h~nrNao~r O N U LL ~ N M O ~ M M N N N M ~ 7 ~ N r ~ Z C ~ W Z ~ (p ~apdOrNM~If)CO 1~ddOrNM~~ W d O O O d O 0 0 0 0 0 0 0 0 0 r r r r r r O d O d 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 > }~ r r r r N N N N N N N N N N N N N N N N W ~ • N V COOpOMtnhONd~hO~N~hOMCOO OOOOrrrrNNNNNMMMd~~t~~ N ~' C XlL O ~ ~ rrrrrrrrrrrrrrrrrr rr ~ ~+ o d ' J ~ ~ N ,p Q LL W H ~ m N y 7 CO 3 N f6 O O> O O w ~ 7 T ~ L fl. ~- N ~ N .. L.L U ~ ~ N "O' O ~ l0 r +-' U ~ N N f4 N ~ N LL N Q) f6 ~ ~ C N U ~~ ~ ~ L f0 o ~ F- O N N > ~ ~_ ~U ~ wQ 'm ~ O. U N ~ i-. U r ~ Page 51 Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financine District Public Improvements In establishing the TIFD, the taxing entities set an annual limit of $5,000,000 and a total limit for all tax contributions of $50,000,000 Table 1.29 summarizes $50,000,000 of public improvement project costs that are projected during build- out of the Project Plan in accordance with the Future Development Concept Plan. The improvements proposed in Table 1.29 could be funded within the current $50 million total limit on tax contributions to this TIFD, ~~~ n Page 52 • Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District Table 1 29 Estimated Project Improvement Costs Estimated Project Improvement Costs Type of Improvement (In millions of Current, Inflated Dollars) TIF and Parking Management $4 9 3rd Street Pedestrian Cooridor $2 1 Subway (Trolley) $3 4 Tarrant County Horse Fountain $0 2 Public Market Feasibility Study $0 1 Parking (including leasing facilities) $22 6 General on-going street, drainage, utility, and streetscape improvements, public market improvements and historic site rehabilitation $16.7 Total $50 0 Page 53 INTENTIONALLY LEFT BLANK Page 54 CHAPTER2- PRO-FORMA • ~ Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District CHAPTER 2 -PRO-FORMA This chapter contains the cash flow and financing strategy concept for the Downtown TIF based on infrastructure cost and revenues as projected in the economic feasibility study presented in Chapter 1 Section One summarizes revenues that are projected to be generated from tax increments, parking revenues (from proposed TIF parking garages) and sales tax increments that will accumulate from new TIF generated development after the December 1.995 base year TIF infrastructure needs are broken out in Section Two The pro-forma summary compares revenue streams with the costs of projected infrastructure needs in Section Three Spread sheets are included in Sections One and Two that show the timing of both projected developments and infrastructure improvements Two revenue scenarios are provided 1 Revenues including sales tax increments through 2003 (Tables 2 10- 2 12), and, • 2. Revenues without sales tax increments (Tables 2 9, 2.13 and 2 14) Financing Model As can be seen in the cash flow analysis in Tables 2 12 and 2 14, debt financing for this model is proposed to begin in 1998 via a 25 year note at 7% interest. Additional infrastructure costs would increase the size of this initial note until 2003, at which time future improvement costs and debt service could be paid for on a pay as you go basis The amount of bonded indebtedness to be incurred at this juncture is estimated to be $31,328,062 In 2006, projected revenues would reach the $5,000,000 cap The assumption of this model is that once increments accrue to a point that makes it possible, the note could be retired with a balloon payment. This analysis is not intended to propose this specific financing scenario as the financing solution, but rather is an attempt to show that the TIF will generate enough revenue to cash flow the financing of debt associated with the initial infrastructure improvements which must be made prior to the accumulation of sizable tax increments As can be seen in Table 2 14, the TIF maintains positive cash flow under this model even without the use of sales tax increments It was thought at the completion of the Draft Project Plan that sales tax increments would need to be captured through the initial years (say 2003) to assist in maintaining a . positive cash flow It now appears that rather than directly use the sizable sales tax increments which will be generated within the TIF, the City can consider this revenue source as an offset to discretionary participation on the initial debt financing of the critical initial public improvements Page 55 ~. ~~, Fort worth, Texas Reinvestment Zone Number Three `~~ North Downtown Tax Increment Financin~a District _ 4 Financial Feasibility Cumulative private development is expected to exceed $438 million during the 20- yearprojected build-out of the TIFD When this figure is added to the value of the tax base and inflated by 2% per year beginning in 2002 to account for reappraisals, the result is a total taxable value of $963 million (see Table 1 16) The "captured° taxable value accruing to the TIFD is expected to approximate $665 million in year 20 of the TIFD This $665 million is derived by subtracting the value of the tax base at the onset of the TIFD ($298 million) from the total taxable value of the tax base in the 20"' year ($963 million), since the TIFD receives revenue only from the taxable value which exceeds the base year The Pro-Forma of this chapter takes a more conservative approach and inflates only the existing base taxable value New developments are not inflated to account for reappraisals after they are built, resulting in a "captured° taxable value accruing to the TIFD of $556 million in year 20 The TIFD begins to receive revenues in the project Year 2 in the aggregate amount of $179,780 for all taxing jurisdictions combined The private/public ratio is 8 8 1, such that each dollar of public obligation yields $8 77 in private improvements. In conclusion, the economic feasibility of this TIFD is very favorable when compared to traditional debt service yields in general and to Tax Increment Financing in particular Our findings regarding economic feasibility of this TIFD are based upon application of computer runs which analyze and predict the financial status of the TIF Fund based upon several cost/revenue assumptions. The assumptions undergirding this analysis follow Page 56 General Pro-forma Assumptions 1 Pro-forma calculations are based on likely public improvement needs should the TIFD build out in accordance with growth projections modeled after the Future Development Concept Plan, which served as a basis for this feasibility study The exact timing and amount of actual expenditures of the TIFD during its 30 year life can not be predicted in advance except to note that the TIFD must operate within the $5 million annual limit and the $50 million total limit established for tax contributions when the TIFD was created All calculations of this pro-forma are only estimates based on the assumptions of Scenario One of the feasibility study contained herein 2 The calendar year after the 100% completion is shown is the calendar year that the property is placed on the tax rolls (ie. Project completed in 1996, on tax rolls in 1997) 3 Infrastructure costs hit spreadsheets as partial projects (phases) are constructed Development projects hit spreadsheets only after projects are completed for occupancy Development projects can hit the spreadsheets in phases, if projects are completed for occupancy in phases, consistent with practice of multi-year project spreads used in the pro-forma of the Preliminary Financing Plan 4 The tax increment as tax flow to the TIF is shown the calendar year after value is placed in the tax roll, which is two calendar years after 100% construction completion • 5 Roll off property value =difference between current TAD value and TAD value in base year of TIFD 6 Future construction values (after 1997) are escalated at 2% per year from 1996 dollars 7 Project values are at 100% of estimated construction cost except projects A, B and H (Sundance East and Fort Worth Outlet Square) 8 Parking revenues shown are from the Central Parking Garage and subsequent TIF parking garages which the scenario one feasibility study pro-forma assumes would be constructed and operated by the TIFD 9 The tax factor used throughout this pro-forma for the life of the TIED is an estimated factor based on 1996 Tax Year combined tax rate of $2 961626 per $100 This assumes contributions by FWISD at 100% of the FWISD tax rate when in fact, FWISD could contributed at a tax rate that matches the City tax rate starting in 2004 or earlier (the "Alternative Rate") The negative effects from use of the Alternative Rate are mitigated by the $5 million per year limit on tax contributions as it is projected that TIFD will generate in excess of $5 million in tax increment within a few years of 2004 10 Sales tax is computed at 90% lease up X $225/SF for all retail sales beginning with the • first full year after the project is complete except the theater is computed at $100/SF The sales/SF base of $225/SF is escalated at 2% per year from 1995 dollars Page 57 • • SECTION 1 - REVENUES • • • i Table 2 1 PROJECTED TIFD DEVELOPMENT ACTIVITY CHRONOLOGICAL LIST Project Sundance East: AMC Palace Wells Fargo Library Fort Worth Outlet Square Finish Out Performing Arts Hall In -town Residential (Phase 1) Continental Plaza Garage (1,000+ sp.) Tarrant Co. Family Justice Center In -town Residential (Phase 2) Plaza Retail and Office SW Commercial Development (233 sp.) Sundance West Apartments Subtotal through Year 2002 Garden Office/Courthouse Service In -town Residential (Phase 3) SW Expansion of Retail Sundance West Lofts In -town Residential (Phase 4) Retail on Grade SE Expansion of Retail (346 sp.) SE Expansion of Retail Hotel (Could occur as early as 1999) In -town Residential (Phase 5) Entertainment CommerciaVRetail Entertainment CommerciaVRetail (64 sp.) NE Expansion of Retail, Ph. 1 Public Market SW Retail on Grade In -town Residential (Phase 6) Garden Office/Courthouse Service SW Corporate Office SW Corporate Office (315 sp.) NE Expansion of Retail, Ph. 2 Tech Garage Addition (172 sp.) SW Retail on Grade Corporate Campus Corporate Campus (875 sp.) Tech 2 Garage (875 sp.) R&D Office Park TOTAL vs. Projected without TIF Yr 100% Value Total SF Shown Is Placed of New on Tax Rolls Construction Source: Gideon Toal Management Services 1997 1997 1997 1997 1998 1999 1999 1999 2001 2001 2001 2002 2002 2003 2003 2003 2005 2005 2005 2005 2005 2006 2007 2007 2007 2008 2008 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2014 105,000 55,000 50,000 165,000 177,000 326,875 187,750 72,000 abate. roll oft 1,138,625 62,750 177,760 104,745 abate, roll off 158,205 17,500 120,000 75,000 194,220 31,650 42,648 300,000 28,000 228,750 42,000 200,000 25,588 21,818 514,850 358,000 3,842,109 SF 1,400,000 SF No. of D.U.s 400 238 226 201 231 329 Total Value of New Construction $12,000,000 $3,000,000 $8,600,000 $13,627,000 $6,813,000 $60,000,000 $19,758,028 $8,776,814 $24,000,000 $12,230,970 $10,521,241 $1,836,771 $568.665 $181,732,489 $7,066,669 $12,083,500 $15,334,785 $329,541 $11,181,001 $2,665,525 $5,011,077 $21,089,869 $7,977,243 $13,368,940 $5,787,176 $557,032 $6,893,566 $19,304,000 $5,326,616 $19,809,852 $5,433,148 $31,046,559 $2,909,451 $4,303,105 $1,620,425 $3,742,490 $88,313,373 $8,243,444 $3,978,333 $65,167,236 1,625 D.U.s $550,276,445 Total Taxable Value of New Construction $12,000,000 53,000,E $13,627,000 $6,813,000 $19,758,028 $8,776,814 $12,230,970 $10,521,241 $1,836,771 $568.665 $89,132,489 $7,066,669 $12,083,500 $15,334,785 $329,541 $11,181,001 $2,665,525 $5,011,077 $21,089,869 $7,977,243 $13,368,940 $5,787,176 $557,032 $6,893,566 $5,326,616 $19,809,852 $5,433,148 $31,046,559 $2,909,451 $4,303,105 $1,620,425 $3,742,490 $88,313,373 $8,243,444 $3,978,333 $65,167,236 $438,372,446 $190,059,000 Geographic Map Relationship per Reference Future Development (Underway Concept Plan Projects) Core Exp. Underway Core Exp. Underway Core Exp. Underway Core Exp. Underway Core Exp. Underway Core Exp. Underway Core Periphery Dev Core Exp. Underway Core Dev Proposed Core Periphery Dev Core Dev Proposed Future Core Exp. Core Exp. Underway A B LE H X S4(CP)+ CR 0 Linkage Dev Core Periphery Dev Future Core Exp. Core Exp. Underway P Core Periphery Dev Linkage Dev Linkage Dev Linkage Dev Core Periphery Dev HH Core Periphery Dev Core Periphery Dev Core Periphery Dev Linkage Dev. Core Periphery Dev Future Core Exp. Core Periphery Dev Linkage Dev Future Core Exp. Future Core Exp. Linkage Dev Linkage Dev Future Core Exp. Core Periphery Dev Core Periphery Dev. Linkage Dev Core Periphery Dev. Table 2.2 PROJECTED TIFD DEVELOPMENT ACTIVITY Through 2005 Rat Scenario 1 Sundance East A AMC Palace B Office Bldg. M FW Outlet Square Finish Out CR Plaza Rated and Office El In -town Residential E2 In -town Residential S2 Public Market E3 In -town Residential I Tech Addition (172 sp.) N+ SW Cams Dev. (233 sp.) ZR SW Retail on Grade @ZO Y/O Retail on Grade Y SW Expansion of Retail ZO SW Corp. Office Z+ SW Corporate Office (315 ap.) ZA, ZB SW Retail on Grade E4 M-town Residential S6E Garden Office/Courthouse Service 56W Garden Office/Courthouse Service O Sundance West Apartments D SE Expansion of Retail D+ SE Expansion of Retail (346 sp.) F5 In -town Residential S4 (CP)+ Co linenal Plaza Garage (1,000 sp.) S4 (NO) Hotel S4 (BB) Entertainment CamrerciallRetail $4+ (BB+) Entertainment Conwnercial/Rated (64 sp.) F6 In -town Residential P Sundance West Lofts G1 NE Expansion of Retail G2 NE Expansion of Retail J Tech 2 (414 sp) S5 Corporate Campus S5+ Corporate Campus (875 sp.) S7 R&D Office Park (30,000 retaUreat) T1 Tarrant Co. Family Justice Center Leasable Retail SF Added 9011 Leased Cumulative Leased SF 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 I 105,000 55_000 165,000 72.000 326,875 187,750 300 000 177,760 28.000 17,500 104,745 200,000 1 21.818 158,205 62.750 42.0001 120.000 I 194,220 i 75,0oo I 31,650 R 1 228.750 42:848 25.588 514.850 358.000 12,000.000 3,000,000 13,627.000 6,813.000 19,758,028 8.776,814 10.521,241 12.230.970 1240000001 1,838,771 568.665 12,083,500 15,334,785 7.086,869 2,665.525 11,181,001 21,0894369 5,011.077 329.541 3,615,109 50 $28,627,000 $6,813,000 528,534,842 50 522,752,211 $2,405,436 $34,484,954 50 540,277,013 O 270,000 0 0 0 36,000 0 104,745 0 137,500 O 243,000 0 0 0 32,400 0 94,271 0 123,750 243,000 243,000 243,000 243,000 275,400 275,400 369,671 369,671 493,421 Management Services WORKING DOCUMENT•TERNAL REVIEW • • • Table 2.3 1.1.31ROJECTED TIED DEVELOPMENTACTNITY Through 2015 Rat Scenario SuManc. Cot A AMC Palac. 8 Office Bldg N FW OWa0 Squaw Finish Out CR Plena R.a4 end O*M1ca El 6r6»m Residential E2 6rton1ResMan4al 52 Public Markel El IMPdl Residential 1 Tech Maws (172 sp ) N. SW Comm. Dew (2333p) ZR SW RAW on Gn6a®ZO 7,0 Reba n Grade 7 SW Expansion of Retell ZO SW Cap. Office Z. SW Capx.l. OM. pis sp) ZA,ZB SW RW6 on Grade E4 krloon NO:WOW S6E Gann OlRca&CauMouaa Sam. SOW Garden 011k.Cmtwus. Service O SuManceWMApannum U SE Expansion AReM6 D. SE Expansion of R.h6 (348 spa FS In -town Residential 51 (CP34 Carthorse, Plaza Ga.p. (1,000 sp.) 51 (110) Hotel 5/ (BB) Enlappmard Camm.Na1RM6 51. (88.) EN W binm.N Commaala4R.n6 (84 ap ) F6 In.. Residential P Sunder.. Weft Lads GI NEE..m(ol of Revel G2 NE Expansion SReW J Tech 2(414 sp) 55 Corporate C.Inpa 554 Corporo1 Camps (575.p ( 57 RIO Office Part (30.000 reaiVn5 TI Tarrant Ce. Fondly Justic. Coda Leasable R49 SF Added 9014 Leased Cumulate* Lased 0) Co CD 0 0 • SF 1996 1996 1997 1990 1999 2000 2001 2002 2003 2004 2005 2006 2007 2009 2009 2010 2011 2052 2013 2016 2016 05000 i t83.Soo 72.500 iza.67s 187250 300000 177 760 29 000 17500 01.7e5 200000 21015 158.205 92.750 e2 030 194.220 s.a00 31.660 220 750 42,949 25 593 514.050 358.000 12.OW.OW 3,00000E 13.627.000 9.913.000 19.758.028 9,9.610 10,521241 12230.970 1 (2.0000001 1.036.771 12.083500 15,331,785 2.665.525 16181.601 21,009.669 5.011,0/ 329.541 19.852.000 19.652.0003 13.368.940 731773e3 5.7821/13 &,Mdz 9.093,566 5326.6113 10.809.002 35045,559 2.909051 5.433.145 4.303.105 1.620.425 3.742 491 85213,373 53.3,111 3.975 333 3015.109 30 325.627.030 $8.813.000 325,534,842 30 $22.752211 32.405,138 334084954 30 340277.013 37)377243 319,713,140 36.693.560 325838,166 343092283 3101,915733 83,975233 85.167238 30 $65.167238 30 O 270.000 0 0 0 38,003 0 104.745 0 137,500 5.000 31.050 342,6/0 25000 25,500 21.818 0 0 30,000 0 O 243.000 0 0 0 32.400 0 91,271 0 123.750 4500 28.405 308,383 25200 23.029 19,616 0 0 27600 tu.aso 213,000 243,000 2A.OW 275,400 275,/00 369,621 389071 493.a21 4974321 528,406 634,709 059,969 68.3,018 002,654 802,51 902.051 929054 929,851 SO 30 $12.000,000 33p00,000 $13.625000 18.013,000 310021241 319.750.020 312.230,970 30 312.065503 81,620,125 81.138,771 35,328,516 82,883,523 819.334.785 331,on,559 $2.909.451 83,742,491 311,151001 $1,066.609 $5,133,140 8560,665 S21,069,609 $5A11.o77 313068,940 30,776.014 87.977.243 35,757.178 8557.032 S0 $19.509,552 $329.311 16p93,560 $4.303.105 S3,978,333 506,313273 $5313,161 365.167236 3436.3/5446 1.032949 029.864 Scan: Gideon Taal Meupamre Services WORKING DOCUMENT FOR 0ITERNALREVIEW Table 2.4 ITIF TAX INCREMENT PROJECTIONS I Appreciation Factor Year 1995 1995 1996 0.000 1997 0.010 1998 0.010 1999 0.015 2000 0.020 2001 0.020 2002 0.020 2003 0.020 2004 0.020 2005 0.020 2006 0.020 2007 0.020 2008 0.020 2009 0.020 2010 0.020 2011 0.020 2012 0.020 2013 0.020 2014 0.020 2015 n) co (D 0) (less abated) Base Appraised Value 297, 834, 061 297,834,061 303,903,596 303,903,596 303,903,596 306,942,632 310,012,058 314,662,239 320,955,484 327,374,594 333,922,085 340,600,527 347,412,538 354,360,788 361,448,004 368,676,964 376,050,504 383,571,514 391,242,944 399,067,803 407,049,159 415,190,1421 New Taxable 0 0 28,627,000 6,813,000 28,534,842 0 22,752,211 2,405,436 34,484,954 0 40,277,013 7,977,243 19,713,148 6,893,566 25,136,468 43,692,263 101,919,733 3,978,333 01 65,167,2361 0I New Taxable Plus Appraised Value Increment 0 6,069,535 28,627,000 6,813,000 31,573,878 3,069,426 27,402,392 8,698,681 40,904,064 6,547,492 46,955,455 14,789,254 26,661,399 13,980,782 32,365,428 51,065,802 109,440,743 11,649,763 7,824,859 73,148,592 8,140,983 $438,372,446 $555,728,527 New Taxable Plus Appraised Value Increment Cumulative 0 6,069,535 34,696,535 41,509,535 73,083,413 76,152,839 103,555,231 112,253,912 153,157,976 159,705,467 206,660,922 221,450,176 248,111,574 262,092,356 294,457,784 345,523,587 454,964,330 466,614,093 474,438,952 547,587,544 555,728,527 Tax Factor 0.02962 Ttl Prop.Tax Revenue Flow From TIF Generated Increment 0 0 179,757 1,027,582 1,229,357 2,164,457 2,255,362 3,066,919 3,324,541 4,535,966 4,729,879 6,120,524 6,558,526 7,348,137 7,762,195 8,720,738 10,233,116 13,474,342 13,819,364 14,051,107 16,217,495 Sales Tax From TIF Increment (At .02) Sales Tax From TIF Increment (At .01) 0 0 0 0 1,079,989 539,995 1,160,431 580,215 1,183,640 591,820 I 1,207,312 603,656 1,395,653 697,827 1,423,566 711,783 1,949,0761 974,538 1,988,057 I 994,029 2,706,646 1,353,323 2,785,957 1,392,979 3,004,243 1,502,121 4,859,497 2,429,748 5,106,316 2,553,1581 5,347,916 2,673,958 5,576,178 2,788,089I 5,687,701 2,843,851 I 5,801,4551 2,900,728 6,094,487 I 3,047,244 6,216,3771 3,108,188 $126,819,365 $64,574,497 $32,287,249 Source: Om Toal Management Services WORKING DOCUMENT INTERNAL REVIEW • • • Table 2.5 'PARKING REVENUE PROJECTIONS 2000 2001 2002 2003 2004 2005 2006 YLT-Y 71 I YLL I W I I,J I Total I Inflation Factor v CD N 0 0 349,250 349,250 635,000 635,000 1.020 1.020 1.020 647,700 647,700 660,654 123,063 673,867 223,750 783,7171 897,617 1.020 1.020 687,344 228,225 915,569 2007 701,091 232,790 933,881 1.020 1.020 1.020 2008 2009 2010 2011 2012 2013 2014 2015 715,113 237,445 729,415 242,194 952,5581 971,610 1.020 1.020 744,004 247,038 179,438 1,170,479 758,884 251,979 326,250 59,125 1,396,238 774,061 789,5431 805,334 821,4401 $10,492,701 257,018 I 262,159! 267,402 272,7501 52,845,813 332,7751 339,4311 346,219 353,143 f 51,877,256 246,0311 361,5251 368,756 376,1311 51,411,567 1,609,8861 1,752,6571 1,787,710 1,823,4641 16,627,3361 1.020 1.020 1.020 1.020 1.020 1.020 WORKING DOCUMENT FOR INTERNAL REVIEW • • SECTION 2 - TIED PUBLIC IMPROVEMENT NEEDS • • • • Table 2.6 PROJECTED TIFD PUBLIC IMPROVEMENT NEEDS CHRONOLOGICAL UST Project 1994-95 TIF Planning Expenses TIFD Management/Parking Management. Subway System (Initial Mech./Struct.) TIFD Management/Parking Management. TIFD Management/Parking Management. 3rd Street Corridor Interest on Subway In -town Residential Continental Plaza Garage Streetscape Central Core Garage (766 sp.) Subway System Phase Two Upgrade i ' Yr Infrastructure Total Cost Cost Shown Incurred 1996 $254,112 1996 $250,000 1996 $1,600,000 1997 $300,000 1998 $306,000 1998 $33,292 1998 $266,000 1998 $1,450,644 1998 $208,080 1998 $2,426,185 1998 $1,500,000 Subway Parking Imp. "lights, trees, resurface p. lot, security refurbish cars/wait stations TIFD Management/Parking Management. 3rd Street Corridor Central Core Garage (766 sp.) In -town Residential Public Pkg w/ Co. Family Jus. Ctr (250 sp.) Central Plaza Central Core Garage (766 sp.) In -town Residential Courthouse Horse Fountain TIFD Management/Parking Management. 3rd Street Corridor SW Commercial Development Streetscape In -town Residential TIFD Management/Parking Management. Public Market Feasibility Garden Office/Courthouse Service In -town Residential Central Core Garage Expansion (358 sp.) TIFD Management/Parking Management. 3rd Street Corridor In -town Residential . Central Core Garage Expansion (358 sp.) TIFD Management/Parking Management. 3rd Street Corridor SE Expansion of Retail In -town Residential TIFD Management/Parking Management. 3rd Street Corridor Hotel (could be as early as 1999) TIFD Management/Parking Management. Entertainment Commercial/Retail In -town Residential Public Market Development TIFD Management/Parking Management. 3rd Street Corridor NE Expansion of Retail Public Market Development TIFD Management/Parking Management. 3rd Street Corridor In -town Residential SW Core Office SW Expansion of Comm. Off/Retail (522 sp.) TIFD Management/Parking Management. 3rd Street Corridor NE Expansion of Retail Garden Office/Courthouse Service TIFD Management/Parking Management SW Expansion of Comm. Off/Retail (522 sp.: 1999 $850,000 1999 $309,000 1999 $33,959 1999 $4,949,417 1999 $550,534 2000 $2,500,000 2000 $1,361 700 2000 $2,524,203 2000 $550,392 2000 $150,000 2000 $312,000 2000 $517 405 2001 $110,408 2001 $506,789 2001 $185,000 2002 $125,000 2002 $400,000 2002 $506,649 2002 $2,354,128 2002 $191 000 2002 $204,961 2003 $476,744 2003 $2,401,210 2003 $196,000 2003 $467,250 2004 $1,324,260 2004 $476,602 2004 $202,000 2004 $267 493 2005 $629,023 2005 $208,000 2006 $641 602 2006 $1,510,107 2006 $1,500,000 2006 $214,000 2006 $38,243 2007 $683,868 2007 $2,420,000 2007 $221,000 2007 $321,088 2008 $1,045,223 2008 $253,648 2008 $2,394,168 2008 $227 000 2008 $39,000 2009 $711,497 2009 $733,542 2009 $231,250 2009 $2,379,324 Total 550,000,000 This list provides a general chronology of the first $50 million of projected public improvemt needs. In establishing the TIED, the taxing entities set an annual limit of S5 million and a total limit for all tax contributions of $50 million. Subsequent lists provided in the feasibility study pro -forma project improvement needs through the total build -out of the TIFD in accordance with the Future Development Concept Ptan, which anticipates build -out in 2015. TIFD pro-formas and projections are shown for the first 20 years of the TIFD period. After the 19th year, no additional infrastructure needs are projected to be tax increment financed. Therefore the local taxing jurisdictions will enjoy ever increasing net returns between 2016 and 2025. A 30-year TIF term has been recommended in order to allow for optimum financing schedules and rates. Source: Gideon Toal Management Services Working document for Internal Review Page 63 7 PROJECTED TIFD PUBLIC IMPROVEMENT NEEDS Through 2004 Scenario t it 1994-95 TIF Planning Expenses TIF Mgmt/Parking Mgmt/CDC etc 3rd Street Corridor Interest on Subway Courthouse Horse Fountain Subway System (Initial Mech./Struct.) Central Core Garage (766 sp.) Central Core Garage Expansion (358 sp.) Central Plaza In -town Residential In -town Residential In -town Residential In -town Residential Subway System Phase Two Upgrade Public Pkg wl Co. Family Jus. Ctr. (250 sp.) SW Expansion of Comm. Off/Retail (522 sp.) SW Core Office SW Retail on Grade Subway Parking Imp. "lights, trees, resurface p. lot, security refurbish cars/wait stations SW Carunadal Development Streetscape Public Market Development Public Market Feasibility SE Expansion of Retail In -town Residential In -town Residential Continental Plaza Garage Streetscape Entertainment Commercial/Retail Hotel NE Expansion of Retail Garden Office/Courthouse Service Garden Office/Courthouse Service Tech Add (172 sp) Tech 2 (403 sp.) Corporate Campus R&D Office Park II ,11 II 11 1994-95 1996 1997 . 1998 1999 2000 2001 2002 2003 2004 254,112 250.000 300,000 1,600,000 306, 0001 309.000 312,000 33,2921 33,959 517.405 266,0001 I 150,000 2,426,185 4,949,417 2.524,203 185,000 191.000 196,000 202,000 204,961 467,250 287,493 2.354,128 2,401.210 1,361,700 1,450,644 550,534 550,392 506,789 506,649 476.744 476.602 1,500.000 2,500,000 850,000I I I I I I I 110,408 1 I 208.080 125.000 400,000 1.324,260 Totals (TIF Infrastruct.) $2,104,112 $300,000 $6,190,201 $6,692,910 $7,915,700 $802.197 $3,781,738 $3,541,204 $2,270,355 -0 Cumulative Totals $2,104,112 $2,404,112 $8,594,313 $15,287,223 $23,202,923 $24,005,120 $27,786,858 $31,328,062 $33.598,417 (0 (D Q) Source: G tealManagement Services WORKING DOCUMENT•NTERNAL REVIEW • • • Table 2.8 PROJECTED TIFD PUBLIC IMPROVEMENT NEEDS Through 2015 Rd. Scenario1 At.. 199495 TIF Mannino Expenses Admin. TIP MSmbpark'n9 M9mVCOC etc OH 3rd Su* Gasser Mane. en Subway T2 CaANouse Horn FavnaSo L. Subway System (MUM M.ebrsbvcl) YLT-Y Calm. Ca. Gera. (766 sp ) YLL Gad. Ca. Gann. Expanoon (35S an ) C Central Mawa El Soma. Residential E2 mown Rnkor,. E3 m-wave Resldelaal Ea So-Nwll Res0mbtl L1 (L. L•) Subway System Huse Two Upgrab T1' Put.: Pkg wl Co Farr* AM. (250 alp ) W SW Expansion . Cantu. 0111RHNI (522 ap 1 Z SW Ca. O6ke 2Ax9 SW Rehdon Gns. I( Subway Porkm9 bop. 'lights bees, murbce p lol security reubish eNwa6 st.ons SW Commercial 0.nop .. T Sbeetuap. n) fr CD Q) ti Sa( Puck Mad. Development Public Markel F.a11e4ey SE E.panskln et R.h9 klmwn Resident. MJen Residential PI Cene.n.1 Plaza Garage Seeebcap. Emab17vent Comm.roMVRenO Hot. NE E.pansicn 011.W1 56E Garden Olfic.CwNaus. SEW GMdxn 081(.Cwrdwus. Service 22 Tab sad (172 sp) T.cb 2 (403 w ) 5S Caps.. Campus S7 RSD OM. Pak 199425 1995 1997 1998 1999 _ 2000 20012•p0] 2003 2004 - 2005 2006 2007 2006 2009 2010 2011 2912 2013 2014 2016 1 � I 1 I 150,000 250,EWI -I 3W.0o0 1 1 1.600,003 266,000 2,426,165 1.450.1144 1500000 150p00 w9,417 ] 024,203 1.361,700 550.021 550,392 650.050 2..060,000 2,354,126 2.401.210 005 789 506 w9 110,408 1l5,000 am aide 202,000 208000 211000 221,O227600 2]e.a00 267493 3a.xa3 ]31,085W ]9.000 129,]fit 478744 - 476602 1,324,260 629 023 1.500.000 2.420.000 1.610.107 841.602 683,568 2,394,165 2.379,324 253545 1.045223 711.49f Sa2,1.1 I I 131,0was 000 338000 2O 131,946 ®W 230509 1.Fegns 35256 ..ltC,,e 271,000 TWb(TF hdrasbud-) s3,1w.+13 3300,000 s6,190201 se.e92,910 ST,915,700 e802.197 s3,m1.73e s3,511]w 32,27o,355 8S]1,033 e3.9 3,952 s3,w5,ese 32.959.W9 5!72epee sx,717)53 s!12 .738 „gm: S1369,a29 e2n,* Cumulab. Totals 73.+w.112 fz.aw,113 s85w,313 $10287,223 82],20x,9x] S2!0O5,1x0 327,]BBpSa f]i53S,052 33],59eA17 iN,135,N0 3]e,]]9.]92 w1565.we S!S,9Nja7 f50.87a,253 553,!91,505 857572,xe1 SS7Ax6,261 359.197,710 859.560.]10 This feasibility study pro -forma projects costs associated with the total build -out of the TIFD in accordance with the Future Development Concept Plan, which anticipates build -out in 2015. In establishing the TIFD, the taxing entities set an annual limit of $5 million and a total limit for all tax contributions of $50 million. The first $50 million of the improvements projected above could be funded within this current total limit on tax contributions. SO 0 SO 325e,112 14,634.000 12.164,000 S266,030 8150,600 $1500.000 $9,989,e05 S!755,336 51,361,790 $1,450544 S1.100.626 S1,013,431 $953.3</ 11500,000 SO $2,5030012 84,773.412 5253,65a 82]0A09 1850,000 SO $0 sO S110,408 SO S3,920.000 S125,000 81.324260 s1,510,+07 81,6L9,223 S206.080 80114302 56]&023 S1.395565 SO Sa00600 1733542 SO ss, nisa 1,095,125 $ 1,19S.a29 S0 0 SO $9 SO $59,e66,710 Scioto_ Gideon T. Management Services WORKING DOCUMENT FOR INTERNAL REVIEW • • SECTION 3 - PRO -FORMA SUMMARY SPREADSHEETS (PER 2 REVENUE SCENARIOS) • Table 2.9 COSTS vs. PROPERTY TAX INCREMENTS and PARKING REVENUES 20 15 — 0 2 10 -- 5 — -D 0) (1) (D TAX INCREMENT AND PARKING -- NO SALES 71 . 11 -=: p. ii :,:'' 0 11 f.., ,14 ^i, , 0.' A K A A ,.. -.. •"11 II ..;., 1 I A V A A 73 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year Infrastructure Costs Rev Tax I. + Parking Scenario 1 I Basic Proforma SCILINK2 Source: Gideon Toal Management Services WORKING DOCUMENT FOR INTERNAL REVIEW Table 2.10 COSTS vs. ALL TAX INCREMENTS and PARKING REVENUES 0 i 25 20 — 15 — 10 — 5 — 0 ALL REVENUES: Tax Increment Parking Sales (1%) N 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year Scenario 1 Basic Proforma ■ Infrastructure Costs 0 Total Rev 1 Source: •eon Toal Management Services WORKING DOCUMEN INTERNAL REVIEW • • • Table 2.11 ITIF PROFORMA SUMMARY (w/Sales Tax and w/o Debt Financing) A B C D E F G H I J K L Total Rev Cumulative WI $5 Mil. Savings Savings Net Cumulative Public Cumulative Cap Rev. less Rev. less Tax Parking Subtotal Sales Tax TOTAL Total With Total W/ $5 Improvement. Improvement. Ind. Sales Improvement. Improvement. Increment Revenue Inc. + Parking at .01 $5mi1 Cap Mil Cap Costs Costs Tax Costs Costs 1996 0 0 0 0 0 0 0 1996 $2,104,112 $2,104,112 $0 ($2,104,112) ($2,104,112) 1997 179,757 0 179,757 539,995 719,752 719,752 719,752 1997 $300,000 $2,404,112 $719,752 $419,752 ($1,684,360) 1998 1,027,582 0 1,027,582 580,215 1,607,797 1,607,797 2,327,549 1998 $6,190,201 $8,594,313 $1,607,797 ($4,582,404) ($6,266,764) 1999 1,229,357 0 1,229,357 591,820 1,821 177 1,821 177 4,148,726 1999 $6,692,910 $15,287,223 $1,821 177 04,871,733) ($11,138,497) 2000 2,164,457 0 2,164,457 603,656 2,768,114 2,768,114 6,916,839 2000 $7,915,700 $23,202,923 $2,768,114 ($5,147,586) ($16,286,084) 2001 2,255,362 349,250 2,604,612 697,827 3,302,439 3,302,439 10,219,278 2001 $802,197 $24,005,120 $3,302,439 $2,500,242 ($13,785,842) 2002 3,066,919 635,000 3,701,919 711,783 4,413,702 4,413,702 14,632,980 2002 $3,781 738 $27,786,858 $4,413,702 $631,964 ($13,153,878) 2003 3,324,541 647,700 3,972,241 974,538 4,946,779 4,946,779 19,579,758 2003 $3,541,204 $31,328,062 $4,946,779 $1 405,575 ($11,748,304) 2004 4,535,966 783,717 5,319,683 994,029 6,313,711 6,313,711 25,893,470 2004 $2,270,355 $33,598,417 $6,313,711 $4,043,356 ($7,704,947) 2005 4,729,879 897,617 5,627 496 1,353,323 6,980,819 6,980,819 32,874,289 2006 $837,023 $34,435,440 $6,980,819 $6,143,796 ($1,581 151) 2006 6,120,524 915,569 7,036,093 1,392,979 8,429,072 7,308,548 40,182,837 2008 $3,903,952 $38,339,392 $7,308,548 $3,404,596 $1,843,445 2007 6,558,526 933,881 7492,407 1,502,121 8,994,528 7436,002 47,618,839 2007 $3,645,956 $41,985,3413 $7,436,002 $3,790,046 $5,633,491 2008 7,348,137 952,558 8,300,695 2,429,748 10,730,444 8,382,307 56,001 145 2008 $3,959,039 $45,944,387 $8,382,307 $4,423,268 $10,056,758 2009 7 762,195 971,610 8,733,805 2,553,158 11,286,963 8,524,767 64,525,913 2009 54,729,865 $50,674,252 $8,524,767 $3,794,902 $13,851,661 2010 8,720,738 1170,479 9,891,218 2,673,958 12,565,176 8,844,437 73,370,350 2010 $2,777,253 $53,451,505 $8,844,437 $6,067,184 $19,918,845 2011 10,233,116 1,396,238 11,629,354 2,788,089 14,417 443 9,184,327 82,554,677 2011 $4,120,776 $57,572,281 $9,184,327 $5,063,551 $24,982,396 2012 13,474,342 1,609,886 15,084,228 2,843,851 17,928,079 9,453,737 92,008,414 2012 $256,000 $57,828,281 $9,453,737 $9,197,737 $34,180,133 2013 13,819,364 1,752,657 15,572,021 2,900,728 18,472,749 9,653,385 101,661,798 2013 $1,369,429 $59,197,710 $9,653,385 $8,283,956 $42,464,088 2014 14,051 107 1 787 710 15,838,817 3,047,244 18,886,061 9,834,954 111 496,752 2014 $271,000 $59,468,710 $9,834,954 $9,563,954 $52,028,042 2015 16,217 495 1,823,464 18,040,959 3,108,188 21 149,148 9,931,653 121 428,405 2016 $0 $59,468,710 $9,931,653 $9,931,653 $61,959,695 Total 126,819,365 16,627,336 143,446,702 32,287,249 175,733,950 121,428,406 59,468,710 121,428,405 $5 MA. Cap Kicks In at 2006 This feasibility study pro -forma projects costs associated with the total build -out of the TIFD in accordance with the Future Development Concept Plan, which anticipates build -out in 2015. In establishing the TIFD, the taxing entities set an annual limit of $5 million and a total limit for all tax contributions of $50 million. The first $50 million of the improvements projected above could be funded within this current total limit on tax contributions. Source: Gideon Toal Management Services Working Document for Internal Review Table 212 PROFORMA SUMMARY (wl Sales Tax and wi Debt Financing) 1111.1111111111111111 I A B C D E F G H I J K L M N Total Rev. Cumulative W/ $5 Net Cumulative Public Cumulative Note + Cap Rev. less Savings Rev. less Tax Partdng Subtotal Sales Tax TOTAL Total With Total W/ $5 Improvement Improvement 7%,25Yr New Infruct Sales Tax improvement Improvement Increment Revenue Inc. + Parking it Al $5mi1 Cap Mt Cap Costs Costs Amortizatlan Costs Thru 2003 Costs Costs 0 0 0 0 0 0 0 1996 $2,104,112 $0 179,757 0 179,757 539,995 719,752 719,752 719,752 1997 5300,030 9719,752 $719,752 $719,752 1,027,582 0 1,027,582 580,215 1,607,797 1,607797 2,327,549 1998 56,190,201 $8,594,313 $737481 $1,807,797 $870,316 $1,590,067 1,229,357 0 1,229,357 591,820 1,821,177 1,821,177 4,148,726 1999 56,692,910 $15,287,223 $1,311,803 $1,821,177 $509,374 $2,099,441 2,164,457 0 2164,457 603,656 2,768,114 2,768,114 6,916,839 2000 $7,915,700 $23,202,923 $1,991,052 $2,768,114 $777,061 62,876,503 2,255,382 349,250 2,604,612 697,827 3,302,439 3,302,439 10,219,278 2001 $902,197 $24,005,120 $2,059,889 $3,302,439 S1,242,550 $4,119,053 3,068,919 635,000 3,701,919 711,783 4,413,702 4,413,702 14,632,980 2002 $3,781,738 $27,786,858 $2,384,401 $4,413,702 $2,029,300 56,148,353 3,324,541 647.700 3,972,241 974,538 4,946,779 4,946,779 19,579,758 2003 $3,541,204 $31,328,062 $2,688,274 $4,946,779 $2,258,505 $8,406,858 4,535,966 783,717 5,319,683 994,029 6,313,711 6,313,711 25,883,470 2004 $2,270,355 $2,888,274 $4,958,629 $5,319,683 $361,054 $8,767,913 4,729,879 897,817 5,627 498 1,353,323 6,980,819 6,980,819 32,874,289 2005 $837,023 $2,688,274 $3,525,297 $5,627 498 $2,102,199 $10,870,111 6,120,524 915,569 7,036,093 1,392,979 8,429,071 7,30(1,548 40,182,837 2008 $3,903,952 $2,688,274 $6,592226 $5,915,569 0676,657) $10.193.455 6,558,526 933,881 7492,407 1,502,121 8,994,528 7,438,002 47,618,839 2007 913,645,958 $2,688,274 $6,334,230 $5,933,881 ($400,349) $9,793,106 7,348,137 952,558 8,300,695 2,429,748 10,730,444 8,382,307 58,001,145 2008 $3,959,039 $2,688,274 $6,647,313 $5,952,558 (S694,755) $9,098,351 7,762,195 971,810 8,733,805 2,553,158 11,286,963 8,524,767 64,525,913 2009 $4,729,865 $2,688,274 $7418,139 $5,971,610 ($1,446,529) $7,651,822 8,720,738 1,170,479 9,891,218 2,673,958 12,565,176 8,844,437 73,370,350 2010 $2,777,253 $2,688,274 $5,465,527 $6,170,479 $704,952 58,356,774 10,233,118 1,396,238 11,629,354 2,788,089 14,417 443 9,184,327 82,554,677 2011 $4,120,776 $2,688,274 $6,809,050 $6,396,238 ($412,812) $7,943,962 13,474,342 1,609,886 15,084,228 2,843,851 17,928,079 9,453,737 92,008,414 2012 $256,000 $2,688,274 $2,944,274 $6,609,886 $3,665,612 $11,609,574 13,819,364 1,752657 15,572,021 2,900,728 18,472,749 9,653,385 101,661,798 2013 $1,369,429 $2,888,274 $4,057,703 $8,752,857 $2,694,954 $14,304,528 14,051,107 1,787,710 15,838,817 3,047,244 18,886,061 9,834,954 111,496,752 2014 $271,000 $2,688,274 52,959.274 $6,787,710 $3,829,436 $18,132,964 18,217 495 1,823,464 18,040,959 3,108,188 21,149,148 9,931,653 121.428,405 2015 30 $2,688,274 $2,688,274 $6,823,484 $4,135,190 $22,268,154 Total 128,519,365 16,627,336 143,446,791 32,297,249 175,733,950 121,4280405 59,4611,710. $5 Mil. Cap Kicks in at 2008 This feasibility study pro -forma projects costs associated with the total build -out of the TIED in accordance with the Future Development Concept Plan, which anticipates build -out in 2015. In establishing the TIFD, the taxing entities set an annual limit of $5 minion and a total limit for all tax contributions of $50 million. The first $50 million of the improvements projected above could be funded within this current total limit on tax contributions. Source: Gidelittanagernent Services Worldng bocurnliptetnal Review Table 2.13 TIF PROFORMA SUMMARY (wlo Sales Tax and wlo Debt Financing) i • • A B C D E F G H I J K L Total Rev Cumulative wl$5 Mil. Savings Net Cumulative Cumulative Cap Rev less Rev less Tax Parking Subtotal Sales Tax TOTAL Total With Total W/ $5 lnfrastruct tntrastnxx. No Sales infrastruc. Infrastruc. Increment Revenue Inc. Parking at .01 $5mil Cap Mil Cap Costs Costs Tax Costs Costs 1996 0 0 0 0 0 0 0 1998 $2,104,112 $2,104,112 $0 ($2,104,112) ($2,104,112) 1997 179,757 0 179,757 539,995 719,752 719,752 719,752 1997 $300,000 $2,404,112 $179,757 ($120,243) ($2,224,355) 1998 1,027,582 0 1,027,582 580,215 1,607,797 1,607,797 2,327,549 1998 $6,190,201 $8,594,313 $1,027,582 ($5,162,619) ($7,386,974) 1999 1,229,357 0 1,229,357 591,820 1,821 177 1,821 177 4,148,726 1999 $6,692,910 $15,287,223 $1,229,357 ($5,463,553) 412,850,527) 2000 2,164457 0 2 164 457 603,656 2,768,113 2,768,113 6,916,839 2000 $7,915,700 $23,202,923 $2,164,457 ($5,751,243)($18,601,770) 2001 2,255,362 349,250 2,604,612 697,827 3,302,439 3,302,439 10,219,278 2001 $802,197 $24,005,120 $2,604,612 $1,802,415 ($16,709,355) 2002 3,066,919 635,000 3,701,919 711,783 4 413,702 4 413,702 14,632,980 2002 $3,781,738 $27,788,858 $3,701,919 479,819) ($18,879,174) 2003 3,324,541 647,700 3,972,241 974,538 4,946,779 4,946,779 19,579,759 2003 $3,541,204 $31,328,062 $3,972,241 $431,037 ($16,448,137) 2004 4,535,966 783,717 5,319,683 994,029 6,313,712 6,313,712 25,893 471 2004 $2,270,355 $33,598,417 $5,319,683 $3,049,328 ($13,398,809) 2005 4 729,879 897,617 5,627 496 1,353,323 6,980,819 6,980,819 32,874,290 2005 $837,023 $34,435,440 $5,827 496 $4,790,473 48,808,336) 2006 6120,524 915,569 7,036,093 1,392,979 8,429,072 7,308,548 40 182,838 2008 $3,903,952 $38,339,392 $5,915,569 $2,011,817 ($6,598,710) 2007 6,558,526 933,881 7 492,407 1,502,121 8,994,528 7 436,002 47,618,840 2007 $3,645,956 $41,985,348 $5,933,881 $2,287,925 ($4,308,794) 2008 7,348,137 952,558 8,300,695 2,429,748 10,730,443 8,3132,306 56,001 146 2008 $3,959,039 $45,944,387 $5,952,558 $1,993,519 ($2,315,275) 2009 7,762,195 971,610 8,733,805 2,553,158 11,286,963 8,524,768 64,525,914 2009 $4,729,865 $50,674,252 $5,971,610 $1,241,745 ($1,073,530) 2010 8,720,738 1 170,479 9,891,218 2,673,958 12,565,176 8,844 437 73,370,351 2010 $2,777,253 $53,451,505 $6,170 479 $3,393,226 $2,319,696 2011 10,233,116 1,396,238 11,629,354 2,788,089 14 417 443 9,184,327 82,554,678 2011 $4 120,776 $57,572,281 $8,396,238 $2,275,462 $4,595,158 2012 13 474,342 1,609,886 15,084,228 2,843,851 17,928,079 9,453,737 92,008 415 2012 $256,000 $57,828,281 $6,609,886 $6,353,886 $10,949,044 2013 13,819,364 1,752,657 15,572,021 2,900,728 18,472,749 9,653,385 101,661,800 2013 $1,369,429 $59,197,710 $6,752,657 $5,383,228 $16,332,272 2014 14,051 107 1,787,710 15,838,817 3,047,244 18,888,061 9,834,954 111 496,754 2014 $271,000 $59,468,710 $6,787,710 $6,518,710 $22,848,982 2015 16,217 495 1,823 464 18,040,959 3,108,188 21 149,147 9,931,652 121 428,406 2015 $0 $59,468,710 $6,823,464 $6,823,464 $29,672,446 Total 128,819,365 16,627,336 143,448,702 32,287,249 175,733,952 121,428,408 59,488,710 89,141,158 $5 Mn. Cap Kicks In at 2006 This feasibility study pro -forma projects costs associated with the total build -out of the TIFD In accordance with the Future Development Concept Plan, which anticipates build -out in 2015. In establishing the TIFD the taxing entitles set an annual limit of $5 million and a total limit for all tax contributions of $50 million. The first;50 million of the improvements projected above could be funded within this current total limit on tax contributions. Source: Gideon Toal Management Services WORKING DOCUMENT FOR INTERNAL REVIEW Table 2.14 CIF PROFORMA SUMMARY (w/o Sales Tax and wl Debt Fbrwrclag) I A B C D E F G H 1 J K L M N Total Rev. Cumulative W/ S5 MIL Savings Savings Net Cumulative Public Cumulative Note • Cap Rev. less Rev. less Tax Parldag Subtotal Sales Tax TOTAL Total With Total W/ $5 Improvement Improvement 7%,25Yr New IMruct No Sales Improvement Improvement Mcrenwnt Revenue Mc. • Parking at .01 $5mil Cap Mil Cap Costs Costs Amortization Costs Tax Costs Costs 1190 0 0 0 0 0 0 0 1996 $2,104,112 S0 1197 179,757 0 179,757 539,995 719,752 719,752 719,752 1987 $300,000 $179,757 $179,757 $179,757 11811 1,027,582 0 1,027,582 580,215 1,607,797 1,607,797 2,327,549 1998 $6,190,201 $8,594,313 $737481 $1,027,582 $290,100 $469,857 1998 1,229,357 0 1,229,357 591,820 1,821,177 1,821,177 4,148,726 1898 $6,692,910 $15,287,223 $1,311,803 $1,229,357 (S82,446) $387412 2000 2,164,457 0 2,164,457 603,656 2,768,114 2,768,114 6,916,839 2000 $7,915,700 $23,202,923 $1,991,052 $2,184,457 $173,405 $560,817 2001 .255,362 349,250 2,604,612 697,827 3,302,439 3,302,439 10,219,278 2001 $802,197 $24,005,120 $2,059,889 $2,604,812 $544,723 $1,105,540 2902 3,066,919 635.000 3,701,919 711,783 4.413,702 4,413,702 14,632,980 2002 $3,781,738 $27,786,858 $2,384,401 $3,701,919 $1,317,517 $2,423,057 2003 3,324,541 647,700 3,972,241 974,538 4,946,779 4,946,779 19,579,758 2003 $3,541,204 $31,328,062 $2,688,274 $3,972,241 $1,283,968 $3,707,025 2004 4.535,966 783.717 5.319,683 994,029 6,313,711 6,313,711 25,893,470 2004 52,270,355 $2,688,274 $4,968,629 $5,319,683 $381,054 $4,068,079 2005 4,729,879 897,617 5,627496 1,353,323 6,980,819 6,980,819 32,874,289 2005 $837,023 52,688,274 $3,525,297 $5,627496 $2,102,199 $6,170,278 2006 6,120,524 915,563 7,036,093 1,392,979 8,429,071 7,308,548 40,182,837 2006 $3,903,952 $2,688,274 $6,562,226 $5,915,569 ($676,657) 35,493,621 2007 6,558,526 933,881 7492,407 1,502,121 8,994,528 7436,002 47,618,839 2007 $3,645,956 $2,688,274 $6,334,230 $5,933,881 ($400,349) $5,093,272 2009 7,348,137 952,558 8,303,695 2,429,748 10,730,444 8,382,307 56,001,145 2008 $3,959,039 $2,688,274 $6,647,313 S5,952,558 ($694,755) $4,398,518 2009 7,762,195 971,610 8,733,805 2,553,158 11,286,963 8,524,767 64,525,913 2009 $4,729,865 $2,688,274 $7 418,139 $5,971,610 ($1,446,529) $2,961,988 2010 8,720,738 1,170,479 9,891,218 2,673,958 12,565,176 8,844,437 73,370,350 2010 $2,777,253 $2,688,274 $5,465,527 $6,170,479 $704,952 13,656,941 2011 10,233,116 1,396,238 11,829,354 2,788,089 14,417443 9,184,327 82,554,677 2011 $4,120,776 82,688,274 $8,809,050 $6,396,238 0412,812) $3,244,128 2012 13,474,342 1,609,886 15,084,228 2,843,851 17,928,079 9,453,737 92,008,414 2012 $256,000 $2,688,274 $2,944,274 $6,609,886 $3,665,812 $6,909,740 2013 13,819,364 1,752,657 15,572,021 2,900,728 18,472,749 9,653,385 101,661,798 2013 $1,389,429 $2,688,274 $4,057,703 $6,752,657 $2,694,954 $9,604,694 2014 14,051,107 1,787,710 15,838,817 3,047,244 18,886,061 9,834,954 111,496,752 2014 $271,000 $2,688,274 $2,959,274 S6,787,710 $3,828,436 S13,433,.130 21116 16,217495 1,823,464 18,040,959 3,108,188 21,149,148 9.931,653 121,428,405 2015 $0 S2,688,274 $2,688,274 $6,823,464 $4,135,190 $17,588,321 Total 1211.819,365 16,27,336 143,448,701 32,287,241 175,733.950 121,428,405 5/,468,710 $6 MU. Cap Kicks in at 2006 This feasibility study pro -forma projects costs associated with the total build -out of the TIFD In accordance with the Future Development Concept Plan, which anticipates build -out In 2015. In establishing the TWO, the taxing entities set an annual limit of $5 million and a total limit for all tax contributions of $50 million. The fist $50 million of the Improvements projected above could be funded within this current total limit on tax contributions. WORKING DOCUMEie INTERNAL REVIEW • • • SECTION 4 - REVENUE FLOW COMPARISONS (WITH AND WITHOUT TIF) • 0 • 25 20 — 15 — 10 - 5 — 0 0.0.0 0.7 0 1.6 r 1.8 • Graph 2 15 REVENUE FLOW COMPARISONS (Sales and Property Tax) 2.8 3.8 EFF 3.0 4.3 5.5 19.3 7.5 8.1 9.8 11 4 10.3 13.0 16.3 16.7 171 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year Added Revenue to Local Gov from Direct Sales and Property Tax —With and Without TIF Note: Does Not Include Personal Property Taxes nu With TIF 6=1 Without TIF Source: Gideon Toal Management Services Working Document for Internal Review 8 6 - a c g 4 2 — 0 1996 Graph 2 16 REVENUE FLOW COMPARISONS I Added Revenue to Local Gov From Direct Sales Tax and Prop. Tax —With and Without TIF s 1997 1998 am Added Prop. Tax W/TIF Source: ion Toal Management Services L L 1999 2000 2001 Year t=3 Added Sales Tax WfFIF 2002 2003 2004 2005 2006 NM Added Prop. Tax W/O TIF — Added Sales Tax W/O TIF I Shown For First 10 Years Only Does Not Include Personal Property Taxes WORKING DOCUMENT INTERNAL REVIEW 110 • • CHAPTER3- METHODS OF FINANCING • • Fort Worth, Texas Reinvestment Zone Number Three North Downtown Tax Increment Financing District CHAPTER 3 -METHODS OF FINANCING Methods and Sources of Financing In most cases, the public infrastructure which is required by the TIFD must be constructed before significant private development can occur Since it takes several years for TIF funds to build up to an amount adequate to pay for costly infrastructure, it is necessary to have TIF expenditures initially funded by same other source In some cases, the private developer ~n need of the improvements may be willing and able to advance the funds by loaning the money to the TIFD or may build the improvements and receive repayment or reimbursement from the TIFD as TIF increments accrue or upon subsequent bond sales TIF expenditures can be paid for on a "pay as you go basis" after an initial period • during which significant tax increments can start to build a positive T1F fund Until such time, a!I project costs will be financed through the issuance of debt instruments It is estimated that through year 2003, all project costs will be financed through the issuance of debt instruments The expected revenue sources for the payment of debt will be the real property taxes captured by the TIF District and parking revenues from TIF garages The debt instruments may alternately be secured by general obligation of the City of Fort Worth, or by revenue bonds The City of Fort Worth, the Fort Worth Independent School District, Tarrant County, the Tarrant County Hospital District and the Tarrant County Junior College District are all participating 100% in the TIF District. The City may also utilize the provisions of Chapter 380, Texas Local Government Code Duration of the done The zone took affect on January 1, 1996 and is scheduled to terminate on December 31, 2025 (30 years), or at an earlier time designated by subsequent ordinance of the City Council C Page 74 Legislative Index Basic legislative requirements for Tax Increment Financing in Texas include 9 elements for the required Financing Plan These elements are listed below and cross-referenced with sections of the Financing Plan which meet each requirement as follows 1 A detailed list describing the ESTIMATED PROJECT COSTS of the zone, including administrative expenses Chapter 1, Section 1, pp 10 -17, & Table 1.29 2 A statement listing the kind, number, and location of all proposed public works or PUBLIC IMPROVEMENTS in the zone Chapter 1, Section 1, pp 10 -17, & Map 1 7 3 An ECONOMIC FEASIBILITY STUDY Chapter 1, pp 1- 73 4 The estimated amount of BONDED INDEBTEDNESS to be incurred Chapter 2, p 55 5 The TIME when related costs of monetary obligations are to be incurred Chapter 1, Section 1, p 17 • 6 A description of the METHODS OF FINANCING all estimated project costs and the expected SOURCES OF REVENUE to finance or pay project costs in the zone Chapter 3, p 74 7 The CURRENT TOTAL APPRAISED VALUE of taxable real property in the zone Chapter 1, Section 3, p 35 8 The ESTIMATED CAPTURED APPRAISED VALUE of the zone during each year of its existence Chapter 1, Section 3, p 35, & Table 1 16 9 The DURATION OF THE ZONE. Chapter 3, p 74 • Page 75 Basic legislative requirements for Tax Increment Financing in Texas include 4 elements for the required Proiect Plan. These elements are listed below and cross-referenced with sections of the Project and Financing Plans which meet each requirement as follows: 1 a. A map(s) showing EXISTING USES & CONDITIONS Proiect Plan, Chapter II, Maps 1 a - 9a; Chapter III, Maps 1 b - 3b, Chapter VI, Map 2.2 1 b A map(s) showing PROPOSED USES & AND IMPROVEMENTS to the property Proiect Plan, Chapter III, Maps 5b, 11 b -19b, 24b Financing-Plan, Chapter 1, Maps 1 1 -1 3, 1 7, 1 8 2. PROPOSED CHANGES OF ZONING ordinances, the master plan ,building codes and other municipal ordinances. Proiect Plan, Chapter V, Map V-2; Chapter VI, Maps 2.3 3 A list of nonproject (PRIVATE DEVELOPMENT) costs Proiect Plan, Chapter IV, Table IVa (Preliminary Draft since revised in the Fin_ ancinq Plan) Financing Plan, Chapter 1, Table 1 16, Chapter 2, Section 1,Tables 2.1 - 2.3 4 A statement of a method of RELOCATION OF PERSONS to be displaced as a result of implementing the plan. Proiect Plan, Chapter VII, p Vll-1 ~. Page 76 • Appendix A. ANALYSIS OF DOWNTOWN FORT WORTH ~ PARKING GARAGE SCENARIOS A Comparative Analysis of Four Sites DRAFT REPORT Prepared for' North Downtown Tax Increment Finance District Consideration December 1996 • • • TABLE OF CONTENTS APPENDIX A PART ONE: EXECUTIVE SUMMARY Map Locating Four Study Scenarios.....A-1 Section 1 Introduction .A-2 Section 2 Summary of Scenarios A-4 Section 3 Comparative Analysis .A-8 Section 4 Recommendations .A -11 Section 5 Assumptions & Sources .A-14 PART TWO: APPENDIX B -PARKING GARAGE SCENARIO PLANS ............................B-1 Page 1 • PART ONE EXECUTIVE SUMMARY • • Page A-1 C] • SECTION ONE: INTRODUCTION • INTRODUCTION Tlvs study attempts to illustrate and evaluate best case yield scenarios for parking garages at each of four sites within the TIF It's purpose is not intended to advocate one site scenano over another necessarily Rather, this study is a comparative analysis which is meant to identify the strengths and weaknesses of each scenario, m hopes of aiding in the design of the best parking solution, given the resources available. CRITICAL ISSUES INVESTIGATED Critical issues that were investigated dunng the evaluation of the four garage scenarios include the following: • USE/ACCESS ISSUES such as. - Response to Projected Parking Deficits per Barton-Aschman Study - User Fnendliness - User Linkages - JV Possibilities - Traffic Separation Between Pedestnans and Vehicles • • SIZE ISSUES such as: Maximizing Yield via Encroachment into ROW's No of Spaces Above BL3 Expandability via Linkage to other Garages • COST ISSUES such as. - Depth of Excavation - Method of Excavation (Clear Cut vs. Open Cut vs. Tunneling) - Structural Support Built into BLI to Support Surface Uses (Buildings vs. Streets, Plazas, & Parkways vs. Utilities) - Surface Costs - Utilities While a full review of Part II, Section 4 "ASSUMPTIONS" will provide a better understanding of the methodologies used in this study, a few of the more important assumptions are listed below • All scenanos assume land is acquired at no cost. • Garage scenarios are designed for "best case" yield. • Cost estimates do not reflect "worst case" scenanos where"high-risk costs" such as • blasting rock, accommodating ground water or excavating under existing building foundations are encountered (See Assumption 7 & 8) Page A-2 CAVEATS • This study is an identification of cost issues to be further researched. A relative comparison of cost feasibility is the objective here. Further study is required to fully test the financial feasibility of these garage concepts. • While an enormous amount of research of utilities was required for this study, much additional investigation and field verification will be required in the actual design of underground garages as cntical tolerances are indicated in the utility crossings projected m these scenarios. 0 fi~, Page A-3 • • SECTION TWO: SUMMARY OF SCENARIOS • • • Maximum Supply at "C" 845 Pa~°k~~g Scer~a~~o " C" • Page A-4 Maximum Supply at "D" . 1,269 Parking Scenario "D" 0 Page A-5 • • Maximum Supply at "YZ" 888 Parkir~~ Scenario "YZ" • Page ~-6 [7 Maximum Supply At "YLT" : 1,493 Parking Scenario "YLT-YLL-Y" Page A-7 c: • SECTION THREE: COMPARATIVE ANALYSIS • • "C" GARAGE MAX YIELD. 845 SP MAX. YIELD vs. "C": 1C BASE COST/SP.. $17,615 BASE COST vs. "C" 1C "D" GARAGE MAX. YIELD 1,269 SP MAX. YIELD vs "C" • 1.5C BASE COST/SP.. $14,035 BASE COST vs. "C" .80C • • "YZ" GARAGE MAX. YIELD* 888 SP MAX. YIELD vs "C" 1.05C BASE COST/SP.. $20,777 BASE COST vs. "C' 1 19C SCENARIO PROFILES we R U atz.I� i dr" S1 •� LOOKING NORTH .If RINK Ili.. Ilw I..r FumeGmuK How ,K1� "Y RIM KM L9� SECTION 'Tr LOOKING NORM I ••.. I sass.I SEYRION -Yr LOOKINO NORTH *r RIME Ron "YLL—YLT—Y" GARAGE (with AG Garage) MAX. YIELD- 1,493 SP MAX. YIELD vs. "C". 1.8C wYLLw 'ILl' wY BASE COST/SP $12,175 _ _ _ t BASE COST vs. 70C r I MOND „� a ME CIE MOO WOE ELM ct Aiwl.0 . "'ii ^ a SI In I r as u I'll a r 11 u - i ma ass O I I SECTION 'YLL—nT—Y LOOKING NORTH i I; I ; -I Page A-8 Gideon Toal, Inc. DOWNTOWN FORT WORTH TIF 02/25/97 11:22 AM COMPARISON OF SCENARIO SUMMARIES ISSUE "C" "D" "YZ" "YLT-Y" "YLT-YLL-Y" Phase 1 Total USE/ACCESS User Linkages/J V Possibilities None Tarrant Co. Tandy Ctr Bank One, Bank One, Library, Tandy Library, Tandy Center Center Separates Traffic in Pedestrian Core No Yes Yes Yes Yes (pedestrian vs. vehicle) SIZE No. of Spaces Above 3rd level BG 564 846 592 766 1,124 Cost/space for above config. $16,468 $14,035 $20,102 $12,177 $12,168 Total cost for above config. $9,287,800 $11,873,379 $11,900,540 $9,327,893 $13,677,282 No: of Spaces per "C" Budget 845 1,028 729 1,048 (4) 1224 (4) Maximum Yield I 845 1,269 888 1,017 1,493 COST Base Cost/Space (1) ~ $17,615 $14,035 (3) $20,777 $12,696 $12,175 Total Base Cost (1) ~ $14,884,600 $11,873,379 (3) $17,556,565 $10,728,518 $10,287,743 Maximum Yield Cost/Space $17,615 $15,980 $20,777 $14,071 $14,194 Maximum Yield Cost ' $14,884,600 $20,278,119 (3) $18,450,040 $14,309,893 $21,192,093 "C" FACTOR (2) Maximum Yield vs. "C" 1C 1 5C 1 05C 1.20C 1 8C Base Cost vs "C" ~ 1C 80C 3 1 18C 72C 70C NOTES (1) Base Cost are costs for most cost efficient 845 spaces for comparison to maximum yield per "C" (2) "C" factor expresses each scenario in relation to "C" Scenario (3) Costs for Scenario "D" used here include "New Development Costs" 4 This number for com arison onl The max. field cost of this scenario is less than the "C" bud et. ~~; ti- ~` . Working Document for Internal Review Page A-9 Gideon Toal, Inc. DOWNTOWN FORT WORTH TIF 12/18/96 03 30 PM • SCENARIO RANKING MATRIX ISSUES GARAGES "C" "D" "YZ" "YLL-YLT-Y" Need Response 3 3 1 4 User Friendliness 3 2 4 1 U/G User Linkages 2 2 1 1 i J V Possibilities 4 1 3 1 ~ Traffic (veh vs ped) Separation 4 1 2 1 ~, Size 4 1 4 1 Cost/Space 3 1 4 1 Extra Cost Risk 4 1 3 1 TOTAL 3.38 150 2.75 137 RANK (Best=1, Worst=4) 4 2 3 1 • • Working Document for Internal Review Page A-1 ~ • SECTION FOUR: RECOMMENDATIONS • • Maximum Supply At "YLT-Y" 1,017 harking Scenario "YLT-Y" • Page A-11 ... .. ti-- - - - - ---------------- - - n-~ - ~ 1 -• ~ .. ,...,~ 1 M x i~•t L"I I I 4z ^I~` I i rr; ~ a. I I V ~" ~ J L •-- •-- ~Y~,... 'nr 'Y NMI ROG L I I „_" ~ V a ++ ~LJ~ ~ • Yt _~._. - -- ~. r~~ rJ r .~~- ~° Y arnan •nr-Y coax ~mn SUMMARY OF "YLT-Y" SCENARIO ISSU "YL-1'-Y" with 3AG+P w 5AG Gar. S AC ESS User Linkages/J. V Possibilities Bank One, Bank One, Library, Tandy Library, Tandy Center Center Separates Traffic Irr Pedestrian Core Yes Yes (pedestrian vs. vehicle) SIZE No. of Spaces Above 3rd Level BG 606 768 No. of Spaces per "C" Budget 966 (3) 1,048 (3) Maximum Yield 857 1,017 COST CosUSpace Above 3rd Level BG $13,390 $12,177 Total Cost Above 3rd Level BG 58,114 413 $9,327,893 Base CosUSpace (1) $15,282 $12,696 Total Base Cost (1) $13,096,413 $10,728,518 Maximum Yield CosUSpace $15,282 $14,071 Maximum Yield Cost $13,096,413 $14,309,893 "C" FACTOR (2) Maximum Yield vs. "C" 1.01C 1.20C Base Cost vs "C" .87C .72C NOTES (1) Base Cost are costs for most cost efficient 845 spaces for comparison to maximum yield per "C" (2) "C" factor expresses each scenario in relation to "C" scenario f(3) This number is for comparison only ~: Page A-12 I ~ -- 11 II Ira~xrn n. _ iii ~~ ^YLL '1'LT' ---- ~~yynnTmm,~ ~ ~ ~, 4 I Cnaj ~ d ~-1- s / ». ~ .. ,,., .. C ba°""'a srrnoa'nt ~aoaKC xomx S N / \ R O "YLL" 1I ~I J SUMMARY OF "YLL" SCENARIO -} ISSUE 'YLL" (with 3AG+P 'USEIACCESS User LinkageslJ. V Possibilities Bank One, Library Tandy Center Separates Traffic in Pedestrian Core Yes (pedestrian vs. vehicle) SIZE No. of Spaces Above 3rd Level BG 358 No. of Spaces per 'C" Budget 1 021 PAaximum Yield 476 COST CosUSpace Above 3rd Level BG 512,150 Total Cost Above 3rd Level BG 54,349,700 Maximum Yield CosUSpace S14 458 Maximum Yield Cost 56,882,200 "C" FACTOR (2) Maximum Yield vs. 'C" 1.01C Base Cost vs 'C" .87C NOTES .(1) Base Cost are costs for most cost efficient 845 spaces for comparison to maximum yield per 'C" I(2) 'C" factor expresses each scenario in relation to 'C'' scenario. (3) This number is for comparison only maximum yeild is 476. -----..------ Page A-13 • SECTION FIVE: ASSUMPTIONS & SOURCES • • ASSLTM~TIONS 1 Garage scenarios are designed for "best case" yield. 2 Cost estimates do not reflect `worst case" scenarios where "high-risk costs" are encountered (See Assumption 7 & 8). SIZE 3 All below grade garage yields were based on 375 SF/space while above grade garage yields were based on 345 SF/space. 4 To maxinize yield, garage footprints were enlarged via encroachment into ROW's where practical. 5 A minimum ceiling height of 7' ns maintained except for the first level below grade for large 40,000+ SF footpnnts, where a 16' ceiling height was provided to increase user fnendliness. 6 All below grade levels were paced as if uniformly having 7' ceiling heights. COST 7 Cost estimates for Scenano "C" assume no existing surface buildings to work around. Estnmatnng the cost to excavate around and under existng building foundatnons is beyond the scope of thus study These and other extraordinary costs are categorized as "ligh risk costs" and excluded from the estimates nn thus study Therefore, a premium charge would have to be added to this study's estimates for any "high nsk costs" Lmbeck has per a previous study estimated a premium charge of $221,683 to work around the foundation of the Land Title building. Thus works out to a premium charge of approximately $74/SF wliich would need to • be added to the estimates of this study for the area of any existing building footprint to be saved. 8 Extraordinary costs for blasting of rock or systems to accommodate ground water were considered "high risk costs" and not included in these estimates. 9 A premium of $1,000/space was added to the typical construction cost of above grade garages to accommodate a facade design that is compatible wrath the facade of the Library and the YWCA for the above grade garage at Scenano "YLL-YLT-Y" 10 The cost of the fist level below grade incorporates the cost of moisture bamer and above slab structures to support surface use lave loads, be they plaza's, streetscape, streets or buildings. 11 The cost of streetscape improvements (including landscaping, imgation systems, back pavers, and pedestrian-scaled lighting) is a separate line item under "Surface Cost" It is assumed that where garages encroach under existing parkways, the cost to save existing trees and rebuild streetscape will equal the cost of new streetscape ($250/LF) 12 The cost to rework or provide new street signals and street lights at intersections is not included in these estimates 13 Extraordinary costs for blasting of rock or systems to accommodate ground water were considered "high nsk costs" and not included in these estimates. UTILITIES 14 Garage designs worked around existing utilities where possible. New utility lanes were rerouted only when thus solution proved cheaper than building "slab structures" (duct banks) unto new street structures after open cutting the streets around the utilities to build the garage encroachments below • Page A-14 15 It is assumed that the unit cost of "slab structures" to support underground utilities includes the cost of any necessary man-holes. 16 Tunneling under utilities was used in lieu of open cutting the street only when absolutely necessary, such as under the spaghetti of utility lines in the Thockmorton & 4'~ Street intersection and under the 138KV mayor electrical transmission line in Lamar (which would cost approximately $1,0001LF to move). 17 New utilities were included in cost estimates to serve the new surface development of these sites and where called for in City utility master plans. Since these development costs would be incurred even if underground garages were not being built on these sites, they are extraneous to the actual cost of garage construction, but would be incurred simultaneous with the garage construction. They are therefore broken out and thus noted in the cost estimates for the garages. 18 Two underground TU Electric transformer vaults were allowed for in each garage scenario Tlus was because there was either existing old vaults on site which would need to be upgraded for service requirements of the developments which will occupy the above grade sites, or new vaults would have to be built for the new developments on these sites. The $100,000 per vault allowance is an estimate for working around the vaults and maintaining uninterrupted electrical service and does not include any cost for upgrading service lines and equipment to serve the new surface development. LAND ACQUISITION 19 All scenarios assume land is acquired at no cost. In the case of "YLL-YLT-Y", it is assumed joint ventures could be stivck with Bank One, the YWCA, and the YMCA via swapping parking rights for use of their land to build the garages. Each would benefit from adjacency to the garage. Expanding the Bank One garage per the above grade garage at "YLT" would also provide Bank One with control of a net gain of 77 spaces over their existing total now available at their garage and surface lot at "YLT" The 78 surface spaces at "YLT" & "YLL" could be made available for short term patrons of the YMCA, the YWCA and the Library (See Scenario Evaluations for more detail.) 20 Possible expansion plans of the YMCA could reduce the maxnmum yield of Scenario "YLL- YLR-Y" by a portion of the above grade garage if they cannot be incorporated into the preliminary design of this scenario Page A-1 SOURCES • Tommy Feagms, Pro Parking, Houston, TX (Formerly with Alinght Parking Hurtt-Zoliars in Fort Worth, 1964-1982) KVG Central Plaza Garage Study ,June 1994 Linbeck Central Plaza Garage Study, February 1994 Barton-Aschman Dunaway Associates, Inc Cecil Srmth, Jack Dill, Kent Flynn @KVG Gideon Toal Phil Norton, TU Electric John Young, City of Fort Worth Engineering Sernces • • Page A-16 • • PART TWO: APPENDIX OF SCENARIO PLANS • • Appendix B DOWNTOWN FORT WORTH • PARKING GARAGE SCENARIO PLANS • Page B - 1 •~ -ate -.~~~ __r.. ._ ~-~ .~._ ,.-. _ ,-.. ..._ o ~~`z^iar.,~~ = i„ "~., i ;~, ~ y -7 < r .. ~.. t 'e i S„ J I ~ ~ ~ i V 9 f t ~ Z ~ ~ ~; 9~~ V i f'yP~' { t ,~, } ~. s ~ +x s { ~' yF s ~ 1, ~~ ~~ z ~„_ ~~ 1 _ _ ~ ..,.„.,. 1F ~ i } 1 ~ S ~4T' O i i~ i~y~ ~ 4 i # 1 + C " i { ~ R ,a ~, i 4 ' i ' '~~ ~ w ~ r~ ! i ~` ib i ~ ~ i € r J k ~ ~ " ~ { i f i i { 9 .. v ' .o ~e~ { / im' ` . ~Yapl ~. i ~. a -~~ CD r- -=~ „~, ~, w~.. ., C pp my AA ~a ap ~ I -- --SIN ~~ ~Z~ _.I ~ ~y ----- v p =- - -- I IPJ~ _.. ~- ~ Ic~ -- - _- ---~._-- RAMP l.iP a' ~ ~ - -~ .. 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