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Home My WebLink AboutOrdinance 12253 ORDINANCE NO. /L~?~~ AN ORDINANCE AMENDING SECTION 5 OF ORDINANCE NO. 11767, BY PROVIDING THAT THE TERMINATION OF TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF FORT WORTH, TEXAS, SHALL OCCUR ON DECEMBER 18, 1995, RATHER THAN ON DECEMBER 31, 2024; MAKING A DETERMINATION THAT THE TERMINATION OF SAID ZONE ON SUCH EARLIER DATE IS DUE TO GOOD CAUSE; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on December 13, 1994, the City Council adopted Ordinance No. 11767, establishing Tax Increment Reinvestment Zone Number One, City of Fort Worth, Texas, in accordance with the Tax Increment Financing Act, as amended (V.T.C.A., Tax Code, Chapter 311), to promote development and redevelopment in the downtown area of the City of Fort Worth through the use of tax increment financing; and WHEREAS, Section 5 of Ordinance No. 11767, prescribes that the termination of the Zone shall occur on December 31, 2024, or at an earlier time designated by subsequent ordinance of the City Council in the event the City determines that the Zone should be terminated due to good cause; and WHEREAS, on October 18, 1995, the City received from the Tarrant Appraisal District a report which compared the Zone's January 1, 1995, appraisal to its base year (January 1, 1994) appraisal, which report reflects that the Zone's 1995 appraised value decreased approximately $11.4 million below the base year appraisal, thus realizing no incremental tax increase between 1994 and 1995; and WHEREAS, the City has received a petition from the property owners who originally petitioned the City for the Zone's creation, requesting that the Zone be terminated and a new zone be designated prior to the end of calendar year 1995, in order to set the January 1, 1995, appraisal of $311,016,002, as the base year for the Downtown TIF; and WHEREAS, pursuant to said petition for termination, the City Council finds and is of the opinion that the amount of decrease in appraised value from the base year 1994, is good cause to terminate Tax Increment Reinvestment Zone Number One; and WHEREAS, the City Council has determined that for said cause, the termination of Tax Increment Reinvestment Zone Number One should occur on December 18, 1995, rather than on December 31, 2024; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That Section 5 of Ordinance No. 11767 is hereby amended to provide that the termination of Tax Increment Reinvestment Zone Number One, City of Fort Worth, Texas, shall occur on December 18, 1995, rather than on December 31, 2024; and that effective December 18, 1995, Tax Increment Reinvestment Zone Number One, City of Fort Worth, Texas, shall be terminated and be of no further force and effect. SECTION 2. That in amending Section 5 of Ordinance No. 11767, as prescribed herein, the City Council expressly finds that the 1995 appraised value of all real property located in Tax Increment Reinvestment Zone Number One decreased approximately $11.4 million below the 1994 base year appraisal, thus realizing no incremental tax increase between 1994 and 1995; and, as such, the City Council finds and is of the opinion that said decrease in appraised value is good cause for Tax Increment Reinvestment Zone Number One, City of Fort Worth, Texas, to terminate on December 18, 1995. SECTION 3. This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (1986), as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION 4. It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared void, ineffective, or unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such voidness, ineffectiveness or unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such void, ineffective or unconstitutional phrase, clause, sentence, paragraph or section. 2 SECTION 5. This ordinance shall be in full force and effect from and after its passage, and it is so ordained. APP OVED AS TO FOR AND EGALITY: Deputy City Attorney Date: ~~- ~~p - Ch's ADOPTED: ~~ ~•~ ~ ~~C;a EFFECTIVE : ~~- ~ ~ -~ ~S 3 City of Fort Worth Texas Mayor and Council Communication DATS REFSRENCS NUMBER LOG NAME PAGS 11 /14/95 G11296 02TAX 1 of 2 SUBJECT ADOPTION OF ORDINANCE AMENDING SECTION 5 OF ORDINANCE. NO 11767 TO PROVIDE FOR A DATE OF DECEMBER 18, 1995, TO TERMINATE TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF FORT WORTH, TEXAS RECOMMENDATION It is recommended that if the City Council finds there is good cause to terminate Tax Increment Reinvestment Zone Number One on December 18, 1995, then it should adopt the attached ordinance amending Section 5 of Ordinance No 11767 to provide for such termination DISCUSSION On October 4, 1994, the City received a petition from downtown Fort Worth property owners requesting that a certain area of downtown Fort Worth be designated as a reinvestment zone for tax increment financing (TIF) purposes The project plan prepared by the petitioners outlined 5436 6 million in private developments to be constructed in the TIF zone by the year 2014 These private developments were to be supported by approximately 544 8 million in public infrastructure improvements These public improvements were to be funded exclusively by proceeds (tax increments) from the TIF zone On December 13, 1994, the City Council took formal action (M&C G-10911) to approve Ordinance No 11767 which created Tax Increment Reinvestment Zone Number One and, among other items, stipulated that the base appraised value of the TIF was to be determined on January 1, 1994 According to the Tarrant Appraisal District (TAD), the zone's base appraised value is 5322,388,172 In any given year of the downtown TIF zone, the increment generated is the amount of property tax levied on any increase in appraised value above $322,388,1721the base value) The TIF zone became effective on January 1, 1995, and is scheduled to terminate on December 31, 2024 On October 18, 1995, the City received, from TAD, a report which compared the zone's January 1, 1995 appraisal to its base year (January 1, 1994) appraisal According to this report, the zone's 1995 appraised value decreased approximately 511 4 million below the base year This decrease was the result of final determinations on appealed appraised values made to the Tarrant Appraisal District The City has received a petition from the property owners (those who had originally petitioned the City for the zone's creation) which asks that the zone be terminated and a new zone be designated,prior to the end of calendar year 1995 in order to set the January 1, 1995 appraisal of~ 531 1,016,002 as the base year for the downtown TIF ,,~~ ~~ ~ . - +.~r City of Fort Worth, Texas Mayor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 11 /14/95 G11296 02TAX 2 of 2 SUBJECT ADOPTION OF ORDINANCE AMENDING SECTION 5 OF ORDINANCE NO 1 1767 TO PROVIDE FOR A DATE OF DECEMBER 18, 1995, TO TERMINATE TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF FORT WORTH, TEXAS Ordinance No 11767 provides that the TIF zone may be terminated earlier than its scheduled termination date should the City Council determine that the zone should be terminated for good cause Should the City Council find that the reason cited by the property owners in their termination petition is good cause for early termination of the zone, then the appropriate action will be adoption of an ordinance amending Ordinance No 11767 to provide for termination of the TIF zone on December 18, 1995 Approval of this M&C and ordinance will terminate Tax Increment Reinvestment Zone Number One and dissolve the downtown TIF Separate action, including formal presentations to the various taxing entities, a public hearing, and adoption of an ordinance creating the new TIF, will be required by the City Council in order to create the new TIF FISCAL INFORMATION/CERTIFICATION The Director of Fiscal Services certifies that there is no expenditure of funds associated with the approval of this ordinance BT a Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) Mike Groomer 6140 APPROVED Originating Department Head: C1T~' (~p~ t~~~~ ~ ' Tom Higgins 6192 (from) a4 ~~~ 1995 For Additional Information LG~.i/ ~~,{~~/ ContaM: Cit t Af F6 l ~N 1~ '~ Paul Cain 8003 y T OY l~ lEi}ll Adopted Ordnance No, _,____;,;