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Fort Worth Avenue TIF District Plan

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Fort Worth Avenue TIF District Plan Fort Worth Avenue Tax Increment Financing District Project Plan and Reinvestment Zone Financing Plan March 26, 2008 Amended January 28, 2009 Acknowledgements The Fort Worth Avenue TIF District Project Plan and Reinvestment Zone Financing Plan was prepared by the City of Dallas, Office of Economic Development, based on a preliminary plan prepared by the Fort Worth Avenue Development Group. The Office of Economic Development wishes to acknowledge the efforts of everyone who contributed to the development of this plan, including the following organizations and individuals: City of Dallas Mary Suhm City Manager Ryan Evans First Assistant City Manager A.C. Gonzalez Assistant City Manager Karl Zavitkovsky Director, Office of Economic Development Vernae Martin Assistant Director, Office of Economic Development Karl Stundins Area Redevelopment Manager, Office of Economic Development Sue Hounsel Senior Coordinator, Office of Economic Development Pam Veshia Economic Development Analyst, Office of Economic Development Barbara Martinez Assistant City Attorney, City Attorney’s Office Sarah Hasib Assistant City Attorney, City Attorney’s Office Previous Dallas City Council Mayor Laura Miller James L. Fantroy Mayor Pro Tem Donald W. Hill Gary Griffith Deputy Mayor Pro Tem Dr. Elba Garcia Bill Blaydes Pauline Medrano Linda Koop Ed Oakley Ron Natinsky Dr. Maxine Thornton-Reese Mitchell Rasansky Steve Salazar Angela Hunt Leo V. Chaney, Jr. Current Dallas City Council Mayor Tom Leppert Tennell Atkins Mayor Pro Tem Dr. Elba Garcia Sheffie Kadane Deputy Mayor Pro Tem Dwaine Caraway Jerry Allen Pauline Medrano Linda Koop David Neumann Ron Natinsky Vonciel Jones Hill Mitchell Rasansky Steve Salazar Angela Hunt Carolyn Davis Other Fort Worth Avenue Development Group La Reunion Towncenter LLC Dilbeck Partners Cienda Partners Options Holding Ltd Square Foot, Inc Final Project Plan & Reinvestment Zone Financing Plan Page 2 Fort Worth Avenue TIF District Originally approved March 26,2008; Amended January 28, 2009 Table of Contents Section 1 - Project Plan 4 Background 4 Exhibit A: Fort Worth Avenue TIF District Map 6 Exhibit B-1: Fort Worth Avenue TIF District List of Anticipated Development Projects 9 Exhibit B-2: Fort Worth Avenue TIF District Map of Anticipated Development Projects 10 Existing Uses 11 Exhibit C-1: Fort Worth Avenue TIF District Existing Conditions 12 Exhibit C-2: Fort Worth Avenue TIF District Existing Land Uses 13 Exhibit D: Fort Worth Avenue TIF District Zoning 14 Exhibit E: Fort Worth Avenue TIF District New Construction Forecast 16 Section 2: Project Plan Improvements 19 Public Improvements 19 Exhibit F-1: Fort Worth Avenue TIF District Public Improvement Plan 22 Exhibit F-2: Conceptual Renderings of Anticipated Development Projects in the Fort Worth Avenue TIF District 24 Section 3: Financing Plan 26 Real Property Tax Flow with Tax Increment Financing 27 Financing Plan 27 Exhibit G: Fort Worth Avenue TIF District Project Plan Improvements Budget 28 Exhibit H: Fort Worth Avenue TIF District List of Anticipated Development Projects 31 Exhibit I: Annual Real Property Appraisals and City/County Tax to the Fort Worth Avenue TIF Fund 32 Financial Assumptions 33 Financial Feasibility 34 Financial Policies 34 Other Financial Benefits 35 Exhibit J: Estimated Annual City/DART Sales Tax from Net New Development in the Fort Worth Avenue TIF District 36 Conclusions 37 Appendix A: 2007 DCAD Real Property Accounts in the Fort Worth Avenue TIF District 38 Final Project Plan & Reinvestment Zone Financing Plan Page 3 Fort Worth Avenue TIF District Originally approved March 26,2008; Amended January 28, 2009 Section 1 - Project Plan Background The Fort Worth Avenue Tax Increment Financing (TIF) District represents the outgrowth of the City of Dallas’ efforts to provide a model for redeveloping urban corridors to take full advantage of the Trinity River project, the signature Santiago Calatrava bridges, and the undeveloped/underdeveloped land parcels near downtown Dallas. The Fort Worth Avenue corridor provides great views of downtown, as well as direct access between downtown Dallas and residential and commercial areas to the west which touch both West Dallas and North Oak Cliff. With some notable exceptions where property has been redeveloped, many of the existing multi-family and commercial buildings in the corridor are reaching structural obsolescence. Older retail centers do not adequately serve the needs of the community due to dated facilities, design, lack of pedestrian amenities, adequate signage and parking, and difficulties in tenant recruitment. Public infrastructure in the corridor is lacking, and the existing six-lane thoroughfare is not optimally utilized. The Fort Worth Avenue TIF District (the “District”) was authorized by the Dallas City Council on June 13, 2007. The District’s purpose is to assist the creation of a more sustainable mix of rental and for-sale residential property in the Fort Worth Avenue area. This shift will help to encourage 1) the creation of more owner-occupied residential units and mixed-use development, 2) the removal and redevelopment of structurally obsolete apartment complexes and retail centers, 3) necessary environmental remediation and redevelopment of the property near the Trinity River and downtown Dallas, and 4) better trail and recreational connections. The Fort Worth Avenue TIF District is bounded by the West Commerce Street bridge on the east. It follows West Commerce Street to the West Commerce Street/Fort Worth Avenue fork located near Pittman Street. At the fork, the District follows Fort Worth Avenue to the intersection of Fort Worth Avenue and Hartsdale. The property in the TIF District primarily fronts or is closely associated with either West Commerce or Fort Worth Avenue. A map of the Fort Worth Avenue TIF District is included below (see Exhibit A). All property in the TIF District is contiguous and consistent with the economic objectives in this Plan. The District contains approximately 448 acres, not counting rights-of-way that the Dallas Central Appraisal District (DCAD) does not identify as land parcels. The Fort Worth Avenue TIF District has been authorized by the City of Dallas, pursuant to Section 311.005, Texas Tax Code, because the City finds that the Fort Worth Avenue area substantially impairs the sound growth of Dallas, retards the provision of housing accommodations, constitutes an economic and social liability, and is a menace to the public welfare due to a substantial number of substandard, deteriorating, and Final Project Plan & Reinvestment Zone Financing Plan Page 4 Fort Worth Avenue TIF District Originally approved March 26,2008; Amended January 28, 2009 deteriorated structures and infrastructure. This final plan, including the district boundaries, project plan, and financing plan, is the result of the collaborative effort of a group of neighborhood associations, Fort Worth Avenue corridor community leaders, and City staff. Less than 10 percent of property in the District is currently being used for residential use with fewer than five living units. The estimated real property taxable value of the District for tax year 2007 is $86,133,447 , based on the certified 2007 tax roll as supplied by Dallas County Appraisal District. It equates to 0.10% of the $84,058,865,707 (certified 2007; including real property and business personal property) of taxable real property in the City of Dallas. Texas cities may not create a reinvestment zone if the total appraised value of taxable real property in the proposed district and existing reinvestment zones exceeds 15% of the total appraised value of taxable real property in the municipality and any industrial districts created by the municipality. The value of the proposed district and all other reinvestment zones in Dallas is beneath this statutory limit. In addition, the appraised value of real property in this and all other Dallas TIF reinvestment zones combined is below the maximum threshold of 10 percent of the City’s tax base as set by the City’s Financial Management Performance Criteria (FMPC) as amended on April 11, 2007. The proposed duration of the Fort Worth Avenue TIF District is 22 years. The TIF fund collection will begin on January 1, 2008, and the District is scheduled to terminate December 31, 2029. The City’s participation essentially follows a bell curve, beginning with 0 percent in 2008. It increases to 55 percent in 2009 and 2010, then 70 percent in 2011 through 2013, then 85 percent for 2014 through 2020. It then decreases to 70 percent for 2021 and 2022 and decreases to 55 percent thereafter. TIF collections will terminate once the TIF budget has been collected or December 31, 2029, whichever occurs first. Based on current development projections, the TIF budget is expected to be reached in 2028, after twenty years of collections. Final Project Plan & Reinvestment Zone Financing Plan Page 5 Fort Worth Avenue TIF District Originally approved March 26,2008; Amended January 28, 2009 Exhibit A: Fort Worth Avenue TIF District Map Final Project Plan & Reinvestment Zone Financing Plan Page 6 Fort Worth Avenue TIF District Originally approved March 26,2008; Amended January 28, 2009 Development Goals and Objectives The following development goals will meet the specific needs of the Fort Worth Avenue TIF District: • Goal 1 – To create additional taxable value attributable to new private investment in projects in the Fort Worth Avenue TIF District totaling approximately $1,290,239,340 over 14 years. A list of anticipated development projects is attached (see Exhibit B-1). • Goal 2 – To attract new, higher density, private development in the Fort Worth Avenue TIF District totaling approximately 1,033,910 square feet of retail space and 9,444 residential units including town home, multi-family, single-family, and condominium projects. • Goal 3 – To focus on encouraging the redevelopment of properties in the Fort Worth Avenue corridor, to increase density, and to provide enhanced urban design for the District (Exhibit A) that meets the intent of the Fort Worth Avenue Land Use and Urban Design Study and the requirements of the West Commerce Street/Fort Worth Avenue Special Purpose District (PD 714), adopted by Ordinance No.
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