2016 TIF Annual Report - Fort Worth, Texas

Annual Report

FY 2016

Tax Increment Financing DistrictsCity of Fort Worth

Economic Development Department

TIF #2 (Speedway)

TIF #3 (Downtown)

TIF #6 (Riverfront)

TIF #7 (North Tarrant Parkway)

TIF #8 (Lancaster Corridor)

TIF #4 (Southside)

TIF #9 (Trinity River Vision)

TIF #10 (Lone Star)

TIF #12 (East Berry Renaissance)

TIF #13 (Woodhaven)

TIF #14 (Trinity Lakes)

TIF #15 (Stockyards / Northside)

TIF #2 (Speedway)TIF #3 (Downtown)TIF #4 (Southside)TIF #6 (Riverfront)TIF #7 (North Tarrant Parkway)TIF #8 (Lancaster Corridor)

TIF #9 (Trinity River Vision)TIF #10 (Lone Star)TIF #12 (East Berry Renaissance)TIF #13 (Woodhaven)TIF #14 (Trinity Lakes)TIF #15 (Stockyards/Northside)

City of Fort Worth Tax Increment Financing (TIF) Districts

0

0.2

0.4

0.6

0.8

1

1.2

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

Mill

ion

s

Base New Undedicated Tax Base (Retired TIFs) Additional Property Value

City of Fort Worth Tax Increment Financing (TIF) Districts: FY 2016 Annual Report Page 4

Historical and Projected Property Value Performance: All Active Fort Worth TIFs

Overall Performance: All Fort Worth TIFs (combined)

Base Value of TIF $ 1,306,816,631

Current Taxable Value of TIF $ 4,213,401,933

Total Increase in Taxable Value to Date $ 2,906,585,302

% Increase in Taxable Value to Date 222.4%

Taxable Value After Termination $ 8,925,117,200

Total Projected Increase in Taxable Value $ 7,618,300,569

Total Revenues Produced by Termination of TIF $ 940,844,267

% Increase in Taxable Value by Termination 583.0%

Tax Value CAGR* To Date 11.36%

Tax Value Trailing 5-yr CAGR 11.79%

Base Value Per Acre $ 87,351

Current Taxable Value of TIF Per Acre $ 281,633

Projected Taxable Value Per Acre After Termination $ 596,575

Increase in Taxable Value Per Acre to Date $ 194,283

Increase in Taxable Value Per Acre by Termination $ 509,224

Additional Taxes Annually at Termination (vs. base) $ 170,594,367

Executive Summary

Fiscal Year 2016 extended a three-year run of accelerated growth following post-recession sluggishness. As has been seen throughout the City of Fort Worth, whichhas enjoyed increased development interest as a result of strong populationgrowth and numerous other factors, Fort Worth’s TIF districts have benefited fromrobust market conditions that have created new opportunities for high-impactpublic-private partnerships.

By leveraging the value of public improvements, Fort Worth has been able toattract private investment that boosts the value of property and the vitality ofseveral key areas of the city. The result is continued progress in the development

Current*

of vibrant neighborhoods andeconomic strength that frees theCity to deliver services to citizensand businesses with less relianceon debt or tax rate increases.

Highlighting FY 2016 were severalnew TIF-supported developmentprojects in the Near Southside,continued double-digit propertyvalue growth in north Fort WorthTIFs, increases in property values ineast Fort Worth TIFs ranging from7% - 26%, and strong developmentactivity and investment throughoutdowntown.

*Compound Annual Growth Rate

*As of Q1 2017

Tax increment financing (TIF) is an economic development tool that supportsinfrastructure improvements within a defined area (called a “reinvestment zone”)that promote new development or redevelopment in the area. TIFs can be aneffective means of financing public improvements without requiring an increase intax rates or fees and without diverting existing public funds that support otherpublic services and investments.

At the time an area is designated as a reinvestment zone, the existing total valueof real property in the zone is identified and designated as the “base value”. Thisbase value of all tax revenue currently generated by the area continues to bedistributed to applicable jurisdictions. As new investment is made within the TIFdistrict, total taxable value of the area begins to rise. The difference between thenew taxable value and the base value is considered the “increment”, andparticipating taxing entities set aside some or all of the new funds for the purposeof financing public improvements within the TIF district. These publicimprovements support new private investment that produces additional tax valuewithin the area. After a TIF district is dissolved at its predetermined terminationdate, all new tax revenue is distributed to participating taxing entities just like anyother property.

Each TIF district is governed by a TIF board of directors composed of five to fifteenmembers, appointed by participating taxing jurisdictions, including the county ormunicipality that created the zone. The TIF board of directors reviews andapproves TIF policies, projects, and investments; approves the TIF’s annual budget;and provides direction to the TIF Administrator. The TIF Administrator, which iseither the City of Fort Worth’s Economic Development Department or adesignated outside organization, is responsible for all day-to-day TIF-relatedactivities, and reports to the TIF Board.

Appraised property values are certified and released by the Tarrant AppraisalDistrict and Denton Central Appraisal District in the first quarter of each calendaryear and reflect the value of the property as of January 1st in the preceding year.

About Tax Increment Financing


$1,035

$64

$972

$133

$91

$42 $35

$35

$228

$130

$98

$760

$107

$653

$1,339

$640

$699

$855

$254

$601

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

Mill

ion

s

Private Investment by Category

Mixed Use

Commercial /Office

Residential

Hotel

Sports /Tourism

Civic /Infrastructure

Other

$1.00

$1.00

$1.00

$16.16

$19.01

$14.39

Total P-P Ratio

P-P Ratio To-Date

Projected P-P Ratio

Private-Public Investment Ratio

Public PrivateA key metric used by the City of FortWorth in evaluating economicdevelopment incentive agreements isthe Private-Public Investment Ratio, ameasure of the amount of newprivate investment committed for aproject for every one dollar of publicfunds used to support the project.

To-date, projects supported by FortWorth TIFs have carried an 19:1Private-Public Investment Ratio.Future projects carry a similarlystrong Private-Public InvestmentRatio, with more than $14 of privateinvestment committed for every $1of TIF-supported investment in publicimprovements projected to takeplace in the remaining years of FortWorth’s TIF districts.

To-date, Fort Worth TIFs haveleveraged their strategic investmentin public improvements to secure thedirect commitment of over$4.3 billion of new privateinvestment added to the communitythrough public-private partnerships.Of those commitments, more than$1.3 billion has already been investedto-date. These projects includeapproximately $640 million in newcommercial or office projects, $254million in new mixed-use projects,and $107 million in new residentialprojects.

Private investment commitments tiedto future projects are even morebroad-based, including increasedinvestment in residential and mixed-use projects, projected to total nearly$3.1 billion.


Fort Worth TIF Performance Highlights

$4,386 M $1,322 M $3,064 M

$155$41 $16 $3 $47

$207

$469$69

$25 $24 $9 $25

$117

$270

$105

$18 $14 $3 $32

$63

$235

$0

$200

$400

$600

$800

$1,000

$1,200

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Total Tax Revenue Distribution: To-Date

Base Retained TIF

37.7%

44.6%

33.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Added Value Total To-Date Total Projected

TIF-Supported Projects as % of Total Increment

Not every dollar of incremental taxvalue is collected by every TIF. Insome cases, taxing entitiesparticipate in the TIF at less than a100% rate, leaving the remainder tobe deposited into that entity’sgeneral fund. In other cases, caps arein place that prevent more than acertain amount from being depositedinto a given TIF fund.

Whatever the case may be, publicentities in Fort Worth have benefitedfrom the increased value created byTIFs, and receive tax revenue overthat which is generated by thedistrict’s original base value. To-date,approximately $270 million ofincremental tax revenue has beenretained by TIF participants, separatefrom the $235 million contributed toTIF districts for investment in publicimprovements.

The impact of TIF-supported projectsis felt well beyond any individualdevelopment site. TIF-supportedprojects play a critical role in liftingthe value of the district as a whole.This is reflected by the percentage ofnew increment throughout an entireTIF district that is attributable solelyto the value of TIF-supportedprojects.

Nearly 45% of all new taxable valuein Fort Worth TIF districts is the resultof projects supported by TIF funds.Based on current forecasts, TIF-supported projects are expected togenerate more than a third of theincreased value of property in TIFdistricts. When considering thespillover benefits from these projectsto nearby property, TIF projects playa key role in creating new value andmarket opportunities throughout thedistrict and beyond.





% TIF Term Elapsed

$187 M $128 M

$469 M

$264 M

$66 M$92 M

$94 M

$444 M

$1,061 M

$636 M$757 M

$0

$200

$400

$600

$800

$1,000

$1,200

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

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Remaining Life of TIF Districts

Taxable Value by TIF District

$14 M

TIF 15 TIF 14

TIF 9

TIF 6

TIF 13

TIF 2 TIF 12

TIF 3

TIF 7

TIF 10

TIF 8

TIF 4

Much of a TIF district’s capacity for supporting public improvements can be tied to the stage of itsduration. It is common for a TIF district to take several years of development before it reaches apoint of maturity and is bringing in enough revenue to be able to directly finance improvements toinfrastructure. Likewise, the stage of a given TIF district’s term can impact strategies for itsadministration. As TIF districts enter the final third of their term, a new set of challenges begins toemerge relating to prioritizing remaining expenditures and preparing for the TIF district’stermination. Presently, three of Fort Worth’s TIF districts (TIFs 3, 4, and 7) are in this final stage, withTIF 8 (Lancaster Corridor) transitioning into this stage as well.

As new investment and development occur within the district, the capacity of a TIF district to financepublic improvements and achieve the district’s overall objectives is also improved. The chart abovepresents the taxable value of each of Fort Worth’s twelve TIF districts compared to the stage of itsduration. Particularly among those TIFs that are late in their terms, the current taxable value of thedistrict is a reflection of the impact that TIF-related projects have had on causing the district’s taxbase to grow over time. Once these districts reach the point of termination, their full taxable value asimproved by TIF projects will increase funding for the operations of the City and other participatingtaxing entities without requiring an increase in tax rates. In certain cases, as with TIF 7, the expandedtax base created by a TIF district that has reached the end of its term can even support a reduction inthe tax rate.

15 14 9 6 13 2 12 10 8 3 4 7

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

TIF

% TIF Term Elapsed

New / Developing Mature Winding Down

6.5%

25.2%

7.3%

-24.7%

25.8%

8.5% 7.0%

28.6%

5.7%0.4%

5.8%

26.1%

-30%

-10%

10%

30%

50%

TIF 15 TIF 14 TIF 9 TIF 6 TIF 13 TIF 2 TIF 12 TIF 10 TIF 8 TIF 3 TIF 4 TIF 7


FY 2016 Year Over Year TIF District Appraisal Growth

Distribution of City Contributions to TIF Districts*

$1.5 M$0.3 M $1.1 M $1.6 M

$0.0 M $0.3 M $0.1 M$1.5 M

$3.0 M $2.1 M$0.0 M

$0.1 M$0.2 M

$0.8 M $0.0 M$0.5 M $0.0 M $0.0 M

$1.3 M

$7.1 M

$0.4 M

$1.5 M

$0.1 M$0.9 M

$2.3 M$0.8 M

$0.0 M $0.6 M $0.7 M

$1.3 M

$3.4 M

$3.6 M $6.2 M

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

14% 25% 34% 43% 51% 52% 62% 67% 77% 80% 88% 100%

Annual CFW Base Annual CFW Retained Annual CFW TIF Contribution

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TIF 15 TIF 14 TIF 9 TIF 13 TIF 2 TIF 12 TIF 10 TIF 8 TIF 3 TIF 4 TIF 7*Based on FY 2016 Tax Values; Contributions to occur in FY 2017


With one exception, all of Fort Worth’s TIF districts experienced positive appraisal growth in FY 2016,with four districts growing more than 25% year-over-year. Other TIF districts that saw an increase inappraised value grew by an average rate of approximately 5.9% year-over-year. As is discussed inmore detail within this report, TIF 6 (Riverfront) declined in taxable value due to the reducedpresence of RadioShack and its replacement by Tarrant County College District which is tax exempt.

Not all of the tax revenue generated by a TIF district is deposited in the TIF fund. All taxes collectedby the City, County, and other taxing entities as of the point in which the TIF district was establishedcontinue to go to that entity’s general fund. For the City, this amounts to between $13,841 to over$3 million in base tax revenue annually contributed to the general fund that is generated by each ofFort Worth’s TIF districts. Due to certain caps and partial participation, the City also retains much ofthe new tax revenue produced by the TIFs in the City’s General Fund for use throughout Fort Worth.For example, in TIF 3 more than $7.1 million of new tax revenue goes to the City’s General Fundannually. The remainder is what the City contributes to TIF funds for investment in publicimprovements.


TIF #2 (Speedway)

Since the creation of the TIF and the development of the Texas Motor Speedway(TMS), the facility has played a major role in the region’s sports tourism industry.Moreover, TMS has served as a significant anchor to development in north FortWorth. While all funds generated by the TIF are dedicated to the payment ofimprovements required for TMS and to Northwest ISD educational facilities, theTIF generates steady revenue from its established increment that, together withnatural gas royalties, have served effectively in reimbursing the costs ofinfrastructure required by the development.

All TIF obligations associated with the public infrastructure improvementsconnected to the development of TMS were paid in FY 2016. While TIF 2 is notscheduled to terminate until 2036, the TIF could be terminated by statute at anytime given that the Project and Financing Plan has been fulfilled, although at thistime there are no formal plans to do so.

Source: City of Fort Worth

TIF #2 (Speedway)1/1/1996-12/31/2035

1,490 acres

Purpose: TIF 2 (Speedway) was created as a means to purchase the TexasMotor Speedway and finance needed public improvements within the TIFdistrict boundary. The TIF district was expanded in 1999 to provide for theconstruction, renovation and operation of educational facilities located in theNorthwest ISD tract, and to provide for additional infrastructure work such asstreet improvements, drainage, and traffic signs.

0

0.2

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0.8

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$20

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FY1

99

6

FY1

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8

FY2

00

0

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2

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4

FY20

06

FY2

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8

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0

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2

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6

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8

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6

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0

FY2

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2

FY2

03

4

FY2

03

6

FY20

38

Mill

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sBase Additional Property Value

TIF #2 (Speedway)


Overall Performance: TIF #2 (Speedway)

Base Value of TIF $ 5,084,127

Current Taxable Value of TIF $ 66,279,325

Total Increase in Taxable Value to Date $ 61,195,198


Taxable Value After Termination $ 88,600,339

Total Projected Increase in Taxable Value $ 83,516,212

Total Revenues Produced by Termination of TIF 30,823,331









Additional Taxes Annually at Termination (vs. base value) $ 1,187,454

Historical and Projected Property Value Performance: TIF #2 (Speedway)

Current*

• Texas Motor Speedway (TMS) continues to draw thousands of visitors each year to the region.

• Although not located within the TIF district, the adjacent $400 million, 500-acre Champions Circle development now includes a Marriott hotel and conference center, Churchill at Champions Circle apartments, and Buc-ee’s. Tanger Outlets broke ground in 2016 and is expected to open in late 2017 nearly fully leased.

Area Developments


Creation Termination

Photo Credit: Fort Worth Star-Telegram

*As of Q1 2017


TIF #3 (Downtown)

Downtown Fort Worth continues to expand on its post-recession strength.Although a look to the 0.4% year-over-year growth rate in property value that istaxable by the City might leave the impression that Downtown growth has slowed,growth has in fact kept pace with recent years. The seemingly low rate of appraisalgrowth is the result of certain City exemptions for improvements to historicproperties and similar factors that distort actual growth in the area. Looking to theappraised value of property as taxable by the County and other jurisdictions,reveals that the Downtown TIF has increased in value by approximately 5.0%.

Since its establishment, the Downtown TIF has witnessed property values soar byover 229%, with the value of taxable property within the district increasing to over$2.6 million per acre from a base value of $792,237 per acre. That growth hasallowed the TIF district to finance over $73 million in public improvements.

FY 2016 was marked by heightened interest within the development community indowntown Fort Worth as a location for new hotel construction and residentialprojects, as the desirability of downtown living hasput upward pressure on rents.The $110 million, 25-story TIF-supported Frost Tower also saw significantconstruction progress during the year.

TIF #3 (Downtown)1/1/1996-12/31/2025

407 acres


Purpose: TIF 3 (Downtown) was created to promote the redevelopment ofdowntown Fort Worth. The Downtown TIF is administered in partnership withDowntown Fort Worth, Inc.

-

0

0

1

1

1

1

$0

$250

$500

$750

$1,000

$1,250

$1,500

FY1

99

6

FY19

98

FY2

00

0

FY2

00

2

FY2

00

4

FY2

00

6

FY2

00

8

FY2

01

0

FY2

01

2

FY2

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FY2

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6

FY2

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8

FY2

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FY20

22

FY2

02

4

FY2

02

6

Mill

ion


TIF #3 (Downtown)


Overall Performance: TIF #3 (Downtown)


Current Taxable Value of TIF $ 1,061,361,751










Current Taxable Value of TIF Per Acre $ 2,607,768

Projected Taxable Value Per Acre After Termination $ 3,168,784

Increase in Taxable Value Per Acre to Date $ 1,815,530

Increase in Taxable Value Per Acre by Termination $ 2,376,546


Photo Credit: DFWI

Historical and Projected Property Value Performance: TIF #3 (Downtown)

Current

• The Board of the Downtown TIF Authorized the use of up to $1 million of TIF funds to support the restoration of Fort Worth’s now-closed Heritage Park.

• Progress has been made in the redevelopment of the Sanger Brothers Building and work has begun on the conversion of the historic Sinclair Building into an Autograph Hotel.

Recent Developments




TIF #4 (Southside)

TIF 4 continues to provide unique support for studies, coordination, innovativedevelopment, housing, and public infrastructure throughout near southside FortWorth.

In FY 2016, TIF 4 provided for infrastructure in support of $124 million in privatedevelopment, at a 20:1 private to public ratio overall. FY 2016 Projects approvedincluded two new major apartment complexes, an addition to the Plaza MedicalCenter, mixed-use projects including one located east of I-35, and the adaptive re-useof several buildings. TIF funding is critical to these projects, and the staff at NearSouthside, Inc. (NSI), as TIF administrator, work to leverage project impact for the areaboth by selecting catalyst projects and by negotiating additional benefits. Forexample, the Dickson-Jenkins Building renovation now includes a public plaza, andbecause of NSI negotiations and TIF funding, the East Broadway Apartments will nowprovide for completing Crawford Street as a through street and two public parks.

TIF 4 funds also supported public projects with significant impact to the area. The TIFBoard renewed funding for street, streetscape, and park maintenance. The TIF fundeda purchase of park land at a central location on Hemphill Street and traffic circulationstudies on both Eighth and Hemphill streets. With TIF support, additional streetsegments will be rehabilitated near Pennsylvania Avenue and Galveston Avenue aspart of planned City street repairs, and the City agreed to upsize waterlines in thearea, which will support its potential for future development.


TIF #4 (Southside)1/1/1998-12/31/2022

1,278 acres

Purpose: TIF 4 (Southside) was created to promote the revitalization of FortWorth's near southside neighborhood and medical district, to ensure the areabecomes an economically viable, mixed-use, central city neighborhood.

-

0

0

1

1

1

1

$0

$200

$400

$600

$800

$1,000

$1,200

Mill

ion


TIF #4 (Southside)


Overall Performance: TIF #4 (Southside)

















Historical and Projected Property Value Performance: TIF #4 (Southside)

Current

• High Point on South Main multifamily was constructed in 2016 and will act as a catalyst for development in the South Main Corridor. TIF 4 funding supported street and other infrastructure improvements, as well as the environmental remediation necessary to restore the historic Coca Cola Building, which was incorporated into the project as the fitness center and offices.

Recent Developments



Photo Credit: City of Fort Worth

High Point on South Main


TIF #6 (Riverfront)

Although the center of activity and main economic driver of TIF 6 (Riverfront) hasshifted with the transition of property from RadioShack to its use by TarrantCounty College District, the impact of the TIF remains visible by the publicimprovements it helped to support. In FY 2016, TIF 6 fulfilled its final payment forthe reimbursement of public improvements that helped transform the area fromits formerly blighted state to the attractive and walkable environment that nowanchors the north side of downtown.

As RadioShack has reduced its presence, Tarrant County College has increased its,and the College District continues to explore new ways to build on the successfulimprovements to the area first made possible by TIF 6.

With all previous obligations of TIF 6 now satisfied, City staff are working withpartners in the County and Tarrant County College District to evaluate the bestcourse forward for the TIF district and its ability to support future goals andobjectives for the area.

Purpose: TIF 6 (Riverfront) was created to promote the development of northdowntown, primarily near the RadioShack campus.


TIF #6 (Riverfront)11/12/2002-11/20/2036

64 acres

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0

1

1

1

1

$0

$50

$100

$150

$200

FY2

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3

FY2

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FY2

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7

FY2

00

9

FY2

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1

FY2

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FY2

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FY2

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9

FY2

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FY2

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FY2

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7

FY2

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9

FY20

31

FY2

03

7

FY2

03

9

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TIF #6 (Riverfront)


Overall Performance: TIF #6 (Riverfront)










Tax Value Trailing 5-yr CAGR -19.16%






Additional Taxes Annually at Termination (vs. base value) $ 256,629

Photo Credit: Tarrant County College District

Historical and Projected Property Value Performance: TIF #6 (Riverfront)

Current

• As RadioShack reduces its presence in TIF 6, Tarrant County College has been replacing vacated space with its own expanded operations as well as with other private tenants that contribute to the activity and taxable value of the district.

Recent Developments





In FY 2016 TIF 7 entered into an agreement with Hillwood to fund landscapingalong North Riverside Drive. Also in FY 2016, the TIF Board identified priorityprojects to be undertaken in the area. Delivery of these projects would occurslowly if traditionally funded as TIF funds became available. However, by using Citysources to “forward fund” projects, utilizing TIF funds as receivables, the projectswere able to move forward on an accelerated schedule.

The City entered into development agreements with the TIF Board to constructidentified projects with TIF revenues committed as a major component of projectfunding. The projects included reconstruction of North Riverside Drive,improvements at the intersection of North Tarrant Parkway and North RiversideDrive, improvements at the intersection of Tehama Ridge Parkway and HeritageTrace Parkway, the design of Harmon Road, and the installation of a sidewalk alongthe south side of Heritage Trace Parkway.

In addition, all funds remaining in the TIF 7 fund were dedicated to the finalproject, the Harmon Road right-of-way acquisition and construction, which willreceive all available remaining funding.

TIF #7 (North Tarrant Parkway)12/9/2003-12/31/2019

2,113 acres


Purpose: TIF 7 (North Tarrant Parkway) was created to provide for regional roadinfrastructure improvements to support property development and tosupplement bond and impact fee funding in this rapidly developing area.

-

0

0

1

1

1

1

$0

$250

$500

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$1,250

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FY2

00

4

FY2

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FY2

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6

FY2

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FY2

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FY2

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9

FY2

01

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FY2

01

1

FY2

01

2

FY20

13

FY2

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4

FY2

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FY2

01

6

FY2

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7

FY2

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8

FY2

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9

FY2

02

0

FY2

02

1

Mill

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Overall Performance: TIF #7 (North Tarrant Parkway)




% Increase in Taxable Value to Date 47,088.9%




% Increase in Taxable Value by Termination 68,420.1%



Base Value Per Acre $ 759






Photo Credit: www.alliancetexas.com

Historical and Projected Property Value Performance: TIF #7 (North Tarrant Parkway)

Current

• Hillwood Commons I is 90% leased and includes tenants such as GE Transportation’s Global Services Operations, Title Source, Lockheed Martin, TEKSystems, Westinghouse Air Brake Technologies (WABTEC), Peloton Land Solutions, Oxford Global Resources, and Hillwood. Hillwood has begun the design process on the second HillwoodCommons building.

Recent Developments





TIF 8 (Lancaster Corridor) experienced continued growth in FY 2016 that builds onrecent years’ success in the revitalization of the southern downtown district.

FY 2016 saw substantial progress on the construction of Pinnacle Bank Place, a160,000 sq. ft. mixed-use development along the north side of Lancaster Avenuethat will feature 130 units of apartments and 30,000 sq. ft. of retail. Pinnacle BankPlace is supported by a 454 space parking garage funded by the TIF. Residentialleasing for the property has begun, as has the leasing of the building’s ground floorretail space. The project, conceived of as a catalyst for new development alongLancaster Avenue, has already been effective in doing just that, with new interest inthe corridor taking root and new investment taking place.

FY 2016 also featured the termination of TIF 8’s Development Agreement withCleopatra Investments, Ltd. for the redevelopment of the historic T&P Warehouse.The agreement, subject to certain milestones and project completion, would havepermitted the reimbursement of over $11 million of infrastructure and developmentcosts. Nevertheless the City and TIF 8 remain committed to the eventualredevelopment of the property and actively support that outcome by their effortstoday.

TIF #8 (Lancaster Corridor)12/9/2003-12/31/2024

220 acres


Purpose: TIF 8 (Lancaster Corridor) was created to promote development alongthe Lancaster corridor after an elevated portion of the I-30 – I-35 interchange wasrealigned and demolished, reestablishing Lancaster Avenue as one of the primarygateways to downtown Fort Worth and the Near Southside / Medical District.

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0

0

1

1

1

1

$0

$200

$400

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illio

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Base Additional Property Value



Overall Performance: TIF #8 (Lancaster Corridor)












Current Taxable Value of TIF Per Acre $ 2,017,375

Projected Taxable Value Per Acre After Termination $ 3,414,768

Increase in Taxable Value Per Acre to Date $ 1,204,017

Increase in Taxable Value Per Acre by Termination $ 2,601,410



Historical and Projected Property Value Performance: TIF #8 (Lancaster Corridor)

Current

• Construction of Pinnacle Bank Place neared completion in 2016, including its 454 space parking garage supported by the Lancaster Corridor TIF.

• The Board authorized expending $250,000 for certain costs associated with the design, engineering, and improvement of the Fort Worth Water Garden’s Quiet Pool and southern wall.

Recent Developments



Photo Credit: Trip Advisor



TIF #9 (Trinity River Vision)12/16/2003-12/31/2044

3,980 acres


As long-term infrastructure improvements continue to progress throughout thedistrict, focusing on bridge construction, engineering, environmental remediation,and business relocations, FY 2016 was a year of growth for TIF 9. Year-over-year,the growth amounted to a 7.3% increase in the value of property. The character ofthat growth, however, differed significantly throughout the district.

In the western portions of the district, work began on the first phase of Left Bank,a nearly $300 million multi-phased mixed-used development alongside the TrinityRiver and adjacent to West Seventh Street. Across the river, development beganon the Broadstone multi-family development near the Pier One corporateheadquarters. In the easternmost portion of the district, significant progress wasmade on Gateway Park, with the removal of roughly 1.5 million cubic yards of dirtand the installation of new park amenities. The area that will become PantherIsland became the focus of increased near-term development interest, ascontinued progress of infrastructure improvements together with increasedconfidence in the availability of federal funding to support the flood controlproject has combined to make more immediate investment in the area moreattractive to developers and lenders.

Purpose: TIF 9 (Trinity River Vision) was created to promote redevelopmentalong the Trinity River, while creating mixed-use development and utilizingGateway Park as hydraulic valley storage to provide the necessary floodprotection associated with the bypass flood control project.

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10

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8

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2

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2

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6

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03

8

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04

0

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04

2

FY20

44

FY2

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6

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Overall Performance: TIF #9 (Trinity River Vision)

















Historical and Projected Property Value Performance: TIF #9 (Trinity River Vision)

Current


CreationTermination

Photo Credit: TRVA

• Continued progress was made on the construction of three new bridges at Main St., Henderson St., and White Settlement St.

• A new 5K trail and boardwalk was completed in Gateway Park, providing a visual statement of the transformation that is taking place in what will become one of the largest urban parks in America.

Recent Developments


TIF #10 (Lone Star)

TIF 10 revenues are dedicated to paying for the public improvements andexhibition space that supported the Cabela’s development first, and after that ispaid off they will be able to be used for public improvements related to newdevelopment. Currently no TIF funds are available to support new development, asall amounts collected are needed to pay down the cost of the infrastructure inplace. Cabela’s has purchased the bond that provided the up-front funding for theproject, and the TIF district pays Cabela’s back as tax increment is collected intothe TIF.

The TIF district has land available for additional development, and with thecontinued popularity of north Fort Worth for commercial and residentialdevelopment, this should occur before the TIF’s expiration date, providingadditional funds to pay off the infrastructure.

TIF #10 (Lone Star)6/15/2004-12/31/2025

981 acres


Purpose: TIF 10 (Lonestar) was created to finance the development of publicspace and infrastructure on and near the site of Cabela’s, a 200,000 square foothunting and outdoor retail facility.

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TIF #10 (Lone Star)


Overall Performance: TIF #10 (Lone Star)

















Photo Credit: http://www.overlookranchapartments.com/Photo-Tour.aspx

Historical and Projected Property Value Performance: TIF #10 (Lone Star)

Current

• TIF district taxable values increased by 28% in FY 2016 because of the completion of The Overlook Ranch Apartments, a new luxury community built to the east of Cabela’s that was approximately 98% leased as of March 2017.

• The community contains 318 units and features a dog park, resort style pool, outdoor kitchen, and a car wash and will provide a foundation for attracting similar developments and supporting retail.

Recent Developments



The Overlook Ranch Apartments



Progress continues in TIF 12, with construction underway to fulfill the master planin place for the eastern portion of the TIF. The Renaissance Square commercialdevelopment, which was a TIF-supported project, continues to expand throughdevelopment of pad sites.

In FY 2012, the TIF funded infrastructure for development of the south 83 acres ofthe master planned area, now known as Renaissance Heights. This area is dividedinto sections for the Mighty Uplift Academy, the YMCA, multi-family, single family,senior living, and office or commercial. The TIF will reimburse $4,050,000 fordrainage improvements, demolition, site preparation, water and sewerinstallation, and street construction, in installments as the property develops.Construction of the infrastructure and of buildings and improvements for theMighty Uplift academy began in 2012 and is complete.

In FY 2016, the TIF Board modified the agreement to extend the completiondeadlines and to tie reimbursement of infrastructure costs to construction ofspecific minimums of each type of proposed development, to ensure that the areawould be built out according to the multi-use master plan. The first phase of fivebuildings and 140 units of mixed-income multi-family is under construction andslated to open in January, 2018. Construction of a new YMCA that includes awater park, teaching kitchen, and early learning center, is underway.

TIF #12 (East Berry Renaissance)7/18/2006-12/31/2027

604 acres


Purpose: TIF 12 (East Berry Renaissance) was created to help fund publicinfrastructure improvements along the East Berry Street Corridor and promoteredevelopment and growth throughout the area.

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1

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$250FY

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07

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00

8FY

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09

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01

0FY

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11

FY2

01

2FY

20

13

FY2

01

4FY

20

15

FY2

01

6FY

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17

FY2

01

8FY

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19

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02

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202

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22

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24

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02

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26

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02

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28

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30

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Overall Performance: TIF #12 (East Berry Renaissance)

















Photo Credit: JHP

Historical and Projected Property Value Performance: TIF #12 (East Berry Renaissance)

Current

• All residential in Renaissance Heights will be within walking distance of full-service grocery store, pharmacy, and retail; a medical, dental, and behavioral healthcare clinic; schools; a YMCA; and a park, with the intention of providing high quality of life for all residents. In addition, the area is served by the bus system run by the Fort Worth Transportation Authority.

Recent Developments



Renaissance Heights Multi-Family


TIF #13 (Woodhaven)

After years of relatively flat and sometimes negative growth in taxable value, theWoodhaven TIF’s taxable value jumped more than 25% in 2016, after having risen12% the year before. Some of the increase can be attributed to the overallincrease in values seen across Fort Worth in the past two years, but inWoodhaven, 75%, or $45 million of the increase in value comes from rehabilitatedmultifamily properties. The Woodhaven complexes were constructed in the1970’s and early 1980’s for luxury adult living, and this history is now benefitingthe area, as developers can see the value in rehabilitating them since Fort Worthcontinues to have demand for multifamily due to high population growth. Theseventeen complexes showing the highest increases in 2016 averaged a 63%increase in taxable value. Twelve Woodhaven complexes were renovated by thesame new owner.

These renovations promise to be good for the City of Fort Worth and the area as awhole, since they provide a renovated affordable housing option, and bring withthem the hope that middle income professionals will choose Woodhaven as aplace to live, bridging the income gap in the neighborhood between currentapartment residents and single family home owners.


TIF #13 (Woodhaven)11/27/2007-12/31/2028

1,100 acres

Purpose: TIF 13 (Woodhaven) was created to help fund public infrastructureimprovements that will provide a "foundation for development" to encourageand support the long-term public needs of the neighborhood and to securemixed-use economic growth opportunities in the Woodhaven area.

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9

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9

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1

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22

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9

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1

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s


TIF #13 (Woodhaven)


Overall Performance: TIF #13 (Woodhaven)

















• TIF annual income has increased from $42K just two years ago to an anticipated $1 million in FY2017 (based on Tax Year 2016 values). The TIF Board is evaluating possible uses for the funds.

Historical and Projected Property Value Performance: TIF #13 (Woodhaven)

Current

Recent Developments




Mission Hill Multi-Family



The Trinity Lakes TIF is currently focusing on supporting its first project, TrinityBoulevard Phase I, which involves the design, engineering, utility relocation, stormdrainage improvements, streetscape, and traffic signals related to theredevelopment of Trinity Boulevard. The Trinity Boulevard project will facilitateaccelerated investments in infrastructure that had been planned for future years,including transportation and storm drainage improvements. The development ofadjacent properties will leverage the improvements that are being supportedthrough this first phase of infrastructure construction.

In the four years since its creation, property values in the Trinity Lakes TIF havenearly tripled and further increases in value are anticipated in the years ahead.

TIF #14 (Trinity Lakes)11/12/2012-12/31/2032

1,800 acres


Purpose: TIF 14 (Trinity Lakes) was created to help finance public infrastructureimprovements in the area east of Loop 820 surrounding Trinity Boulevard,including improvements to arterials (Trinity Boulevard and Precinct Line Road),the Trinity Trails system, wayfinding signage, transit improvements, publicparking facilities, land acquisition, and other TIF−eligible projects that helpencourage redevelopment in the Trinity Lakes area.

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Overall Performance: TIF #14 (Trinity Lakes)










Tax Value Trailing 5-yr CAGR Unavailable







Photo Credit: Gateway Planning

Historical and Projected Property Value Performance: TIF #14 (Trinity Lakes)

Current

• Engineering and design work related to the Trinity Boulevard project continues and will address significant flooding concerns that have inhibited growth in the area.

• Continued home construction and strength in home sales have contributed to the increase in property values seen in the district.

Recent Developments



Trinity Boulevard Improvement Area



In FY 2016, large portions of the new Stockyards/Northside TIF district were thesubject of several important planning and zoning efforts aimed at guiding futuredevelopment within the area. These efforts included the creation of newdevelopment design guidelines, an historic overlay district, and a form-based code.These changes provide increased clarity as to the character and extent of newdevelopment that will be permitted in the area.

Despite these activities and the possible deferment of new construction until theircompletion, the value of property in the district rose nearly 6.5%, exceedingexpectations for the year. This includes construction of a new Marriott hotel onMain Street.

TIF #15 (Stockyards/Northside)12/2/2014-12/31/2034

925 acres


Purpose: TIF 15 (Stockyards/Northside) was created recognizing the historicaland economic importance of the Fort Worth Stockyards and surroundingneighborhoods – the growth and vitality of which is impeded by inadequateinfrastructure and pockets of persistent blight. The Stockyards/Northside TIFhas been created to support the preservation and enhancement of the greaterStockyards area through strategic investment in public improvements.

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Overall Performance: TIF #15 (Stockyards / Northside)










Tax Value Trailing 5-yr CAGR Unavailable







Photo Credit: Code Studio

Historical and Projected Property Value Performance: TIF #15 (Stockyards/Northside)

Current

• Development and City Council adoption of a new historic overlay district occurred, protecting the character of existing structures and landmarks in the district.

• Preparation of a form-based code was the focus of much of FY 2016 which will guide the height, placement, and character of future development, as well as its relationship to public space such as streets, sidewalks, and Marine Creek.

Recent Developments



Stockyards Form-based Code Character Zones

Fort Worth 2016 TIF Board Members

TIF #2 (Speedway)Dennis Shingleton, ChairSal EspinoPhillip VadenKenton NelsonKaren RueMel FullerTom KellyTye Sheets PierpontTan Parker

TIF #3 (Downtown)Zim Zimmerman, ChairAnn ZadehMark McClendonRoy C. BrooksScott RuleVictor HendersonAdrian MurrayJohnny CampbellRep. Nicole Collier

TIF #4 (Southside)Ann Zadeh, ChairKelly Allen GrayAshley PazEarly DavisLinda ChristieMark McClendonRoy C. BrooksSteve TownsendScott Rule

TIF #6 (Riverfront)Ann Zadeh, ChairCathy Young JuniorDionne BagsbyG.K. MaeniusLisa McMillanLinda ChristieScott RuleMark McClendonNina PettyRoy C. BrooksSteve Townsend

TIF #7 (North Tarrant Parkway)Cary Moon, ChairSal EspinoKen KristofekBill MillerLinda ChristieRussell FullerMichael O’HarraJarred HowardGary FickesClint Abernathy Glenn WallaceNeftali OrtizRussell Laughlin

TIF #8 (Lancaster Corridor)Jungus Jordan, ChairAnn ZadehKelly Allen GrayElaine PetrusRichard CasarezDavid ParkerPatti Gearhart TurnerMark McClendonRoy C. BrooksLinda ChristieAllison Milington

TIF #9 (Trinity River Vision)Dennis Shingleton, ChairSal EspinoBrian ChaseEugene GiovanniniGary WalkerG. K. MaeniusJim LaneLeah KingMerianne RothJ. D. JohnsonRoy C. BrooksScott RuleJack StevensTom PurvisVictor Henderson

TIF #10 (Lone Star)Sal Espino, ChairZim ZimmermanDennis ShingletonAndre McEwingGary FickesJ. D. GrangerMike BerryScott RuleSteven AndogniniLinda ChristieMark McClendon

TIF #12 (East Berry Renaissance)Kelly Allen Gray, ChairDennis ShingletonRoy C. BrooksPamela Corbett MurrinChristopher LewisMartha ToombsWayne CarsonBob SmithMark McClendonScott RuleLinda Christie

TIF #13 (Woodhaven)Cary Moon, ChairGyna BivensPatrick E. Winfield IIKen NewellJerry BartonKen DeveroVernell SturnsCathy Young JuniorMark McClendonScott RuleLinda Christie

TIF #14 (Trinity Lakes)Gyna Bivens, ChairCary MoonRyan MartinBob RileyMike BrennanCathy Young JuniorLinda Christie

TIF #15 (Stockyards/Northside)Sal Espino, ChairDennis ShingletonSteve TownsendO.K. CarterJim LaneTeresa AyalaHub BakerGary BrinkleyJennifer Trevino

FORT WORTH TIF BOARDS

City of Fort WorthEconomic Development Department1150 South FreewayFort Worth, TX 76104

Robert Sturns, DirectorBrenda Hicks-Sorensen, Assistant Director

Ana Alvarado 817-871-6029Carol Griffith 817-871-6027Michael Hennig 817-871-6024Ossana Hermosillo 817-212-2665Natalie Moore 817-212-2680Isabel Villegas 817-871-6021

Acknowledgements and Contacts

CONTACT

Maribeth AshleyCarol BrackenMatt BeardWoody BoykinSandra BreauxMike BrennanPilar CandiaJay ChapaHenry DayMaleshia FarmerRachel HortonLinda LizunLisa McMillanAlicia Ortiz

Paul PaineKathylene ParramoreMelinda RamosCarole RobinsonSami RoopKatherine B. SmithKatheryn W. SmithAndy TaftCynthia TrichePeter VakyIsabel VillegasTyler WallachNatalie WatkinsRobin Willim

ACKNOWLEDGEMENTSIn addition to those already listed, the following individuals provide invaluable service and support to Fort Worth’s TIFs:

For more information, please visit our website:

http://fortworthtexas.gov/EcoDev/TIF

Tax Increment Financing DistrictsCity of Fort Worth

Economic Development Department

FY 2016 Annual Report

1150 South Freeway

Fort Worth, TX 76104

817-871-6021

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2016 TIF Annual Report - Fort Worth, Texas

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