Tax Increment Financing (TIF) Update City of Fort Worth Housing and Economic Development Department May 2010

TIF Summary Tax increment financing (TIF) is an economic development tool authorized by Chapter 311 of the Texas Tax Code by which governments can publicly finance needed structural improvements and enhanced infrastructure within a reinvestment zone. City of Fort Worth has eleven (11) active TIF districts: Speedway, Downtown, Southside, Riverfront, North Tarrant Parkway, Lancaster, Trinity River Vision, Lone Star, Southwest Parkway, East Berry Renaissance, and Woodhaven.

City of Fort Worth TIF Policy Each TIF application must demonstrate: “But for” the creation of a TIF, quality development is not likely to occur in the proposed area without financial assistance from a TIF; and/or An area is ripe for development or redevelopment provided that public infrastructure is constructed to support the revitalization of the area; and/or Use of a TIF is the appropriate incentive tool to recruit or relocate a catalyst project worth of public investment; and The area proposed for TIF designation will have an increase in real property taxable value within the first two (2) years following designation.

City of Fort Worth TIF Policy TIF Policy was amended in December 2009: “The term of any newly created TIF may not exceed 21 years (20 years of tax increment collection), unless otherwise approved by City Council. Only TIFs created to help finance a ‘Major Infrastructure Project’, as designated by City Council, may have a term greater than 21 years The longer term shall only be permitted as necessary to fully finance the ‘Major Infrastructure Project’.”

Taxable Value Increment Revenues based on taxable value increment Taxable Value – Base Value = Increment Base value and taxable value may vary by taxing entity depending on exemptions and jurisdictions Taxable value growth is usually estimated at 1.5% growth per year, while also taking into account potential development projects

TIF 2 (Speedway) Created: 1996 - Expiration: 2035 Value Fiscal Year 2010 Value Increment Collected $1,334,082 CFW Portion $360,002 Increment Expended to Date $11,118,337 Projected Increment (term) $57,049,759 CFW Portion (term) $15,093,686 Estimated Unobligated Balance (term) $0 Base value: $5,084,127 Includes TIF 2B; Northwest ISD is the only contributor to TIF 2B

TIF 3 (Downtown) Created: 1996 - Expiration: 2025 Value Fiscal Year 2010 Value Increment Collected $5,000,000 CFW Portion $1,948,102 Increment Expended to Date $30,010,925 Projected Increment (term) $72,000,000 CFW Portion (term) $30,477,000 Estimated Unobligated Balance (term) $13,117,757 Base value: $322,440,637 Includes TIF 3A; Fort Worth ISD does not participate in TIF 3A; Fort Worth ISD drops out in 2013 TIF 3 will hit its lifetime revenue cap of $72 million in 2017 TIF spends $3 million per year on garage leases to provide free public parking that supports more than $60 million in retail sales

TIF 4 (Southside) Created: 1998 - Expiration: 2022 Value Fiscal Year 2010 Value Increment Collected $6,225,965 CFW Portion $1,883,590 Increment Expended to Date $11,118,337 Projected Increment (term) $62,118,052 CFW Portion (term) $20,814,159 Estimated Unobligated Balance (term) $14,647,803 Base value: $229,759,626 TIF 4 is to remain active for 25 years or until a cash increment of $60 million has been collected, estimated to be 2014 TCHD contribution is capped at $3.5m; County’s contribution is capped at $4m; $15m of FWISD’s contribution will be returned to the school district

TIF 6 (Riverfront) Created: 2002 - Expiration: 2036 Value Fiscal Year 2010 Value Increment Collected *$505,210 CFW Portion Does not participate Increment Expended to Date $2,817,682 Projected Increment (term) $22,420,168 CFW Portion (term) Estimated Unobligated Balance (term) $0 Base value: $2,822,348 City of Fort Worth and Fort Worth ISD do not participate Estimates based on billing amount; Not billed in FY’10 due to outstanding property protest

TIF 7 (North Tarrant Parkway) Created: 2003 - Expiration: 2019 Value Fiscal Year 2010 Value Increment Collected $1,229,216 CFW Portion $920,475 Increment Expended to Date $1,206,006 Projected Increment (term) $32,567,665 CFW Portion (term) $20,572,379 Estimated Unobligated Balance (term) $22,127,575 Base value: $1,559,670 TCCD, Keller ISD, and Northwest ISD do not participate TCHD participation agreement is yet to be signed

TIF 8 (Lancaster) Created: 2003 - Expiration: 2024 Value Fiscal Year 2010 Value Increment Collected $3,016,212 CFW Portion $1,966,068 Increment Expended to Date $5,669,837 Projected Increment (term) $79,891,888 CFW Portion (term) $46,427,723 Estimated Unobligated Balance (term) $59,936,542 Base value: $178,938,722 Fort Worth ISD does not participate TCHD participation agreement has yet to be signed

TIF 9 (Trinity River Vision) Created: 2003 - Expiration: 2044 Value Fiscal Year 2010 Value Increment Collected $1,886,635 CFW Portion $838,029 Increment Expended to Date $1,576,015 Projected Increment (term) $448,037,396 CFW Portion (term) $254,556,975 Estimated Unobligated Balance (term) $0 Base value: $133,860,211 Includes TIF 9A & 9B, TIF 9B revenue not calculated until 2010 Estimates provided by Gideon Toal

TIF 10 (Lone Star) Created: 2004 - Expiration: 2025 Value Fiscal Year 2010 Value Increment Collected $436,967 CFW Portion $281,154 Increment Expended to Date $1,570,749 Projected Increment (term) $8,660,598 CFW Portion (term) $6,017,308 Estimated Unobligated Balance (term) $0* Base value: $12,519,651 TIF 10A values not included; No increment will be collected from TIF 10A this year as it reflected a negative taxable value *TIF is only liable to the extent of the TIF revenues received

TIF 11 (Southwest Parkway) Created: 2004 - Expiration: 2025 Value Fiscal Year 2010 Value Increment Collected $109,575 CFW Portion $93,036 Increment Expended to Date $0 Projected Increment (term) $2,452,059 CFW Portion (term) $1,891,307 Estimated Unobligated Balance (term) Base value: $60,241 TCHD has not yet signed a participation agreement

TIF 12 (East Berry Renaissance) Created: 2006 - Expiration: 2027 Value Fiscal Year 2010 Value Increment Collected $97,047 CFW Portion $60,438 Increment Expended to Date $15,099 Projected Increment (term) $12,448,760 CFW Portion (term) $7,298,152 Estimated Unobligated Balance (term) $3,305,717 Base value: $29,176,323 TCCD has not yet signed a participation agreement TCHD has not yet signed a participation agreement

TIF 13 (Woodhaven) Created: 2007 - Expiration: 2028 Value Fiscal Year 2010 Value Increment Collected $36,583 CFW Portion $27,894 Increment Expended to Date $13,789 Projected Increment (term) $8,864,966 CFW Portion (term) $5,597,762 Estimated Unobligated Balance (term) $8,428,473 Base value: $181,846,751 TCCD has not yet signed a participation agreement TCHD has not yet signed a participation agreement

Overall TIF District Financial Impact All TIF Districts FY 2010 Projected Revenue $19,372,284 Taxable Value Increment $1,613,800,318 FY 2010 CFW Contributions $8,378,788 FY 2010 TIF Commitments $12,336,998 Lifetime CFW Contributions $416,531,460 Lifetime Unobligated Balance $121,563,867

Tax Increment Financing (TIF) Update Questions / Comments / Conclusion