Typical

Both the TIF and the reporting.

Read the article about TIF's not living up to their hype or promises.  The article that then goes on to tell you how much the TIF's should make.  Wait, what??  Typical Fort Worth Way in the Fort Worth Star-Telegram. 

It talks about the developers taking risks with TIF's, it doesn't say much about those that fund the TIF.  Yes, it's YOU.

Notice how when they tell you about the Trinity River Vision TIF, they leave out the 40 years it spans (so far).

Does that mean YOUR kids will be sheep too?

Many projections for valuation growth were wildly overoptimistic.

For example, the tax increment finance district, or TIF, that covers east Fort Worth's Woodhaven neighborhood has lost overall property value for two years in a row. And a TIF that was started to attract a Cabela's sporting goods store to far north Fort Worth doesn't generate enough revenue to reimburse the retailer for bond payments tied to the development.

They typically stay in place for 20 years.

But he added, "Nobody predicted the loss of tax base two years in a row," referring to Woodhaven.

Cabela's was touted as a destination that would attract other development and millions of visitors. But there has been no other building.

The TIF, which was challenged in court by a citizens group, was set up to attract the Cabela's project at the northeast corner of I-35W and Texas 170. Cabela's said it wouldn't come to Fort Worth without it.

One of the more ambitious TIFs in terms of funding development is the Trinity River Vision TIF, which spans 3,980 acres from Northeast 23rd Street on the north and West Lancaster Avenue to the south, and includes Gateway Park to the east. The TIF proposes $320 million in spending.

The TIF currently carries costs associated with the Trinity River Vision project and has raised $8.4 million but spent only $2.5 million, the report says.

It started in 2003 with a base property value of $130.7 million.

That grew to $334.8 million in 2010, but expectations are that it could have a taxable value of $2.6 billion by 2044.

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Another Tarrant County "Study"

Funny thing about "studies", they usually produce the outcome those hired to produce it are looking for.  It's what you call a win/win.  Unless, of course, you're the one paying for it.

This one was done by the Fort Worth Chamber of Commerce. Read about it in the Fort Worth Star-Telegram.

It claims property taxes are part of the benefit to all the abatement's Fort Worth handed out this year.  How can that be when the TIF's in the area are struggling to meet their promises due to declining property taxes?  Remember, there were studies for those TIF's too. What are they basing these numbers on?  Apparently, whatever they could.

The overall economic impact includes company investments, salaries and what workers will spend.

It also considers salaries created or supported in new or existing firms, such as maintenance companies and service firms, and spending at stores and restaurants.

 There were a couple of key sentences in the article:

In its efforts, the chamber's economic development division received and spent about $1 million from private and public sources in 2011.

The chamber's economic development division works closely with the city's economic development department.

As usual the best part were the comments from THE PEOPLE:

It's a great place to do business if you're looking for a tax handout, but Fort Sprawl is not a great place to live anymore.  

Roads are in terrible condition, crime is up and police response times are lousy.  City services are poor and getting worse.  Those that still exist, anyway.  Price lives in her shielded world and is not in touch with the average citizen.

The only ones who are happy with all this are the stinking corporations and developers and corrupt politicians (current and past mayors & council included) who are benefiting at citizens' expense. If you've got enough money to buy a politician or two, you can pretty much get whatever you want. That's exactly what happened with the Trinity Drainage Ditch Vision and many other pet projects... reward the developers/politicians... screw the citizens.

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How's that TIF workin out for ya? NRH

This one in North Richland Hills.  WHY is the TIF not working out?  Declining property values.

Read about the latest TIF tiff in the Fort Worth Star-Telegram.

The city must scale back a project that is part of redevelopment efforts along Boulevard 26 south of Northeast Loop 820 because revenues from a special tax district have fallen short.

With a $9 million drop in property values in the area since 2008, the city wouldn't have enough revenue to meet the debt service for the $3.5 million project plan. Instead, city officials estimate that $2.5 million in funding is available.

The city has sold $1 million in bonds and, based on revenue projections, says that $1.5 million in additional debt could be issued.

The issue is focused on a Tax Increment Financing district, created in 2008 to use property tax revenues for redevelopment. The city had an existing TIF zone, created in 1999, but expanded it to include all commercial properties in the Boulevard 26 corridor south of Loop 820, except North Hills Hospital and the Calloway Creek area.

"Staff has had several meetings with TxDOT trying to reach a compromise, but has not had a great deal of success. TxDOT has made it very clear that only TxDOT approved roadway striping and colors can be used in the corridor within their rights-of-way," Curtis wrote in Nov. 14 memo to the North Richland Hills City Council.

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How's that TIF workin out for ya?

The Fort Worth Business Press tells you what another one cost YOU.

TIF board agrees to pay hotel developer full reimbursement

Trinity Bluff Development Ltd. will receive a complete $206,864.08 reimbursement related to developing the Marriott TownePlace Suites hotel on East Belknap Street just west of downtown.

According to information compiled by the downtown TIF, Western International sold the hotel to Apple REIT Nine for $18.4 million on July 19, 2010. The value of hotel improvements since construction was completed totaled $15.4 million, the difference between the land sale price and the hotel sale price.

At the Nov. 28 meeting, the TIF board had four options: find Trinity Bluff Development in default in its TIF development agreement and pay it nothing; find that while Trinity failed to meet its commitments, it may be paid a prorated amount on the reimbursement under one of two scenarios; or find that Trinity “met the spirit of the development agreement” and be paid the entire reimbursement amount.

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More Connections

Today the Fort Worth Star-Telegram tells you about a large land purchase.  Land that's being drilled on, lots of it.  Of course only the surface rights were for sale.

WHO would buy that much land?  Michael Mallick.  110 drilling sites, thousands of acres, millions of dollars.  Apple REIT Nine.  Coming soon to a neighborhood near you.

We looked for some Mallick info, not surprisingly, the Fort Worth Weekly had some. 

Project developer Michael Mallick is Anglo, with offices on the west side of town. Those opposing Hicks and Mallick on the project are a few black business leaders, led by controversial real estate developer Leonard Briscoe, Sr., who went to prison in the 90s for illegal kickbacks. He contends that black developers like him are being aced out of projects in favor of white, politically connected developers like Mallick.

She points to the two Mallick Group developments on the map. The Sierra Vista development will provide about 230 new single-family homes on the site of the old Riverside Village apartment complex, plus retail sites nearby. About a mile to the east. the Masonic Home property will be transformed into about 500 homes plus 63 acres of commercial development. There will also be 16 acres set aside for natural gas drilling. Hicks helped broker a deal earlier this year that created a tax increment financing district to include both Mallick Group properties. As tax income to the city increases because of the development, the extra dollars will pay for infrastructure improvements — perhaps one of the few instances when Fort Worth has used the TIF device in the kind of blighted area it was intended for. The East Berry TIF could produce as much as $10 million for things like streets and sewers in what will be known as Masonic Heights, bounded by Wichita and East Berry streets and Mitchell Boulevard. Homes likely will sell for $140,000 to $200,000.

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Congrats to TRIP!

Good example of what THE PEOPLE can do when they come together.  Read the message below from the Trinity River Improvement Partnership. 

Dear Friends of the Trinity River,

TRIP is pleased to announce that our documentary video project, Up A Creek, has been selected by the Neo-Relix Film Festival in Glen Rose, Texas. It will be shown as one of the featured programs at 2:00 Saturday, September 3rd, and at 12:00 Sunday September 4th.

Up A Creek is a story about the real dangers of flooding that exist in the Fort Worth area, and seeks to inform citizens about the misplaced priorities of our elected officials and their plans to spend close to one billion dollars of tax money to benefit the development community.

Our presentation begins with a heartbreaking, true story of flooding, tragedy, and a lack of local governmental foresight and accountability. Local critics of the Trinity River Vision Project then pick up the story and cover a wide-ranging series of topics, from eminent domain abuse to TIF financing districts, legislative manipulation, lack of local media scrutiny, where flood control is actually needed. It addresses the role of the Tarrant Regional Water District and where our local and federal tax dollars are going with this project. The video ends with a call to action, urging voters to educate themselves about the project and help TRIP to offer a more realistic alternative.

TRIP... Our Mission: Support public and civic organizations to achieve maximum balance in preserving property rights, the environment, flood control, and historical considerations, while achieving reasonable development and a clean and adequate water supply.

Please join us. Visit us at www.savethetrinityriver.org

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Calling Fort Worth

A local resident had some questions concerning a gas drilling site in Fort Worth, so he emailed the Mayor and Council and many others. 

Watch for the response in the next post. 

August 12, 2011

City of Fort Worth

I wish to file a complaint regarding M&C G-17346 which is the Chesapeake Rutherford 1H proposed well site. The street address is 6699 Boca Raton Boulevard per the City Council Agenda.

This item was on the City Council Agenda for which I filed an on-line speaker card against. I received a phone call advising me it had been withdrawn from consideration. Upon arriving to speak on another item, I spoke with Rick Trice who informed me the reason it was withdrawn was that Chesapeake had all of the necessary waivers.

I informed Mr. Trice there was an apartment in the Woodhaven Self Storage main building that is about 75 feet from the proposed pad site and less than the 300 feet required by Ordinance. I was then told they would have to move as Chesapeake had a waiver or something indicating no one lived there.

I have a copy of what I think he is talking about and it does say there is not a permanent resident. However, there is an on site manager as advertised on their web site who lives there. I unaware of any resident of an apartment who is a permanent resident, they however are a resident. The only permanent residents I am aware are in the Cemetery.

Perhaps Mr. Trice was being facetious about there needing to move, but it would appear to me the City has an obligation to review the matter more and if there is a resident, which there is, the occupied building should have the right to correct any issues. The Storage Company has been in business for a length of time and part of their service is having an on-site manager for their customer’s storage security. The Woodhaven Self Storage is located within the Woodhaven TIF 13 and most TIF areas are not noted for security and safety, this TIF is no exception.

There are numerous reasons why a well site should not be allowed at this location, but I will begin with basic procedure irregularities.

The drilling Ordinance 15-36 D clearly states no application for a gas well permit will be accepted without ALL of the waivers having been obtained.

The last waivers were not obtained until August of 2011 and yet the application was submitted and accepted by the City in early May of 2011, or three months earlier.

15-36D. Permitting Procedures for a Waiver from Protected Use Property Owners.

1. No application for a Gas Well permit within six hundred (600) feet of a Protected Use by Waiver of Protected Uses shall be accepted unless the written notarized waivers are obtained from all Protected Use Property Owners within six hundred (600) feet of the proposed well site. Written notarized waivers granted by the all the Protected Use Property Owners within a six hundred (600) foot radius around the proposed well or boundary of Multiple Well Site must be filed, at the expense of the Operator, in the applicable county records. All waivers must identify the property address, block and lot number subdivision name and plat volume and page number. Copies of filed Protected number. subdivision name and plat volume and page number. Copies of tiled Protected use Property Owner waivers must be submitted with the filing of a completed application for a gas well permit within 600 feet of a protected use.

The next irregularity is that it was recently cleared, graded and removal of large light poles along with installing a chain length fence around the property. This was done before the City issued any gas-drilling permit and at the direction of Chesapeake.

This violates Sec. 15-34(A) Gas Well Permit Required.

A person wanting to engage in and operate in gas production activities shall apply for and obtain a gas well permit under this article and shall indicate what type of gas well permit is requested. It shall be unlawful for any person acting either for himself or acting as agent, employee, independent contractor, or servant for any person to drill any well, assist in any way in the site preparation, re-working, fracturing or operation of any such well or to conduct any activity related to the production of gas without first obtaining a gas well permit issued by the city in accordance with this article. Such activities include, but are not limited to re-working, initial site preparation, drilling, operation, construction of rigs or tank batteries, fracturing and pressurizing. A permit shall not be required for seismic surveys unless the survey is conducted on city owned property or city rights-of-ways unless such requirement is waived by the city.

The City still appears to be ready to move forward with permitting this well site for Chesapeake despite there being a protected use (residence) approximately 75 feet from the pad site even though the Ordinance requires a minimum of 300 feet from the pad site.

This well is closer than 300 feet from a protected use.

The Woodhaven Storage facility is right next-door with an on-site manager and an apartment on the second floor. I talked to Scott Haskins the General Manager who assured me the apartment is used. That apartment is about 75 feet from the pad site.

The definition of a residence:

Residence means a house, duplex, apartment, townhouse, condominium, city-inspected mobile home or other building designed for dwelling purposes, including those for which a building permit has been issued on the date the application for a gas well permit is filed with the gas inspector. Residence shall include assisted living facilities, nursing homes (both intermediate care facilities and skilled nursing facilities), residential board and care facilities, group homes, twenty-four-hour shelters, half-way houses, hotels, motels and jails.

The Woodhaven Self Storage building was obviously designed to provide a living place. The up-stairs has a balcony, a ceiling fan and patio furniture along with an outdoors grill. The living area is required for this facility to provide security and oversight by the on-site manager as advertised. I have driven past this location many times late a night and observed automobiles present and activity on the balcony.

There are many practical reasons why a well should not be at this location.

The location is within the boundaries of the Woodhaven TIF 13.

When the TIF was authorized and approved, the citizens of Fort Worth and Tarrant County were assured there would be a plan put in place to ensure the TIF area would increase property values and create a better place to live.

When you look at where this gas well is proposed, it goes against everything we were promised.

I don’t understand why the Council Person for District 4 isn’t demanding this well site not be allowed. He is on the TIF Board and his duty is to protect the Woodhaven TIF 13.

It is located at one of the few gateways into the Woodhaven TIF. That would be John T. White and 820.

History has shown a gas well only brings down property values and it creates a nuisance along with being a safety hazard to the residents.

There are already more well sites than should be allowed in and around this TIF, but this well site is located literally in the middle of an existing community. On several sides there are hundreds of apartments and on the other side there are neighborhood friendly businesses.

There is a major grocery store, several restaurants and other business the residents frequent often. These are all extremely close to the site.

The well site is out of place.

How do you plan to notify 1000’s of apartment residents within that 600 feet or even 400 feet if there is a major blowout or explosion? You can’t.

There is no safety margin and no time to develop a plan.

If there is a blowout or fire, there is no acceptable safe access to the site for fire and safety crews if the winds are from the Northwest, and which it most likely would be during winter months.

The City also has other obligations.

The City signed an agreement with Tarrant County that states

4.1. Amendment to TIF Ordinance.

All amendments to the TIF Ordinance shall be

approved by the TIF Board prior to approval by the City Council.

Due to the site location, that would be contrary to what was agreed in the contract with the County and they can stop making payments.

Has the TIF board approved anything or even discussed this as the contract stipulates?

Chesapeake doesn’t need this well; they already have a well site less than 1000 feet away and could drill anyplace they could from this one. They can drill over 5000 feet if necessary.

They appear to be grabbing land and destroying surrounding property values.

The City has the authority to say no to this gas well. It is in a TIF and as such the State grants the authority

Sec. 311.008. POWERS OF MUNICIPALITY

OR COUNTY.

(b) A municipality or county may exercise any

power necessary and convenient to carry out this

chapter, including the power to

(3) enter into agreements, including agreements with bondholders, determined by the governing body of the municipality or county to be

necessary or convenient to implement project plans and achieve their purposes, which agreements may include conditions, restrictions, or covenants that run with the land or that by other means regulate or

restrict the use of land;

I have provided several images to review that support my request to looking deeper into the permitting of the Rutherford 1H well site.

They include a copy of the TIF area showing the well site is inside the TIF.

An aerial of surrounding apartments and residential friendly business that creates a community

The location of another well site less than 1000 feet.

There are photographs of the pad site before clearing, grading and site preparation and after. One aerial photo clearly shows light poles on the location.

Woodhaven Self Storage Web page – “on site manager”

There are eating establishments with Food prepared within feet of site.

The well site should not be allowed at this location, it is not needed by Chesapeake Energy and certainly does not belong in a location so close to residents and other business without an adequate ability to fight a fire if one occurred.

Chesapeake Energy cannot say there is not another location for a drill rig since there is already a well site within 1000 feet of the proposed site.

The location of this site is right in the heart of a residential neighborhood and neighborhood friendly businesses area.

Placing a well site in the heart of any residential community will destroy the surrounding area and is contrary to the goal of the Woodhaven TIF 13.

The City has partners in the TIF such as Tarrant County and the school District along with others who were never consulted about allowing a gas well and this violates the partnerships agreed purpose.

Chesapeake Energy and the City of Fort Worth have violated the trust of the Citizens of Fort Worth in misrepresenting the truth or the facts. Numerous Ordinances were not followed as required and when they were pointed out, there was no action taken, except maybe on the little guy, Woodhaven Self Storage.

Due to the long list of discrepancies, irregularities, lack of safety considerations and not meeting the required setbacks of the Fort Worth Gas Drilling Ordinance, I request that no permit be issued to Chesapeake Energy for the Rutherford 1H well site location. I would also request penalties be asses for violations as provided by the city Ordinance. Chesapeake knows the regulations and should be required to obey them.

Sincerely

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Right on the money

YOUR money.

Excellent letter in the Fort Worth Star-Telegram this weekend.  Maybe the paper should have more letters and less editorials?

Good to know some people are paying attention. Are YOU?  YOUR kids will thank you for it.

Bless you, Ms.Bledsoe.

Out of balance

In its July 26 editorial, the Star-Telegram bemoans the city's $2.5 million loan to get a space museum off the ground and into orbit. The editorial said: "The council shouldn't devote one more cent to the pursuit of an aviation museum. ... How do taxpayers get their money back?"

Without necessarily defending the loan or advocating for the museum, I will point out that for nearly a decade the paper has been an ardent booster of the $909 million water wonderland known as Trinity River Vision, the cost of which is to be borne equally by the feds and us locals.

The project is touted to be updating flood control. But we already have a flood-control system in place. It is pure economic development.

Our local half will be paid for by the taxpayers of the city, county, water district and an iffy TIF that will siphon funds from the city's general fund. That's $450 million, compared to $2.5 million loaned to the space museum.

What was it that Jesus said in Matthew? "Ye blind guides, which strain at a gnat, and swallow a camel."

-- Barbara Bledsoe, Fort Worth

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