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1997-11-05 (2) Tax Increment 11/5/97 Reinvestment Zone #1, Southlake Schedule of Events Nov -97 ® Dec -97 Jan -98 S M T W T F S S M T W T F S S M T W T F S 1 1 1 f 2 1 3 1 4 ! 5 16 1 1 2 I 3 2 I 3 4 5 1 6 I 7 I 8 7 1 8 19 101 11 1 12 13 4 5 1 6 j 7 8 9 10 9 10 11 121 13 15 14115;16 17118119' 11 12' 13! 14 15 16117 16 17 18 1 19 ilk 21 2 2 21 22 23 1 24 25 26 27 18 19 20 21 22 23 23 24 251 26 27 ! 28 29 28 29 , 30 31 ! 25 26 27 28 29 3031 30 ; 1 Date Day Event 10- Nov -97 Monday CISD School Board Meeting Consider resolution to appoint Reinvestment Zone Representative 12- Nov -97 Wednesday Reinvestment Zone Board Meeting 17- Nov -97 Monday CISD School Board Meeting Consider participation agreement 18- Nov -97 Tuesday City Council Meeting First Reading of Ordinance Adopting Final Project and Finance Plan 20- Nov -97 Thursday Tarrant County Hospital District Board Meeting Consider participation agreement and resolution to appoint Reinvestment Zone Representative TCJC Board of Trustees Meeting Consider participation agreement 2I- Nov -97 Friday dip m Reinvestment Zone Board Meeting Adoption of Final Project and Finance Plan 2 - Dec - Tuesday City Council Meeting Second Reading of Ordinance Adopting Final Project and Finance Plan + ` + TARRANT COUNTY OFFICE OF THE CRIMINAL DISTRICT ATTORNEY TIM CURRY JUSTICE CENTER CRIMINAL DISTRICT ATTORNEY 401 W. BELKNAP 817/U4.1400 FORT WORTH, TX 76196.0 ?0I M E M O R A N D U M to: Commissioner Glen \\litle% • i from: Marvin Collins subject: County Participation and Ownership ofa Building Acquired Through Southlake TIRZ date: November 3, 1997 You have asked two questions regarding Tarrant County's participation in the Southlake TIRZ: 1. May the Southlake TIRZ use revenue from its tax increment fund to purchase or construct a building to be jointly owned by the Southlake ISD, Tarrant County and the City of Southlake? 2. If so, may Tarrant County jointly own and operate the building with the City of Southlake and the Southlake ISD`' Purchase or Construction of Building The powers of a municipality in connection with a tax increment reinvestment zone are broad, include the right to exercise any power necessary and convenient to carry out the Tax Increment Financing Act. and specifically include the power to acquire real property. TEX. TAX CODE ANN. §311.008 (Vernon 1992). The board of directors ofa reinvestment zone may enter into agreements as the board considers necessary or convenient to implement the project plan and reinvestment zone financing plan and achieve their purposes. TEX. TAX CODE ANN. §311.010 (Vernon Supp. 1997). While I find no specific reference to acquisition or coristruction ofa building for joint ownership by the City. County and ISD, there is no prohibition. Given the broad powers conferred upon a municipality and board of directors ofa reinvestment zone as referenced above. I conclude that this would be a legal expenditure of ta.x increment funds if properly authorized by the board of the zone. adopted as part of the project plan by the board, and approved by the municipality that created the zone. TEX. TAX CODE ANN. §311.011 (Vernon 1992). RECEIVED Nov 4 1997 LOCAL GOVT § 305.001. Joint Construction and Maintenance of Buildings by Certain Counties and Page 2 Municipalities CROSS REFERENCES Buildings. other than courthouse, fur county offices, see V.T.C.A., Local Government Code § 291.001 et seq. County building authority act, see V.T.C.A., Local Government Code § 293.001 et seq. Power of cities to build municipal buildings, see Vernon's Ann.Civ.St. art. 1269j -4. Copyright (c) West Group 1997 No claim to original U.S. Govt. works LOCAL GOVT § 305.001. Joint Construction and Maintenance of Buildings by Certain Counties and Page 1 Municipalities *67715 V.T.C.A., Local Government Code § hand, as provided in the budgets or the tax 305.001 levies of the county and municipality. Annual expenses for the operation and maintenance of VERNON'S TEXAS STATUTES AND the building shall be budgeted by the county and CODES ANNOTATED the municipality. LOCAL GOVERNMENT CODE TITLE 9. PUBLIC BUILDINNGS AND (d) The county and the municipality shall GROUNDS specify in a contract between them: SUBTITLE C. PUBLIC BUILDING PROVISIONS APPLYING TO MORE (1) the amount or proportionate share of the cost of construction and equipment that each THAN ONE TYPE OF LOCAL party shall contribute; GOVERNMENT (2) the party with authority to award CHAPTER 305. MISCELLANEOUS contracts, or the fact that awards are to be PUBLIC BUILDING PROVISIONS made by action of both parties; AFFECTING MUNICIPALITIES AND (3) the account in which funds contributed COUNTIES under Subdivision (1) shall be deposited; and SUBCHAPTER A. JOINT (4) the procedure by which disbursements CONSTRUCTION+' AND from that account shall be authorized. MAINTENANCE OF BUILDINGS BY (e) The contract may provide for: CERTAIN COUNTIES AND MUNICIPALITIES (1) the appointment of a committee or board - to operate and maintain the building; Current through End of 1995 Reg. Sess. (2) the delegation of operation and maintenance responsibility to either of the § 305.001. Joint Construction and parties; or Maintenance of Buildings by Certain *67716 (3) the division of annual operation Counties and Municipalities and maintenance expenses between the parties. (a) This section applies only to a municipality CREDITS) with 2,000 or more inhabitants that is located 1988 Main Volume more than 10 miles from the county seat of the county in which the municipality is located, and Acu 1987, 70th Leg.. ch. 149, f 1, efj. Sept. 1. 1987. to the county in which the municipality is located. <General Materials (GM) - References, Annotations, or Tables> (b) The county and the municipality may jointly own, construct, equip, enlarge, and HISTORICAL NOTES . maintain a building in the municipality, to be used by the justice of the peace, for county HISTORICAL AND STATUTORY NOTES branch offices, for a county library, and for a city hall. The county and the municipality must 1988 Main Volume hold in joint ownership the title to the land on Prior Laws: which the building stands. Acts 1961, 57th Leg., p. 149, ch. 76. Vemon's Ann.Civ.St. art. 1605a -3. (c) The cost of construction of the building shall be paid from current income and funds on REFERENCES Copyright (c) West Group 1997 No claim to original U.S. Govt. works Commissioner Glen Whitley Page 3 November 3. 1997 for the creation of a committee or board to operate and maintain the building. This statute is consistent with the ability of all three entities to interlocally contract to provide the government services each would provide in the building, and for the operation of the building. TEX. GOV'T CODE ANN. § §791.011. 791.013 (Vernon 1994). For ease of reference. I have attached a copy of TEX. LOC. GOV'T CODE ANN. X305.001 (Vernon 1988). That section sets forth the conditions under ,which such a building. must be acquired and may be operated. Should the County elect to enter into such a joint ownership and operation of a building, each entity should consider that the Tort Claims Act liability of each entity is somewhat different, and the monetary limits of liability are also different. For example, the City and the County each have some potential premises liability, while the independent school district has none. TEX. CIV. PRAC. & REM. CODE ANN. (Vernon 1997) §§101.021, 101.051. Similarly, the limits of liability under the Tort Claims Act for cities is $250,000/S500.000. while that for counties and independent school districts is S100,000/S300,000. TEX. CIV. PRAC. & REM. CODE ANN. § 101.023 (Vernon 1997). In addition, there are many other potential practical and legal problems which might arise from such a joint undertaking, but, subject to the limitations previously referenced herein, none of these would preclude the arrangement. If we may be of further assistance, please let us know. 7 Commissioner Glen Whitley Page 2 November 3. 1997 I would note that this issue is first and foremost a legal issue for the City Attorney of the City of Southlake. since the City is the creating entity. and the Cite %.ould have to approve such an expenditure and project plan. If properly approved as I have set forth above. I believe the County is on sound legal ground to participate in that plan. Joint Ownership of Real Property and Building The County has specific authority to acquire land and purchase or construct a building. for a branch county office building_ in a city such as Southlake. TEX. LOC. GOV'T ANN. §292.022 (Vernon 1988). While I find no specific statute authorizing a county to jointly construct or purchase and own a building with both a city and an independent school district, there is specific authority for a county to jointly own and/or construct a building with a municipality such as Southlake to be used for county branch offices, and for a city hall. TEX. LOC. GOVT ANN. §305.001 (Vernon 1988). Thus, it is clearly legal for the County to own andior construct a building with the City of Southlake. More problematic is the legal ability of the County to own andior construct a building jointly with an independent school district. I find nothing that would prohibit this, but counties in Texas generally have only that authority given to them by law. Canales v. Laughlin, 214 S.W.2d 451 (Tex. 1948). One possible solution to this would be for the attorney for the independent school district and the City attorney of the City of Southlake to jointly determine that a home -rule city and an independent school district may jointly own and/or construct a building. Home -rule cities in Texas, unlike counties, have all powers not expressly denied to them. Op. Tex. Atty Gen. DM -194 (1992). Then, since both the independent school district and the County each have the legal ability to own and/or construct a building with the City of Southlake, a reasonable argument could be made that all three parties have the authority to jointly own and/or construct a building with one another. This is further buttressed by the fact that TEX. LOC. GOV'T CODE ANN. §272.001 (Vernon Supp. 1997) permits all three entities to sell real property to one another for an appraised fair market value, and thus could theoretically convey partial ownership interests in real property to one another, as well. I conclude that if the respective attorneys for the City of Southlake and the independent school district agree in this regard and certify that each can jointly own andior construct a building with one another. a tri- partite ownership and/or construction of such a building would be a legally defensible. Since TEX. LOC. GOVT CODE ANN. §305.001 (Vernon 1988) provides a specific mechanism for the City and County to jointly own and/or construct a building together, the requirements of that section should be strictly observed by all three parties. For example. that section requires that the land on which the building is situated must be jointly owned by the entities. 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Discussion: Reinvestment Zone Project and Finance Plan (a) Outstanding Issues (b) Additional School Facilities and Associated Infrastructure 3. Discussion: Overlapping Taxing Jurisdictions Participation Agreements (a) Outstanding Issues (b) Facility Plan (c) Subletting /Leasing Excess Space (d) Operations and Maintenance Costs 4. Adjournment. it