500 Pound Gorilla Strikes Again

by Ron West

The City of Fort Worth is attempting to squash the legal attempt by a group identified as “Fort Worth Citizens for Responsible Government” who are questioning the legality of the formation of a Tax Increment Financing District in order to benefit a private company. This relates to our City of North Richland Hills regarding TIF#2 for the similar reasons that the Fort Worth group was formed.

FWCRG filed a suit to try to stop the use of tax funds to help build Cabela’s sporting goods store. Rather than try to allow a court to interpret the law, the City of Fort Worth – using its power and tax payer money – proceeded to Austin and filed a counter suit against the group seeking a temporary restraining order to block the suit by the group. The City is also seeking to force the grass roots group to post a $3 Million Bond to cover the City’s losses if the suit disrupts the Cabela’s funding.

Now the citizens group must pay lawyers to challenge the use of public funds for private interests, they must do so in Austin and they must be able to post a huge bond to cover “potential city losses” because of promises to a private business.,

The Cabela’s store is to be built near the Alliance Airport where there is other significant development underway. The money from the TIF will keep Cabela’s from having to pay for their own aquarium (such as the one at Bass Pro) and will allow them not to have to pay for a “museum” I assume that would relate

to the sporting industry. It will also keep Cabela’s from having to pay for road work required for their new business and for some lighting to improve their property.

The supposed purpose of a Tax Increment Financing District is expressed in the following ordinance drafted by North Richland Hills:

Resolution 99-60 finding that the 280 acre Town Center site and the surrounding

area meets the State's criteria, determining that "development or redevelopment would not occur solely through private investment in the reasonably foreseeable future" and is "predominantly open and, because of obsolete platting, deterioration of structures or site improvements, or other factors, substantially impair or arrest sound growth of the municipality", and;

This wording shows the intent of the state law governing the creation of TIFs and also shows the extent of “stretching” that local city officials are doing in order to divert tax funds to their pet projects. Like any other situation that threatens their ability to spend tax money, they respond very badly if you question their decisions.

I believe it is wrong for the City of Fort Worth to use such costly tactics to defeat a grass roots effort by citizens. I believe that it is wrong for a City to divert tax funds to pet projects by the use of such TIFs.

As indicated by the wording in the above ordinance that created the TIF for the City of North Richland Hills, Home Town NRH, you would have to think that the land involved in such an area would be a real problem to develop. This was just not so for NRH. The TIF#2 area is prime property and would have developed normally without the TIF. Secondly, according to my understanding of state law, such TIF’s cannot be over 10% residential – again not the case for NRH.

In the City of North Richland Hills, we have the beautiful new Home Town NRH area that now receives all city services such as Fire, Police, Water, Sewer, administration and all other city services compliments of all the other taxpayers in NRH. Only the $230,000 per year that was being paid in city taxes prior to the creation of TIF#2 is now being paid towards city services. This money existed prior to the creation of the TIF and all new tax money is being diverted to other special projects. Let me say this a different way – if you do not live in Home Town NRH, you are paying for the Fire, Police and other city services for all the new residents of Home Town NRH.

Once such a TIF is created, the use of the diverted tax money is controlled solely by a closed board that is not accountable to the voters. Once formed, the only way to stop such a diversion is to either file a suit as the Fort Worth group did – or to elect city council members who will respect and respond to the voters. If anyone chooses to fight NRH, our city attorney, would probably help promote the suit – because only he would win.

I would encourage you to keep your eye on this suit in Fort Worth as it progresses because it shows just how heavy handed non-responsive politicians can be. I would also encourage you to do your own research in NRH on our TIFs. You may not like what you find.

Open responsive government has been the cornerstone of our society. You get this type of government when you research, question, become active and vote. Next May, we will have a chance in NRH to correct our TIF problem without a lawsuit.