HomeMy WebLinkAboutContract 34476�.� � Y �E�RETARY� �
'�:QNTRACT NO.
STATE OF TEXAS §
COUNTY OF TARR.ANT §
TAX ABATEMENT AGREEMENT
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and
between the CITY OF FORT WORTH, TEXAS (the "City"), a home iule municipal
coiporation organized under the laws of the State of Texas and acting by and through Dale
Fisseler, its duly authorized Assistant City Manager; DFW K&H REAL ESTATE, LLC, a Texas
limited liability company acting by and tluough Bai�ry Rubin, its duly authorized Manager; and
AMERICAN AUTO SALVAGE, INC., a Texas coiporation acting by and through Bai7y
Rubin , its duly authorized President .
The City Council of the City of Fort Worth (`�City Council") hereby finds and the parties
hereby agree that the following statements are true and correct and constitute the basis upon which
the parties have entered into this Agreement:
A. On June 13, 2006, the City Council adopted Resolution No. 3363-06-2006, stating
that the City elects to be eligible to participate in tax abatement, as authorized by and in accordance
with the Property Redevelopment and Tax Abatement Act, codified in Chapter 312 of the Texas
Tax Code, as amended (the "Code").
B. On December 20, 2005, the City Council adopted M&C G-15045 and approved a
Relocation Incentives Policy (the "Relocation Incentives Policy") for qualifying businesses that
are displaced and must relocate due to a Major Public Infrastructure Project, as that ter�n is defined
in the Relocation Incentives Policy. Tax abatement is one of the incentives available under the
Relocation Incentives Policy.
C. On July 18, 2006, the City Council adopted Resolution No. 3390-07-2006, finding
that the Trinity River Uptown Project, as defined in Resolution No. 3390-07-2006, is a Major
Public Infrastructure Project and that, therefore, businesses that are displaced and must relocate on
account of the Trinity River Uptown Project are eligible for incentives pursuant to and in
accordance with the Relocation Incentives Policy. .
D. DFW K&H Real Estate, LLC owns the property located at 930 N. Henderson St.
American Auto Salvage, Inc., an entity affiliated with DFW K&H Real Estate, LLC, operates its
business at that location. Both entities been notified by Tar7•ant Regional Water District that they
will be displaced by the Trinity River Uptown Project. Both entities desire to relocate their
oper�ations to property at 2567 Decatur Ave. (the "Land"), as more specifically described in
Exhibit "A", attached hereto and hereby made a part of this Agreement for all puiposes. The
Land is located within that area of the City defined by the Relocation Incentives Policy as Area 1,
which qualifies DFW K&H Real Estate, LLC and Ainerican Auto Salvage, Inc. for tax abatement
under the Relocation Incentives Policy.
Page 1
Tax Abatement Agreement between
City of Fort Worth; DFW IC&H Real Estate, LLC and American Auto Salvage, Inc.
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E. On December 12, 2006, the City Council adopted Ordinance No. 17311-12-2006
(the "Ordinance") establishing Tax Abatement Reinvestment Zone No. 57, City of Fort Worth,
Texas (the "Zone").
F. On October 9, 2006 DFW K&H Real Estate, LLC and American Auto Salvage,
Inc. submitted an application for tax abatement to the City conceining the contemplated use of the
Land (the "Application"), attached hereto as Exhibit "B" and hereby made a part of this
A�eeinent for all puiposes.
G. The contemplated use of the Land, the Required finprovements, as defined in
Section 2, and the terms of this Agreement are consistent with encouraging development of the
Zone and generating economic developinent and increased employment opportunities in the City,
in accordance with the puiposes for creation of the Zone.
H. Written notice that the City intends to enter into this Agreement, along with a copy
of this Agreement, has been furnished in the manner prescribed by the Code to the presiding
officers of the governing bodies of each of the taxing units in which the Land is located.
NOW, THEREFORE, the City, DFW K&H Real Estate, LLC, and American Auto Salvage,
Inc. for and in consideration of the terms and conditions set forth herein, do hereby contract,
covenant and agree as follows:
1. RELATIONSHIP OF THE PARTIES.
For puiposes of this Agreeinent, DFW K&H Real Estate, LLC and American Auto
Salvage, Inc. shall collectively be refei7•ed to as "Company". Any of Company's commitments,
requireinents and other obligations under this Agreement may be satisfied in the aggregate by
either DFW K&H Real Estate, LLC or Ainerican Auto Salvage, Inc., or both. The Abatement
granted hereunder shall vest in the actual owner of the property subject to the Abatement, so long
as that owner is either DFW K&H Real Estate, LLC or American Auto Salvage, Inc.
2. REQUIRED IMPROVEMENTS AND USE OF LAND BY COMPANY .
Company shall construct the improvements described in the Application attached hereto as
Exhibit "B" (the "Required Improvements") in order to relocate its business, American Auto
Salvage, from 930 N. Henderson St. to the Land. Once Company has completed the Required
Improvernents, Company shall notify the City in writing. Such written notice must occur on or
before December 31, 2007 (the "Completion Deadline"). This written notice shall include a
description of any new taxable tangible personal property that was not located in the City prior to
the Effective Date of this Agreement and that has been placed on the Land since the Effective Date
of this Agreement ("New Personal Property"). Following receipt of such written notice, the City
shall proinptly verify whether the Required Improvements have been made and whether the New
Personal Property is on the Land. Upon such vei-ification, the City shall provide. Company with
written confirmation that the Required Improvements were completed (the date of such written
Page 2
Tas Abatement Agreement between
City of Fort Worth; DFW K&H Real Estate, LLC and American Auto Salvage, Inc.
confii-��Zation being the "Completion Date") and a description of the New Personal Property that
has been located on the Land. Following the Completion Date and all times thereafter dui-ing the
Terin of this Agreement, Company shall use the Land, the Required Improvements and the New
Personal Property for the purpose of operating the business concerns of American Auto Salvage,
Inc. The parties hereto agree that such use of the Land is consistent with the gene�•al puipose of
encouraging redevelopment of the Zone during the Term of this Agreement.
3. ABATEMENT AMOUNTS, TERMS AND CONDITIONS.
In return for Company's constiuction of the Required Improvements and use of the Land in
accordance with Section 2 of this Agreement, the City will grant to Company annual property tax
abatements on (i) the Land and any improvements thereon and (ii) any new taxable tangible
personal property located on the Land and that was not located in the City prior to the Effective
Date of this Agreement ("New Personal Property") for a period of eight (8) years, beginning in
the first full year following the Completion Date (collectively, the "Abatement"). The amount of
each annual Abatement granted under this Agreement shall be (i) seventy-five percent (75%) of the
increase in value of the Land and any iinprovements thereon, includin� the Required
Itnprovements, and (ii) seventy-five percent (75%) of the increase in value of the New Personal
Property over their respective values as of January 1, 2006, which is the year in which the parties
entered into this Agreement.
4. TERM.
This A�eement shall take effect on the date as of which both the City and Company have
executed this Agreement and, unless terminated earlier in accordance with its terms and conditions,
shall expire on December 31 of the eighth (8th) full calendar year following the Completion Date
(the "Term").
5. RECORDS, AUDITS AND EVALUATION OF REQUIRED IMPROVEMENTS.
5.1. Inspection of Property.
Between the execution date of this Agreement and the last day of the Term, at any
time during normal office houis throughout the Term and the year following the Term and
following reasonable notice to Company, the City shall have and Compar�y shall provide
access to the Land, any improvements thereon, including the Required Improvements, and
any New Personal Property in order for the City to inspect the Land and evaluate the
Required Iinprovements and the New Personal Property to ensure compliance with the
terms and conditions of this Agreement. Company shall cooperate fully with the City
during any such inspection and/or evaluation. Notwithstanding the foregoing, Company
shall have the right to require that any representative of the City be escorted by Company's
security personnel while on the Land.
Page 3
Tax Abatement Agreement beri�een
City of Fort Worth; DFW I{&H Real Estate, LLC and American Auto Salvage, Inc.
6.
5.2. Compliance Certification by Company.
On or before March 1 of each year following the year in which the Completion
Date occurred, Company shall submit a written certificate to the City as to whether
Coinpany is in compliance with all terms and conditions of this Agreement.
5.3. Audits.
The City shall have the i-ight to audit the financial and busiriess records of
Company that relate to the operation of American Auto Salvage, Inc. on the Land
(collectively, the "Records") at any time during the Term and for one (1) year thereafter
solely in order to verify that the Land is being used for the commercial purposes set forth
in Section 2. Company shall malce all Records available to the City on the Land or at
another location in the City following reasonable advance notice by the City and shall
otherwise cooperate fully with the City during any audit. This Section 5.3 shall suivive
the termination or expiration of this Agreement.
DEFAULT AND TERMINATION.
6.1. Failure to Complete Required Improvements.
If Coinpany fails to notify the City in writing on or before the Completion Deadline
that the Required Improvements have been completed or if the City cannot verify that the
Required Improvements were completed by the Completion Deadline, the City shall have
the right to terminate this Agreement immediately upon provision of written notice to
Company.
6.2. Other Default.
An event of default shall occur under this Agreement if (i) Company fails to use the
Land for the commercial puiposes set forth in Section 2 for more than thirty (30)
consecutive calendar days; (ii) ad valorem taxes on the Land, any improvements thereon or
any personal property located thereon that are owed to the City by Company become
delinquent and Company does not timely and properly follow the legal procedures for
protest and/or contest of any such ad valorem real property or tangible personal property
taxes; or (iii) Company breaches any other term or condition of this Agreement. If the City
deteimines that an event of default has occurred pursuant to this Section 6.2, the City shall
provide a wi-itten notice to Company that describes the nature of the default. Company
shall have thii-ty (30) calendar days from the date of receipt of this wi-itten notice to fully
cure or have cured the default. If Company reasonably believes that Company will
require additional time to cure the default, Company shall promptly notify the City in
writing, in which case (i) after advising the City Council in an open meeting of
Company's efforts and intent to cure, Company shall have ninety (90) calendar days fi•om
the original date of receipt of the written notice to cure the default, or (ii) if Company
reasonably believes that Company will require more than ninety (90) days to cure the
Page 4
Tax Abatement Agreement between
City of Fort Worth; DFW K&H Real Estate, LLC and Auiei•ican Auto Salvage, Inc.
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default, after advising the City Council in an open meeting of Company's efforts and
intent to cure, such additional tiine, if any, as inay be offered by the City Council in its
sole discretion. Notwithstanding anything to the contrary herein, if Company has been
default under this Agreement for failure to use the Land fo2• the commercial puiposes set
foi-th in Section 2 for more than thirty (30) consecutive calendar days on two (2) previous
occasions during the Term of this Agreement, the City may terminate this Agreement
upon provision of written notice to Company after the third such default without the
obligation to provide Company the right to cure as provided above. In the event this
Agreement is terminated pursuant to this Section 6.2, there shall be no recapture of any
taxes abated prior to the effective date of termination.
6.3. Termination at Will.
Company inay terminate this Agreement at any time by providing written notice of
such intent to the City. In this event, (i) if the Term has commenced, the Term shall expire
as of the effective date of the termination of this Agreement; (ii) there shall be no recapture
of any taxes abated prior to the effective date of termination; and (iii) neither party shall
have any further rights or obligations hereunder.
EFFECT OF SALE OF LAND, REQUIRED IMPROVEMENTS AND/OR
PERSONAL PROPERTY.
The Abatement granted hereunder shall vest only in DFW K&H Real Estate, Inc. or
Ainerican Auto Salvage, Inc., whichever entity is the owner of the propei-ty subject to Abatement
hereunder, and cannot be assigned to a new owner of all or any portion of the Land, the Required
Iinprovements and/or the New Personal Property.
8. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the
following, or such other party or address as either party designates in writing, by certified mail,
postage prepaid, or by hand delivery:
City:
City of Fort Worth
Attn: City Manager
1000 Throckmorton
Fort Worth, TX 76102
with copies to:
the City Attorney and
Economic/Community Development
Director at the same address '
Page 5
Tax Abatement Agreement between
City of Fort Woith; DFW K&H Real Estate, LLC and American Auto Salvage, Inc.
DFW K&H Real Estate, LLC:
Attn: Barry Rubin
928 N Henderson
Ft Worth, Tx. 76107
American Auto Salvage, Inc.:
Attn: Barry Rubin
928 N Henderson
Ft. Worth, Tx. 76107
9. COMPLIANCE WITH LAWS, ORDINANCES, RULES AND REGULATIONS;
ALL GRANTS SUBJECT TO APPROPRIATION.
This Agreement will be subject to all applicable federal, state and local laws, ordinances,
rules and regulations, including, but not limited to, all provisions of the City's Charter and
ordinances, as amended.
10. GOVERNMENTAL POWERS.
It is understood that by execution of this Agreement, the City does not waive or surrender
any of it governmental powers or immunities.
11. NO WAIVER.
The failure of either party to insist upon the performance of any term or provision of this
Agreement or to exercise any right granted hereunder shall not constitute a waiver of that party's
right to insist upon appropriate performance or to assert any such right on any future occasion.
12. VENUE AND JURISDICTION.
If any action, whether or not real or asserted, at law or in equity, arises on the basis of any
provision of this Agreement, venue for such action shall lie in state courts located in Tarrant
County, Texas or the United States Court for the Northern District of Texas — Fort Worth Division.
This Agreement shall be construed in accordance with the laws of the State of Texas.
Page 6
Tax Abateinent Agreement between
City of Fort Worth; DFW Kce:H Real Estate, LLC and American Auto Salvage, Inc.
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13. NO THIRD PARTY RIGHTS.
The provisions of this Agreement are solely for the benefit of the City and Company, and
are not intended to create any rights, contractual or otherwise, in any other person or entity.
14. FORCE MAJEURE.
It is expressly understood and agreed that if the performance by either party of any
obligation hereunder is delayed by reason of Force Majeure, the time period applicable to
perfoi-mance of such obligation shall be extended for a period of time equal to the period of the
specific event of Force Majeure.
15. INTERPRETATION.
In the event of any dispute over the meaning or application of any provision of this
Agreement, this Agreement shall be inteipreted fairly and reasonably, and neither more strongly
for or against either party, regardless of the actual drafter of this Agreement. In the event of any
conflict between the City's zoning o�•dinances, or other City ordinances and regulations, and this
Agreement, such ordinances or regulations shall control.
16. BONDHOLDER RIGHTS.
The Required Improvements will not be financed by tax increment bonds. This Agreement
is subject to the rights of holders of outstanding bonds of the City.
17. CONFLICTS OF INTEREST.
Neither the Land nor any of the Required Improvements covered by this Ag7�eement are
owned or leased by any member of the City Council, any member of the City Plan or Zoning
Corrunission or any member of the governing body of any taxing unit with jurisdiction in the Zone.
18. CAPTIONS.
Captions and headings used in this Agreement are for reference purposes only and shall not
be deeined a part of this Agreement. .
Page 7
Tax Abatement Agreement between
City of Fort Worth; DFW K&H Real Estate, LLC and American Auto Salvage, Inc.
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19. ENTIRETY OF AGREEMENT.
This Agreement, including any exhibits attached hereto and any documents incoiporated
herein by reference, contains the entire understanding and agreement between the parties hereto as
to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby
declared null and void to the extent in conflict with any provision of this Agreement. This
Agreement shall not be amended unless executed in writing by both parties and approved by the
City Council.
20. COUNTERPARTS.
This Agreement may be executed in multiple counteiparts, each of which shall be
considered an original, but all of which shall constitute one insti-ument.
IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed
as of the later date below:
CITY OF FORT WORTH:
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By: �'�
Dale Fisseler
Assistant City Manager
Date: �oZ � � ���
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ATTEST:
By: % l �i, � � ,�7�-Q-�_=
i��,��_ City , cretary
APPROVED AS TO FORM AND LEGALITY:
� CC�r�/p� '
By.
-�P4?� �/dV � � �'�
� City Atto
M&C: �":��`�D6� 1�I���I_�
Page 8
Tax Abatement Agreement between
City of Foi�t Worth; DFW K&H Real Estate, LLC and American Auto Salvage, Inc.
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DFW K&H REAL ESTATE, LLC:
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By: �' _ _.
Bai7•y Rubin
Manager
Date: December 28 2006
ATTEST:
By: �������� � �`��
AMERICAN AUTO SALVAGE, INC.: ATTEST:
By, s- By, �`t.� �tr__� �� }�,� .� -_1�
Ncrme: cri•r � Rubii�.
Title: Pr�esideizt
Date:December 28 2006
Page 9
Tax Abatement Agreement between
City of Foirt Wortl�; DFW K&H Real Estate, LLC and Ameriean Auto Salvage, Inc.
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STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Dale Fisseler,
Acting Assistarit City Manager of the CITY OF FORT WORTH, a municipal coiporation
organized under the laws of the State of Texas, known to me to be the person and officer whose
name is subsci-ibed to the foregoing instrument, and acknowledged to me that the same was the act
of the CITY OF FORT WORTH, that he was duly authorized to perfonn the same by appropriate
resolution of the City Council of the City of Fort Worth and that he executed the same as the act of
the CITY OF FORT WORTH for the purposes and consideration therein expressed and in the
capacity therein stated.
�
� GIVEN LTNDER MY HAND AND SEAL OF OFFICE this �� day of
� , 2006.
' ���
Notary P lic in and for
the Sta� Texas
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Notary's Printed Name
v'r��)�:,j � �`�,�y �,�,,,
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STATE OF TEXAS
COUNTY OF TARRANT
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BEFORE ME, the undersigned authority, on this day personally appeared Sariy Rubin,
Manager of DFW K&H REAL ESTATE, LLC, lcnown to me to be the person whose name is
subscribed to the foregoing instruinent, and acknowledged to me that s/he executed the same for
the puiposes and consideration therein expressed, in the capacity therein stated and as the act and
deed of DFW K&H REAL ESTATE, LLC.
GIVEN �DER MY HAND AND
of � � c" -e-=�--; �-�-- , 2006.
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C� ublic in and for
the State of �-�'�-� S '"
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Notary's Printed Name
STATE OF TEXAS
COUNTY OF TARRANT
SEAL OF OFFICE this �� �f day
� .,, � CREIG COLLIER TOWERY
�i �, Notary Public, State oiTexas
��; o � My Commission Expires
4•11-2009
BEFORE ME, the undersigned authority, on this day personally appeared _Sariy Rubin
President , of AMERICAN AUTO SALVAGE, INC., known to me
to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me
that he executed the same for the puiposes and consideration therein expressed, in the capacity
therein stated and as the act and deed of AMERICAN AUTO SALVAGE, INC.
�GIVEN DER MY HAND AND SEAL OF OFFICE this �� � day
of � , J � � ���:�,-_ , 2006.
�i�kSTic�ri and for /
State of �.-C�� '
�� 11��' Ci � / 11 LJi� /
Notary's Printed Naine
CREIG COLLIER TOWERY
. , Notary Public, State of Texas
, ,. My Commission Expires
4•11-2009
EXHIBITS
"A" — Map and Legal Description of the Land
"B" — Relocation Incentives Application
EXHIBIT "A"
MAP AND DESCRIPTION OF THE LAND
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f7�e r��'�(;
�!�e _ tr,erls; sv�th 1h� sa:ct cx�rv€� 1_� ft�� rig'rN, ihrr�;�c�tr a cer„r�? �ngic of t2-t�P P=t'. h�vir�� a raGh�s Uf 55QG�0 f�ef .�tt�! �r r•�ffr»t� b_�titTg ��1t1
aistanr.c cf No,�'h GG't76' 19" Vl�est, t fS.G'2 (eet, an �rc distan:;e �f f�5.�� fest to � 5I�" iron red :s�! tis�itt� a�tastic ��;� st�mped "KH.t�' fvr
cc,nz�r rr tre westei,y� li�e of ths 17'.8 f�a acre ir. ct�
iNFN�F. �vith th� �tiesierly ilne ��f sair! 17.Fsa.3 �,c:rc ?racf, th� f�llowinc� caurses and distances ta is�it:
--N�,rtr; f7°K`��t 7" Ea , a dr'st�nc�F o{37, 3� feet ta � 1/Z" �rnn pip� found in cencr�,e tare.orraer,
--�'r� �h 0&"�8 u^3" 4ac�, ��is�an�F oi 2o,�.2i feet i� a f/�' iron rod fnund far tr:e ma&t avesteriy� cam�r z�f ,�It�:k 2 oaFCJJ?7 Vd(7Fq�N
�'i`C]t.f< YA1;L�S CCJha'�AIJY';
7W�'1dCE ..ent7ntlrn�7 ts�,'�r ihr: ��io' tvssferi;r JieTe oflhe 7 r.8�.3 �ere tr�jct �;tc� tttc. w c.'cferiy" itr7€s Ul L3/Ock i o* �Cll� i:NQ,STH �rc�C1�
) Af?J� �UN7i'fiNY', tn� tqilozrrr�g c•�urses �r7d u'istar;c�s �� t.it.
••Nr? , t, 1 t, `�2;i �"��s;, � dist�r?�:r �f t(3�. i�2 %et tn a iE?" i; c�n rc,d taLyr7rf !�r if1� 6�Ji.ni�r`n;�� af a curv� f� th� Isft;
_�l�'anhc>rty; ivith the s�id c�rn�e !�� th� Peit, f.hrau�rh » r.ar.t .�i �nglr. a; 1s'°25'S3'; h�vi�� a rad;us vf ?935.0� fe��.:�nd a cit�r�' cu-�arin� �ra�1
c?is,ance cP tVc.�FI� �1;? rH 39„ E��:�. ��3G.tJ9 i�et, =�n arc Jiste-+nae� cf �fFsf.38 fact to a Slis" irorr ro� set svilh a plast;c r.ap star�peci 't<Hrl"�a;
f"�e rt>rihu��s, ^Gmc��r o; thc= s_tr"ci �7. &f3 �cre #t�_�t �ttd the sn�thwest cnrner af ttte 9.�4 �cre !rae. :f l�nd d�s ;�;f.�c+ ir7 �'es�;'I t�5 ���d i;f;�rth
Grai�1 & �.�t*ort L'x::hz�nc7n, rsc�ar.tEd irr'�folurrt4 2�Fi� Pag� 2G8 of the CJeed f2�Cords af T�r!ant Cuurrty, T�xas;
1'HCNCE ttir?h th� con.r�ton li��e nl idte saicY ie�cts. ��uti� �C]°t3�`UG" �a.�t � drstarl;:� t�f 2!��3.4fi f�nt #n,.a 1�f3" ircin rnrl set v�ith a c^.iastir. eap
Mtr�rr,pe�i "Y�t-I.4"±ra !he svesteriy r�y`rf-c�,`-r»y!!f>� ot C.�icaf��rA�en�.e (a v�nahie nn;h public t?CJt <'J fo,� the nortl,�z3st rornc�:�f Lh� i7.t�Ft:�
E�cre ±�a.�;,
7'NEM1I�� :^r,'; � tn� ssi�f :�es!arlyr+3hr-of•V�ay line ofsaid Csecr�t«r�vr�nU�e, �he follc�;•;ir;g c;ourars �3na disia`tt��s t�, �v'it:
�.�n.: th f?��`53:�[�„ �:�sk ���i�tan,^€� c�f 50, _5;i fr �t tt� a,�a;nt np� r a tele�s?�t�ne ri�er f�r cc�rnzr,
--Ncr�th GD'OJ`(3G" 6Nest � distanc,� vf 1R.tJ'T f��f ta �r ?t.?" rr��+rod fotrn� �`or� cornei;
-=3�uiir C+6",37'i�C)° East ��?sPan�e �f ��7_Ei3 f�eT tG � 7/Z" irAn rp� fRund fo� Gc�rnrt:
—>c�;i.h �1'S2'_RC)^ l�i+es% a d�st;ance of �c?.79 T�et 1a �'r:2" irc�n rati fcu��c+ fur r�rn�r;
—Sccaih €�J`L, r�G�" ��st, a frrst.��t�e uf i O.GU ie�! fv a ii� °' irvn Yud (otlfat� Ior cumer,
_-Svuih t�? °4�3,3?''rYe�L ��ista,^r? a�f 6��d.5� teat f� ihe PQIIJT OF BF�(NNfA'� znd CGnt�ininq 16,+39T� a�res ai tan�.
Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/19/2006
DATE: Tuesday, December 19, 2006
LOG NAME: 17AMERICANAUTO
REFERENCE NO.: C-21908
SUBJECT:
Authorize Execution of a Tax Abatement Agreement with DFW K&H Real Estate, LLC, and
American Auto Salvage, Inc., and Related Findings of Fact by the City Council
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute the attached Tax Abatement Agreement with DFW K&H Real
Estate LLC, and American Auto Salvage, Inc.; and
2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with DFW
K&H Real Estate, LLC, and American Auto Salvage, Inc., are true and correct.
DISCUSSION:
The real property subject to abatement in the attached Tax Abatement Agreement with DFW K&H Real
Estate, LLC, and American Auto Salvage, Inc., (together, the Company) is located at 2567 Decatur Avenue
in north Fort Worth. The City Council designated this property as Tax Abatement Reinvestment Zone
Number 57, City of Fort Worth, Texas. This reinvestment zone is located in COUNCIL DISTRICT 2.
The Company currently operates at 930 North Henderson Street and is being displaced due to the Trinity
River Uptown Project and applied for incentives under the City's Relocation Incentives Policy approved by
M&C-G 15045 (the Policy). Under the Policy, businesses that are displaced and must relocate due to a
Major Public Infrastructure Project would be eligible for incentives as outlined in the policy guidelines. The
level of incentive is dictated by locating in one of the three target areas outlined in the Policy. The City
Council has designated the Trinity River Uptown Project as a Major Public Infrastructure Project (Resolution
No. 3390-07-2006).
As a result of the displacement, the Company will relocate to the Decatur Avenue site and construct a
160,000 square foot salvage facility. The proposed project's minimum construction cost is estimated at
$500,000 with a total investment of $1,350,000.
Under the Tax Abatement Agreement and in accordance with the Policy guidelines, the Company will
receive an eight-year tax abatement on real and personal property with a maximum abatement of 75 per
cent annually. The projected value of the tax abatement over the eight year period is approximately
$21,300.
The term of the abatement will begin on January 1, of the year following the calendar year in which the
required improvements were completed and unless sooner terminated, shall end on December 31,
immediately preceding the eighth anniversary of the beginning date.
2/1/2007
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on City funds.
TO Fund/Account/Centers
Submitted for City Manager's Office bv:
Originating Department Head:
Additional Information Contact:
FROM Fund/Account/Centers
Dale Fisseler (6140)
Tom Higgins (6192)
Robert Sturns (8634)
Page 2 of 2
httn://www.cfwnet.or�/council backetlReports/mc print.asp 2/1/2007