HomeMy WebLinkAboutContract 37067STATE OF TEXAS §
COUNTY OF TARRANT §
TAX ABATEMENT AGREEMENT
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and
between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal
corporation organized under the laws of the State of Texas, and HEALTH CARE SERVICE
CORPORATION, A MUTUAL LEGAL RESERVE COMPANY, a corporation organized
under the laws of the State of Illinois that is authorized to do business in the State of Texas as
BLUE CROSS BLUE SHIELD OF TEXAS ("Company").
The City Council of the City of Fort Worth ("City Council") hereby finds and the City and
Company hereby agree that the following statements are true and correct and constitute the basis
upon which the City and Company have entered into this Agreement:
A. On June 13, 2006, the City Council adopted Resolution No. 3363-06-2006, as
amended by Resolution No. 342340-06, stating that the City elects to be eligible to participate in
tax abatement and including guidelines and criteria governing tax abatement agreements entered
into between the City and various third parties, entitled "Tax Abatement Policy Statement for
Qualifying Development Projects" (the "Policy"), which is attached hereto as Exhibit "A" and
hereby made a part of this Agreement for all purposes.
B. The Policy contains appropriate guidelines and criteria governing tax abatement
agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax Code,
as amended (the "Code").
C. On February 19, 2008, the City Council adopted Ordinance No. 17994-02-2008
(the "Ordinance") establishing Tax Abatement Reinvestment Zone No. 67, City of Fort Worth,
Texas (the "Zone").
D. Company owns or is under contract to purchase approximately 53 acres of real
property within the Zone. Contingent on receipt of the tax abatement herein, Company intends to
construct an approximately 220,000 square foot data center, as more specifically described in
Exhibit "B" (the "Required Improvements") on that portion of the Zone that is more particularly
described in Exhibit "C" (the "Land"), with room for future expansion on the remaining property
in the Zone that is owned by Company. Exhibits "B" and "C" are attached hereto and are hereby
made a part of this Agreement for all purposes.
E. On February 4, 2008 Company submitted an application for tax abatement to the
City concerning the contemplated use of the Land (the "Application"), attached hereto as Exhibit
"D" and hereby made a part of this Agreement for all purposes.
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F. The contemplated use of the Land, the Required Improvements, and the terms of
this Agreement are consistent with encouraging development of the Zone and generating
economic development and increased employment opportunities in the City, in accordance with
the purposes for creation of the Zone, and are in compliance with the Policy Statement, the
Ordinance and other applicable laws, ordinances, rules and regulations.
G. The terms of this Agreement, and the Land and Required Improvements, satisfy the
eligibility criteria of the Policy. Specifically, Company is eligible for commercial/industrial tax
abatement pursuant to Section 4.3 of the Policy.
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 and Company, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
1. COMPANY'S COVENANTS.
1.1. Real Property Improvements.
Company shall expend a minimum of One Hundred Fifty-five Million Dollars
($155,000,000.00) in Construction Costs to construct the Required Improvements. For
purposes of this Agreement, "Construction Costs" shall mean the following expenditures
directly associated with construction of the Required Improvements: site development and
construction costs, contractor fees and the costs of supplies and materials; engineering fees;
architectural fees; and other professional, development and permitting fees.
1.2. Completion Date of Required Improvements.
The Required Improvements shall be deemed complete on the date as of which the
City has issued a final certificate of occupancy for all Required Improvements (the
"Completion Date"). Company covenants and agrees that the Completion Date shall
occur by April 1, 2010, unless delayed because of Force Majeure, in which case this
deadline shall be extended by the number of days comprising the specific Force Majeure
the "Completion Deadline"). For purposes of this Agreement, "Force Majeure" shall
mean an event beyond Company's reasonable control, including, without limitation, acts of
God, fires, strikes, national disasters, wars, terrorism, riots, material or labor restrictions,
and unreasonable delays by the City in issuing any permits with respect to the Required
Improvements or inspecting any of the Required Improvements (taking into account the
City's then -current workload with respect to the issuance of permits or the conducting of
inspections), but shall not include construction delays caused due to purely financial
matters involving Company, such as, without limi mtation, delays in the obtaining of adequate
financing.
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1.3. Installation of Tangible Personal Property.
Company covenants and agrees that New Taxable Tangible Personal Property
having a value of at least Twenty Million Dollars ($20,000,000.00) shall be in place on the
.and on or before the Completion Deadline. For purposes of this Agreement, "New
Taxable Tangible Personal Property" means any personal property that (i) is subject to
ad valorem taxation by the City; (ii) is located on the Land; (iii) is owned or leased by
Company or an Affiliate to whom a portion of the Abatement granted hereunder has been
assigned in accordance with Section 5; and (iv) was not located in the City prior to the
Effective Date of this Agreement.
1.4. Use of Land and Required Improvements.
Company covenants that the Required Improvements shall be constructed and the
Land shall be used in accordance with the description set forth in Exhibit "B". In
addition, Company covenants that throughout the Term, the Required Improvements shall
be operated and maintained for the purposes set forth in this Agreement and in a manner
that is consistent with the general purposes of encouraging development or
redevelopment of the Zone.
2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS.
Subject to and in accordance with this Agreement, the City will grant to Company annual
property tax abatements during the ten (10)-year Abatement Term, as defined in Section 2.4, on
(i) the Land and any improvements located on the Land and (ii) New Taxable Tangible Personal
Property located on the Land (collectively, the "Abatement"). The actual amount of the
Abatement granted under this Agreement shall be based upon the increase in value of the Land,
the increase in value of improvements located on the Land, and the increase in value of New
Taxable Tangible Personal Property located on the Land over their respective values as of
January 1, 2008, which is the year in which this Agreement was entered into, and upon
attainment of certain construction contracting benchmarks, all as more specifically set forth in
this Section 2.
2.1. Amount of Abatement.
Subject to Sections 2.2 and 4 of this Agreement, during each year of the
Abatement Term, the Abatement granted hereunder may range up to a maximum of fifty
percent (50%) of the increased value of the Land, fifty percent (50%) of the increased
value of improvements on the Land, and fifty percent (50%) of the increased value of
New Taxable Tangible Personal Property located on the Land, and shall be calculated as
follows:
2.1.1. Abatement Based on Construction Expenditures and Personal
Property Investment (40%).
Company shall receive a forty percent (40%) Abatement in each year of
the Abatement Term, as defined in Section 2.4, if (i) the Completion Date occurs
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nor before the Completion Deadline, (ii) at least One Hundred Fifty-five Million
Dollars ($155,000,000.00) in Construction Costs have been expended on the
Required Improvements as of the Completion Date; and (iii) New Taxable
Tangible Personal Property having a value of at least Twenty Million Dollars
($20,000,000,00) has been placed on the Land on or before the Completion
Deadline. If the Completion Date does not occur by the Completion Deadline or
if by the Completion Date less than One Hundred Fifty-five Million Dollars
($155,000,000.00) in Construction Costs have been expended on the Required
Improvements or if New Taxable Tangible Personal Property having a value of at
least Twenty Million Dollars ($20,000,000.00) has not been placed on the Land by
the Completion Deadline, not only will Company be ineligible to receive the forty
percent (40%) Abatement under this Section 2.1.1, but an Event of Default, as
defined and addressed in Section 4, shall also occur.
2.1.2. Abatement Based on Construction Spending with Fort Worth
Certified M/WBE Companies (Up to 5%).
Company shall receive a five percent (5%) Abatement in each year of the
Abatement Term, as defined in Section 2.4, if by the Completion Date at least the
greater of (i) twenty-five percent (25%) of all Non -Specialized Construction
Costs for the Required Improvements, regardless of the total amount of such Non.
specialized Construction Costs, or (ii) Eight Million Seven Hundred Fifty
Thousand Dollars ($8,750,000.00) in Non -Specialized Construction Costs for the
Required Improvements have been expended with Fort Worth Certified M/WBE
Companies (the "M/WBE Construction Commitment"). For purposes of this
Agreement, "Non -Specialized Construction Costs" means actual site
development and hard construction costs, and related contractor fees and costs of
supplies and materials, but excludes any Construction Costs for fire safety
systems, heating systems, ventilation systems, electrical system, telephone and
data systems, audiovisual systems, precast concrete, and security systems. For
purposes of this Agreement, "Fort Worth Certified M/WBE Company" means
a minority or woman -owned business that (i) has received certification as a
minority business enterprise (MBE), a woman business enterprise (WBE) or a
disadvantaged business enterprise (DBE) by the North Central Texas Regional
Certification Agency (NCTRCA), and (ii) has a principal office located within the
corporate limits of the City that performs a commercially useful function, and (iii)
that provided from such office the services or sales that Company is seeking to have
counted as Non -Specialized Construction Costs for purposes of the M/WBE
Construction Commitment. If the M/WBE Construction Commitment is not met,
the percentage of Abatement granted pursuant to this Section 2.1.2 shall be
reduced to equal the product of five percent (5%) multiplied by the percentage by
which the M/WBE Construction Commitment was met. For example, if $40
million in Non -Specialized Construction Costs were expended for the Required
Improvements (meaning that the M/WBE Construction Commitment would be
$10 million), and only $8 million in Non -Specialized Construction Costs were
expended with Fort Worth Certified M/WBE Companies, the percentage of
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Abatement granted pursuant to this Section 2.1.2 would be reduced from 5% to
4% (or .05 x $8 million/$10 million, or .05 x .8, or .04).
2.1.3. Abatement use on Additional Construction Spending with Fort
Worth Certified M/WBE Companies (Up to 5%) .
Company shall receive a one percent (1 %) Abatement in each year of the
Abatement Term, as defined in Section 2.4, for each One Million Dollars
($1,000,000.00) in which Company exceeds the M/WBE Construction Spending
Commitment, up to a maximum additional Abatement of five percent (5%). For
example, if $40 million in Non -Specialized Construction Costs were expended for
the Required Improvements (meaning that the M/WBE Construction Commitment
would be $10 million), and $12 million in Non -Specialized Construction Costs
were expended with Fort Worth Certified M/WBE Companies, Company would
receive a 2% Abatement pursuant to this Section 2.1.3; if $16 million in Non-
specialized Construction Costs were expended with Fort Worth Certified M/WBE
Companies, Company would receive a 5% Abatement pursuant to this Section
2.1.3. In no event shall the percentage of Abatement earned pursuant to this
Section 2.1.3 exceed five percent (5%).
2.1.4. Determination of Abatement Percentage.
Within sixty (60) calendar days following receipt by the City of (i) the final
construction spending report for the Required Improvements, as required by
Section 3.5.3, and (ii) the personal property report, as required by Section 3.5.4, and
assessment by the City of the information contained in such reports, the City shall
make a decision and rule on the actual annual percentage of Abatement available to
Company in each year of the Abatement Term based on the information contained
i a such report, the City's audit of the Records, and any inspections of the Land and
the Required Improvements, and shall notify Company in writing of such decision
and ruling (the "Certificate of Completion"). If Company reasonably disagrees
with the City's decision and ruling as set forth in the Certificate of Completion,
Company shall notify the City in writing within fourteen (14) calendar days
following receipt of the City's notification, in which case Company, at Company's
sole cost and expense, may within thirty (30) calendar days following provision of
such notice request an independent outside auditor who is reasonably acceptable to
the City to verify the findings of the City. If any discrepancies are found, the City,
Company, and the third party auditor shall cooperate with one another to resolve
the discrepancy. If resolution cannot be achieved, the matter may be taken to the
City Council for consideration in an open public meeting at which both City staff
and Company's representatives will be given an opportunity to comment, following
which the City Council shall make a ruling, which ruling shall be final.
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2.2. Abatement Limitation.
Notwithstanding anything that may be interpreted to the contrary in this
Agreement, Company's Abatement in any given year of the Abatement Term shall be
based (i) on the increase in the real property value of the Land and any improvements on
the Land since January 1, 2008, up to a maximum increase of Two Hundred Seventy-
seven Million Five Hundred Thousand Dollars ($277,500,000.00) and (ii) on the increase
in the value of New Taxable Tangible Personal Property located on the Land since
January 1, 2008, up to a maximum increase of One Hundred Ninety -Seven Million Four
Hundred Thousand Dollars ($197,400,000.00). In other words, with regard to the real
property tax Abatement, in any year in which the taxable value of the Land and the
improvements on the Land exceeds (i) the value of the Land and the improvements on the
Land, if any, as of January 1, 2008 plus (ii) $277,500,000.00, Company's real property
tax Abatement for that tax year shall be capped and calculated as if the increase in the
value of the Land and improvements on the Land since January 1, 2008 had only been
$277,5001000.00. For example, and as an example only, if in a given year of the
Abatement Term the value of the Land and improvements on the Land is
$280,000,000.00 over their value as of January 1, 2008, Company would receive a
maximum real property tax Abatement of fifty percent (50%) of $277,500,.000.00 for that
year and would pay full taxes on the $2,500,000.00 difference over the cap. Along the
same lines, if the value of New Taxable Tangible Personal Property located on the Land
in a given year of the Abatement Term is $199,000,000.00 over the value of that Property
as of January 1, 2008, Company would receive a maximum personal property tax
Abatement of fifty percent (50%) of $197,400,000.00 for that year and would pay full
taxes on the $1,600,000.00 difference over the cap.
2.3. Protests Over Appraisals or Assessments.
Company shall have the right to protest and contest any or all appraisals or
assessments of the Land and/or improvements or taxable tangible personal property
thereon.
2.4. Terms.
This Agreement shall take effect on the date as of which both the City and
Company have executed this Agreement (the "Effective IDate") and, unless terminated
earlier in accordance with its terms and conditions, shall expire simultaneously upon
expiration of the Abatement Term, as defined below (the "Term"). The term during
which Company may receive an Abatement shall commence on January 1 of the tax year
following the year as of which both the Completion Date has occurred and the City's
verification that at least Twenty Million Dollars ($20,000,000.00) of New Taxable
Tangible Personal Property is in place on the Land and shall expire on December 31 of
the tenth (1 Oth) year thereafter (the "Abatement Term").
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2.5. Abatement Application Fee.
The City acknowledges receipt from Company of the required Application fee of
one percent (1%) of the estimated Construction Costs of the Required Improvements, not to
exceed $15,000. If Company diligently begins or causes to begin construction of the
Required Improvements on the Land within one (1) year from the date of the Application,
this Application fee shall be creditable in full to the benefit of Company against any permit,
impact, inspection or other lawful fee required by the City in connection with the Required
Improvements, and any remaining amounts shall be refunded to Company.
3. ADDITIONAL GOALS; RECORDS, AUDITS, AND EVALUATION OF
REQUIRED IMPROVEMENTS.
3.1. Employment Goals.
From and after the Completion Date, Company agrees to use commercially
reasonable efforts to provide and fill at least eighty-five (85) Full-time Jobs on the Land
and to provide and fill at least twenty percent (20%) of all Full-time Jobs on the Land,
regardless of the number of such Full-time Jobs, with individuals residing at a location
within the corporate limits of the City (collectively, the "Employment Goals"). For
purposes of this Agreement, "Full-time Job" means a job held by one (1) individual for a
period of not less than forty (40) hours per week. Determination of attainment of the
Employment Goals shall be based on Company's employment data on August 1 (or such
other date as may mutually be acceptable to both the City and Company) of each year in
which the Employment Goals are in effect.
3.2. Goal for Supply and Service Spending.
From and after the Completion Date, Company agrees to use commercially
reasonable efforts to expend at least twenty-five percent (25%) of all local discretionary
funds expended for supplies and services directly in connection with the operation or
maintenance of the Required Improvements, excluding amounts paid for electric, gas,
water, and any other utility services ("Supply and Service Expenditures") with Fort
Worth Certified NVVv'BE Companies (the "M/WBE Supply and Service Spending
Goal").
3.3. Inspection of the Land and Required Improvements.
At any time during normal office hours throughout the Term and following
reasonable notice to Company, the City shall have and Company shall provide or cause
provision of access to the Land and any improvements thereon, including the Required
Improvements, in order for the City to inspect the Land and evaluate the Required
Improvements to ensure compliance with the terms and conditions of this Agreement.
Company shall cause full cooperation with the City during any such inspection and/or
evaluation. Notwithstanding the foregoing, Company shall have the right to require that
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any representative of the City be escorted by Company's security personnel while on the
Land.
3.4. Audits.
Until one (1) year following issuance by the City of the Certificate of Completion
in accordance with Section 2.1.4, the City shall have the right to audit the financial and
business records of Company and any of its Affiliates (as defined in Section 5) that relate
to the Required Improvements and this Agreement (collectively, the "Records") at any
time during the Term in order to determine compliance with this Agreement and to
calculate the correct percentage of Abatement available hereunder. Company shall make
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.
3.5. Reports and Filings.
3.5.1. Plan for Use of Fort Worth Certified M/WBE Companies.
Within thirty (30) calendar days following execution of this Agreement,
Company will file a plan with the City as to how the M/WBE Construction
Commitment and the M/WBE Supply and Service Spending Goal will be attained.
Company agrees to meet with the City's M/WBE Office as reasonably necessary
for assistance in implementing such plan and to address any concerns that the City
may have with such plan.
3.5.2. Monthly M/WBE Construction Spending Reports.
From the date of issuance of the first building permit for the Required
Improvements until the Completion Date, in order to enable the City to assist
Company in meeting the M/WBE Construction Commitment, Company will
provide the City with a monthly report in a form reasonably acceptable to the City
that specifically outlines the then -current aggregate Non -Specialized Construction
Costs expended by and on behalf of Company with Fort Worth Certified M/WBE
Companies for the Required Improvements.
3.5.3. Final Construction Spending Report.
Within sixty (60) calendar days following the Completion Date, Company
will provide the City with a report in a form reasonably acceptable to the City that
specifically outlines the Construction Costs and Non -Specialized Construction
Costs expended by and on behalf of Company for the Required Improvements,
together with supporting invoices and other documents necessary to demonstrate
that such amounts were actually paid, including, without limitation, final lien
waivers signed by Company's general contractor. This report shall also include
ti 'I = ! actual Non -Specialized Construction Costs expended by and on behalf of Company
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for the Required Improvements with Fort Worth Certified M/WBE Companies,
together with supporting invoices and other documents necessary to demonstrate
that such amounts were actually paid to such contractors.
3.5.4. Personal Property Report.
Once New Taxable Tangible Personal Property having a value of at least
Twenty Million Dollars ($20,000,000.00) has been placed on the Land, Company
will provide the City with a report in a form reasonably acceptable to the City that
specifically itemizes and lists the purchase prices for such New Taxable Tangible
Personal Property, together with supporting invoices and other documents
necessary to demonstrate that such amounts were actually paid. This report must be
delivered to the City on or before the Completion Deadline.
3.5.5. Annual Employment Report.
In order to determine whether Company attained the Employment Goals in
a given year, on or before December 31 of the year in which the Completion Date
occurs and of each year of the Term thereafter, Company shall provide the City
with a report in a form reasonably acceptable to the City that sets forth (i) the total
number of individuals who held Full-time Jobs on the Land and (ii) the total
number of individuals residing within the corporate limits of the City who held
Full-time Jobs on the Land, all as of August 1 (or such other date as (or such other
date as may mutually be acceptable to both the City and Company) of that year,
together with reasonable documentation regarding the residency of such employees.
If all Employment Goals were not attained in that year, the report shall also include
a statement as to what efforts Company undertook in that year to meet all
Employment Goals and what steps Company intends to take in order to meet all
Employment Goals in the following year.
3.5.6. Annual M/WBE Supply and Service Spending Report.
In order to determine whether Company attained the M/WBE Supply and
Service Spending Goal in a given year, on or before December 31 of the year in
which the Completion Date occurs and of each year of the Term thereafter,
Company will provide a report to the City in a form reasonably acceptable to the
City that specifically outlines the Supply and Service Expenditures made in the
same calendar year with Fort Worth Certified M/WBE Companies. If the M/WBE
Supply and Service Spending Goal was not attained in that year, the report shall
also include a statement as to what efforts Company undertook to make Supply and
Service Expenditures with Fort Worth Certified M/WBE Companies in that year
and what steps Company intends to take in order to attain the M/WBE Supply and
Service Spending Goal in the following year. Company agrees to meet with the
City's M/WBE Office as reasonably necessary to address any concerns arising from
the report.
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3.5.7. General.
Company shall supply or cause to be supplied any additional information
requested by the City that is pertinent to the City's evaluation of compliance with
each of the terms and conditions of this Agreement. Failure to provide all
information required by this Section 3.5 shall constitute an Event of Default, as
defined and more specifically outlined in Section 4.
4. EVENTS OF DEFAULT.
4.1. Effect of Failure to Meet Certain Commitments and Goals.
The failure to meet the M/WBE Construction Commitment shall result only in the
failure to earn an a percentage of Abatement that would otherwise have been available
hereunder, as set forth in Section 2.1.2, and shall not constitute an Event of Default, as
defined in Section 4.2. The failure in any given year to attain the Employment Goals, as set
forth in Section 3.1, or the M/WBE Supply and Service Spending Goal, as set forth in
Section 3.2, shall not cause the percentage of Abatement available hereunder to be reduced
and shall not constitute an Event of Default, as defined in Section 4.2.
4.2. Defined.
Company shall be in default of this Agreement if (i) any of the covenants set forth
in any portion of Sections 1.1, 1.2, 1.3, or 1.4 of this Agreement are not met; (ii) any ad
valorem taxes owed by Company or an Affiliate become delinquent and Company or the
Affiliate, as the case may be, 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 (iv) subject to Section 4.1, Company breaches any of the other terms or conditions
of this Agreement (collectively, each an "Event of Default").
4.3. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurred,
the City shall provide a written notice to Company that describes the nature of the Event of
Default. If the Event of Default is on due to a breach under Section 1.1, 1.2, or 1.3 of this
Agreement, the City will have the right to terminate this Agreement immediately. For any
other Event of Default, Company shall have thirty (30) calendar days (or such additional
time as the City and Company reasonably and mutually agree upon) from the date of
receipt of this written notice to fully cure or have cured the Event of Default.
4.4. Termination for Event of Default and Payment of Liquidated Damages.
If an Event of Default has not been cured within the time frame specifically allowed
under Section 4.3, the City shall have the right to terminate this Agreement immediately
upon provision of written notice to Company. Company acknowledges and agrees that an
uncured Event of Default will (i) harm the City's economic development and
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redevelopment efforts on the Land and in the vicinity of the Land; (ii) require unplanned
and expensive additional administrative oversight and involvement by the City; and (iii)
otherwise harm the City, and Company agrees that the amounts of actual damages
therefrom are speculative in nature and will be difficult or impossible to ascertain.
Therefore, upon termination of this Agreement for any Event of Default and as authorized
by Section 311.205 (b)(6) of the Code, Company shall pay the City, as liquidated damages,
all taxes that were abated in accordance with this Agreement for each year in which an
Event of Default existed and which otherwise would have been paid to the City in the
absence of this Agreement. The City and Company agree that this amount is a reasonable
approximation of actual damages that the City will incur as a result of an uncured Event of
Default and that this Section 4.3 is intended to provide the City with compensation for
actual damages and is not a penalty. This amount may be recovered by the City through
adjustments made to Company's ad valorem property tax appraisal by the appraisal district
that has jurisdiction over the Land and over any taxable tangible personal property located
thereon. Otherwise, this amount shall be due, owing and paid to the City within sixty (60)
days following the effective date of termination of this Agreement. In the event that all or
any portion of this amount is not paid to the City within sixty (60) days following the
effective date of termination of this Agreement, Company shall also be liable for all
penalties and interest on any outstanding amount at the statutory rate for delinquent taxes,
as determined by the Code at the time of the payment of such penalties and interest
(currently, Section 33.01 of the Code). If this Agreement is terminated on account of
Company's failure to construct or to cause to be constructed the Required Improvements in
accordance with Sections 1.1 and 1.2 of this Agreement, no liquidated damages will be
owed to the City because taxes will not yet have been abated hereunder.
4.5. Termination at Will.
Company may 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.
4.6. Knowing Employment of Undocumented Workers.
Company acknowledges that effective September 1, 2007, the City is required to
comply with Chapter 2264 of the Texas Government Code, enacted by House Bill 1196
(80th Texas Legislature), which relates to restrictions on the use of certain public subsidies.
Company hereby certifies that Company, and any branches, divisions, or departments of
Company, does not and will not knowingly employ an undocumented worker, as that
term is defined by Section 2264.00](4) of the Texas Government Code. In the event that
Company, or any branch, division, or department of Company, is convicted of a violation
under 8 U.S.C. Section 1324a(l) (relating to federal criminal penalties and injunctions
for a pattern or practice of employing unauthorized aliens):
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• y such conviction occurs during the Term of this Agreement, this Agreement
shall terminate contemporaneously upon such conviction (subject to any
appellate rights that may lawfully be available to and exercised by Company) and
Company shall repay, within one hundred twenty (120) calendar days following
receipt of written demand from the City, the aggregate amount of Abatement
received by Company hereunder, if any, plus Simple Interest at a rate of four
percent (4%) per annum based on the amount of Abatement received in each
previous year as of December 31 of the tax year for which the Abatement was
received; or
• if such conviction occurs after expiration or termination of this Agreement,
subject to any appellate rights that may lawfully be available to and exercised by
Company, Company shall repay, within one hundred twenty (120) calendar days
following receipt of written demand from the City, the aggregate amount of
Abatement received by Company hereunder, if any, plus Simple Interest at a rate
of four percent (4016) per annum based on the amount of Abatement received in
each previous year as of December 31 of the tax year for which the Abatement
was received.
For the purposes of Section 4.6, "Simple Interest" is defined as a rate of interest applied
only to an original value, in this case the aggregate amount of Abatement. This rate of
interest can be applied each year, but will only apply to the aggregate amount of Abatement
and is not applied to interest calculated. For example, if the aggregate amount of
Abatement is $10,000 and it is required to be paid back with four percent (4%) interest five
years later, the total amount would be $10,000 + [5 x ($10,000 x 0.04)], which is $12,000.
This Section 5.4 does not apply to convictions of any subsidiary or affiliate entity of
Company, by any franchisees of Company, or by a person or entity with whom Company
contracts. Notwithstanding anything to the contrary herein, this Section 4.6 shall survive
the expiration or termination of this Agreement.
5. EFFECT OF SALE OF LAND AND/OR REQUIRED IMPROVEMENTS.
Company may assign this Agreement and all or any portion of the benefits provided
hereunder to an Affiliate without the consent of the City, provided that (i) prior to or
contemporaneously with the effectiveness of such assignment, Company provides the City with
written notice of such assignment, which notice shall include the name of the Affiliate and a
contact name, address and telephone number, and (ii) the Affiliate agrees in writing to assume all
terms and conditions of Company under this Agreement. For purposes of this Agreement, an
"Affiliate" means all entities, incorporated or otherwise, under common control with Company,
controlled by Company or controlling Company or that acquires at least ninety percent (90%) of
the capital stock of Company or that division of the Company currently operating as Blue Cross
Blue Shield of Texas. For purposes of this definition, "control" means fifty percent (50%) or more
of the ownership determined by either value or vote. Company may not otherwise assign this
Agreement or any of the benefits provided hereunder to another parry without the consent of the
City Council, which consent shall not unreasonably be withheld or delayed, provided that (i) the
City Council finds that the proposed assignee is financially capable of meeting the terms and
Page 12
Tax Abatement Agreement between
City of Fort Worth and Blue Cross Blue Shield of Texas
408492 5.DOC
conditions of this Agreement and (ii) the proposed assignee agrees in writing to assume all terms
d conditi anons of Company under this Agreement. Any attempted assignment without the City
Council's prior consent shall constitute grounds for termination of this Agreement and the
Abatement granted hereunder following ten (10) calendar days of receipt of written notice from the
City to Company.
6. 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
Company:
Health Care Service Corporation,
A Mutual Legal Reserve Company
Attn: Andrew I Pini, D.S.V.P.
Corporate Real Estate and Development
300 East Randolph, 27t' Floor
Chicago, IL 60601
with copies to:
Staubach
Attn: Amy Gerber
15601 Dallas Parkway, Suite 400
Addison, TX 75001
Bell Nunnally &Martin, LLP
Attn: Larry L. Shosid
3232 McKinney Avenue, Suite 1400
Has, TX 75204
7. 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.
Page 13
Tax Abatement Agreement between
City of Fort Worth and Blue Cross Blue Shield of Texas
408492_5.DOC
E: &WLWWi 0 MALTA I OWN r_� k
It is understood that by execution of this Agreement, the City does not waive or surrender
any of it governmental powers or immunities.
9. 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.
10. 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.
11. 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.
12. FORCE MAJEURE.
In addition to those instances where Force Majeure is addressed elsewhere in this
Agreement, 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
performance of such obligation shall be extended for a period of time equal to the period of the
specific event of Force Majeure.
13. INTERPRETATION.
In the event of any dispute over the meaning or application of any provision of this
Agreement, this Agreement shall be interpreted 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 any City ordinances and regulations, and this Agreement, such ordinances or
regulations shall control. In the event of any conflict between the body of this Agreement and the
Application, the body of this Agreement shall control.
14. BONDHOLDER RIGHTS.
The Required Improvements will not be fmanced by tax increment bonds. This Agreement
is subject to the rights of holders of outstanding bonds of the City.
Page 14
Tax Abatement Agreement between
City of Fort- Worth and Blue Cross Blue Shield of Texas
408492_5.DOC
15. CONFLICTS OF INTEREST.
Neither the Land nor any of the Required Improvements covered by this Agreement are
owned or leased by any member of the City Council, any member of the City Plan or Zoning
Commission or any member of the governing body of any taxing unit with jurisdiction in the Zone.
16. CAPTIONS.
Captions and headings used in this Agreement are for reference purposes only and shall not
be deemed a part of this Agreement.
17. ENTIRETY OF AGREEMENT.
This Agreement, including any exhibits attached hereto and any documents incorporated
herein by reference, contains the entire understanding and agreement between the City and
Company, their assigns and successors in interest, 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.
18. COUNTERPARTS.
This Agreement may be executed in multiple counterparts, each of which shall be
considered an original, but all of which shall constitute one instrument.
IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed
as of the later date below:
[SIGNATURES IMMEDIATELY FOLLOW ON NEXT TWO (2) PAGES]
Page 15
Tax Abatement Agreement between
City of Fort Worth and Blue Cross Blue Shield of Texas
408492_5.DOC
CITY OF FORT WORTH:
Tom Higgins
AetiRg Assistant City Manager
ATTEST:
STATE OF TEXAS §
COUNTY OF TARRANT §
APPROVED AS TO FORM AND LEGALITY:
By:
Peter Vaky (/
Assistant City Attorney
M&C: C-2268� 2
BEFORE ME, the undersigned authority, on this day personally appeared Tom Higgins,
Acting Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation
organized under the laws of the State of Texas, known to me to be the person and officer whose
name is subscribed 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 perform 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 UNDER MY HAND AND SEAL OF OFFICE this t`t, day of
2008.
Notary Public in and for
the State of Texas
Notary's Printed Name
AtdA t_. EtR9�EsB�O
Notary Puhlic, State of Texas
—F},pCommission Expires
March 07, 2011
J lv�
Page 16
Tax Abatement Agreement between
City of Fort Worth and Blue Cross Blue Shield of Texas
408492_5.DOC
HEALTH CARE SERVICES CORPORATION,
A MUTUAL LEGAL RESERVE COMPANY d/b/a
Blue Cross Blue Shield of Texas
By:
Andrew J: Pini,
D.S.V.P. — Corporate Real
ATTEST:
By:
STATE OF ILLINOIS §
COUNTY OF COOK §
& Development
M I'll
r
t ter.
BEFORE ME, the undersigned authority, on this day personally appeared Andrew J. Pini,
Corporate Real Estate and Development of HEALTH CARE SERVICES
CORPORATION, A MUTUAL LEGAL RESERVE COMPANY d/b/a BLUE CROSS BLUE
SHIELD OF TEXAS, known to me to be the person and officer whose name is subscribed to the
foregoing instrument, and acknowledged to me that the same was his act and that he executed the
same as the act of HEALTH CARE SERVICES CORPORATION, A MUTUAL LEGAL
RESERVE COMPANY d/b/a BLUE CROSS BLUE SHIELD OF TEXAS, for the purposes and
consideration therein expressed and in the capacity therein stated.
.GIVEN UNDER MY HAND AND SEAL OF OFFICE this 5:'D day of
OFFICIAL SEAL
BARBARA S OTSUJI
Not' CPublic in and.forTARY PUBLIC w STATE OF ILLINOIS
OAIMISSION EXPIRESA5�02b8
the State of Illinois
Notary's Printed Nanke
Page 17
Tax Abatement Agreement between
City of Fort Worth and Blue Cross Blue Shield of Texas
408492 5.DOC
—Tax Abatement Policy
—Depiction and Description of the Required Improvements
"C" —Map and Legal Description of the Land
"D" —Tax Abatement Application
Tax Abatement Agreement between
City of Fort Worth and Blue Cross Blue Shield of Texas
408492_S.DOC
Exhibit "A"
Tax Abatement Policy
See Attached
Tax Abatement Agreement between
City of Fort Worth and Blue Cross Blue Shield of Texas
408492_S.DOC
W •
N4. 3S63-fl6-20fl6
PROVIDING THAT THE CITY OF FORT WORTH ("CITY"} ELECTS TO BE
ELIGIBLE TO PARTICIPATE IN TAX ABATEMENT AUTHORIZED BY CHAPTER
31.2 OF THE TEXAS TAX CODE AND ESTABLISHING A TAX ABATEMENT
POLICY GOVERNING SUBSEQUENT TAX ABATEMENT AGREEMENTS
WHEREAS, a municipality may enter into tax abatement agreements authorized by
Chapter 312 of the Texas Tax Code ("Code") only if the governing body of the
municipality has previously adopted a resolution stating that the municipality elects to be
eligible to participate in tax abatement and has established guidelines and criteria
governing tax abatement agreements ("Tax Abatement Policy"); and
WHEREAS, pursuant to Code, a Tax Abatement Policy is effective for two (2) years from
the date of its adoption; and
WHEREAS, the City last adopted a tax abatement policy in 2004;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
1. THAT the City hereby elects to be eligible to participate in tax abatement in
accordance with Chapter 312 of the Code.
2. THAT the City hereby adopts the Tax Abatement Policy attached hereto as Exhibit
"A", which constitutes the guidelines, criteria, and procedures governing tax abatement
agreements entered into by the City, to be effective from June 15, 2006 through June
14, 2008, unless earlier amended or repealed by a vote of at least three -fourths (3/4) of
the members of the City Council.
3. THAT this Tax Abatement Policy, as it may subsequently be amended, will expressly
govern all tax abatement agreements entered into by the City during the period in
which such Tax Abatement Policy is in effect.
APPROVED
CITY COUNCILADOPTED this 13" day of June 2006.
JUN 13 2006
ATTEST:
By:
Marty Her�rix, City Secretary
City of Fort Worth, Texas
City of Fort Worth
General Tax Abatement Policy
Effective June 15, 2006 through June 14, 2008
1. GENERAL PROVISIONS.
i.1. Purpose.
Chapter 312 of the Texas Tax Code allows, but does not obligate or require, the City to
grant a tax abatement on the value added to a particular property on account of a specific
development project that meets the eligibility requirements set forth in this Policy. In order for
the City to participate in tax abatement, the City is required to establish guidelines and criteria
governing tax abatement agreements. This Policy is intended to set forth those guidelines and
criteria for persons or entities interested in receiving a tax abatement from the City. This
Policy shall expire on June 14, 2008.
1.2. General Elisibility Criferia.
A tax abatement can only be granted to persons or entities eligible for tax abatement
pursuant to Section 312.204(a) of the Texas Tax Code, which persons or entities as of the
effective date of this Policy are (i) the owner of taxable real property located in a tax abatement
reinvestment zone; or (ii) the owner of a leasehold interest in real property located in a tax
abatement reinvestment zone. Although the City will consider all applications for tax
abatement that meet the eligibility requirements set forth in this Policy, it is especially
interested in development projects that:
• result in the creation of new full-time jobs for Fort Worth Residents and Central City
Residents; and
• are located in. the Central City; and
• result in development with little or no additional cost to the City while producing a
positive economic impact to the tax paving citizens of Fort Worth; and
• have a positive impact on Fort Worth Companies and Fort Worth Certified M/WBE
Companies; and
• promotes.qualiiy affordable housing and/or mixed income development.
1.3. General Exclusions and Limitations.
1.3,1. Lessees of Real Property.
A person or entity seeking tax abatement on real property that is leased from a
third party should be advised that, pursuant to state law, the City can only abate taxes on
the increased value of the taxable leasehold interest in the real property, if any, and the
increase in value of taxable improvements and tangible personal property located on the
real property and subject to the leasehold interest, if any. Before applying for a tax
abatement from the City, such persons or entities should seek professional and legal
guidance, and may wish to consult with the appraisal district having jurisdiction over
the property in question, as to whether their development projects will result in a
taxable leasehold interest in the property and, if so, the anticipated value of that
leasehold interest.
City of Port Worth Genera] Tax Abatement Policy
Page l of 11
1.3.2. Property Located in Neighborhood Empowerment Zones {"NEZs").
The City Council has designated certain distressed areas of the City needing
affordable housing, economic development and expanded public services as NEZs.
Notwithstanding anything that may be interpreted to the contrary, this Policy does not
apply to property located in a NEZ. A person or entity seeking tax abatement on
property owned or leased in a NEZ should refer to the NEZ Policy.
1.3.3. Property Located in Tax Increment Reinvestment Zones ("TIFs").
The City Council has designated certain areas of the City as TIFs. This Policy
does apply to property located in a TIF. However, a person or entity seeking tax
abatement on property owned or leased in a TIF should be advised that state law
requires a TIF's board of directors and the governing bodies of all taxing jurisdictions
contributing tax increment revenue to a TIF to approve a City tax abatement agreement
on property located in that TIF before the agreement can take effect.
1.3.4. Property Located in Enterprise Zones.
The State of Texas has designated certain areas of the City with high
unemployment as enterprise zones. Various economic development incentives are
available to owners of property located in enterprise zones. In accordance with state
law, all property located within an enterprise zone is automatically designated as a tax
abatement reinvestment zone. However, the City typically designates individual tax
abatement reinvestment zone overlays when it wishes to grant tax abatements on
property located in an enterprise zone.
2. DEFINITIONS.
Capitalized terms used in this Policy but not defined elsewhere shall have the following
meanings:
Abatement or Tax Abatement - A foil or partial exemption from ad valorem taxes on eligible taxable
real and personal property located in a Reinvestment Zone for a specified period on the difference
between (i) the amount of increase in the appraised value (as reflected on the certified tax roll of the
appropriate county appraisal district) resulting from improvements begun after the execution of a
written Tax Abatement Agreement and (ii) the appraised value of such real estate prior to execution of
a written Tax Abatement Agreement (as reflected on the most recent certified tax roll of the
appropriate county appraisal district for the year prior to the date on which the Tax Abatement
Agreement was executed).
Abatement Benefit Term — The period of time specified in a Tax Abatement Agreement, but not to
exceed ten (10) years, that the recipient of a tax abatement may receive the Abatement.
Abatement Compliance Term —The period of time specified in a Tax Abatement Agreement during
which the recipient of a tax abatement must comply with the provisions and conditions of the Tax
City of Fort Worth General Tax Abatement Policy
Page2ofli
Abatement Agreement and file an annual report with the City which outlines and documents the extent
of the recipient's compliance with such provisions and conditions.
Business Expansion Project — A project in the square footage of a facility or facilities currently
located in the City will be expanded.
Capital Investment -Only real property improvements such as, without limitation, new facilities and
structures, site improvements, facility expansion, and facility modernization. Capital Investment does
NOT include (i) land acquisition costs; (ii) any _improvements existing on the property prior to
execution of a Tax Abatement Agreement; or (iii) personal property such as, without limitation,
machinery, equipment, supplies and inventory.
Central City — A geographic area within the City, defined by the City Council and shown in the map
of Exhibit "A" of this Policy.
Central City Resident — An individual whose principle place of residence is at a location within the
Central City.
CommerciaUlndustrial Development Project — A development project in which a facility or
facilities will be constructed or renovated on property that is or meets the requirements to be zoned for
commercial or industrial use pursuant to the City's Zoning Ordinance.
CDBG Eligible Area —Any census tract in which fifty-one percent {51 %) or more of the residents in
that census tract have low to moderate incomes, as defined by the United States Department of
Housing and Urban Development.
Commitment - An agreed upon amount and/or percentage related to the utilization of Fort Worth
Companies and Fort Worth Certified MY WBE Companies for construction spending on a given project
or for Supply and Service Expenditures and related to the hiring of Fort Worth Residents and Central
City Residents.
Fort Worth Certified M/'WBE Company — A minority or woman -owned business that has a
principal office located within the corporate limits of the City and has received certification as either a
minority business enterprise (MBE) or a woman business enterprise (WBE) by the North Central
Texas Regional Certification Agency (NCTRCA) or the Texas Department of Transportation
(TxDOT), Highway Division.
Fort Worth Company — A business that has a principal office located within the corporate limits of
the City.
Fart Worth Resident — An individual whose principal place of residence is at a location within the
corporate limits of the City.
Mixed -Use Development Project — A development project in which a facility or facilities will be
constructed or renovated such that {i) at least twenty percent (20%) of the total gross floor area will be
used as residential space and (ii) at least ten percent (10%) of the total gross floor area will be used for
office, restaurant, entertainment and/or retail sales and service space.
M/WBE Advisory Committee (MWBEAC) — A committee appointed by the Fort Worth City
Council to review and make recommendations as to Commitments proposed by an applicant for Tax
City of Fort Worth General Tax Abatement Policy
Page3ofll
Abatement if any such Commitments contain less than a 25% expenditure with Fort Worth Certified
M/WBE companies for construction spending and for Supply and Service Expenditures and to advise
the City as to the availability of Fort Worth Certified M/WBEs.
Reinvestment Zone — An area designated by the City as a tax abatement reinvestment zone in
accordance with Chapter 312 of the Texas Tax Code.
Residential Development Project — A development project in which a facility or facilities will be
constructed or renovated as multi -family living units on property that is or meets requirements to be
zoned for multifamily or mixed -use pursuant to the City's Zoning Ordinance.
Supply and Service Expenditures —Discretionary expenditures made as part of normal business
operations on the real property subject to tax abatement, such as, by way of example only, office
supplies, janitorial supplies and professional services.
Tax Abatement Agreement — A written Agreement that the recipient of a tax abatement must enter
into with the City and that outlines the specific terms and conditions pertaining to and governing the
tax abatement.
3. RESIDENTIAL DEVELOPMENT PROJECTS ELIGIBLE FOR TAX ABATEMENT.
To be eligible for tax abatement under this Policy, a Residential Development Project must meet
all of the criteria set forth in one of the following paragraphs:
3.1. (i) Be Ioca#ed in the Central City; and (ii) Satisfy the Capital Investment and
affordability criteria necessary for a Residential Development Project to be eligible fox tax abatement
under the NEZ Policy; and (iii) Meet all of the Commitments set forth in Section 7 of this Policy
{Standard Requirements for Residential Development Projects, Certain Commercial/ Industrial and
Mixed -Use Development Projects); or
3.2. (!)RP located in a CDBG Eligible Area; and (ii) Have a capital investment of at least $5
million; and (iii) Meet all of the Commitments set forth in Section 7 of this Policy (Standard
Requirements for Residential Development Projects and Certain Commercial /industrial and Mixed -
Use Development Projects); or
3.3. (i) Be located outside of the Central City; and (ii) Have a capital investment of at least $5
million; and {iii) Meet all of the Commitments set forth in Section 7 of this Policy {Standard
Requirements for Residential Development Projects and Certain Commercial/Industrial and Mixed -
Use Development Projects).
In addition, an applicant for a Residential Development Project tax abatement that includes, in
whole or in part, the renovation of one or more existing structures shall provide, as part of the
applicant's Tax Abatement Application, a detailed description and the estimated costs of the
renovations contemplated.
4. COMMERCIAL/INDUSTRIAL DEVELOPMENT PROJECTS ELIGIBLE FOR TAX
ABATEMENT.
City of Fort Worth General Tax Abatement Policy
Page 4 a£ 11
To be eligible for tax abatement under this Policy, a Commercial/Industrial Development
Project must meet all of the criteria set forth in one of the following paragraphs:
4.1. (i) Have a minimum Capital Investment of $250,000; and {ii) Be located in the Central
City or on property immediately adjacent to the major thoroughfares which serve as boundaries to the
Central City, or within a CDBG Eligible Area; and (iii) meet all of the Commitments of Section 7 of
this Policy (Standard Requirements For Residential Development Projects, Certain
Commercial/Industrial Development Projects, Mixed -Use Development Projects, And Business
Expansion Projects); or
4.2. (i} Have a minimum Capital Investment of $10 million; anal (ii) meet all of the
Commitments of Section 7 of this Policy (Standard Requirements For Residential Development
Projects, Certain Commercial/Industrial Development Projects, Mixed -Use Development Projects,
And Business Expansion Projects); or
4.3. (i) Have a minimum Capital Investment of $100 million; and (ii) satisfy additional
requirements that may be set forth by the City on a project -specific basis.
In addition, an applicant for tax. abatement on a CommerciaUlndustrial Development Project
that includes, in whole or in part, the renovation of one or more existing structures shall provide, as
part of the applicant's Tax Abatement Application, a detailed description and the estimated costs of the
renovations contemplated.
5. MIXED -USE DEVELOPMENT PROJECTS ELIGIBLE FOR TAX ABATEMENT.
To be eligible fox tax abatement under this Policy, aif, xed-Use Development Project must
meet all of the criteria set forth in one of the following paragraphs:
Have a minimum Capital Investment of $250,Ann ; and (ii) Be located in the Central
City ox on property immediately adjacent to the major thoroughfares which serve as boundaries to the
Central City, or within CDBG Eligible Area; and (iii) meet all of the Commitments of Section 7 of this
Policy (Standard Requirements For Residential Development Projects, Certain Commercial/Industrial
Development Projects, Mixed -Use Development Projects, And Business Expansion Projects); or
5.2. (i) Have a minimum Capital Investment of $10 million; and (ii) meet all of the
Commitments of Section 7 of this Policy (Standard Requirements For Residential Development
Projects, Certain CommerciaUlndustrial Development Projects, Mixed -Use Development Projects,
And Business Expansion Projects); or
5.3. (i) Have a mixumum Capital Investment of $100 million; and (ii) consist of multiple
land uses, whereby no single land use would comprise greater than 40% of the project's land area; and
i) emphasize live/work/play opportunities with multi -modal access; and, (iv) satisfy additional
requirements that may be set forth by the City on a project -specific basis.
In
addition, an applicant for tax abatement on a Mixed -Use Development Project that includes,
in whole or in part, the renovation of one or more existing structures shall provide, as part of the
applicant's Tax Abatement Application, a detailed description and the estimated costs of the
renovations contemplated.
City of Fort Worth General Tax Abatement Policy
Page 5 of 11
6. BUSINESS EXPANSION PROJECTS FOR EXISTING FORT WORTH BUSINESSES
To be eligible for tax abatement under.thia Policy, a Business Expansion Project must meet all
of the criteria set forth in on the following paragraphs:
6.1 (i) Be located in the Central City or a CDBG Eligible Area; and (ii) Have been in
business continuously for at least six months prior to the submission of an Application
to the City for Tax Abatement, and (iii) Have a total real and personal property
investment of at least $250,000; and (iv) Meet all of the Commitments set forth in
Section 7 of this Policy (Standard Requirements For Residential Development Projects,
Certain Commercial/Indusinal Development Projects, . Mixed -Use Development
Projects, And Business Expansion Projects), or
b.2 {i) Be located outside of the Central City and CDBG Eligible Area and (ii) Have been in
business continuously for at least five years prior to the submission of an Application to
the City for Tax Abatement, and (ui) Have a total real and personal property investment
of at least $10 million (a minimum Capital Investment of $1 million) and (iv) Meet all
of the Commitments set forth in Section 7 of this Policy (Standard Requirements For
Residential Development Projects, Certain Commercial/Industrial Development
Projects, Mixed -Use Development Projects, And Business Expansion Projects)
improvements.
?. STANDARD REQUIREMENTS FOR RESIDENTIAL DEVELOPMENT PROJECTS,
CERTAIN COMMERCIAL/INDUSTRIAL DEVELOPMENT PROJECTS, MIXED-
USE DEVELOPMENT PROJECTS, AND BUSINESS EXPANSION PROJECTS.
To be eligible for property tax abatemen#, a Residential Development Projec# meeting the
requirements set forth in Sections 3.1, 3.2 or 3.3 of this Policy; a CommerciaUlndustrial Development
Project meeting the requirements set forth in Sections 4.1 and 4.2 0£ this Policy; a Mixed -Use
Development Project meeting the requirements set forth in Sections 5.1 and 5.2; and a Business
Expansion Project meeting the requirements set forth in Sections 6.1 or 6.2 shall meet all of the
following requirements:
7
.1.. Commit to provide full-time employment to a set number and/or a percentage of full-
time jobs offered on the real property where the Development is located, to Central City Residents,
which Commitment will be agreed upon and set forth in the Tax Abatement Agreement; and
7.2. Commit to provide full-time employment to a set number and/or a percentage of full-
time jobs offered on ilie real property where the Development is located, to Fort Worth Residents,
which Commitment will be agreed upon and set forth in the Tax Abatement Agreement; and
7.3. Commit to spend a set amount or percentage of total construction costs and annual
Supply and Service Expenses with Fort Worth Companies, which Commitment will be agreed upon
and set forth in the Tax Abatement Agreement; and
City of Fort Worth General Tax Abatement Polley
Page 6 of i 1
7A Commit to spend a set amount or percentage of total construction costs and annual
Supply and Service Expenditures with Fort Worth Certified iNWBE Companies. Any Commitment
below 25% of the total construction costs and of the annual Supply and Service Expenses will require
an applicant for Abatement to meet with the City of Fort Worth's M/WBE Advisory Committee to
seek input and assistance prior to action by the City Council. The M/WBE Advisory Committee will
provide the City Council with a recommendation related to the utilization of Fort Worth Certified
M/WBEs. The M/WBE Advisory Committee's recommendation, if different from the Commitment
made by the applicant for Abatement, will be non -binding, but should be taken under advisement by
the City Council
7.5 All Commitments established pursuant to Sections 7.1 through 7.4 will be agreed upon
and set forth in the Tax Abatement Agreement and, if not met, will serve to reduce the value of
Abatement in accordance with the specific terms and conditions of the Tax Abatement Agreement; and
7.b. Commit to file a plan with the City {within six weeks of City Council approval of the
Fax Abatement Agreement) as to how the Commitments for use of Fort Worth Certified M/WBE
Companies will be attained and, in order to demonstrate compliance with that plan, (i) to file monthly
reports with the City and the Minority and Women Business Enterprise Advisory Committee
throughout the construction phase of any improvements required by the Tax Abatement Agreement
reflecting then -current expenditures made with Fort Worth Certified M/WBE Companies, (ii) list the
name of a contact person that will have knowledge of the construction phase of the project, and (iii)
from the start of the First Compliance Auditing Year (as defined in Section 8) until expiration of the
Tax Abatement Agreement, to file quarterly reports with the City reflecting then -current expenditures
made with Fort Worth Certified M/WBE Companies.
The City Council may, in its sole discretion, require a CommerciaUIndustrial Development
Project meeting the criteria set forth in Section 4.3 of this Policy and a Mixed -Use Development
Project meeting the criteria set forth in Section 5.3 of this Policy to satisfy some, all or none of the
requirements set forth in this Section 7.
8. TAX ABATEMENT CALCULATION.
All Tax Abatement Agreements shall require the recipient to construct ar cause construction of
specific improvements on the real property that is subject to. the abatement. Failure to. construct these
specific improvements at the minimum Capital Investment expenditure and by the deadline established
in the Tax Abatement Agreement shall give the City the right to terminate the Tax Abatement
Agreement. The amount of a particular tax abatement shall be negotiated on a case -by -case basis and
specifically set forth in the Tax Abatement Agreement. The calculation of tax abatement for a
Commercial/Industrial Project that meets the requirements of Section 4.3 of this Policy or for a Mixed -
Use Development Project that meets the requirements of Section 5.3 of this Policy shall be negotiated
on a case -by -case basis and governed solely by the terms and conditions of the Tax Abatement
Agreement. The calculation of tax abatement for any other project shall be negotiated on a case -by -
case basis, but shall be governed directly in accordance with the degree to which the recipient. meets
the four (4) Commitments set forth in Sections 7.1, 7.2, 7.3 and 7.4 of this Policy, which will be
outlined in the Tax Abatement Agreement. A Tax Abatement Agreement may establish a base
abatement that is (i) reduced in accordance with the recipient's failure to meet one or more of such
Commitments or (ii) increased in accordance with the recipient's meeting and/or exceeding one or
more of such Commitments.
City of Fort Worth General Tax Abatement Policy
Page 7 of 11
9. TAX ABATEMENT IMPLEMENTATION.
The term of a tax abatement shall be negotiated on a case -by -case basis and specified in the
Fax Abatement Agreement. The City will audit and determine the recipient's compliance with the
terms and conditions of the Tax Abatement Agreement for a full calendar year prior to the first year in
which the tax abatement is available (the "First Compliance Auditing Year"). The Compliance
Auditing Year shall either be the full calendar year in which a final certificate of occupancy is issued
for the improvements required by the Tax Abatement Agreement for the real property subject to
abatement or the following calendar year, as negotiated and set forth in the Tax Abatement Agreement.
The first tax abatement will be available to the recipient for the tax year following the Compliance
Auditing Year. In other words, the degree to which the recipient meets the Commitments set forth in
the Tax Abatement Agreement will determine the percentage of taxes abated for the following tax
year. The City will continue to audit and determine the recipient's compliance with the terms and
conditions of the Tax Abatement Agreement for each subsequent calendar year, which findings shall
govern the percentage of taxes abated for the following tax year, until expiration of the Tax Abatement
Agreement.
10. TAX ABATEMENT APPLICATION PROCEDtTRES.
Each tax abatement application shall be processed in accordance with the following standards
and procedures:
10.1. Submission of Application.
if a given development project qualifies for iax abatement pursuant to the eligibility
criteria detailed in Section 4, Section 5, section 6, or Section 7 of this Policy, as the case may
be, an applicant for tax abatement must complete and submit a City of Fort Worth Tax
Abatement Application (with required attachments) (the "Application"). An Application can
be obtained from and should be submitted to the City's Economic and Community
Development Department. In order to be complete, the Application must include
documentation that there are no delinquent property taxes due for the property on which the
development project is to occur.
10.2. Application Fee.
Upon submission of the Application, an applicant must also pay an application fee. This
application fee shall be $153Ofl0 {"Application Fee") of which $13,000 will be credited to any
permit, impact, inspection or other fee paid by the applicant and required by the City directly in
connection with the proposed project, as long as substantive construction on the project, as
determined by the City in its sole and reasonable discretion, has been undertaken on the
property specified in the application within one (1) year following the date of its submission.
The remaining $2,000 is non-refundable and will be utilized for City staff expenses associated
with proceSsIng the Application and fees associated with legal notice requirements.
10.3. Application Review and Evaluation.
The Economic and Community Development Department will review an Application
for accuracy and completeness. Once complete, the Economic and Community Development
Department will evaluate an Application based on the perceived merit and value of the project,
including, without limitation, the following criteria:
City of Port Worth General Tax Abatement Policy
Page $ of 11
• Types and number of new jobs created, including respective wage rates, and employee
benefits packages such as health insurance, day care provisions, retirement packages,
transportation assistance, employer -sponsored training and education, and any other
benefits;
• Percentage of new jobs committed to Fort Worth Residents;
+ Percentage of new j obs committed to Central City Residents;
• Percent of construction contracts cammitted to (i) Fort Worth Companies and (ii) Fart
Worth Certified MIWBE Companies,
• Percentage of Supply and Service Contract expenses committed to (i} Fort Worth
Companies and (ii) Fort Worth Certified WWBE Companies;
• Financial viability of the project;
• The project's reasonably projected increase in the value of the tax base;
• Costs to the City (such as infrastructure participation,
• Remedia#ion of an existing environmental problem on the real property;
• The gender, ethnic backgzound and length of employment of each member of the
applicant's board of directors, governing body or upper management, as requested by
the City; and
• Fox zesidential projects, number or percentage of units reserved as affordable housing
for persons with incomes at or below eighty percent (SO%} of median family income
based on family size (as established and defined by the United States Department of
Housing and Urban Development)
• Other items that the City may determine to be relevant with respect to the project.
Based upon the outcome of the evaluation, the Economic and Community Development
Office will present the Application to the City Council's Central City Revitalization and
Economic Development Committee. In an extraordinary circumstance, the Economic and
Community Development Department may elect to present the Application to the full City
Council without initial input from the Central City Revitalization and Economic Development
Committee.
i0.4. Consideration by Council Committee.
The City Council's Central City Revitalization and Economic Development Committee
will consider the Application in an open meeting or, if circumstances dictate and the law
allows, a closed meeting. The Committee may either (i) recommend approval of the
Application, in which case City staff will incorporate the terms of the Application into a Tax
Abatement Agreement for subsequent consideration by the full City Council with the Central
City of Fort Worth General Tax Abatement Policy
Page 9 of 11
City Revitalization and Economic Development Committee's recommendation to approve the
Agreement; (h) request modifications to the Application, in which case Economic
Development Office staff will discuss the suggested modifications with the applicant and, if the
requested modifications axe made, resubmit the modified Application to the Central City
Revitalization and Economic Development Committee for consideration; or (iii) deny to
recommend consideration of the Application by the full City Council.
10.5. Consideration by the City Council.
A Tax Abatement Agreement will only be considered by the City Cauncil if the
applicant has first executed the Tax Abatement Agreement. The City. Council retains sole
authority to approve or deny any Tax Abatement Agreement and is under no obligation to
approve any Application or Tax Abatement Agreement.
I1. GENERAL POLICIES AND REQUIREMENTS.
Notwithstanding anything that may be interpreted to the contrary herein, the following general
terms and conditions shall govern this Policy.
11.1. A tax abatement shall not be granted for any development project in which a building
permit application has been filed with the City's Development Department. In addition, the City will
not abate taxes on the value of real or personal property for any period of time prior to the year of
execution of a Tax Abatement Agreement with the City.
11.2. The applicant for a tax abatement must provide evidence to the City that demonstrates
that a tax abatement is necessary for the financial viability of the development project proposed.
11.3. In accordance with state law, the City will not abate taxes levied on inventory, supplies
or the existing tax base.
11.4. An applicant for tax abatement shall provide wage rates, employee benefit information
for all positions of employment to he located in any facility covered by the Application.
11.5. Unless otherwise specified in the Tax Abatement Agreement, the amount of real
property taxes to be abated in a given year shall not exceed one hundred fifty percen# (i50%) of the
amount of the minimum Capital Investment expenditure required by the Tax Abatement Agreement for
improvements to the real property subject to abatement multiplied by the City's tax rate in effect for
that same year, and the amount of personal property taxes to be abated in a given year shall not exceed
one hundred fifty percent (150%) of the minimum value of personal property required by the Tax
Abatement Agreement to be located on the real property, if any, subject to abatement multiplied by the
City's tax rate in effect for that same year.
11.6.
The owner of real property for which a Tax Abatement has been granted shall properly
maintain the property to assure the Iong-term economic viability of the project. In addition, if a
citation or citations for City Code violations are issued against a project while a Tax Abatement
Agreement is in effect, the amount of the tax abatement benefit will be subject to reduction, as
provided in the Tax Abatement Agreement.
City of Fort Worth Genera! Tax Abatement Policy
Page 10 of 1 i
11.7. If the recipient of a tax abatement breaches any of fine terms or conditions of the Tax
Abatement Agreement and fails to cure such breach in accordance with the Tax Abatement Agreement,
the City shall have the right to terminate the Tax Abatement Agreement. In this event, the recipient
will be required to pay the City any property taxes that were abated pursuant to the Tax Abatement
Agreement prior to its termination.
11.$. As part of the consideration under all Tax Abatement Agreements, the City shall have,
without limitation, the right to (i) review and verify the applicant's financial statements and records
related to the development project and the abatement in each year during the term of the Tax
Abatement Agreement prior to the granting of a tax abatement in any given year and (ii) conduct an
on -site inspection of the development project in each year during the term of the Tax Abatement to
verify compliance with the terms and conditions of the Tax Abatement Agreement. Any incidents of
non-compliance will be reported to all taxing units with jurisdiction over the real property subject to
abatement.
11.9. The recipient of a tax abatement may not sell, assign, transfer or otherwise convey its
rights under a Tax Abatement Agreement unless otherwise specified in the Tax Abatement Agreement.
A sale, assignment, lease, transfer or conveyance of the real property that is subject to the abatement
and which is not permitted by the Tax Abatement Agreement shall constitute a breach of the Tax
Abatement Agreement and may result in termination of the Tax Abatement Agreement and recapture
A any taxes abated after the date on which the breach occurred. For additional information about this
Tax Abatement Policy, contact the City of Fort Worth's Economic & Community Development
Department using the information below:
City of Fort Worth
Economic &Community Development Department
1000 Throckmorton Street
Fort Worth, Texas 76102
(817) 392-6103
http://fortworftov.org./ecodev/
City of Fo2rt Worth General Tax Abatement Policy
Page 1I of 12
Gity or Fort Worth., Texas
SUBJECT:
Adopt Resolution Stating that the City of Fort Worth Elects to be Eligible to Participate in Tax
Abatement and Adoption of a Tax Abatement Policy
RECOMMENDATION:
It is recommended that the City Council adopt the attached resolution which_
1. States that the City elects to be eligible to participate in property tax abatement pursuant to the Texas
Property Redevelopment and Tax Abatement Act, Tax Code, Sections 312.001 through 312.211 as
amended; and
2. Establishes a Tax Abatement Policy, including guidelines and criteria, governing property tax
abatements for the City of Fort Worth {Exhibit A to the Resolution).
DiSCUSSI®N:
The Texas Tax Code authorizes cities to designate tax abatement reinvestment zones and to enter into tax
abatement agreements only after the City elects to become eligible to participate in tax abatement and
adopts a Tax Abatement Policy that establishes guidelines and criteria governing its tax abatement
program. A Tax Abatement Policy adopted by a city is effective for two years from the date of
adoption. The City's last Tax Abatement Policy was adopted on June 15, 2004.
The Central City Revitalization and Economic Development Committee of the City Council has
recommended that the proposed Tax Abatement Policy be presented to the entire City Council for
consideration. The proposed Tax Abatement Policy has been updated to:
• define the terms "Business Expansion Project," "Commitment" and "MMBE Advisory Committee;"
• remove reference to a specific percentage of affordable housing units for residential projects,
although each applicant for tax abatement on a residential project must address affordable housing;
• reduce the minimum capital investment requirement for Central City projects to $250,000;
• include consideration for existing Fort Worth businesses that are expanding;
• clarify the role of the M/WBE Advisory Committee; and
• allocate a portion of the application fee for legal notices.
Once adopted, the proposed Tax Abatement Policy will be effective June 15, 2006 through June 14, 2008.
FISCAL INFORMATION/CERTIFICATION:
Logname: 17TAPOLICY Page 1 of 2
The Finance Director certifies that this action will have no material effect on City funds.
TO"No Lid
FROM FundunsecountlCenters
Submitted for City Manager's Office by: Daie Fisseler {6140)
Originating Department Head: Tom Higgins (6192)
Additional Information Contact: Ardina Washington (8003)
Logname: 17TA.POLICY Page 2 of 2
NC?. 3423-10-2006
AMENDING THE CITY'S TAX ABATEMENT POLICY (RESOLUTION N0.3363-06-
2006) GOVERNING SUBSEQUENT TAX ABATEMENT AGREEMENTS
WHEREAS, a municipality may enter into tax abatement agreements authorized by Chapter 312 of the
Texas Tax Code ("Code") only if the governing body of the municipality has previously adopted a
resolution stating that the municipality electsto be eligible to participate in tax abatement and has
established guidelines and criteria governing tax abatement agreements ("Tax Abatement Policy' ); and
WHEREAS, pursuant to the Code, a Tax Abatement Policy is effective for two (2) years from the date
of its adoption; and
WHEREAS, the City's current Tax Abatement Policy was adopted by the City Council pursuant to
Resolution No. 3363-06-2006 and went into effect on June 15, 2006; and
WHEREAS, Section 312.002(c) allows the City Council to amend the current Tax Abatement Policy by
a vote of three -fourths (3/4) of the members of the City Council; and
WHEREAS, the City Council wishes to amend the current Tax Abatement Policy the clarify the
definitions of "Fort Worth Company" and "Fort Worth Certified M/WBE Company";
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS:
I. THAT the City Council hereby adopts the amended Tax Abatement Policy attached hereto as
Exhibit "A which constitutes the guidelines, criteria and procedures governing tax abatement
agreements entered into by the City, to be effective from the date of adoption of this Resolution through
June 14, 2008, unless earlier amended or repealed by a vote of at least three -fourths (3/4) of the
members of the City Council. Amended language is indicated by a strikethrough for language that is
being deleted from the Tax Abatement Policy and a double -underline for language that is being added to
the Tax Abatement Policy.
2. THAT this amended Tax Abatement Policy, as it may subsequently be amended, will expressly
govexn all tax abatement agreements entered into by the City during the period in which such Tax
Abatement Policy is in effect.
ADOPTED this 17th day of October , 2006.
�. .. a- _, �.. ,.,
City of Fort Worth
General Tax Abatement Policy
Effective June 15, 2006 through June 14, 2008
1. GENERAL PROVISIaNS.
1.1. Puruose.
Chapter 312 of the Texas Tax Code allows, but does not obligate or require, the City to
grant a tax abatement on the value added to a particular property on account of a specific
development project that meets the eligibility requirements set forth in this Policy. In order for
the City to participate in tax abatement, the City is required to establish guidelines and criteria
governing tax abatement agreements. This Policy is intended to set forth those guidelines and
criteria for persons or entities interested in receiving a tax abatement from the City. This
Policy shall expire on June 14, 2008.
1.2. General Eligibility Criteria.
A tax abatement can only be granted to persons or entities eligible for tax abatement
pursuant to Section 312.204(a) of the Texas Tax Code, which persons or entities as of the
effective date of this Policy are (i) the owner of taxable real property located in a tax abatement
reinvestment zone; or (ii) the owner of a leasehold interest in real property located in a tax
abatement reinvestment zone. Although the City will consider all applications for tax
abatement that meet the eligibility requirements set forth in this Policy, it is especially
interested in development projects that:
• result in the creation of new full-time jobs for Fort Worth Residents and Central Ciiy
Residents; and
• are located in the Central City; and
• result in development with little or no additional cost to the City while producing a
positive economic impact to the tax paying citizens of Fort Worth; and
• have a positive impact on Fort Worth Companies and Fort Worth Certified M/WBE
Companies; and
• promotes quality, affordable housing and/or mixed income development.
1.3. General ExeIusions and Limitations.
1.3.1. Lessees of Real Property,
A person or entity seeking tax abatement on real property that is leased from a
third party should be advised that, pursuant to state law, the City can only abate taxes on
the increased value of the taxable leasehold interest in the real property, if any, and the
increase in value of taxable improvements and tangible personal property located on the
real property and subject to the leasehold interest, if any. Before applying for a tax
abatement from the City, such persons or entities should seek professional and legal
guidance, and may wish to consult with the appraisal district having jurisdiction over
the property in question, as to whether their development projects will result in a
taxable leasehold interest in the property and, if so, the anticipated value of that
leasehold interest.
City of Port Worth General Tax Abatement Policy
Page 1 of t t
1.3.2. Property Located in Neigbbor)hood Empowerment Zones ("NEZs"1.
The City Council has designated certain distressed areas of the City needing
affordable housing, economic development and expanded public services as NEZs.
Notwithstanding anything that may be interpreted to the contrary, this Policy does not
apply to property located in a NEZ. A person or entity seeking tax abatement on
property owned or leased in a NEZ should refer to the NEZ Policy.
1.3.3. Property Located in Tax Increment Reinvestment Zones f"TIFs"1.
`The City Council has designated certain areas of the City as TIFs. This Policy
does apply to property located in a TIF. However, a person or, entity seeking tax
abatement on property owned or leased in a TIF should be advised that state law
requires a TIF's board of directors and the governing bodies of all taxing jurisdictions
contributing tax increment revenue to a TIF to approve a City tax abatement agreement
on property located in that TIF before the agreement can take effect.
1.3.4. Property Located in Enterprise Zones.
The State of Texas has designated certain areas of the City with high
unemployment as enterprise zones. Various economic development incentives are
available to owners of property located in enterprise zones. In accordance with state
law, all property located within an enterprise zone is automatically designated as a tax
abatement reinvestment zone. However, the City typically designates individual tax
abatement reinvestment zone overlays when it wishes to grant tax abatements on
property located in an enterprise zone.
2. DEFINITIONS.
Capitalized terms used in this Policy but not defined elsewhere shall have the following
meanings:
Abatement or Tax Abatement - A full or partial exemption from ad valorem taxes on eligible taxable
real and personal property located in a Reinvestment Zone for a specified period on the difference
between (i) the amount of increase in the appraised value (as reflected on the certified tax roll of the
appropriate county appraisal district) resulting from improvements begun after the execution of a
written Tax Abatement Agreement and (ii) the appraised value of such real estate prior to execution of
a written Tax Abatement Agreement (as reflected on the most recent certified tax roll of the
appropriate county appraisal district for the year prior to the date on which the Tax Abatement
Agreement was executed).
Abatement Benefit Term The period of time specified in a Tax Abatement Agreement, but not to
exceed ten (10) years, that the recipient of a tax abatement may receive the Abatement.
Abatement Compliance Term The period of time specified in a Tax Abatement Agreement during
which the recipient of a tax abatement must comply wish the provisions and conditions of the Tax
City of Port Worth General Tax Abatement Policy
Page 2 of I l
Abatement Agreement and file an annual report with the City which outlines and documents the extent
of the recipient's compliance with such provisions and conditions.
Business Expansion Project — A project in the square footage of a facility or facilities currently
located in the City will be expanded.
Capital Investment - Only real property improvements such as, without limitation, new facilities and
structures, site improvements, facility expansion, and facility modernization. Capital Investment does
NOT include (i) land acquisition costs; (ii) any improvements existing on the property prior to
execution of a Tax Abatement Agreement; or (iii) personal property such as, without limitation,
machinery, equipment, supplies and inventory.
Central City — A geographic area within the City, defined by the City Council and shown in the map
of Exhibit "A" of this Policy.
Central City Resident — An individual whose principle place of residence is at a location within the
Central City.
CommerciaUlndustrial Development Project — A development projec# in which a facility or
facilities will be constructed or renovated on property that is or meets the requirements to be zoned for
commercial or industrial use pursuant to the City's Zoning Ordinance.
CDBG Eligible Area —Any census tract in which. fifty-one percent (51 %) or more of the residents in
that census tract have low to moderate incomes, as defined by the United States Department of
Housing and Urban Development.
Commitment - An agreed upon amount and/or percentage rela#ed to the utilization of Fort Worth
Companies and Fort Worth Certified M/WBE Companies for construction spending on a given project
or for Supply and Service Expenditures and related to the hiring of Fort Worth Residents and Central
City Residents.
Fort Worth Certified M/WBE Company — A minority ox woman -owned business that has received
certification as either a minority business enterprise (MBE)S a woman business enterprise (WBE), or a
disadvantaged business enterprise (DBE) by the North Central Texas Regional Certification Agency
(NCTRCA), and that has a Principal Office located within the corporate limits of the City that provides
the product or service for which credit is sought for purposes of a specific commitment set forth in a
given Tax Abatement Agreement.
Fort Worth Company — A business that has a Principal Office located within the corporate limits of
the City that provides the product or service for which credit is sought for purposes of a specific
commitment set forth in a given Tax Abatement Agreement.
Fort Worth Resident — An individual whose principal place of residence is at a location within the
corporate limits of the City.
Mixed -Use Development Project — A development project in which a facility or facilities will be
constructed or renovated such tha# (i} at least twenty percent (20°/a) of the to#al gross floor area will be
used as residential space and (ii) at least ten percent (10%) of the total gross floor area will be used for
office, restaurant, entertainment and/or retail sales and service space.
City of Fort Worth General Tax Abatement Policy
Page 3 of I 1
VLf"E Advisory Committee (TYMBEAC) — A committee appointed by the Fort Worth City
Council to review and make recommendations as to Commitments proposed by an applicant for Tax
Abatement if any such Commitments contain less than a 25% expenditure with Fort Worth Certified
WWBE companies for construction spending and for Supply and Service Expenditures and to advise
the City as to the availability of Fort Worth Certified M/WBEs.
Principal Office — An office facty that is fully operational and has sufficient equipment, supplies,
and personnel to provide the product or service of the business in question to clients in the City without
significant reliance on the resources of another entity or affiliate or of an auxiliary facility of the
business which is located outside the corporate limits of the City.
Reinvestment Zone — An area designated by the City as a tax abatement reinvestment zone in
accordance with Chapter 312 of the Texas Tax Code.
Residential Development Project — A development project in which a facility or facilities will be
constructed or, renovated as multifamily living units on property that is or meets requirements to be
zoned for multifamily or mixed -use pursuant to the City's Zoning Ordinance.
Supply and Service Expenditures —Discretionary expenditures made as part of normal business
operations on the real property subject to tax abatement, such as, by way of example only, office
supplies, janitorial supplies and professional services.
Tax Abatement Agreement — A written Agreement that the recipient of a tax abatement must enter
into with the City and that outlines the specific terms and conditions pertaining to and governing the
tax abatement.
3. RESIDENTIAL DEVELQPMENT PRQJECTS ELIGIBLE FQR TAX ABATEMENT.
To be eligible for tax abatement under this Policy, a Residential Development Project must meet
all of the criteria set forth in one of the following paragraphs:
3.1. (i) Be located in the Central City; and (ii) Satisfy the Capital Investment and
affordability criteria necessary for a Residential Development Project to be eligible far tax abatement
under the NEZ Policy; and (iii) Meet all of the Commitments set forth in Section 7 of this Policy
(Standard Requirements for Residential Development Projects, Certain Commercial/ Industrial and
Mixe&Use Development Projects); or
3.2. (i) Be located in a CDBG Eligible Area; and (ii) Have a capital investment of at least $5
million; and {iii} Meet all of the Commitments set forth in Section 7 of this Folicy (Standard
Requirements for Residential Development Projects and Certain Commercial /Industrial and Mixed.
Use Development Projects); or
3.3. (i) Be located outside of the Central City; and (ii) Have a capital investment of at least $5
million; and (iii) Meet all of the Commitments set forth in Section 7 of this Policy (Standard
Requirements for Residential Development Projects and Certain Commercial/Industrial and Mixed -
Use Development Projects).
In addition, an applicant for a Residential Development Project tax abatement that includes, in
whole or in part, the renovation of one or more existing structures shall provide, as part of the
City of Fort Worth General Tax Abatement Policy
Page 4 of 11
applicant's Tax Abatement Application, a detailed description and the estimated costs of the
renovations contemplated.
46 COMMERCIALlINDUSTRIAL DEVELOPMENT PROJECTS ELIGIBLE FOR TAX
ABATEMENT.
To be eligible for #ax abatemen# under this Policy, a Commercial/Industrial Development
Project must meet all of the criteria set forth in one of the following paragraphs:
4.1. (i) Have a minimum Capital Investment of $250,040; and (ii} Be located in the Cen#rat
City or on property immediately adjacent to the major thoroughfares which serve as boundaries to the
Central City, or within a CDBG Eligible Area; and (iii) meet all of the Commitments of Section 7 of
this Policy (Standard Requirements For Residential Development Projects, Certain
Commercial/Industrial Development Projects, Mixed -Use Development Projects, And Business
Expansion Projects); or
4.2. (i) Have a minimum Capital Investment of $10 million; and {ii} meet a1I of the
Commitments of Section 7 of this Policy (Standard Requirements For Residential Development
Projects, Certain Commercial/Industrial Development Projects_, Mixed -Use Development Projects,
And Business Expansion Proj
Aects); or
minimum Capital Investment of $100 million; and (ii} satisfy additional
requirements that may be set forth by the City on a project -specific basis.
In addition, an applicant for tax abatement on a Commercial/industrial Development Project
that includes, in whole or in part, the renovation of one or more existing structures shall provide, as
part of the applicant's Tax Abatement Application, a detailed description and the estimated costs of the
renovations contemplated.
5. MIXED -USE DEVELOPMENT PROJECTS ELIGIBLE FOR TAX ABATEMENT.
To be eligible for tax abatement under this Policy, aMixed-Use Development Project must
meet all of the criteria set forth in one of the following paragraphs:
5.1. (i) Have a minimum Capital Investment of $250,000; and (ii) Be located in the Central
City or on property immediately adjacent to the major thoroughfares which serve as boundaries to the
Central City, or within CDBG Eligible Area; and (in) meet all of the Commitments of Section 7 of this
Policy (Standard Requirements For Residential Development Projects, Certain Commercial/Industrial
Development Projects, Mixed -Use Development Projects, And Business Expansion Projects); or
5.2. (i) Have a minimum Capital Investment of $ i 0 million; and (ii) meet all of the
Commitments of Section 7 of this Policy (Standard Requirements For Residential Development
Projects, Certain Commercial/Industrial Development Projects, Mixed -Use Development Projects,
And Business Expansion Projects), or
5.3. (i) Have a minimum Capital Investment of $140 million; and (ii) consist of multiple
land uses, whereby no single land use would comprise greater than 40% of the project's land area; and
City of Fort Worth General Tax Abatement Policy
Page 5 of 11
(iii) emphasize live/work/play opportunities with multi -modal access; and, (iv) satisfy additional
requirements that may be set forth by the City on a project -specific basis.
in addition, an applicant for tax abatement on a Mixed -Use Development Project that includes,
in whole or in part, the renovation of one or more existing structures shall provide, as part of the
applicant's Tax Abatement Application, a detailed description and the estimated costs of the
renovations contemplated.
6. BUSINESS EXPANSION PROJECTS FOR EXISTING FORT WORTH BUSINESSES
To be eligible for tax abatement under this Policy, a Business Expansion Project must meet ail
of the criteria set forth in on the following paragraphs:
b.l (i} Be located in the Central City or a CDBG Eligible Area; and (ii) Have been in
business continuously for at least six months prior to the submission of an Application
to the City for Tax Abatement, and (iii) Have a total real and personal property
investment of at least $250,000; and (iv) Meet all of the Commitments set forth in
Section 7 of this Policy (Standard Requirements For Residential Development Projects,
Certain Commercial/Industrial Development Projects, Mixed -Use Development
Projects, And Business Expansion Projects); or
6.2 (i} Be located outside of the Central City and CDBG Eligible Area and (ii} Have been in
business continuously for at least five years prior to the submission of an Application to
the City for Tax Abatement, and (iii) Have a total real and personal property investment
of at least $10 million (a minimum Capital Investment of $1 million) and (iv) Meet all
of the Commitments set forth in Section 7 of this Policy (Standard Requirements For
Residential Development Projects, Certain Commercial/Industrial Development
Projects, Mixed -Use Development Projects, And Business Expansion Projects)
improvements.
7. STANDARD REQUIREMENTS FOR RESIDENTIAL DEVELOPMENT PROJECTS,
CERTAIN COMMERCIAL/INDUSTRIAL DEVELOPMENT PROJECTS, USE DEVELOPMENT DEVELOPMENT PROJECTS, AND BUSINESS EXPANSION PROJECTS.
To be eligible for properly tax abatement, a Residential Development Project meeting the
requirements set forth in Sections 3.1, 3.2 or 3.3 of this Policy; a Commercial/Industrial Development
Project meeting the requirements set forth in Sections 4.1 and 4.2 of this Policy, a Mixed -Use
Development Project meeting the requirements set forth in Sections 5.1 and 5.26 and a Business
Expansion Project meeting the requirements set forth in Sections 6.1 or 6.2 shall meet all of the
following requirements:
7.1. Commit to provide full-time employment to a set number and/or a percentage of full-
time jobs offered on the real property where the Development is located, to Central City Residents,
which Commitment will be agreed upon and set forth in the Tax Abatement Agreement; and
City of Fort Worth General Tax Abatement Policy
Page 6 of 1 I
7.2. Commit to provide full-time employment to a set number andtor a percentage of full-
time jobs offered on the real property where the Development is located, to Fort Worth Residents,
which Commitment will be agreed upon and set forth in the Tax Abatement Agreement; and
7.3. Commit to spend a set amount or percentage of total construction costs and annual
Supply and Service Expenses with Fort Worth Companies, which Commitment will be agreed upon
and set forth in the Tax Abatement Agreement; and
7.4 Commit to spend a set amount or percentage of total construction costs and annual
Supply and Service Expenditures with Fort Worth Certified M/WBE Companies. Any Commitment
below 25% of the total construction costs and of the annual Supply and Service Expenses will require
an applicant for Abatement to meet with the City of Fort Worth's M/WBE Advisory Committee to
seek input and assistance prior to action by the City Council. The M/WBE Advisory Committee will
provide the City Council with a recommendation related to the utilization of Fort Worth Certified
MVWBEs. The M(WBE Advisory Committee's recommendation, if different from the Commitment
made by the applicant for Abatement, will be non -binding, but should be taken under advisement by
the City Council
7.5 All Commiiments established pursuant to Sections 71 through 7.4 will be agreed upon
and set forth in the Tax Abatement Agreement and, if not met, will serve to reduce the value of
Abatement in accordance with the specific terms and conditions of the Tax Abatement Agreement; and
7.6. Commit to file a plan with the City (within six weeks of City Council approval of the
Tax Abatement Agreement) as to how the Commitments for use of Fort Worth Certified M/WBE
Companies will be attained and, in order to demonstrate compliance with that plan, (i) to file monthly
reports with the City and the Minority and Women Business Enterprise Advisory Committee
throughout the construction phase of any improvements required by the Tax Abatement Agreement
reflecting then -current expenditures made with Fort Worth Certified M/WBE Companies, (ii) list the
name of a contact person that will have knowledge of the construction phase of the project, and (iii)
from the start of the First Compliance Auditing Year (as defined in Section 8) until expiration of the
Tax Abatement Agreement, to file quarterly reports with the City reflecting then -current expenditures
made with Fort Worth Certified M/WBE Companies.
The City Council may, in its sole discretion, require a Commercial/Industrial Development
Project meeting the criteria set forth in Section 4.3 of this Policy and aMixed-Use Development
Project meeting the criteria set forth in Section 5.3 of this Policy to satisfy some, all or none of the
requirements set forth in this Section 7.
8. TAX ABATEMENT CALCULATION.
All Tax Abatement Agreements shall require the recipient to construc# or cause construction of
specific improvements on the real property that is subject to the abatement. Failure to construct these
specific improvements at the minimum Capital Investment expenditure and by the deadline established
in the Tax Abatement Agreement shall give the City the right to terminate the Tax Abatement
Agreement. The amount of a particular tax abatement shall be negotiated on a case -by -case basis and
specifically set forth in the Tax Abatement Agreement. The calculation of tax abatement for a
Commercial/lndustrial Project that meets the requirements of Section 4.3 of this Policy or for a Mixed -
Use Development Project that meets the requirements of Section 5.3 of this Policy shall be negotiated
on a case -by -case basis and governed solely by the terms and conditions of the Tax Abatement
Agreement. The calculation of tax abatement for any other project shall be negotiated on a case -by -
City of Fort worth General Tax Abatement Policy
Page 7 of 11
case basis, but shall be governed directly in accordance with the degree to which the recipient meets
the four (4) Commitments set forth in Sections 7.1, 7.27 7.3 and 7.4 of this Policy, which will be
outlined in the Tax Abatement Agreement. A Tax Abatement Agreement may establish a base
abatement that is (i) reduced in accordance with the recipient's failure to meet one or more of such
Commitments or (ii) increased in accordance with the recipient's meeting and/or exceeding one or
more of such Commitments.
9. TAX ABATEMENT IMPLEMENTATION.
The term of a tax abatement shall be negotiated on a case -by -case basis and specified in the
Tax Abatement Agreement. The City will audit and determine the recipient's compliance with the
terms and conditions of the Tax Abatement Agreement for a full calendar year prior to the first year in
which the tax abatement is available (the "First Compliance Auditing Year"). The Compliance
Auditing Year shall either be the full calendar year in which a final certificate of occupancy is issued
for the improvements required by the Tax Abatement Agreement for the real property subject to
abatement or the following calendar year, as negotiated and set forth in the Tax Abatement Agreement.
The first tax abatement will be available to the recipient for the tax year following the Compliance
Auditing Year. In other words, the degree to which the recipient meets the Commitments set forth in
the Tax Abatement Agreement will determine the percentage of taxes abated for the following tax
year. The City will continue to audit and determine the recipient's compliance with the terms and
conditions of the Tax Abatement Agreement for each subsequent calendar year, which findings shall
govern the percentage of taxes abated for the following tax year, until expiration of the Tax Abatement
Agreement.
10. TAX ABATEMENT APPLICATION PROCEDURES.
Each tax abatement application shall be pzocessed in accordance with the following standards
and procedures:
10.1. Submission of Application.
If a given development project qualifies for tax abatement pursuant to the eligibility
criteria detailed in Section 4, Section 5, Section 6, or Section 7 of this Policy, as the case may
be, an applicant for tax abatement must complete and submit a City of Fort Worth Tax
Abatement Application (with required attachments) (the "Application"). An Application can
be obtained from and should be submitted to the City's Economic and Community
Development Department. In order to be complete, the Application must include
documentation that there are no delinquent property taxes due for the property on which the
development project is to occur.
10.2. Application Fee.
Upon submission of the Application, an applicant must also pay an application fee. This
application fee shall be $15,000 ("Applica.tion Fee") of which $13,000 will be credited to any
permit, impact, inspection or other fee paid by the applicant and required by the City directly in
connection with the proposed project, as long as substantive construction on the project, as
determined by the City in its sole and reasonable discretion, has been undertaken on the
property specified in the application within one (1) year following the date of its submission.
City of Fart Worth General Tax Abatement Policy
Page 8 of 11
The remaining $2,000 is non-refundable and will be utilized for City staff expenses associated
with processing the Application and fees associated with legal notice requirements.
10.3. Aunlicatiun Review and Evaluation.
The Economic and Community Develapment Department will review an Application
for accuracy and completeness. Once complete, the Economic and Community Development
Department will evaluate an Application based on the perceived merit and value of the project,
including, without limitation, the following criteria:
• Types and number of new jobs created, including respective wage rates, and employee
benefits packages such as health insurance, day care provisions, retirement packages,
transportation assistance, employer -sponsored training and education, and any other
benefits;
• Percentage of new jobs committed to Fort Worth Residents;
• Percentage of new jobs committed to Central City Residents;
• Percent of construction contracts committed to (i} Foxt Worth Companies and (ii) Fort
Worth Certified M/WBE Companies;
• Percentage of Supply and Service Contract expenses committed to {i} Fort Worth
Companies and (ii) Fort Worth Certified MIWBE Companies;
• Financial viability of the project;
• The project's reasonably projected increase in the value of the tax base;
• Costs to the City (such as infrastructure participation,
• Remediation of an existing environmental problem on the real property;
• The gender, ethnic background and length of employment of each member of the
applicant's board of directors, governing body or upper management, as requested by
the City; and
• For residential projects, number or percentage of units reserved as affordable housing
for persons with incomes at or below eighty percent (8Q%) of median family income
based on family size (as established and defined by the United States Department of
Housing and Urban Development)
• Other items that the City may determine to be relevant with respect to the project.
Based upon the outcome of the evaluation, the Economic and Community Development
Office will present the Application to the City Council's Central City Revitalization and
Economic Development Committee. In an extraordinary circumstance, the Economic and
Community Development Department may elect to present the Application to the full City
City of Fort Worth General Tax Abatement Policy
Page9afil
Council without initial input from the Central City Revitalization and Economic Development
Committee.
i0.4. Consideration by Council Committee.
The City Council's Central City Revitalization and Economic Development Committee
will consider the Application in an open meeting or, if circumstances dictate and the law
allows, a closed meeting. The Committee may either (i) recommend approval of the
Application, in which case City staff will incorporate the terms of the Application into a Tax
Abatement Agreement for subsequent consideration by the full City Council with the Central
City Revitalization and Economic Development Committee's recommendation to approve the
Agreement; (ii) request modifications to the Application, in which case Economic
Development Office staff will discuss the suggested modifications with the applicant and, if the
requested modifications are made, resubmit the modified Application to the Central City
Revitalization and Economic Development Committee for consideration; or (iii) deny to
recommend consideration of the Application by the full City Council.
10.5. Considera#ion bv_the City Council.
A Tax Abatement Agreement will only be considered by the City Council if the
applicant has first executed the Tax Abatement Agreement. The City Council retains sole
authority to approve or deny any Tax Abatement Agreement and is under no obligation to
approve any Application or Tax Abatement Agreement.
il. GENERAL POLICIES ANJD REQUIREMENTS,
Notwithstanding anything that may be interpreted to the contrary herein, the following general
terms and conditions shall govern this Policy:
11.1. A tax abatement shall not be granted for any development project in which a building
permit application has been filed with the City's Development Department. In addition, the Ciiy will
not abate taxes on the value of real or personal property for any period of time prior to the year of
execution of a Tax Abatement Agreement with the City.
11.2. The applicant for a tax abatement must provide evidence to the City that demonstrates
that a tax abatement is necessary for the financial viability of the development project proposed.
11,3. In accordance with state Iaw, the City will not abate taxes levied on inventory, supplies
or the existing tax base.
11.4. An applicant for tax abatement shall provide wage rates, employee benefit information
for all positions of employment to be located in any facility covered by the Application.
11,5. Unless otherwise specified in the Tax Abatement Agreement, the amount of real
property taxes to be abated in a given year shall not exceed one hundred fifty percent (150%) of the
amount of the minimum Capital Investment expenditure required by the Tax Abatement Agreement for
improvements to the real property subject to abatement multiplied by the City's tax rate in effect for
that same year, and the amount of personal property taxes to be abated in a given year shall not exceed
one hundred fifty percent (150%) of the minimum value of personal property required by the Tax
City of Fort Worth General Tax Abatement Policy
Page 10 of 11
Abatement Agreement to be located on the real properly, if any, subject to abatement multiplied by the
City's tax rate in effect for that same year.
11.6. The owner of real property for which a Tax Abatement has been granted shall properly
maintain the property to assure the long-term economic viability of the project. In addition, if a
citation or citations for City Code violations are issued against a project while a Tax Abatement
Agreement is in effect, the amount of the tax abatement benefit will be subject to reduction, as
provided in the Tax Abatement Agreement.
11.7. If the recipient of a tax abatement breaches any of the terms or conditions of the Tax
Abatement Agreement and fails to cure such breach in accordance with the Tax Abatement Agreement,
the City shall have the right to terminate the Tax Abatement Agreement. In this event, the recipient
will be required to pay the City any property taxes that were abated pursuant to the Tax Abatement
Agreement prior to its termination.
11.8. As part of the consideration under all Tax Abatement Agreements, the City shall have,
without limitation, the right to (1) review and verify the applicant's financial statements and records
related to the development project and the abatement in each year during the term of the Tax
Abatement Agreement prior to the granting of a tax abatement in any given year and (ii) conduct an
on -site inspection of the development project in each year during the term of the Tax Abatement to
verify compliance with the terms and conditions of the Tax Abatement Agreement. Any incidents of
non-compliance will be reported to all taxing units with jurisdiction over the real property subject to
abatement.
11.9. The recipient of a tax abatement may not sell, assign, transfer or otherwise convey its
rights under a Tax Abatement Agreement unless otherwise specified in the Tax Abatement Agreement.
A sale, assignment, lease, transfer or conveyance of the real property that is subject to the abatement
and which is not permitted by the Tax Abatement Agreement shall constitute a breach of the Tax
Abatement Agreement and may result in termination of the Tax Abatement Agreement and recapture
of any taxes abated after the date on which the breach occurred. For additional information about this
Tax Abatement Policy, contact the City of Fort Worth's Economic & Community Development
Department using the information below:
City of Fort Worth
Economic & Community Development Department
1000 Throckmorton Street
Fort Worth, Texas 76102
(817) 392-6103
http://fortworth og v.orgr/ecodev/
City of Fort Worth General Tax Abatement Policy
Page 11 of 11
City of Foci Worth, Texas
DATE: Tuesday, October 17, 2006
LOG NAME: 17TAPOLICYAMD
REFERENCE NO.: G-15458
SUBJECT:
Adopt Resolution Amending the City of Fort Worth Tax Abatement Policy
REC®MMENi5ATI0I�:
It is recommended that the City Council adopt the attached resolution which amends the current Tax
Abatement Policy governing property tax abatements for the City of Fort Worth (Exhibit A to the Resolution).
DISCUSSION:
Over the fast several months, there have been several inquiries related to the definitions of Fort Worth and
Fort Worth Certified M/WBE companies as contractors work to identify potential vendors to fulfill economic
development agreement requirements. Additionally, it has recently come to staffs attention, that as written,
the tax abatement policy does not specifically include the Disadvantaged Business Enterprise (DBE)
designation as qualifying as a "Fort Worth Certified M/WBE Company." This designation is the preferred
designation provided by the North Central Texas Regional Certification Agency (NCTRCA), as it allows the
opportunity to work on large federal projects.
The proposed amendments provide more comprehensive language that better define wha# constitutes a
"Fort Worth Company" and cawrt Worth Certified M/WBE Company" and provide that the DBE designation
by the NCTRCA, in addition to the MBE and WBE designations, be included as a "Fort Worth Certified
MM/BE Company."
A written report regarding the proposed amendments was provided to the Central City Revitalization and
Economic Development Committee (CCREDCI at its October 3, 2006 meeting.
FISCAL INFORMATIONICERTIFiCAT10N;
The Finance Director certifies that this action will have no material effect on City funds.
TO Fund/AccounfilCenters
FROM Fund/AccountlCenters
firiginatinglepart
• ..Washington:00
Logname: 17TAPOLICYAMD Page 1 of 1
Exhibit "JD
Depiction and Description of the Required Improvements
See Attached
Tax Abatement Agreement between
City of Fort Worth and Blue Cross Blue Shield of Texas
408492_S.DOC
Sxhib't "H"
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Exhibit "C"
Map and Legal Description of the an
BEING A TRACT OF LAND SITUATED IN THE F. CUELLA SURVEY, ABSTRACT NO.
267, TARRANT COUNTY, TEXAS, AND THE F. CUELLA SURVEY, ABSTRACT NO.
1711, DENTON COUNTY, TEXAS, AND BEING A PORTION OF TRACT 12 AND TRACT
13 AS DESCRIBED BY DEED TO AIL INVESTMENT, L.P. FORMERLY KNOWN AS
HILLWOOD/FREEWAY, LTD. AS RECORDED IN DEED VOLUME 9527, PAGE 1011,
COUNTY RECORDS, TARRANT COUNTY, TEXAS, AND BEING MORE
PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:
BEGINNING AT A 5/8 INCH IRON ROD WITH YELLOW CAP STAMPED "CARTER &
BURGESS" FOUND AT THE NORTHWEST CORNER OF LOT 1, BLOCK 3, ALLIANCE
GATEWAY NORTH ADDITION AS SHOWN ON THE PLAT RECORDED IN CABINET X,
PAGE 753, PLAT RECORDS, DENTON COUNTY, TEXAS, SAID IRON ROD ALSO
BEING IN THE SOUTH RIGHT-OF-WAY LINE OF HENRIETTA CREEK ROAD;
THENCE S 00°13'S3"W, 810.00 FEET WITH THE WEST LINE OF SAID LOT 1, TO A 5/8
INCH IRON ROD WITH YELLOW CAP STAMPED "CARTER & BURGESS" FOUND AT
THE SOUTHWEST CORNER OF SAID LOT 1, BLOCK 3, ALLIANCE GATEWAY NORTH
ADDITION;
THENCE S 89°46'07"e, 449.90 FEET WITH THE SOUTH LINE OF SAID LOT 1, TO A 5/8
INCH IRON ROD WITH YELLOW CAP STAMPED "CARTER & BURGESS" SET;
THENCE S 00°13'S3"W, 1483.52 FEET DEPARTING THE SOUTH LINE OF SAID LOT 1,
BLOCK 3, ALLIANCE GATEWAY NORTH ADDITION TO A 5/8 INCH IRON ROD WITH
YELLOW CAP STAMPED "CARTER & BURGESS" SET;
THENCE S 72°23'08"W, 445.20 FEET TO A 5/8 INCH IRON ROD WITH YELLOW CAP
STAMPED "CARTER &BURGESS" SET;
THENCE N 89023'28"W, 602.74 FEET TO A 5/8 INCH IRON ROD WITH YELLOW CAP
STAMPED "CARTER &BURGESS" SET;
THENCE N 00036'32" E, 540.00 FEET TO A 5/8 INCH IRON ROD WITH YELLOW CAP
STAMPED "CARTER &BURGESS" SET;
THENCE N 89023'28"W, 600.00 FEET TO A 5/8 INCH IRON ROD WITH YELLOW CAP
STAMPED "CARTER &BURGESS" SET;
THENCE N 00036'32"E, 383.79 FEET TO A 5/8 INCH IRON ROD WITH YELLOW CAP
STAMPED "CARTER &BURGESS" SET AT THE BEGINNING OF A CURVE TO THE
LEFT;
Tax Abatement Agreement between
City of Fort Worth and Blue Cross Blue Shield of Texas
408492_S.DOC
THENCE 305.18 FEET ALONG THE ARC OF SAID CURVE TO THE LEFT, THROUGH A
CENTRAL ANGLE OF 35041103", HAVING A RADIUS OF 490.00 FEET, AND A LONG
CHORD WHICH BEARS N 17014'00"W, 300.27 FEET TO A 5/8 INCH IRON ROD WITH
YELLOW CAP STAMPED "CARTER & BURGESS" SET;
THENCE N 00°28'S5"E, 18.43 FEET TO A 5/8 INCH IRON ROD WITH YELLOW CAP
STAMPED "CARTER & BURGESS" SET;
THENCE S 89°23'08"E, 312.04 FEET TO A 5/8 INCH IRON ROD WITH YELLOW CAP
STAMPED "CARTER & BURGESS" SET;
THENCE N 00°36'32"E, 450.00 FEET TO A 5/8 INCH IRON ROD WITH YELLOW CAP
STAMPED "CARTER & BURGESS" SET IN THE NORTH LINE OF THE
AFOREMENTIONED AIL INVESTMENT, L.P., TRACT 12 AND ALSO BEING IN THE
SOUTH LINE OF THAT CERTAIN TRACT OF LAND AS DESCRIBED BY DEED TO
TEXAS POWER & LIGHT COMPANY RECORDED IN VOLUME 668, PAGE 551, REAL
PROPERTY RECORDS, DENTON COUNTY, TEXAS;
THENCE S 89°23'08"E, 617.05 FEET WITH THE NORTH LINE OF SAID AIL
INVESTMENT, L.P. TRACT 12, AND THE SOUTH LINE OF SAID TEXAS POWER &
LIGHT COMPANY TRACT TO A 5/8 INCH IRON ROD WITH YELLOW CAP STAMPED
"CARTER & BURGESS" SET;
THENCE S 00°35'42"W, 29.86 FEET TO A 5/8 INCH IRON ROD WITH YELLOW CAP
STAMPED "CARTER & BURGESS" SET;
THENCE S 89°23'43"E, 218.71 FEET TO A 5/8 INCH IRON ROD WITH YELLOW CAP
STAMPED "CARTER &BURGESS" SET;
THENCE N 00°35'42"E, 780.93 FEET TO A 5/8 INCH IRON ROD WITH YELLOW CAP
STAMPED "CARTER & BURGESS" SET IN THE NORTH LINE OF SAID AIL
INVESTMENT, L.P. TRACT 12, AND IN THE SOUTH RIGHT-OF-WAY LINE OF
HENRIETTA CREEK ROAD;
THENCE S 89046'08"E, 105.03 FEET WITH THE NORTH LINE OF SAID AIL
INVESTMENT, L.P. TRACT 12, AND IN THE SOUTH RIGHT-OF-WAY LINE OF
HENRIETTA CREEK ROAD TO THE POINT OF BEGINNING AND CONTAINING
2,326,253 SQUARE FEET OR 53.403 ACRES OF LAND MORE OR LESS.
Tax Abatement Agreement between
City of Fort Worth and Blue Cross Blue Shield of Texas
408492_S.DOC
Tax Abatement Reinvestment Zone 67
City of Fort Worth, Texas
Economic &Community Devevlopment
Copyright 2008
Tax Abatement Agreement between
City of Fort Worth and Blue Cross Blue Shield of Texas
408492_S.DOC
Exhibit "D"
Tax Abatement Application
See Attached
Tax Abatement Agreement between
City of Fort Worth and Blue Cross Blue Shield of Texas
408492_S.DOC
Exhibit "D"
GENERAL INFORMATIQN
l . Applicant Information:
Company Name.
Incentive Application
Health Care Service
ion
Company Address 300 E. Randolph Street
�a Blue Crass Blue Shield
City, State, Zip Code Chicago, IL
Contact Person (include title/position): drew J. Pini-Divisional SVP Corp. Real Estate
Telephone. Number 312 .6 5 3 .5 9 4 4 and Development ext.
Mobite Telephone. Number
Fax Number 312 .8 5 6 . fl 18 3
E-mail address:... piniaC�bcbsil . eom
2. Project Site Information (if different from above):
Address/Location: Alliance in Fort Worth, TX SEE parcel plan
3. Development requests that will besought for the project (check all that apply):
A. Replat:
B. Rezoning: Current zoning: _
C. Variances: If yes, please describe:
D. Downtown Design Review Board:
E. Landmark Commission.
4. Incentive(s) Regnested:l
Requested zoning:
Company requests an Industrial Development Tax Abatement.
5. Specify elements of project that make it eligible for the requested incentive(s):
Pro-iect will make a minimum investment of $25fl,flOfl; commit to
provide Full Time employment; commit to spend a o of total
construction spend with Fart Worth companies and qualified M/WBE
companies.
' Please see Incentive Policy for a list of incentives.
Page 2 of 7
6. Do you intend to pursue abatement of:
County Taxes? L& Yes
❑ No
7. What level of abatement will you request: Years? 10 Percentage? 5 0 0
PROJECT.tNFORMATION
Far real estate�ra,�ects, please. include below the. project concept, project benefits and how. the. project
relates to existing community. plans. A real estate project is one. that involves the construction or.
renovation of real property that will be either. for lease or for sale. Any incentives. given by the City should
be considered only "gap" financing and should not be considered a substitute for debt and equity.
However, the City is under no obligation to provide gap financing just because a gap exists. In order
for a property. owner/developer. to be eligible to. receive incentives and/or tax abatement for a Project, the.
property owner/developer:
A. Must complete. and submit this application and the. application fee to the City;
B. Owner/developer or owner/developer's principals must not be delinquent in paying property
taxes for any property owned in Fort Worth;
C. Owner/developer or owner/developer's principals must not have ever been subject to the City
of Fort Worth's Building Standards. Commission's Review;
D. Owner/developer or owner/developer's principals must not have any City of Fort Worth liens
filed against any other. property owned by the. applicant property owner/developer. "Liens"
includes, but is. not limited to, weed liens, demolition liens, board-up/open structure liens and
paving liens.
For business exnansion,projects�, please include below services provided or. products manufactured, major
customers. and locations, etc. For business expansion project involving the purchase and/or construction of
real estate, please answer all that apply.
S. Type of Project: Residential X Commercial/Industrial Mixed -use
9. WiII this be a relocation? X No Yes If yes, where is the company currently
located?
10. Project Description Company proposes to purchase approximately 53 acres
to construct a 220,000 GSF data center initially
but will accommodate up to a 400,000 GSF.
z A business expansion project involves assistance to a business entity that seeks to expand its existing operations within Fort
Worth. The business is in a growth mode seeking working capital, personal property or fixed asset financing.
Page 3 of 7
ECD092705
A. Please Provide a brief description of the project
The proposed project involves the construction of a large multi -phase
corporate Tier IV data center. The inal phase is 220,000 GSF but
the site could accommodate up to a 400,000 GSF facility. The estimated
investment in real property is $155 - $180 million and personal property
is $200 - $400 million aver a ten-year period. It is estimated that
employment at the site will reach 80 people with an additional 50 - 60
contractors.
B. Real Estate Development
1.
2.
3.
Current Assessed Valuation of:. Land $ 8 , 7 0 0 , 0 0 0 Improvements: $
New. Development or. Expansion (please. circle one):
Size 220,000
sq. ft. Cost of Construction $ 155M - $7.80M.
For mixed -use projects, please list square footage for each use
N/A
4. Site. Development (parking, fencing, landscaping, etc.):.
Type of work to be done Security fence, site landscaping, employee
parking lot, paving on -site roadways firelanes
Cost of Site. Development $
C. Personal Property & Inventory
1.. Personal Property:
• Cost of equipment, machinery, furnishing, etc: $200M-$400M over 10 years
• Purchase or lease? Purchase
2. Inventory &Supplies:
• Value of: Inventory $ N/A .Supplies $
+ Percent of inventory eligible for Freeport exemption (inventory, exported from Texas
within 175 days) N/A
Page 4 of 7
ECD092705
I. Employment and Job Creation.
A. During Construction
1. Anticipated date when construction will start? June a a a $
2. How many construction jobs will be created? 2 0 0
3. What is the estimated payroll for these jobs?
B. I+'rom Development
1. How. many persons. are currently employed?
533-$431hr.
2. What percent of current employees above are Fort Worth residents? No current e�ployees
3. What percent of current employees above are Central City residents?No current OAmployees
4. Please complete the following table for new jobs. to. be created from direct hire. by.
applicant.
First Year.
B .Fifth Year
.Tenth Year
Total Jobs to be Created
35
75
75
Less Transfers*
5
5
5
Net Jobs
40
80
80
% of Net Jobs to be filled by
Fort Worth Residents
o0
faith effort)
o0
faith effort)
00
faith effor
% ofNet Jobs to be filled by
Central CityResidents
8 Good faith
effort
16 (Good(GOOCL
faith e far
aith effort
* If any employees will be. transferring, please describe. from where. they will be transferring.
It is typical that the company will transfer a few experienced
employees to a new facility. _These transfers may be transferred from
Illinois.
Please attach a description of the. jobs to be. created, tasks. to be. performed for each, wage rate for each
classification, and a brief description of the. employee benefit package(s) offered including the portion
paid by employee and employer respectively. See question 14 for more. information.
PIease. describe. any ancilla (not direct hire by applicant) job creation that will occur as a result of
completing this project.
Data centers typical
including: Security,
use 3rd party vendors for certain areas
IT support and Maintenance. It is estimated
that this facility will have 50-60 outsourced employees.
Page 5 of 7
ECD092705
1I Local Commihnents:
A. During Construction
1. What percent of the construction costs. described in question I 1 above. will be committed to:
• Fort Worth businesses? 2 5
Fort Worth Certified Minority and Women Business Enterprises? 25
B. For Annual Supply �i Service Needs
Regarding discretionar,�pply and service expenses3 (i.e. landscaping, office. or manufacturing
supplies, janitorial services, etc.):
1. What is the. annual amount of discretionary supply and service. expenses? $ 5 0 0 , 0 0 0 - $ l , 0 0 0 , 0 0 0
2. What percentage will be. committed to Fort Worth businesses? 25 0 {good faith eff85rt )
3. What percentage. will be. committed to Fort Worth Certified Minority and Women Business
Enterprises? 25� {good/°faith effort:)
DrseLosrr�s
13. Is any person or firm receiving any farm of compensation, commission or other monetary
benefit based on the level of incentive obtained by the applicant from the City of Fort
Worth? If yes, please explain and/or attach details.
N/A
14. PIease provide the following information as attachments:
a) Attach a site plan of the project.
b) Explain why incentives are necessary for the success of this project. Include a business
pro -forma or other documentation to substantiate your request.
c} Describe any environmental impacts associated with this project.
s Discretionary expenses are those which are incurred during the normal operation of business and which are not subject to a
national purchasing contract
Page 6 of 7
Ecnosz7os
FEB-04-2008 12:31
d) Describe the infrastructure improvements (water, sewer, streets, etc) that will be
constructed as part of this project.
e) Describe any direct benefits to the City of Fort Worth as a result of this project.
1) Attach a legal description or surveyor's certified metes & bounds description.
g} Attach a copy of the most recent property tax statement from the appropriate appraisal
district for all parcels involved in the project.
h) Attach a description of the jobs to be created (technician, engineer, manager, etc.), tasks
to be performed for each, and wage rate for each classification.
i) Attach a brief description of the employee benefit package(s) offered (i.e. health
insurance, retirement, public transportation assistance, day care provisions, etc.)
including portion paid by employee and employer respectively.
j) Attach a plan for the utilization of Fort Worth Certified 1VIlWRE companies.
k) Attach a listing of the applicant's Board of Directors, if applicable.
t) Attach a copy of Incorporations Papers noting all principals, partners, and agents and all
Fort Worth properties owned by each.
On behalf of the applicant, I certify the information contained in this application, including all
attachments to be true and correct. I further certify that, on behalf of the applicant; I have read the current
Incentive Policy and all other pertinent City of Fort Worth policies and I agree to comply with the
guidelines and criteria stated therein.
Printed Name
Si�mature
eV� OLD w
Title
bate
Page7of7
TOTRL P.08
14.
City of Fort Worth
Incentive Application
b) Explain why incentives are necessary for the success of this project. The
company has gone through a site selection process to analyze the total project
costs related to the construction and operation of the proposed data center. The
analysis evaluated but was not limited to real estate costs, available infrastructure,
construction costs and construction labor availability, total tax impact, utility costs
and any cost offsets (incentives). The company must make the best financial
decision when sighting this facility.
The analysis illustrated a couple of costs hurdles wish the proposed Alliance site,
one of which is that the site has a higher property tax rate then some of the other
sites considered. The property tax abatement would help to offset this
incremental difference. In addition, some cities provided other financial offsets
including cash grant which would help cover some of the infrastructure and build.
out costs.
c) Describe any environmental impacts associated with this project. It is not
anticipated that this data center will emit or produce any negative environmental
impacts.
d) Describe the infrastructure improvements (water, sewer, streets, etc.) that
will be constructed as part of this project. Infrastructure improvements include
the following:
a. Two concrete lanes along the boundary of the site;
b. Sewer to adequately serve the property;
c. Two loop4ed water sources to the edge of the site
d. Electric infrastructure with two feeds
e) Describe any direct benefits to the City of Fort Worth as a result of this
project. Data centers such as this proposed data center are often targeted by
communities for a couple of reasons. These facilities bring a large amount of
taxable investment to the city/county tax rolls and often require that the
equipment is replaced every three to five years. These large investments generate
a significant increase in the property tax base. The uniqueness of the data center
is that compared to the size of investment a data center does not generate a large
employee base that taxes the city's infrastructure or school systems. In addition,
data centers are large consumers of electricity. Additional taxes will be generated
as a result of the companies substantial electric spend.
f) See attached metes &bounds
g} See attached property tax statement
h) Attach a description of the jobs to be created (technician, engineer, manager,
etc.}, tasks to be performed for each, and wage rate for each classification. It
is estimated that this project will result in the direct hire of 80 employees. The
estimated breakdown is as follows.
a. IT Engineers(Technicians 75 $80,000 - $100,000
b. IT Managers 5 $903r000 - $1103000
i) See attached employee benefit summary
Personal Time Off
PTO (Personal Time Off) is earned on a monthly accrual basis and is based on years of service and level of position.
0 - 4 years of service: 18 days
5 - 9 years of service: 23 days
10 - 19 years of service: 28 days
20 - 29 years of service: 33 days
30 + years of service: 38 days
Holidays
10 paid holidays including New Year's Day, Martin Luther King, Jr. Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving and Christmas (details announced each year)
Medical Coverage
Choice of four medical plans: HMO (Health Maintenance Organization), Blue Choice Plus PPO, PPO, or Blue Edge PPO
(Consumer Driven Health Plan). Coverage is provided for employees, eligible dependents and domestic partners.
Vision Insurance
All medical plans include vision coverage, featuring one annual examination for you and your covered dependents. A
$200 allowance is available to HCSC employees every two years for eyewear expenses, whether or not employees
elect medical coverage.
Waive Coverage
Employees who have medical coverage through another source and choose to waive coverage from HCSC will receive
a credit of $40 each month.
401(lc} Plan
Employee may invest between 1% - 18% of salary on a pre-tax basis. Participation is effective date of hire for all full-
time employees at least 21 years of age. Company matches $.50 for every $1.00 up to 6% of eligible earnings.
Company contribution is based on vesting schedule. After 4 years of service employees are vested at 100%
Retirement Plan
Company- paid pension plan after 5 years of service.
Total Rewards Bonus Program
HCSC`s Contingent Compensation and Gainsharing Programs are designed to reward individual and team contributions
that achieve important corporate, divisional, departmental and individual objectives. This is an incentive plan designed
to reward all active eligible employees for the success of the corporation in meeting its financial stability and
controlled growth goals. The Total Rewards Program is awarded annually and is in addition to base salary.
Life Insurance/AD&D
Company- Paid Life Insurance and Accidental Death &Dismemberment. Coverage equal to one times annual salary
which goes into effect on date of hire. Additional Voluntary Life and AD&D are available at the employee's cost.
Dependent Life Coverage
Several levels of dependent life coverage are available for employees who are either married and/or have children.
Short -Term Disability Program
Company - Paid Short Term Disability (STD) Plan. Benefits are 70 percent of an employee's base salary for employees
with less than five years of current service with the company. The employee is required to satisfy a waiting period of
21 consecutive calendar days before STD benefits begin.
Long -Term Disability Program
Company -Paid Long -Term Disability Plan. Long- term disability is available first of the month following six months of
employment for non-exempt employees and date of hire for full-time exempt employees. Disability benefits are 60%
of monthly earnings.
Educational Assistance
100% tuition and required book expenses for career- related classes. Benefit is effective date of hire. Employees_ are
required to receive a grade of "C" or better for undergraduate courses or "B" or better for graduate courses.
Employees have a $2,OQ0 limit per year.for professional development courses and $5,250 for degree program.
Flexible Spending Accounts
$5,QQ0 in pre-tax dollars may be deposited in health care account per year.
$52 - $5,Q00 in pre-tax dollars may be deposited in dependent care account per -year.
Transportation Reimbursement Account
Employees are allowed to set aside, through payroll deduction, pre-tax funds to use during the year to cover transit
and/or parking expenses.
Group Legal Service
This benefit provides telephone legal consultation, in -office legal services, and financial planning assistance for those
enrolled in the program.
Employee Assistance Program
Confidential counseling provided to all employees 24 hours a day, seven days a week.
Adoption Assistance
Up to $2,500 in elig€ble expenses for finalized adoptions (limited to two per calendar year) may be reimbursed to full-
time and be11 t s eligible part-time employees
Direct Deposit Service
All employees are paid biweekly. Paychecks are distributed every other Friday. You may have your pay directly
deposited into your bank account if you provide advance written authorization to the Payroll Department. You will
receive an itemized statement of earnings for direct deposits.
Wellness Program (MOTiVA)
HCSC promotes wellness programs to help you develop a healthier lifestyle. Because good health is good business, the
company supports improving the quality of life for its employees by providing programs such as:
• Periodic health screenings such as blood pressure, cholesterol, body composition, diabetes, etc.
• Annual health and safety fairs at corporate offices are designed to give employees access to professionals
from local, state and national organizations.
• A quarterly publication titled The Motiva Minute that contains timely tips that encourage you and your family
to make wise health care decisions.
• Health -related campaigns that give all employees in all locations an opportunity to manage weight, eat
nutritiously and learn skills to improve your health and fitness levels.
• The corporate Intranet site also provides a wellness site to keep you updated on wellness events and
activities. You will also have access to a healthy tip of the day by fogging on to the Wellness Intranet site.
Savings Bond Program
Employees have the convenience of purchasing savings bonds by payroll deductions.
Bereavement Leave
Up to four days of bereavement leave is provided to employees on the date of hire for a death in the Immediate
family.
Employee Referral Program
We recognize that employees are HCSC's greatest asset. Several departments have employee referral programs to
reward individuals who successfully refer employees to our organization. The reward amount ranges from $1000 -
$5000, which varies from each participating department.
Cafeteria
Full service cafeteria available in the Richardson home office.
Credit tinlon
Credit Union membership is available to all employees. Payroll deduction is available for both savings and loan
payments. The Credit union also offers checking accounts, direct deposit and ATM cards.
Flextime
Same positions in select areas are eligible for aflex-time schedule. Employees have the aptian of working flexible
hours between 6 am and 6 pm Monday through Friday, with their Manager's approval.
Free Parking
Atl parking is free at the Richardson/Dallas office locations. This includes the parking garage at the home office
location.
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CARTIEUR & 611RGESS, INC.
sr�Er
Tarrant County Tax WebSite
Account: 00040778096
APD: A 267 1A 90
Location" 0014301INDEPENDENCE
PKWY
Legal: CUELLA, FRANCISCO
SURVEY
A 267 TR 1 A
BOUNDARY SPLIT
Owner: AIL INVESTMENT LP
13600 HERITAGE PKWY STE
200
FORT
WORTH TX 76177-4320
Year Unit
2007
2ofl7
2007
2007
2007
2007
Totals
2006
2006
2006
2006
2006
2006
Totals
2005
2005
2005
2005
2005
2005
Totals
Grand
Totals
026
220
223
224
225
http://taxoffice.tarrantcounty.com/accountlnfo.asp?rov�l &Display=.,,
Acres:
21.840
Yr Built:
0
Frozen Yr:
NONE
Frozen Amt:
$0.00
Sci Ft:
0
Def. Start:
NONE
Def. End:
NONE
Roll:
R
20Q7 Values
Land 2337
Ag Land 161463
2007 Exemptions
AG002 161463
Click on the e-Sta#ement buiton to view Tata! Tax Due.
Click an the e-Payment bution to make a credit card or eCheck payment.
Levy Levy
Levy Penalty Interest Co[ Total Receipt
Amount Paid Due Penalty Due Date
19.98 19.98 OM 0500 0.00 0.00 0.00 1/31/2008
6.23 6,23 0.00 0,00 0,00 0.00 0,00 1/31/2008
0,47 0.47 0,00 0,00 0,00 0.o0 0.00 1/31/2008
5.38 5,38 0.00 0.0a 0.00 0.00 0,00 1/31/2008
3.26 3426 0.00 0,00 0.00 0.00 0.0o 1/31/2008
35,32 35.32 0.00 0.00 0,00 0,00 0,00
026
20.85
20.85
0.00
0.00
0.00
0.00
0.00
1/3112007
22fl
6.58
6.58
0,00
0.00
0.00
0.00
0.00
5/30/2007
223
0,48
0.48
0.00
0,00
0.00
0,00
0.00
1/31/2007
224
511
5.71
0,00
0.00
0,00
0600
0.00
1/31/2007
225
3.38
3,38
0.00
0.00
0,00
0.00
0.00
1/31/2007
37.00
37,00
0.00
0400
0,00
0.00
0,00
o26
0100
0000
0,00
0100
o.00
0000
0,00
220
o.ao
o.flo
o.00
o.00
o.00
o.00
o.00
223
0.0o
0.00
0.00
0.00
0.00
0.00
0,00
224
0,00
0.00
0.00
0.00
0.00
0.00
0.00
225
0.00
0400
0.00
0.00
0.00
0.00
o.00
0,00
0.00
0.00
0.00
0.00
0.00
0.00
72,32
72,32
0,00
0,00
0,00
0,00
0,00
Privacy
Policy
Accessibility
Statement Public Information
Act
1.00
E. Weatherford, Fort
Worth,
Texas 76196,
817- 884-1111
Please send questions and comments regarding this vrebsite to webmaster@tarrantcountv.com.
Tarra�zt County provides the information contained in the web site as a public service. Every effort- is made to insure that information provided is correct.
However, in any case where legal reliance on infari3'ration contained in these pages is required, the official records of Tarrant County should be
consull'ed, Tarrant County is noYresponsible for the content if, nor endorses any site which has a link from the Tarrant County web site,.
1 of2 02/46/2008 08:39
Tarrant County Tax WebSite http://taxoffice.tarrantcounty.com/accountlnfo.asp?row=1&Display=...
Copyright 2001-2004 Tarrant County, TX
2 of 2 02/06/2048 08:39
Tarrant County Tax WebSite
Account: 00040778118
RFD: A 267 1A 91
Location• 0014 01INDEPENDENCE
PKWY
Legal CUELLA, FRANCISCO
SURVEY
A 267 TR 1A
BOUNDARY SPLIT
Owner: AIL INVESTMENT LP
13600 HERITAGE PKWY STE
200
FORT
WORTH TX 76177-4320
Year Unit
2007
2007
2007
2007
2007
Totals
2006
2006
2006
2006
2006
Totals
2005
2005
2005
2005
2005
Totals
Grand
Totals
026
220
224
225
http://mxo mce.tarrantcounty, com/accountlnfo.asp?row=2&Disp lay=...
Acres:
53.199
Yr Built:
0
Frozen Yr:
NONE
Frozen Amt:
$0.00
Sq Ft:
0
Def. Start:
NONE
Ref. End:
NONE
Roll:
R
N eu e.e:rcil< ,s
2007 Values
Land 5692
Ag Land 393301
2a07 Exemptions
AG002 393301
Click an the e-Statement button to view Total Tax Due.
Click on the e-Payment button to make a credit card or eCheck payment.
Levy Levy
Levy Penalty Interest Col Total Receipt
Amount Paid Due Penalty Due Date
48.67 48.67 0.00 0.00 0.00 0.00 0.00 1/31/2008
15A7 15.17 0.00 0.00 0.00 0,00 0.00 1/31/2008
13.11 , 13.11 0.00 0.00 0.00 0.00 0.00 1/31/2008
T93 7.93 0.00 0.00 0.00 0.00 0.00 1/31/2008
84.88 84.86 0.00 0.00 0.00 0.00 0.00
026
55.72
55.72
0.00
0.00
0.00
0.00
0.00
1/31/2007
220
17.59
17.59
0.00
0.00
0.00
0.00
0.00
5/30/2007
224
15.25
15.25
0.00
0.00
0.00
0.00
0.00
1/31/2007
225
9.03
9.03
0.00
0.00
0.00
0.00
0.00
1131 /2007
97.59 97.59 0.00 0.00 0.00 0.00 0.00
026
0.00
0.00
0.00
0.00
0.00O.Od
220
0.00
0.00
0.00
0.00
0.00
0.00
0.00
224
0.00
0.00
0.00
0.00
0.00
0.00
0.00
225
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.0o
O.00
0.00
182.47
182A7
0.00
0.00
0.00
0.00
0.00
Privacy
Policy
Accessibility Statement Public
Information Act
100 E. Weatherford,
Fort worth,
Texas 76196,
817- 884-1111
Please send questions and comments regarding this website to webmaster@tarrantcounty.com.
Tarrant County provides the
information contained in this web site as a public serv(ce. Every
effort is made
to insure that information provided is correct.
However, in any case where
legal reliance on information contained in these pages is
required, the
official rewrds of Tarrant County should be
ronsulted. Tarrant County is
net responsible for the content of, nor endorses any site which
has a link from
the Tarrant County web site.
Copyright 2001-2004 Tarrant County, TX
I of 2 02/0612008 08:40
Tarrant County Tax WebSite http://taxofficeetarranteounty.comiaccountlnfo.asp?row=2&Display=...
2 of Z 02/06/2008 08:40
Tarrant County Tax WebSite
Account: 00041045165
APD: A 267 1A01 90
Location: 0014 49INDEPENDENCE
PKWY
Legal: CUELLA, FRANCISCO
SURVEY
A 267 TR 1A01
BOUNDARY SPLIT
owner: AIL INVESTMENTS LP
13600 HERITAGE PKWY STE
200
FORT
WORTH TX 76177-4320
Year Unit
2007
2007
2007
2007
2007
2007
Totals
2006
2006
2006
2006
2006
2006
Totals
Grand
Totals
026
220
223
224
225
Acres:
1.010
Yr Built:
0
Frozen Yr:
NONE
IF Amt:
$0.00
Sq Ft:
0
Ref. Start:
NONE
Def, End:
NONE
Rolle
R
http://taxoffice.tarrantcounty.com/accountInfo.asp?row=1 &Display=,..
2007 values
Land 108
Ag Land 7467
2007 Exemptions
AG002 7467
Click on the e-Statement button to view Total Tax Due.
Click on the e-Payment button to make a credit card or eCheck payment.
Levy Levy Levy Penalty Interest Col Total - - .1
mount Paid Due Penalty Due Da
190,92 1 i1 0,00 0400 0,00 000 11:
• i ► li 0.00 0,00 ► 1. 1 11 11:
1 1 0,02 0000 0.00 0100 0,00 0,00 1/:
i 1 0000 0,00 0400 0400 0.00 i1:
i 1 0,00 0000 0,00 0400 0.00 11:
0100 100 iH 1/1 /11
026
0.96
0.96
0.00
0.00
0.00
0.00
0.00
1/31/2007
220
0.30
0.30
0.00
0.00
0.00
0.00
0.00
1/31/2007
223
0.02
0.02
0.00
0.00
0.00
0.00
0.00
1/31/2007
224
0.26
0,26
0.00
0.00
0.00
0.00
0.00
1/31/2007
225
0.16
0.16
0.00
0.00
0.00
0.00
0.00
1/31/2007
1.70
1.70
0.00
0.00
0.00
0.00
0.00
3.33 3.33
Privacy Policy
0.00 0.00 0.00
Accessibility Statement
0.00 0.00
Public Information Act
100 E. Weatherford, Fort Worth, Texas 76196, 817- 884-1111
Please send questions and comments regarding this website to webmaster@tarrantcountYcom.
Tarrant County provides the
informatien contained in th[s web site as a public service.
Every
effort is made
to insure that inforniation provided is correct.
However, in any case where legal reliance on information contained in these
pages is
rewired, the
official records of Tarrant County should be
consulted. Tarrant County is
not responsible for the content oF, nor endorses any site
which
has a kink from
the Taman: County web site.
Copyright 2001-2404 Tarrant County, TX
1 oft ozro6/Zooa as:�o
Tarrant County Tax WebSite
dAUUNASIE
Account:
00041045173
APD:
A 267 1A01 91
Location:
0014149INDEPENDENCE
PKWY
Legal:
CUELLA, FRANCISCO
SURVEY
A 267 TR 1A01
BOUNDARY SPLIT
Owner:
AIL INVESTMENTS LP
13600 HERITAGE PKWY STE
200
FORT
WORTH
TX 76177-4320
Year Unit
zao7
2007
2007
2007
2007
Totais
2006
2006
2006
2006
2006
Totals
Grand
Totals
oz6
220
224
225
Acres:
2.d67
Yr Built:
0
Frozen Yr:
NONE
Frozen Amt:
$O.Od
Sq Ft:
0
Def, Start:
NONE
Def. End:
NONE
Roll:
R
http://taxomce.tarranteounty. com/accountInfo.asp?row=2&Display=...
itiieW
Se�C'
2RR7 Values
Land 223
Ag Land 15280
2RQ7 Exemptions
AG002 1 15280
Click on the e-Statement button to view Total Tax Due.
Click on fihe e-Payment button to make a credit card or eCheck payment.
Levy Levy
Levy Penalty Interest Co! Total Receipt
Amount Paid Due Penalty Due Date
1.91 1.91 0.00 0.00 0.00 0.00 0.00 1/31/2008
0.59 0.59 0.00 0.00 0.00 0.00 0.00 1/31/2008
0.51 0.51 0.00 0.00 0.00 0.00 0.00 1/31/2008
0.31 0.31 0.00 0.00 0.00 0.00 0.00 1/31/2008
3.32 3.32 0.00 0.00 0.00 0.00 0.00
026
1.94
1.94
O.QO
0.00
0.00
0.00
0.00
1/31/2007
220
0.61
0.61
0.00
0.00
0.00
0.00
0.00
1/31/2007
224
0.53
0.53
0.00
0.00
0.00
0.00
0.00
1/31/2007
225
0.31
0.31
0.00
0.00
0.00
0.00
0.00
1/31/2007
3.39
3.39
0.00
0.00
0.00
0.00
0.00
6.71
6,71
0.00
0.00
0.00
0.00
0.00
Privacy
Policy
Accessibility Statement Public Information Act
100 E. Weatherford,
Fort Worth, Texas 76196,
817- 884-1111
Please
send questions and
comments
regarding this
website to
webmaster@tarrantcounty
cam.
Tarrant County provides the information contained in this web site as a public service. Every effort is made to Insure that information provided is correct.
However, in any case where legal reliance on information contained in these pages is required, the official records of Tarrant County should be
consulted. Tarrant County is not responsible for the content of, nor endorses any site which has a !ink from Che'rarrant County web site.
Copyright 2001-2004 Tarrant County, TX
1 of I 02i06/2008 08:4]
Tarrant County Tax WebSite
Account:
00003805794
APD.
A267-1A-20
Location:
OOOQOOOALLIANCE
GATEWAY FWY
Legal.
CUELLA, FRANCISCO
SURVEY
A267 TRS 1 C 1 D& 1 F
Owner: AIL INVESTMENT LP
13600 HERITAGE PKWY
STE 200
FORT
WORTH TX 76177-4320
http://taxoffice.tarrantcounty.com/accountinfo.asp?row=1 &Display=,..
Acres:
151.180
Yr Built:
0
Frozen Yr:
NONE
Frozen Amt:
$0,00
Sq Ft:
0
Def. Start.
NONE
Def. End:
NONE
Roll:
R
2Q07 VaEues
Land 16176
Ag Land 1644687
2007 Exemptions
AG002 1644687
Click on the e-Statement button to view Total Tax Due.
Click on the e-Payment button to make a credit card or eCheck payment.
t �tc��t stmtu� _ a P l..c..l~is►al"cr:.; _ . - &Y7(��t._ .�$�z�!" tBXBA ..P.11R., .;
Year Unit Levy Levy Levy Penalty Interest 'Cot Total Receipt
Amount Paid Due Penalty Due Date
2007 026 138,30 138.30 0.00 0,00 0.00 0.00 0.00 1/31/2008
2007 220 43.11 43.11 0.00 0.00 0.00 O.Oo 0.00 1/31/2008
2007 223 3,24 3.24 0.00 0,00 0,00 0.00 0,00 1/31/2008
2007 224 37,27 37.27 0,00 0.00 0.00 0.00 0.00 1/31/2008
2007 225 22,55 22.55 0.00 0.00 0.00 0,00 0400 1131/2008
2007 244,47 244.47 0.00 0.00 0.00 0_00 0.00
Totals
20.06 026 144,32 144.32 0.00 0,00 0.00 0.00 0,00 1/31/2007
2006 220 45.56 45.56 0.00 0,00 0.00 0.00 0.00 W312007
2006 223 3.36 3.36 0.00 0,00 0.00 0.00 0.00 1/31/2007
2006 224 39.50 39.50 0600 0.00 0.00 0.00 0.00 1/31/2007
2006 225 23.39 23.39 0.00 0,00 0.00 0.00 0,00 1/31/2007
2006 256.13 256,13 0.00 0,00 0.00 0.00 0,00
Totals
2005 026 183.71 183,71 0.00 0.00 0.00 0.00 0.00 1/31/2006
2005 220 57.87 57.87 0,00 0.00 0,00 0.00 0.00 1/31/2006
2005 223 4.25 4,25 0.00 0.00 OM 0.00 0.00 1/31/2006
2005 224 49,99 49.99 0.00 0.00 0.00 0.00 0.00 1/31/2006
2005 225 29.60 29.60 0.00 0,00 0.00 0,00 0.00 1/31/2006
2005 325.42 325,42 0.00 0.00 0.00 0.00 0.00
Totals
2004 026 185.34 185.34 0.00 0.00 0.00 0,00 0,00 1/31/2005
2004 220 58.39 58.39 0,00 0.00 0.00 0.00 0.00 1/31/2005
2004 223 4,29 4.29 0,00 0.00 0.00 0,00 0.00 1/31/2005
2004 224 50.44 50.44 0.00 0,00 0.00 0.00 0.00 1/31/2005
2004 225 29.86 29,86 0.00 0,00 0.00 0,00 0.00 1/31/2005
2004 328,32 328,32 0.00 0.00 0,00 0.00 0,00
Totals
2003 026 186.99 186,99 0,00 0.00 0,00 0,00 0.00 1/31/2004
2003 220 58.91 58.91 0,00 0.00 0.00 0.00 0.00 1/31/2004
2003 223 4,32 4.32 0.00 0,00 0.00 0,00 0.00 1/31/2004
2003 224 50,69 50.89 0,00 0.00 0.00 0.00 0,00 1/31/2004
2003 225 30.13 30.13 0.00 0.00 0.00 0.00 0.00 1/31/2004
1 of 3 02/06/2008 08:41
Tarrant County Tax WebSite
http://taxaffice.tarrantcounty.com/accountlnfo.asp?rour�-1 &Display=...
2003
331.24
331.24
0.00
0.00
O.00
0.00
0.00
Totals
2002
026
190.27
19027
0.00
0.00
0.00
0.00
0.00
1/31/2003
2002
220
59.94
59.94
0.00
0.00
0.00
0.00
0.00
1/31/2003
2002
223
4.40
4.40
0.00
0.00
0.00
0.00
0.00
1/31/2003
2002
224
51.12
51.12
0.00
0.00
0.00
0.00
0.00
1/31/2003
2002
225
30.66
34.66
0.00
0.00
0_00
0.00
0.00
1/31/2003
2002
336.39
336.39
0.00
0.00
0.00
0.00
0.00
Totals
2001
026
185.34
185,34
0.00
0.00
0.00
0.00
0.00
1/31/2002
2001
220
58.88
58.88
O.00
0.00
0.00
0.00
0.00
1/31/2002
2001
223
4.29
4.29
0.00
0.00
0.00
0.00
0.00
1/31/2002
2001
224
50.15
50.15
0.00
0.00
0,00
0.00
0.00
1/31/2002
2001
225
22.80
22.80
0.00
0.00
0.00
0.00
0.00
1/31/2002
2001
321.46
321.46
0.00
0.00
0.00
0.00
0.00
Totals
2000
026
195.78
195.78
0.00
0.00
0.00
0.00
0.00
1/31/2001
2000
220
61.48
61.48
0.00
0.00
0.00
0.00
0.00
1/31/2001
2000
223
4.47
4.47
0.00
MO
0.00
0.00
0.00
1/31/2001
2000
224
52.37
52.37
0.00
0.00
0.00
0.00
0.00
1/31/2001
2000
225
23.81
23.81
0.00
0.00
0.00
0.00
0.00
1/31/2001
2000
337.91
337.91
0.00
0.00
0.00
0.00
0.00
Totals
1999
026
229.91
229.91
0.00
0.00
0.00
0.00
0.00
1/11/2000
1999
220
68.80
68.80
0.00
0.00
0.00
0.00
O.00
1/11/2000
1999
223
5.15
5.15
O.00
0.00
0.00
0.00
O,OO
1/11/2000
1999
224
60.81
60.81
0.00
0.00
0.00
0.00
0.00
1/11/2000
1999
225
27.64
27.64
0.00
0.00
0.00
0.00
0200
1/11/2000
1999
392.31
392.31
0.00
MO
ODD
0.00
0.00
Totals
1998
026
284.21
284.21
0.00
0.00
0.00
0.00
0.00
1/31/1999
1998
220
83.87
83.87
0.00
0.00
0.00
0.00
0.00
1131/1999
1998
223
6.28
6.28
0.00
0.00
0.00
0.00
0.00
1/31/1999
1998
224
74.12
74.12
0.00
O.00
0.00
0.00
0.00
1/31/1999
1998
225
33.70
33.70
0.00
0.00
0.00
0.00
0.00
1/31/1999
1998
482.18
482.18
0.00
0.00
0.00
0.00
0.00
Totals
1997
026
291.34
291.34
0.00
0.00
0.00
0.00
0.00
1/31/1998
1997
220
83.87
83.87
0.00
0.00
0.00
0.00
0.00
1/3111998
1997
223
6.28
6.28
0.00
0.00
0.00
0.00
0.00
1/31/1998
1997
224
74.12
74.12
0.00
0.00
0.00
0.00
0.00
1/31/1998
1997
225
18.27
18.27
0.00
0.00
0.00
0.00
0.00
1/31/1998
1997
473.88
473.88
0.00
0.00
0.00
0.00
0.00
Totals
1996
026
300.84
300.84
0.00
0.00
0.00
0.00
0.00
1/31/1997
1996
220
83.87
83.87
0.00
0.00
0.00
0.00
O.00
1/3111997
1996
223
6.33
6.33
0.00
0.00
0.00
0.00
0.00
1/31/1997
1996
224
74.12
74.12
0.00
0.00
0.00
0.00
0.00
1/31/1997
1996
225
18.26
18.28
0.00
0.00
OA0
0.00
0.00
1/31/1997
1996
483.44
483.44
0.00
0.00
0.00
0.00
0.00
Totals
1995
026
361.95
361.95
0.00
0.00
0.00
0.00
0.00
1/18/1996
1995
220
100.15
100.15
O.Oo
UO
0.00
0.00
0.00
1/18/1996
1995
224
90.10
90.10
0.00
0.00
0.00
O.00
0.00
1/18/1996
1995
225
20.83
20.83
0.00
0.00
0.00
0.00
0.00
1/18/1996
1995
573.03
573.03
0.00
0.00
a.00
0.00
0.00
Totals
2 of 3 02/06/2008 08:41
Tarrant County Tax WebSite
1994
426
1994
220
1994
224
1994
225
1994
Totals
1993
026
1993
220
1993
224
1993
225
1993
Totals
Grand
Totals
htlp://taxofrice.tarrantcounty.com/accountlnfo.asp?row=1 &Display=...
384.32
384.32
0.00
0.00
0.00
0.00
0.00
1/11/1995
107,33
107.33
0.00
0.00
0.00
0.00
0.00
1/11/1995
96,58
96,58
0,00
0.00
0,00
0.00
0,00
1/11/1995
22631
22,31
0.40
0.00
0.00
0,00
0.00
1/11/1995
610,54
610.54
0,00
0,00
0,00
0,00
0.00
314,40
314,40
0.00
0.00
0.00
0.00
0.00
1/31/1994
89.98
89.98
0.00
0,00
0.00
0,00
0.00
1/31/1994
$0,12
80,12
0.00
0.00
0.00
0.00
0.00
1/31/1994
15A6
15.46
0.00
0.00
0,00
0.00
0.00
1/31/1994
499,96
499,96
0.00
0,00
Q.00
0.00
0.00
5,996.68 5,996.68 0.00 0.00 Q.00 0.00 0.00
Privacy Policy Accessibility Statement Public Information Act
100 E. Weatherford, Fort Worth, Texas 76196, 817- 884-1111
Please send questions and comments regarding this website to webmaster@tarrantcounty.com.
Tarrant County provides the information contained in this web site as a public service, Every effort is rnade to insure that information provided is correct.
However, in any case where legal reliance on information contained in these pages is required, the official records of Tarrant County should be
consulted. Tarrant County is not responsible for the content of, nor endorses any site which has a link from the Tarrant County web site.
Copyright 2001-2004 Tarrant County, TX
02/06/2008 08:41
Tarrant County Tax WebSite
Account: 00006240291
APD: A1711D-1
Location: RD 0000HENRIETTA CREEK
Legal: GUELLA. F SURVEY
A1711D TR 1
owner: AEL INVESTMENT LP
13600 HERITAGE PKWY
STE 200
FORT
WORTH TX 76177-4320
Year Unifi
2007
2007
Totals
2006
2006
Totals
2005
2005
Totals
2004
2004
Totals
2003
2003
Totals
2002
2002
Totals
2001
2001
Totals
2000
2000
Totals
1999
1999
Totals
1998
1998
Totals
1997
1997
Totals
1996
o2s
026
026
Aeres:
4.425
Yr Built:
0
Frozen Yr:
NONE
Frozen Amt:
$0.00
Sq Ft:
0
Def. Start:
NONE
Def, End:
NONE
Roll.
R
http://taxoif ce.tarranteounty.corn/accountlnfo.asp?row=1 &Display=...
2QQ7 Values
Land 33188
2007 Exemptions
Click on the e-Statement button to view Total Tax Due.
Click on the e-Payment button to make a credit card or eCheck payment.
026
93.36
93.36
93.36
93.36
026
95.00
95.00
95.00
95.00
026
92.55
92.55
92.55
92.55
026
97.75
97.75
97.75
97.75
026
114.79
114.79
114.79
114.79
026
141.90
141.90
141.90
141.90
026
145.46
145.46
145.46
145.46
026
150.20
150.20
Levy Penalty Interest Cal Total Receipt
Due Penalty Due Date
o.00 o.0o 0.00 0.00 0.00 1/31/2008
000
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.o0
1/31/2007
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1/31/2006
0.00
0.00
0.00
0.00
0.00
0'00
0.00
0.00
0.00
0.00
1131/2005
a.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.o0
0.00
1/31/2004
0'00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.o0
1/31/2003
D.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1/31/2002
0.00
0.00
0.00
o.00
0.00
0.00
0.00
0.00
0.00
0.00
1/31/2001
0'00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1/11/2000
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1/31/1999
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1/31/1998
0'00
0.00
0.00
0.00
0.00
0.00
0.00
0:00
0.00
0.00
8/1/2000
1 of 2 02/06/2008 08:42
Tarrant County Tax WebSite
http:/Itaxoffice.tarrantcounty.com/accountInfo.asp?rorv=l &Display=...
1996
150.20
150.20
Q.00
0.00
0.00
0.00
0.00
Totals
1995 026
158.07
158.07
0.00
0.00
0.00
0.00
0.00
1995
158 07
158.07
0.00
0A0
0.00
0.00
0.00
Totals
1994 026
159.71
159.71
0.00
0.00
0.00
0100
0.00
1994
159.71
159.71
0.00
0.00
0.00
0.00
0.00
Totals
1993 026
130.65
130.65
0.00
0.00
0.00
0.00
0.00
1993
130.65
130.65
0.00
0.00
0.00
0.00
0.00
Totals
Grand
11869,06
11869,06
0.00
0.00
0.00
0.00
0.00
Totals
1/18/1996
1/11l1995
1l31i1994
Privacy Policy Accessibility Statement Public Information Act
100 E. Weatherford, Fort Worth, Texas 76196, 817- 884-1111
Please send questions and comments regarding this website to webmaster@tarrantcounty.com.
Tarrant County provides the information contained in this web site as a public service. Every effort is made to insure that information provided is correct.
However, in any case where legal reliance on information contained in these pages is required, the official records of Tarrant County should be
consulted. Tarrant County is not responsible for the content of, nor endorses any site which has a link from the Tarrant County web site.
Copyright 2001-2004 Tarrant County, TX
2 of2 02/06/2008 08:42
Page 1 of 2
City of Fort Worth, Texas
• • • • •
DATE: Tuesday, February 26, 2008
LOG NAME: 17BCBSXAGR
REFERENCE NO.: C-22688
SUBJECT:
Authorize Execution of Tax Abatement Agreement with Health Care Service Corporation, d/b/a Blue
Cross Blue Shield of Texas, and Make Related Findings of Fact
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute the attached Tax Abatement Agreement with Health Care Service
Corporation, d/b/a Blue Cross Blue Shield of Texas, subject to non -material changes acceptable to the City;
and
2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreements are true and
correct.
DISCUSSION:
The real property and business personal property subject to abatement in the attached Tax Abatement
Agreement with Health Care Service Corporation, d/b/a Blue Cross Blue Shield of Texas (Blue Cross Blue
Shield), is located in the Alliance Gateway Business Park in north Fort Worth. The City Council designated
this property as Tax Abatement Reinvestment Zone Number 67, City of Fort Worth, Texas pursuant to
M&C G-16062 on February 19, 2008.
Project and Investment Commitment:
Blue Cross Blue Shield is a leading provider of health care benefits. The proposed project will be a data
center facility and is expected to have a total initial investment of at least $175 million.
Certified Fort Worth M/WBE Construction Commitment:
Blue Cross Blue Shield has committed to spend 25
facility with Certified Fort Worth M/WBE companies.
building are estimated to be $35 million.
percent of non -specialized construction costs for the
Total non -specialized construction costs for the base
Certified Fort Worth M/WBE Service and Supply Commitment:
Blue Cross Blue Shield has committed to spend 25 percent of discretionary spending on services and
supplies with Certified Fort Worth M/WBE companies.
Employment:
http://apps.cfwnet.org/council�acket/Reports/mc�rint.asp 5/8/2008
Page 2 of 2
Blue Cross Blue Shield will make agood-faith effort to maintain 85 full-time employees on site and fill a
minimum of 20 percent of full-time jobs with Fort Worth residents.
ABATEMENT TERMS:
Blue Cross Blue Shield will receive aten-year tax abatement on real and personal property for a maximum
abatement of 50 percent annually. The projected present value of the tax abatement if the maximum
abatement amount is reached every year during the agreement term is approximately $6.8 million.
Blue Cross Blue Shield will receive the following abatement corresponding to its commitments:
Abatement Component Maximum Percentage
Real and Personal Property Improvements of at least $175 million 40
Certified Fort Worth M/WBE Construction Commitment 5
Additional One Percent for Every $1 Million the 5
Fort Worth M/WBE Construction Commitment is Exceeded
Failure to meet the minimum real and personal property commitments by April 1, 2010, shall be an event of
default in which case the City will have the right to terminate the Agreement. Failure to meet the Certified
Fort Worth M/WBE construction commitment will result in a reduction of that component of the abatement
proportional to the amount by which the commitment was not met for the duration of the Agreement.
This project is located in COUNCIL DISTRICT 2.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the terms of this agreement will provide incentives to Blue Cross Blue
Shield with an estimated net present value less than what the additional revenue received from incremental
taxes paid to the City would be without the Agreement.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office by:
Originating Department Head:
Additional information Contact:
Tom Higgins (Acting) (6140)
Jay Chapa (5804)
Mark Folders (8634)
http://apps.cfwnet.org/council�acket/Reports/mc�rint.asp 5/8/2008