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HomeMy WebLinkAboutContract 25999 ° CITY SECRETARY CONTRACT NO. STATE OF TEXAS § TAX ABATEMENT AGREEMENT BETWEEN COUNTY OF TARRANT § THE CITY OF FORT WORTH AND CITY OF FORT WORTH § SIECOR OPERATIONS, LLC This Tax Abatement Agreement (this "Agreement") is entered into by and between the City of Fort Worth, Texas (the "City"), duly acting herein by and through its City Manager, and Siecor Operation, LLC ("Owner"), a North Carolina corporation in good standing to do business in the State of Texas, duly acting by and through its authorized officers. WHEREAS, the City has adopted a resolution stating that it elects to be eligible to participate in tax abatement; and WHEREAS, on the 29th day of February, 2000, the City Council of the City of Fort Worth, Texas ("City Council") adopted Resolution No. 2617, entitled a Tax Abatement Policy Statement for Qualifying Development Projects (the "Policy Statement"), attached hereto and incorporated herein as Attachment A; and WHEREAS, the Policy Statement constitutes 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"); and WHEREAS, on the 21st day of March, 2000, the Fort Worth City Council adopted Ordinance No. 14 13() ("the Ordinance") establishing Tax Abatement Reinvestment Zone No. 35 ("the Zone"); and WHEREAS, Owner owns certain real properties, more particularly described in Attachment B attached hereto and incorporated herein by reference (the "Premises"), located totally within the Zone; and WHEREAS, on the 5th day of January, 2000, Owner submitted an application for tax abatement, with an incorporated supplement and exhibit, to the City concerning the contemplated use of the Premises (the "Application for Tax Abatement"), attached hereto and incorporated herein as Attachment C; and WHEREAS, the contemplated use of the Premises, the Required Improvements (as hereinafter defined) and the terms of this Agreement are consistent with encouraging development of the Zone in accordance with the purposes for its creation and are in compliance with the Policy Statement,the Ordinance and other applicable law; and WHEREAS, the City Council finds that the terms of this Agreement, and the Premises and Required Improvements, satisfy the eligibility criteria of the Policy Statement; and WHEREAS, 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 Premises is located; Page 1 of 10 i��Tf��ELCE MLI Ro ox'Cml Va. NOW, THEREFORE, the City and Owner, for and in consideration of the premises and the promises contained herein, do hereby contract, covenant and agree as follows: I. OWNER'S COVENANTS A. Owner will undertake an office space expansion to its facilities in Reinvestment Zone No. 35 (the "Project"). As part of the Phase I of the Project, Owner shall construct, or cause to be constructed, on and within the Premises certain improvements (the "Required Improvements") (i) consisting of a 37,000 square feet office facility in Reinvestment Zone No. 35, and (ii) having a cost upon completion of at least Five Million Two Hundred Fifty Thousand Dollars ($5,250,000), including site development costs. The kind, number, and location of the Required Improvements are more particularly described in the Application for Tax Abatement. Minor variations in the Required Improvements from the description provided in the Application for Tax Abatement shall not be an Event of Default, provided that the conditions in the first sentence of this paragraph A are met and the Required Improvements are used for the purposes and in the manner described in the Application for Tax Abatement. At some point in the future and depending upon market conditions, the owner may, but is not obligated hereunder, proceed to construct a Phase II of the project. In order to qualify for abatement hereunder, Phase II must start by the end of the Agreement Term (as defined in paragraph IIID hereof) of the Phase I abatement. For purposes of this Agreement, the start of Phase II shall be considered as the date upon which building construction has begun, which will be determined by the issuance of a building permit from the City's Development Department. As part of Phase II of the Project, Owner shall construct, or cause to be constructed, on and within the Premises certain improvement (the "Required Improvements") (i) consisting of a 200,000-250,000 square feet facility for manufacturing optical telecommunications products and (ii) having a cost upon completion of at least Thirty Million Dollars ($30,000,000) which includes Fifteen Million Dollars ($15,000,000) for construction and Fifteen Million Dollars ($15,000,000) for equipment. However, the Abatement will apply to the actual total investment for Phase II, subject to limitations provided in the Tax Abatement Policy. B. Owner covenants to substantially complete construction of all of the Phase I Required Improvements on or before December 31, 2001. Provided that if the Owner decides to construct Phase II of the Project, Owner covenants to substantially complete construction of all of the Phase II Required Improvements on or before December 31, 2012. Failure of the Owner to construct Phase II of the Project shall in no way affect the Owner's ability to receive the Abatement for Phase I of the Project. C. Owner covenants that during the Term and/or the Compliance Auditing Term (as defined in paragraph III.D. hereof), Owner shall cause to be located on the Premises new tangible personal property having an original cost of at least Ten Million Dollars ($10,000,000), excluding inventory and supplies. Page 2 of 10 r D. Owner covenants that the Required Improvements shall be constructed and the Premises shall be used in accordance with the description of the project set forth in the Application for Tax Abatement. The Owner covenants to comply with and satisfy all of the provisions and requirements for the project as set forth in the Application for Tax Abatement, including but not limited to (i) the description and location of the Required Improvements; (ii) the activities to be performed; (iii) the eligibility criteria for the Required Improvements; (iv) the impact from construction including amounts to be spent with Fort Worth companies, contractors, subcontractors, and certified Minority Business Enterprises and Women Business Enterprises; (v) the employment impact from permanent employment, including the number of jobs to be held by Fort Worth residents and number of jobs to be held by Inner City residents; (vi) the cost and fiscal impact of the Required Improvements; and (vii) the amount and type of annual supplier and professional service contracts that will be awarded to both Fort Worth companies and certified Minority Business Enterprises and Women Business Enterprises. E. Owner covenants that throughout the Term, the Required Improvements shall be operated and maintained for the purposes set forth herein so that the uses of the Premises shall be consistent with the general purposes of encouraging development or redevelopment of the Zone, except as otherwise authorized or modified by this Agreement. 11. GENERAL PROVISIONS A. The City has adopted guidelines and criteria governing tax abatement agreements for the City and may enter into this Agreement containing the terms set forth herein. B. The Premises are not an improvement project financed by tax increment bonds. C. Neither the Premises nor any of the 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 units joining in or adopting this Agreement. D. This Agreement is subject to the rights of holders of outstanding bonds of the City. E. In the event of any conflict between the City zoning ordinances, or other City ordinances or regulations, and this Agreement, such ordinances or regulations shall control. F. A portion or all of the Premises and/or improvements thereon may be eligible for complete or partial exemption from ad valorem taxes, as a result of existing law or future legislation. This Agreement is not to be construed as evidence that such exemptions do not apply to the Premises and/or improvements thereon. Page 3 of 10 �r� � PRIAVIM (�o VF"^5J-1!`)FH2 TD1 4 III. ABATEMENT TERMS AND CONDITIONS A. The City hereby grants to Owner a real and personal property tax abatement ("Abatement") relative to Owner's Premises, the Required Improvements and tangible personal property located on the Premises, excluding inventory and supplies, subject to the following terms and conditions. B. The amount of the Abatement shall be based upon a percentage of the increase in value of the Premises, the improvements thereon, over their respective values on January 1, 2000, the year in which this Agreement is executed, and on the new tangible personal property located within the Required Improvement areas, but excludes any new tangible personal property located in the 20,000 square foot "North Manufacturing Building" ("Building A") and in the 308,000 square foot "Main Plant with Attached Office Space" ("Building B"), and shall be calculated as follows: Up to one hundred percent (100%) of the increase in value of the premises based upon the abatement schedule set out in Exhibit I to the Application for Tax Abatement (Attachment C) for each of the two phases; and Up to one hundred percent (100%) of the increase in value resulting from new tangible personal property on the Premises, but excluding any new tangible personal property located in the 20,000 square foot "North Manufacturing Building" ("Building A") and in the 308,000 square foot "Main Plant with Attached Office Space" ("Building B") based upon the abatement schedule set out in Exhibit 1 to the Application for Tax Abatement (Attachment C) for each of the two phases. Provided, that the increase in value subject to abatement in any one year shall be limited to no more than the amount estimated as the cost of construction of the Required Improvements [Five Million Dollars ($5,000,000) for Phase I and Fifteen Million Dollars ($15,000,000) for Phase II] and the amount of estimated increase in tangible personal property, excluding inventory and supplies, to be located on the Premises [Two Hundred Fifty Thousand Dollars ($250,000) for Phase I and Fifteen Million Dollars ($15,000,000) for Phase II]. C. Owner shall have the right to protest and contest any or all appraisals or assessments of the Premises and/or improvements thereon. D. For Phase I and Phase II, January 1 of the year following the year in which the Certificate of Occupancy is issued will constitute the start of auditing for compliance ("Compliance Auditing Term") of this Agreement. Taxes will not be abated during the first year of the Compliance Auditing Term. The term of the Abatement benefit (the "Term") shall begin January I (the "Beginning Date") of the year following the year that the Compliance Auditing Term begins. Unless sooner terminated as herein provided,the Term and the Compliance Auditing Page 4 of 10 �Lt�������z� Term shall end on December 31 immediately preceding the tenth (10th) anniversary of the Beginning Date. Information for the last Compliance Auditing Term shall be submitted as indicated in paragraph IV.A. E. The City acknowledges receipt from Owner of the required application fee of one percent (1%) of project cost, not to exceed $15,000. If construction on the required Improvements is begun within one year from March 21, 2000 (with or without a tax abatement), such fee shall be creditable in full to the benefit of Owner against any permit, impact, inspection or other lawful fee required by the City in connection with the project, and any remaining amounts shall be refunded to Owner. IV. RECORDS, AUDITS AND EVALUATION OF PROJECT A. Subject to applicable law governing financial disclosure by the Owner, the City shall have the right to review the financial condition of the Project to determine compliance with this Agreement. The City shall annually (or such other times deemed appropriate by the City) evaluate the project to insure compliance with this Agreement. On or before February 15th of every year of the Term, Owner shall provide information and documentation about the previous calendar year of the Compliance Auditing Term which details Owner's compliance with each applicable term of the agreement. Information provided by Owner hereunder shall be considered confidential and shall not be disclosed to outside parties, to the extent permitted by applicable law. Failure to provide this information shall be considered an event of default. The information shall include, but not be limited to,the following: (i) the number and dollar amounts of all construction contracts and subcontracts awarded on the Project to businesses which are Fort Worth companies, certified Minority Business Enterprises, and certified Women Business Enterprises; (ii) the total number of employees who work on the Premises, the number of employees who are Fort Worth residents, and the number of employees who reside in designated"inner city" areas. These jobs shall be reported in job classifications appropriate to the employees; (iii) the gross dollars and supporting details showing the amounts spent on supply and service contracts with Fort Worth companies, certified Minority Business Enterprises, and certified Women Business Enterprises; B. The City shall make a decision and rule on the actual annual percentage of tax abatement for the Project, based on the information furnished each year, on or before August 1 st of the taxable year and shall so notify the Owner. The actual percentage of the Abatement for a taxable year during the Term (see Section 111. D.) is therefore based upon the Owner's performance with regard to the commitment categories as provided in Exhibit 1 to the Application for Tax Abatement (Attachment C)for the preceding year of the Compliance Auditing Term �C 1G°D Page 5 of 10 �vYY e���i�U�lSI��hJhU �o UV!LCII�L'Up �lS/lU�a M C. During normal office hours throughout the Term and the year following the Term, providing reasonable notice is given to Owner, the City shall have access to the Premises by City employees for the purpose of inspecting the Premises and the Required Improvements to ensure that the Required Improvements or repairs are made in accordance with the specifications and conditions of this Agreement and to verify that the conditions of this Agreement are being complied with. Such inspections shall be conducted in accordance with Owners standard security procedures as may be mandated by company policy and United States government security requirements. V. BREACH A. In the event that (i) the Required Improvements for which an abatement has been granted are not completed in accordance with this Agreement; or (ii) the schedule for completion of the Required Improvements listed in paragraph B of Article I of this Agreement is not satisfied; or (iii) Owner allows its ad valorem real property taxes with respect to the Premises or the project, or its ad valorem taxes with respect to the tangible personal property to become delinquent and fails to 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) Owner breaches any of the other terms or conditions of this Agreement, then Owner shall be in default of this Agreement(an "Event of Default"). Should an Event of Default occur, the City shall give Owner written notice of such Event of Default and if Owner has not cured such Event of Default within ninety (90) days of said written notice, this Agreement may be terminated by the City; provided, however, that if such Event of Default is not reasonably susceptible of cure within such ninety (90) day period and Owner has commenced and is pursuing the cure of same, then after first advising City Council of the efforts to cure same, Owner may utilize an additional ninety (90) days. Time in addition to the foregoing 180 days may be authorized by the City Council. As liquidated damages for an Event of Default after the expiration of the applicable notice and cure periods, all taxes which otherwise would have been paid to the City for each year when an Event of Default existed, without the benefit of Abatement (after taking into account any applicable exemptions), will become a debt to the City. Such amount may be recovered by the City through adjustments made to Owner's ad valorem property tax appraisal by the Appraisal District, or if not so recovered shall be due, owing and paid to the City within sixty (60) days of the expiration of the above-mentioned applicable cure period(s) as the sole and exclusive remedy of the City, subject to any and all lawful offsets, settlements, deductions, or credits to which Owner may be entitled. In the event that such amount is not paid within sixty (60) days of the expiration of the applicable cure period, Owner shall in addition be liable for all penalties and interest on said amount charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Code, as in effect at the time of the payment of such penalties and interest. The parties acknowledge that actual damages in the event of default and termination would be speculative and difficult to determine. B. Notwithstanding the foregoing paragraph, if the City and Owner mutually determine that the development or use of the Premises or Required Improvements as contemplated herein is no longer appropriate or feasible or that a higher or better use is preferable, the parties may terminate this Agreement by a writing signed by both parties, the period of Abatement shall ((-'o VD Page 6 of 10 ��,-1P �, a expire as of the effective date of the termination, there shall be no recapture of amounts previously abated, and neither party shall have any further rights or obligations hereunder. VI. EFFECT OF SALE,ASSIGNMENT OR LEASE OF PROPERTY The Abatement shall vest in Owner and cannot be assigned to a new owner of all or a portion of the Premises and/or improvements, without the prior consent of the City Council, which consent shall not be unreasonably withheld provided that the Council determines that the proposed assignee is financially capable of meeting the terms and conditions of this Agreement and that the proposed Assignee agrees to assume all terms and conditions of this Agreement. Any attempted assignment without such prior consent shall be grounds for termination of this Agreement and the Abatement hereunder upon ten (10) days written notice from the City to Owner. Notwithstanding the above, this Agreement may be assigned by Owner to an entity controlling, controlled by or under common control with Owner without prior consent, provided the Assignee is the owner of the Premises, and Owner gives thirty (30) days prior written notice of the assignment to the City. VII. NOTICE All 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: OWNER: CITY: Siecor Operations, LLC City of Fort Worth Attn: Plant Manager Economic Development Office 9275 Denton Highway 1000 Throckmorton Street Fort Worth, Texas 76248-5199 Fort Worth, Texas 76102 VIII. CITY COUNCIL AUTHORIZATION 21 This Agreement was authorized by the City Council at its meeting on the 24,st of March, 2000, by Council approving Mayor and Council Communication No. G- 17-8b&, authorizing the City Manager to execute this Agreement on behalf of the City. Page 7 of 10 IX. ESTOPPEL CERTIFICATE Any party hereto may request an estoppel certificate from another party hereto so long as the certificate is requested in connection with a bona fide business purpose. The certificate, which if requested will be addressed to the Owner, shall include, but not necessarily be limited to, statements that this Agreement is in full force and effect without default (or if default exists the nature of default and curative action, which should be undertaken to cure same), the remaining term of this Agreement, the levels and remaining Term of the Abatement in effect, and such other matters reasonably requested by the party(ies)to receive the certificates. X. OWNER STANDING Owner, as a party to this Agreement, shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying ordinances, resolutions, or City Council actions authorizing same and Owner shall be entitled to intervene in said litigation. XI. APPLICABLE LAW This Agreement shall be construed under the laws of the State of Texas. Venue for any action under this Agreement shall be the State District Court of Tarrant County, Texas. This Agreement is performable in Tarrant County,Texas. XII. RECORDATION OF AGREEMENT A certified copy of this Agreement in recordable form shall be recorded in the Deed Records of Tarrant County, Texas. XIII. AMENDMENT This Agreement may be modified by the parties hereto to include other provisions which could have originally been included in this Agreement or to delete provisions that were not originally necessary to this Agreement pursuant to the procedures set forth in Title 3, Chapter 312 of the Code. Page 8 of 10 V'ECORD RU?vffl' U o 44 EXECUTED this_ffL day of �, ,,j , 2000,by the City of Fort Worth, Texas. EXECUTED this day of , 2000, by Siecor Operations, LLC. AT EST: CITY OF RT RTH,TEXAS Gloria Pearson ty Secretary (,o Mike Groomer, Assistant City Manager APPROVED AS TO FORM AND LEGALITY: Assistant City Attorney Date: 6 -/y-!J?7 (T--/2?6 6 3-2?-cv ATTEST: SIECOR OPERATIONS,LLC By: o Name: Name: Name: •4� � ��E,EW Title: Title: �Qe �� — ar'eN - HDW� d �Qv00tr OPN5 Date: Page 9 of 10 o I/U�J<ol(Us U� STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Mike Groomer, Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation,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 said CITY OF FORT WORTH, TEXAS, a municipal corporation, 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 said City for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this j4AEL!day of �wJ ,2000. Notary Public in anfor the State of Texasloi-,"� Comm.Exp.03-31-2001 PATRICIA A. GARCIA NOTARY PUBLIC State of Texas ATa` -1GIA A - �AILGeA Notary's Printed Name STATE OF TEXAS § COUNTY OF TARRANT § FORE ME, the undersigned authority, on this day personally appeared old Cuman an officer of Siecor Operations, LLC, a North Carolina corporation, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he/she executed the same for the purposes and consideration therein expressed,in the capacity therein stated and as the act and deed of said corporation. GIVEN UNDER MY HAND AND SEAL OF OFFICE this It day of Ma rX ,2000. DAWN JANDA Notary P is in and for i0sUSA MotAry►PubBw state of TUN the State of Texas Ml►Commis:Ion Eupim U.30-apop 01 t Lisa, J-444- Notary's Printed Name Page 10 of 10 c �� Attachment A CITY OF FORT WORTH TAX ABATEMENT POLICY STATEMENT FOR QUALIFYING DEVELOPMENT PROJECTS Adopted: February 29,2000 I. GENERAL PURPOSE AND OBJECTIVES Certain types of investment result in the creation of new jobs, new income and provide for positive economic growth and inner-city economic stabilization which is beneficial to the City as a whole. The City of Fort Worth is committed to the promotion of high quality development in all parts of the City and improvement in the quality of life for its citizens. The City of Fort Worth will, on a case-by-case basis, give consideration to the granting of property tax incentives to eligible residential, commercial, and industrial development projects. It is the policy of the City of Fort Worth that consideration of eligible projects will be provided in accordance with the guidelines and criteria outlined in this document. Texas law authorizes the City of Fort Worth to grant tax abatement on the value added to a particular property by a specific development project which meets the economic goals and objectives of the City, and the requirements of the statute (Vernon's Tax Code Ann. Section 312.001, et. seq.). As mandated by state law, this policy applies to the owners of real property. It is not the policy of the City of Fort Worth to grant property tax abatement to any development project for which a building permit has been previously issued by the City's Department of Development. Nothing in the policy shall be construed as an obligation by the City of Fort Worth to approve any tax abatement application. Although all applications which meet the eligibility criteria(Section III.) of this policy statement will be reviewed, it is the objective of the City of Fort Worth to encourage applications from projects that: (a) are located in enterprise zones or other designated target areas; or (b) result in a development with little or no additional cost to the City; or (c) result in 1,000 or more new jobs, with a commitment to hire Fort Worth and inner city residents. II. DEFINITIONS "Abatement" means the full or partial exemption from ad valorem taxes on eligible properties for a period of up to ten years and an amount of up to 100% of the increase in appraised value (as reflected on the certified tax roll of the appropriate county appraisal district) resulting from improvements begun after the execution of the tax abatement agreement. Eligible properties must be located in a reinvestment zone. "Reinvestment Zone" is an area designated as such by the City of Fort Worth or State of Texas in accordance with the Texas Property Redevelopment and Tax Abatement Act, Sections 312.001 through 312.209 of the Tax Code. r (� Page t of 7 "Residential Development Project" is a development project which proposes to construct or renovate multi-family residential living units on property that is (or meets the requirements to be) zoned multi- family as defined by the City of Fort Worth Zoning Ordinance. "Fort Worth Company" is a business which has a principal office located within the city limits of Fort Worth. "Minority Business Enterprise (MBE) and Women Business Enterprise (WBE)" is a minority or women owned business that has received certification as either a MBE or WBE by either the North Texas Regional Certification Agency (NTRCA) or the Texas Department of Transportation (TxDOT), Highway Division. "Capital Investment" includes only real property improvements such as new facilities and structures, site improvements, facility expansion, and facility modernization. Capital investment does NOT include land acquisition costs and/or any existing improvements, or personal property (such as machinery, equipment, and/or supplies and inventory). "Facility Expansion" is a new permanent real property improvement such as a building or buildings constructed to provide additional square footage to accommodate increased space requirements of a Fort Worth company. "Facility Modernization" is a new permanent real property improvement under taken to provide increased productivity for a new or existing Fort Worth company. "Supply and Service Expenses" are discretionary expenses incurred during the normal maintenance and operation activities of a business. III. ELIGIBILITY CRITERIA A. RESIDENTIAL PROJECT ELIGIBILITY A residential development project is eligible for property tax abatement if: 1. The project is located in any of the following census tracts: 1002.02, 1010, 1011, 1016, 1017, 1018, 1019 (partial), 1025, 1028 (partial), 1029, 1030, 1031, 1033, 1035, 1036.01, 1037.01, 1038, 1040, 1041 (partial) (see Map- Exhibit"A"); AND 2. a. The project will construct or renovate no less than 50 residential living units of which no less than 20% shall be affordable (as defined by the U.S. Department of Housing and Urban Development) to persons with incomes at or below 80% of median family income; OR b. The project has a minimum capital investment of$5 million (excluding acquisition costs for land and any existing improvements). B. COMMERCIAL/INDUSTRIAL ELIGIBILITY 1. New Projects In order to be eligible for property tax abatement, a new commercial/industrial development project must satisfy one of the following three criteria: a. Upon completion will have a minimum capital investment of $10 million and commits to hire an agreed upon percentage of residents from an eligible inner city census tract (as identified on Exhibit "A") for full time employment.; OR Page 2 of 7 r Qn;, E li� r, b. Is located in the "inner city" (as identified on Exhibit "A") or property immediately adjacent to the major thoroughfares which serve as boundaries to any of these inner city census tracts and commits to hire an agreed upon percentage of residents from an eligible inner city census tract (as identified on Exhibit"A") for full time employment; OR C. Is located outside of the "inner city", has a minimum capital investment of less than $10 million, and commits to hire an agreed upon percentage of residents from an eligible inner city census tract (as identified on Exhibit "A") for full time employment. 2. Existing Business Expansion and/or Modernization In order to be eligible for property tax abatement, a facility expansion and/or modernization by an existing commercial/industrial business must: a. Upon completion have a minimum capital investment of$10 million; OR b. Result in increased employment for which the business commits to hire and retain an agreed upon percentage of residents from an eligible inner city census tract (as identified on Exhibit "A") for new, full time positions; AND C. Have a minimum capital investment of (1) $500,000, OR (2) an amount equal to or greater than 25% of the appraised value, as certified by the appropriate appraisal district, of real property improvements on the property for the year in which the abatement is requested. C. PROOF TESTS 1. Building Permits No tax abatement will be granted to any development project which has applied for or received a building permit from the City's Department of Development. 2. Evidence of Need for Tax Abatement The applicant must provide evidence to substantiate and justify the tax abatement request including (but not limited to) an analysis demonstrating the tax abatement is necessary for the financial viability of the project. IV. ABATEMENT GUIDELINES The tax abatement agreement must provide that the applicant: (1) Hire Fort Worth residents for an agreed upon percentage (at least 25%) of new full time jobs to be created and make a good faith effort to hire 100% Fort Worth residents for all new jobs created as a result of the abatement, (2) Commit to hire an agreed upon percentage of Fort Worth residents from an eligible inner city census tract (as identified on Exhibit "A") for all new jobs created as a result of the project. The agreed upon percentage shall be determined by negotiation. (3) Utilize Fort Worth companies for an agreed upon percentage of the total costs for construction and Supply and Service Contracts, and M Page 3 of 7 (4) Utilize Minority and Women owned Business Enterprises (M&WBEs) for an agreed upon percentage of the total costs for construction and supply and service contracts in the manner provided in the City of Fort Worth's Minority and Women Business Enterprise ordinance. In addition to the above,the abatement must comply with the following guidelines: A. State law prohibits abatement of taxes levied on inventory, supplies or the existing tax base. City policy is not to abate taxes on personal property located within Fort Worth prior to the date of the tax abatement agreement. B. Unless otherwise specified in the agreement, the amount of the taxes to be abated shall in no event exceed the amount of the capital investment (as specified in the application) multiplied by the City's tax rate in effect for the year in which the calculation is made. C. In certain cases, the City may consider a tax abatement application from the owner of real property who serves as a landlord or lessor for a development project which meets the eligibility criteria of this section. D. The City may consider an application from the owner or lessee of real property requesting abatement of real and or personal property owned or leased by a certificated air carrier on the condition that the certificated air carrier make specific real property improvements or lease real property improvements for a term of 10 years or more. E. For an eligible development project to be considered for tax abatement, the "Application for Tax Abatement" form must be completed and submitted to the Office of Economic Development. F. An application fee must accompany the application. The fee is calculated at the lesser of: (i) 1% of the project capital investment, or(ii) $15,000. If construction on the project is begun on the site specified in the application within a one (1) year period from the application submittal date (with or without a tax abatement), this fee shall be credited to any permit, impact, inspection or any other lawful fee required by the City of Fort Worth. If the project is not constructed on the site specified in the application or if construction takes place at the specified site more than one (1) year after the application submittal date, the application fee shall not be refunded or otherwise credited. G. If requested, the applicant must provide evidence that there are no delinquent property taxes due on the property on which the development project is to occur. H. The tax abatement agreement shall limit the uses of property consistent with the general purpose of encouraging development or redevelopment of the zone during the period that property tax abatements are in effect. I. Tax abatement may only be granted for projects located in a reinvestment or enterprise zone. For eligible projects not currently located in such a zone, the City Council may choose to so designate the applicant's property in order to allow for a tax abatement. J. The owners of all projects receiving tax abatement shall properly maintain the property to assure the long term economic viability of the project. Page 4 of 7 V. PROCEDURAL STEPS Each request for property tax abatement shall be processed according to the following procedural guidelines. A. Application Submission: Provided that the project meets the criteria detailed in Section III of this policy, the Applicant must complete and submit a City of Fort Worth "Application For Tax Abatement" form (with required attachments) and pay the appropriate application fee. B. Application Review and Evaluation: The Economic Development Office will review the application for accuracy and completeness. Once complete, the application will be evaluated based on: 1. Types of new jobs created, including respective wage rates, and employee benefits packages such as health insurance, day care provisions, retirement package(s), transportation assistance, and any other. 2. Percent of new jobs committed to Fort Worth residents. 3. Percent of new jobs committed to Fort Worth "Inner City"residents. 4. Percent of construction contracts committed to: a. Fort Worth based firms, and b. Minority and Women owned Business Enterprises (MBEs and "Es). 5. Percent of supply and service contract expenses committed to: a. Fort Worth based firms, and b. Minority and Women owned Business Enterprises (MBEs and WBEs). 6. The project's increase in the value of the tax base. 7. Costs to the City (such as infrastructure participation, etc.). 8. Other items which may be negotiated by the City and the applicant. Based upon the outcome of the evaluation, the Economic Development Office may present the application to the City Council's Economic Development Committee. C. Consideration by Council Committee Should the Economic Development Office present the application to the City Council's Economic Development Committee, the Committee will consider the application at an open meeting. The Committee may: (1) Approve the application. Staff will then incorporate the application into a tax abatement agreement which will be sent to the City Council with the Committee's recommendation to approve the agreement; or (2) Request modifications to the application. Economic Development staff will discuss the suggested modifications with the applicant and then, if the requested modifications are made, resubmit the modified application to the Committee for consideration; or Page 5 of 7 ��� W.;cu V'11�p YEK (3) Deny the application. The applicant may appeal the Committee's finding by requesting the City Council: (a) disregard the Committee's finding and (b) instruct city staff to incorporate the application into a tax abatement agreement for future consideration by the City Council. D. Consideration by the City Council The City Council retains sole authority to approve or deny any tax abatement agreement and is under no obligation to approve any tax abatement application or tax abatement agreement. The City of Fort Worth is under no obligation to provide tax abatement in any amount or value to any applicant. E. Effective Date for Approved Agreements All tax abatements approved by the City Council will become effective on January 1 of the year following the year in which a Certificate of Occupancy (CO) is issued for the qualifying development project (unless otherwise specified in the tax abatement agreement). Unless otherwise specified in the agreement, taxes levied during the construction of the project shall be due and payable. VI. RECAPTURE If the terms of the tax abatement agreement are not met, the City Council has the right to cancel or amend the abatement agreement. In the event of cancellation, the recapture of abated taxes shall be limited to the year(s) in which the default occurred or continued. VII. INSPECTION AND FINANCIAL VERIFICATION The terms of the agreement shall include the City of Fort Worth's right to: (1) review and verify the applicant's financial statements in each year during the life of the agreement prior to granting a tax abatement in any given year, (2) conduct an on site inspection of the project in each year during the life of the abatement to verify compliance with the terms of the tax abatement agreement. VIII. EVALUATION Upon completion of construction of the facilities, the City shall no less than annually evaluate each project receiving abatement to insure compliance with the terms of the agreement. Any incidents of non-compliance will be reported to all affected taxing units. On or before March 3151 of every year during the life of the agreement, any individual or entity receiving a tax abatement from the City of Fort Worth shall provide information and documentation which details the property owner's compliance with the terms of the respective agreement and shall certify that the owner is in compliance with each applicable term of the agreement. Failure to report this information and to provide the required certification by the above deadline shall result in any taxes abated in the prior year being due and payable. RF1 UUPage 6 of 7F vl11'FIN99 Tay. IX. EFFECT OF SALE, ASSIGNMENT OR LEASE OF PROPERTY No tax abatement rights may be sold, assigned or leased unless otherwise specified in the tax abatement agreement. Any sale, assignment or lease of the property which is not permitted in the tax abatement agreement results in cancellation of the agreement and recapture of any taxes abated after the date on which an unspecified assignment occurred. Page 7 of 7G Attachment B LEGAL DESCRIPTION FIRST TRACT BEING 30.446 acres of land located in the John Edmonds Survey, Abstract No. 457, Tarrant County Texas, and being the same 30.44 acres conveyed to Superior Continental Corporation by deed recorded in Volume 4569, Page 966 of the Deed Records of Tarrant County, Texas. Said 30.446 acres being more particularly described by metes and bounds as follows: BEGINNING at the Southeast corner of the aforementioned 30.44 tract, being located by deed call as follows: COMMENCING at a nail in County Road No. 4046, said point being the Northwest corner of the 262.7 acre tract of land, recorded in Volume 4511, Page 200, Tarrant County, Texas, said point being situated 4,513.9 feet South and 1,304.2 feet East of the Northwest corner of the John Edmond Survey, Abstract No. 457; THENCE SOUTH 00 deg. 04 Minutes West 1,970.4 feet; THENCE SOUTH 89 deg. 48 Minutes East 1,335.0 feet; THENCE SOUTH 1,978.6 feet; THENCE SOUTH 89 deg. 34 Minutes East 1,975.08 feet to the PLACE OF BEGINNING and the Southeast corner of said 30.44 acre tract, being a concrete monument in the West R.O.W. line of the Texas& Pacific Railroad; THENCE NORTH 07 deg. 45 Minutes East 1,287.85 feet along the West R.O.W. line of the Texas & Pacific Railroad to a concrete monument for the Northeast corner of tract; THENCE NORTH 89 deg. 34 Minutes West 1,120.27 feet to a concrete monument for the Northwest corner of tract; THENCE SOUTH 00 deg. 26 Minutes West 1,277.37 feet to a concrete monument for the Southwest corner of tract; THENCE SOUTH 89 deg. 34 Minutes East 955.28 feet to the place of Beginning. SECOND TRACT BEING 30.012 acres, more or less, out of the John Edmonds Survey, Abstract No. 457, Tarrant County, Texas, and being the same tract of land conveyed to Superior Continental Corporation by Deed recorded in Volume 4858, Page 603 of the Deed Records of Tarrant County, Texas. Said 30.012 acres being more particularly described by metes and bounds as follows: BEGINNING at the Southwest corner of a tract heretofore conveyed to Superior Continental Corporation by deed recorded in volume 4569, Page 966, Deed Records of Tarrant County, Texas, reference to which is hereby made for all purposes: Page 1 of 2 n � n THENCE NORTH 00 deg. 26 Minutes East along the West boundary line of said tract heretofore conveyed to Superior Continental Corporation to a concrete monument at its Northwest corner, a distance of 1277.37 feet; THENCE NORTH 89 deg. 34 Minutes West 1,028.1 feet to a concrete monument for a comer; THENCE SOUTH 00 deg. 01 Minutes West along a fence line 1,277.4 feet to a set stone for a corner; THENCE SOUTH 89 deg. 34 Minutes East along a fence line 1,018.8 feet to the place of beginning, containing 30.012 acres of land. Page 2 of 2 �v 0�"tn1U(f(�Y. Attachment C 51ECOR Siecor Operations, LLC 9275 Denton Hwy Keller, Texas 76248 January 4, 2000 Mr. Tom Higgins Director, Economic Development Office of Economic Development City Manager's Office Fort Worth, Texas 76102 Subject: Tag Abatement Application Mr. Higgins: Attached to this letter is a Tax Abatement Application for a proposed expansion of Siecor's facility located in Fort Worth at 9275 Denton Hwy. Ken Gross,Vicki Hawkins and I greatly appreciate the cooperation and assistance you and Ardina Washington provided to us as we prepared this Application. Please call me with any questions or concerns you may have. Thanks also for your attention to this project in such a timely manner. Res 11 , Pete Grantham, P.E. Facilities Manager Application prepared by: OFdw TF��1 01 W 0................................. f PETER L. GRANTHAM �.. ............................� t� •, !3474 • � ST bpi r (ry i�WFII? `I L C>Gd �:, � s ,., ,,� ;;`.� Attachment C City of Fort Worth COMMERCIAL/INDUSTRIAL City of Fort Worth Tax Abatement Application February 1999 COMMERCIAL/INDUSTRIAL ( lty ()1' 4()rt W(�i'th Tax Abatement Application Februai 1999 ( OV i-I } d +�+SIN /l�ili�ww++wi Office of Economic Development Off, e ., ' Tax ������ e�t� 1C.clt1061 OKT OkTH. GrD ��o � :=�0u9 FRo 1. Applicant Information: Name Siecor Operations,L.L.C. (Corning Communications) Address 9275 Denton Hwy City, State, Zip Code Keller, Texas 76248 Telephone (817) - 431 - 7619 Fax 8( 17� - 431 - 3108 Internet E-mail addresses (if available): Pete.Grantham(a)Siecor.com Contact Person (include title/position): Pete Grantham,P.E. / Facilities Manai?er Ken Gross/Plant Manager 2. Property Description Attach legal description or surveyor' metes & bounds description. 3. Current Appraised Value of Property Attach latest copy of property tax statement from the County Appraisal District. 4. Attach a brief description of the project including: services provided or products manufactured, major customers and locations, etc. 5. Project Description A. New Facilities 1. Size approx. 37,000 sq. ft. 2. Cost of Construction $ 5,000,000 B. Site Development (parking, fencing, landscaping, etc.): 1. Type of work to be done Additional Parking Lot Construction, Security Fencing Relocations, Tree Planting,Landscaping Improvements 2. Projected costs $ 250,000 C. Personal Property: 1. Value of: a. Inventory $ 1,000,000 b. Supplies $ 2,000/ mo. 2. Percent of inventory eligible for freeport exemption (inventory, exported from Texas within 175 days) 93 % 3. Value of equipment, machinery, furnishings, etc. $ 1,000,000/ yr. (�� u%C'l�li�U�LSI�NUS^Iln 6.Project Construction: A. What percent of the construction costs (5A.&B. above) will you commit to spend with: 1. Fort Worth businesses? 25 % 2. Minority and Women owned Business Enterprises? 15 % B. When will construction start? 18`—2°d Quarter 2000 C. How many construction jobs will be created? 60— 100 D. What is the estimated payroll for these jobs? $ 600,000 7. Employment: A. If this project is an expansion or modernization of an existing facility: 1. How many persons are currently employed? 860 2. What percent of 7.A. above are Fort Worth residents? 26% 3. What percent of 7.A. above are Inner City residents? 4 % B. Please complete the following table. First Audit Year Fifth Year Tenth Year New Jobs to be Created 70 175 195 Less Transfers* 0 0 0 Net Jobs 70 175 195 %of Net Jobs to be filled by Fort Worth 26% 26% 26 % Residents %of Net Jobs to be filled by Inner City 4 % 4 % 4 % Residents * If any employees will be transferring,please describe where they will be transferring from. **Must be at least 25% C. 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. D. 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. ��L�G� � r'Lr o G1D 8. Regarding supply and service expenses(i.e. landscaping,office or manufacturing supplies,janitorial services,etc.): A. What is the amount of non-sole source supply and service expenses? $ 22,000,000 B.What percentage will be committed to Fort Worth businesses? 50% C. What percentage will be committed to Minority and Women Owned Businesses? 15 % 9. Is the property appropriately zoned for the project? Yes 10. Is the property platted? Yes If yes,will replatting be necessary? No 11.Attach a description of any environmental impacts associated with this project. 12.Attach a description of any direct benefits to the City of Fort Worth as a result of this project (i.e. sales tax,inventory tax, development fees,etc.) 13. Do you intend to pursue abatement of: County Taxes? ❑x Yes ❑ No School Taxes? x❑ Yes ❑ No 14. What level of abatement do you request: Years? 10 Percentage? 100 % 15. Is any person or firm receiving any form of compensation,commission or other monetary benefit based on the level of incentive obtained by the applicant from the City of Fort Worth? No If yes, please attach details. 16. On an attachment,explain why tax abatement is necessary for the success of this project. Include a business pro-forma or other documentation to substantiate your request. 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 Policy Statement: Tax Abatement For Qualified Development Projects" and agree to comply with the guidelines and criteria stated therein. if a, C,< a' Plant Manager Name Title / - os- 00 Date ,II C���,I�C11I� �D a UL �fuo SIECOR Siecor Operations,LLC 9275 Denton Hwy Keller,Texas 76248 Tax AIml 0 Cliff er liagion Supplemental Information for City of Fort Worth Tax Abatement Application Form Application prepared By: Peter L.Grantham, P.E. jo P PETER L. '¢t 73"".,74 4 TE lop �LJO o VJUI'l Cho YU. LEGAL DESCRIPTION FIRST TRACT BEING 30.446 acres of land located in the John Edmonds Survey, Abstract No. 457, Tarrant County Texas, and being the same 30.44 acres conveyed to Superior Continental Corporation by deed recorded in Volume 4569, Page 966 of the Deed Records of Tarrant County, Texas. Said 30.446 acres being more particularly described by metes and bounds as follows: BEGINNING at the Southeast corner of the aforementioned 30.44 tract, being located by deed call as follows: COMMENCING at a nail in County Road No. 4046, said point being the Northwest corner of the 262.7 acre tract of land, recorded in Volume 4511, Page 200, Tarrant County, Texas, said point being situated 4,513.9 feet South and 1,304.2 feet East of the Northwest corner of the John Edmond Survey, Abstract No. 457; THENCE SOUTH 00 deg. 04 Minutes West 1,970.4 feet; THENCE SOUTH 89 deg. 48 Minutes East 1,335.0 feet; THENCE SOUTH 1,978.6 feet; THENCE SOUTH 89 deg. 34 Minutes East 1,975.08 feet to the PLACE OF BEGINNING and the Southeast corner of said 30.44 acre tract, being a concrete monument in the West R.O.W. line of the Texas& Pacific Railroad; THENCE NORTH 07 deg. 45 Minutes East 1,287.85 feet along the West R.O.W. line of the Texas & Pacific Railroad to a concrete monument for the Northeast corner of tract; THENCE NORTH 89 deg. 34 Minutes West 1,120.27 feet to a concrete monument for the Northwest corner of tract; THENCE SOUTH 00 deg. 26 Minutes West 1,277.37 feet to a concrete monument for the Southwest corner of tract; THENCE SOUTH 89 deg. 34 Minutes East 955.28 feet to the place of Beginning. SECOND TRACT BEING 30.012 acres, more or less, out of the John Edmonds Survey, Abstract No. 457, Tarrant County, Texas, and being the same tract of land conveyed to Superior Continental Corporation by Deed recorded in Volume 4858, Page 603 of the Deed Records of Tarrant County, Texas. Said 30.012 acres being more particularly described by metes and bounds as follows: BEGINNING at the Southwest corner of a tract heretofore conveyed to Superior Continental Corporation by deed recorded in volume 4569, Page 966, Deed Records of Tarrant County, Texas, reference to which is hereby made for all purposes: Pagel of 2 11))M G Al VNIO e�U THENCE NORTH 00 deg. 26 Minutes East along the West boundary line of said tract heretofore conveyed to Superior Continental Corporation to a concrete monument at its Northwest corner, a distance of 1277.37 feet; THENCE NORTH 89 deg. 34 Minutes West 1,028.1 feet to a concrete monument for a corner; THENCE SOUTH 00 deg. 01 Minutes West along a fence line 1,277.4 feet to a set stone for a corner; THENCE SOUTH 89 deg. 34 Minutes East along a fence line 1,018.8 feet to the place of beginning, containing 30.012 acres of land. Page 2 of 2 �V ^ ,C '' ..� cti" .�3,ZUc • T _ • £ - STATE OF TEXAS, COlJNTYOFARRINT" "'"' (ARRANT COUNTY ADMINISTRATION BUILDING JUNE GARRISON,ASSESS& QOLtECTQR :r 100E WEATHERFORD,FORT WORTH 03TEXAS 761%- 01 ' 81.71884-1100 ,moi - - ,g�`J .-4,,,; E'- -w"-•. �- .vim. : e,..,s^'_3� -hc. ` + ''+ `. ,'sd ,sem '' '+m.:'ts: - i"-;1s -•"L y x - ..w, - i y 'A. - s TAX SNT STATEMENT DATE:..Y1VM999LEGAL BUSINESS PERSONAL PROPERTY ACCOUNT: 00008547425 SEE ABATEMENT FILE OWNER SIECOR CORP PIDN: =P V PARCEL ADDRESS::-0009275 DENTON HWY ��� � ACRES 0 If EXEMPTION CODES: F 1 902 _.'r e ..`:• a.: - EXEMPTION k4 TAX RATE ;: _ s P, LTY 3 TAXING ENTITIES t AMOUNT VALUE; PER 100 BASE TAX x WA TARRANT COUNTY `20,504,5378,238,365 0.264836 21818.16 000 T C HOSPITAL •: 20.504,537 8,238.365 0.234070 "19283.54 T C COLLEGE �' " : ''_::8 863 512 ,22.379 390 ;x.00 0. 08410 23813.91 ,_ 0.00 EMERG SVC#1 :_6,383,512 _ :22;379.390 0.080000 17903.51 D.00 KELLER ISD r 0' 28 742 902 'F 1.+475000 423957.80' 0.00 SUBTOTAL 778 '� TOTAL AMOUNT DUE:' 508 778.92 ''- =iz Y • _ MPROVID F OPERTY TAX SUILTANTS, INC. - -rn.. - 'fir - ", `s •_. r- -ire ��� y-..�'#' --" . � • M`., kap, _ ,S - K ._._Tl.irb.n.anAfndcnd vm►.cwe+e�Iwd enhwrJr.r�ewnir icyrnr na�wiN, ._ . _ PMwsw fena.mvResp.lclrlR_fiil�ntlfl/ifO��1R7lif►1gi11. __...,,.._�. i f ¢f STATE OF TEXAS,COUNTY OF TARRANTH;;., TARRANT COUNTY ADMINISTRATION BUILDING *UNE GARRISON,ASSESSOR-COLLECTOR 100 E.WEATHERFORD,FORT WORTH,TEXAS 76196-0301 ,'` �.. .-..'• ,�. � � ... _.;�----�._�y.: �� fy,W1884-1100It _ `''7AX STATEMENT 1999 = = s _l #287 TATEMENT DATE: 10/08/1969 LEGAL:YEDMONDSr, JOHN SURVEY r ACCOUNT: 00003864340 As.457 TR 1 ID- OWNER: S I ECOR DEVELOPMENT CORP -r r PIDN.A457-1 ID PARCELADDRESS: 0000000 =DENTON HWYr- � ACRES 29.62 EXEMPTION CODES: AGO02 .. 'LAND VALUE VALUE, 5D2 _058P723a '; EXEMPTION TAXABLE - =TAX RATE PENALTY b ; TAXING ENTITIES BASE TAX :- AMOUNT VALUE APER$100 INTEREST' ,ARRANT COUNTY 357,223 4x''058 0.264836 0.75 x 00 T'C HOSPITAL a `857,223 �i X058 0.234070 I�0 000" T-C COLLEGE br: 357,223 - 41058 0. 106410 4$92lrl -, o00 EMERG SVC #1 -367,223 "k4 1058 0.D80000 ' 25 `b10 KELLER ISD -357,223 4,058 1.475000 ,; 59 86 l00 -SUBTOTAL 87.68 0:"00 TOTAL AMOUNT DUE _ 87,.:68 rl OCT 2 [ 1999 .. y . This top portion and your canrefed cheek*Il serve as your receipt Please see rertrie A6 for bnparbwt wfmmadmL li {I IpI,li"N ill FirDOO�UL D STATE OF TEXAS,COUNTY OFTARRANT TARRANT COUNTY ADMINISTRATION BUILDING JURE GARRISON,ASSESSOR-COLLECTOR ?�Ta: 100 E.WEATHERFORD,FORT WORTH,TEXAS 76196-0301 - TAX ST T�Biil@IT 1999 �. �.�a ,2T428t STATEMENT DATE: 10/08/1999 LEGAL: EDMOND3, JOHN SURVEY x _ A .45F `_TR 11C ACCOUNT 84 0000383$2 ' �� OWNER: SI,ECO EVELOPMENT COMP, _$.-PIDN:A45T t tC z ,PARCEL ADDRESS:,000927,5-` ENTONHW_ YY `* _. - !-ACRES: EXEMPTION CODES: A000 46 850LUE ti? 5 �WAVE 5. 0 OOQ. VALE ti ..tea TAXING ENTITIES EXEMPTION TWBLE `TAX RATE B E PENALTY St 4 ,_- IMOUNT `1lAL�TE ER X104 '� =dN'tEREST TARRANT COUNTY W807,684 2X92.3 16 ,264836 24.73 . X00 C NOSP f TAL 2-1807,684 R .,,2_ . 0Z;31S rt34070 . 4.1 t0 C-COLLEGE' 0_ 5 00,000 Y " k . 0 106410 1:78 Y00 fjMERG SVC#1 P _0 00.0 0$000p :DO p".. SELLER ISD �; 5 00;000 475000 S0 00 f 0 TOTAL lf-;290 62 `" :00. D t00 JO'�AL DUE 9A«6 OCT 2 1 E 9 nwop potion adyor cnd "for inpormw infonna—� vs . s ------------------ --�-..-----_ ---. --.-------------------------------- --------------- Cc . -------------!: �JG°' ) r Gr, U AL Description of the Project: Siecor proposes to construct an office expansion for its Fort Worth facility. The facility, presently about 328,500 SO FT of occupied floor space on a 60-acre tract, has recently been annexed by the City of Fort Worth. This Sieoor Plant contains these activities: ♦ Manufacturing (metal fabrication, powder painting, injection molding, optical fiber connector and distribution hardware assembly, outside plant hardware assembly) ♦ Warehouse ♦ Marketing offices ♦ Product Development offices ♦ General Administration offices ♦ Product Development Laboratories Siecor traditionally has manufactured products for telecommunications providers throughout NAFTA and Japan. Siecor has recently come under the sole ownership of Coming Incorporated; consequently, Siecor's customer base will potentially become world-wide. Sieco(s customers are Private Network Providers, Public Network Providers and Original Equipment Manufacturers. The facility in Fort Worth has the opportunity to grow its businesses and hire additional engineers, technicians, marketing professionals and administrative support personnel if an office expansion proves economically viable to our owners. �,� EEO Dc, J, 7. C. Jobs to be created (Phase 1) 1 Year 5 -Year- I e Year Office 30 125 145 Manufacturing 40 50 50 Office Exempt Jobs Salary Range Product Development Engineer $45,000 -$60,000/year Product Specialist $45,000 -$60,000/year Product Line Manager $60,000 -$75,000/year Non-Exempt Jobs Salary Range Designer/Drafter $13.40 - $24.00/hour Product Development Technician $13.40 -$24.00/hour Lab Assistant $10.30-$15.50/hour Marketing Specialist $14.80- $24.00/hour Manubd6uring Exempt Jobs Salary Range Manufacturing Engineer $45,000 -$60,000/year Non-Exempt Jobs Salary Range Manufacturing Technician $13.40 - $24.00/hour Assembler $ 8.05 -$14.00/hour Distribution Center Clerk $ 9.30 - $15.50/hour FEWID Siecor Operations, LLC may, but is not obligated hereunder, proceed to construct a Phase 2 of the project. Phase 2 would likely be a manufacturing floor space addition including some additional offices, parking lot expansions, drive and site improvements and landscaping. Phase 2 would likely add up to 200,000—250,000 square feet of new floor space for manufacturing optical telecommunications products. Phase 2 is estimated to cost$15,000,000 for construction and likely would include$15,000,000 in equipment,machinery and furnishings. Projected Jobs to be created (Phase 2) 1 st Year 5 Year I&Year Office 10 25 45 Manufacturing 40 90 200 Phase 2 job descriptions should be similar in type and pay range to those in Phase 1. SIECOR CORPORATION BENEFITS AT A GLANCE Jennifer M.Woods,PHR Human Resources Siecor 9275 Denton Highway Keller TX 76248-5199 USA Telephone(817)431-7187 Fax(817)431-7702 1-800-SIECORI,ext.7187 jen niter.woods@siecor.com http://www.siecor.com The purpose of this article is to provide general information relative to Siecoes plans. The official plan documents are the sole authority on all benefits. Siecor reserves the right to alter,amend, or terminate its benefit plans at any time. crr y- srr c� d (5 ' IIS^J S'M i7f2M BENEFITS TIMING CHART 1st Year Dental Assistance Plan(After 60 Days) Lite Insurance Plan(After 60 Days) Medical Insurance Plan(After 60 Days) Disability Income Plan(After 60 Days) Educational Assistance Plan—Undergraduate(After 6 Months) Basic Retirement Plan(After 1 Year) Investment Plan(After 1 Year-50%Match Up To 5%) Paid Holidays 2nd Year Educational Loan Program(US Aid Funds) Educational Assistance Plan—Masters<$20,000 3rd Year Basic Retirement Plan(20%Vested) Investment Plan(20%Vested) 4th Year Basic Retirement Plan(40%Vested) Investment Plan(40%Vested) 5th Year Vacation(3 Weeks) Basic Retirement Plan (60%Vested) Investment Plan(60%Vested) Educational Assistance Plan—Masters>$20,000 Educational Scholarship Program(Deceased) 6th Year Basic Retirement Plan(8096 Vested) Investment Plan(80%Vested) 7th Year Basic Retirement Plan(100%Vested) Investment Plan(100%Vested) 10th Year Educational Scholarship Program(Disabled) 15th Year Vacation(4 Weeks) 20th Year Investment Plan (75% Match Up To 5%) 25th Year Investment Plan (100% Match Up To 5%) Vacation(Extra Week's Pay) � �c0�,, ��G�,��iD ... 'V��U�c31 GAG G" U 1 VACATION The initial vacation qualifying date is June 30 of the year hired. Thereafter,length of service determines the amount of vacation you are entitled to earn during the calendar year. Length of Service Vacation Eligibility Subsequent Calendar Year Hourly and A&T Vacation Accruals Hired after 6/30 One Week -1/1 to 12/31 Hired on or before 6/30 Two Weeks -1/1 to 12!31 After 5 calendar years Three Weeks-1/1 to 12/31 After 15 calendar years Four Weeks -1/1 to 12!31 Exempt Vacation Accruals Hired on or before 6/30 One Week-Initial Year from 7/1 to 12131 Second Year Two Weeks-1/1 to 12131 After 5 calendar years Three Weeks-1/1 to 12131 After 15 calendar years Four Weeks-1/1 to 12131 On your 25th anniversary date,and each fifth year thereafter,you will receive one week's pay in addition to your eligible vacation. You must take your vacation during the current calendar year. It cannot be carried over into the next year, nor is it payable to employees who quit or are discharged. Earned vacation benefits are payable in the case of death, disability or retirement. Vacation time is not to be used in lieu of notice upon employee's resignation. HOLIDAYS Siecor observes eight(8) paid holidays annually. They are: ' New Years Day ' Good Friday ' Memorial Day • Fourth of July • Labor Day • Thanksgiving Day • Day after Thanksgiving • Christmas Day U Ilo UU�,Ii��9UUg moo.%°,we-1131 A 4oa �a h r� THE SIECOR-KELLER WELLNESS PROGRAM Mission Statement The Wellness Program is an ever-evolving series of on-and-off-the-job activities sponsored by Siecor-Keller with the goal of creating greater unity in the workplace. Its objectives are to offer the tools,education,and information to assist employees and their families in managing common health care problems and improving their own well-being. Health Tests Siecor-Keller offers on4he-job testing to help screen for heart disease risk,diabetes, high blood pressure,and high cholesterol. In addition the wellness program offers mammography and prostate cancer screenings. If you participate,you receive the results of each test in a confidential report. When necessary,you will be advised to see your personal physician. Health Education Educational seminars on a variety of health subjects are conducted every month. Seminars are held on-site and may be attended during lunch breaks or after work. Fitness A fitness center, called"The Firm",is located in the Siecor-Keller facility. It features a machine-based weight circuit,treadmills,exercycles,stair-climbers,free weights,an aerobics program and Tai Chi classes. Instruction is available using videotape programs, the aerobic instructors, or through knowledgeable members. Annual dues are$120.00 and are automatically deducted each pay period from your paycheck. Deductions are $2.30 for weekly pay periods and$5.00 for semi-monthly pay periods. Additional members are charged at the rate of$1.15(weekly)or$2.50(semi-monthly). Membership enrollment forms may be obtained outside the entrance to 'The Firm'. ElC10 D Vni Education & Training Ongoing education can be a major factor in your career development. it's also a key to improving the quality of each person's contribution to the Company. You can,with your supervisor's direction and consent, build an education plan to sharpen your skills and keep them up-to-date. Employee Tuition Plan If you are interested in going to school to improve your education and job skills,you may be eligible for the employee tuition plan. You must be a full-time employee with six(6) months of current,continuous service to apply for undergraduate tuition reimbursement. You must be employed two(2) years for master's reimbursement<;20,000 and five(5) years for advanced degree reimbursement>$20,000. Membership in Professional &Technical Organizations Siecor supports memberships in organizations that add to your technical knowledge or professional development. The company pays 100%of organization dues and fees once membership is approved by your department or plant manager. With prior approval, you can also be reimbursed for costs associated with meetings of a professional or technical organization. Education Scholarship Program This program is designed to provide educational assistance for dependent children of Siecoes deceased and disabled employees. Each eligible child in grades 7-12 will be entitled to$500 per school year and each eligible child enrolled in a four(4) year college degree program will be entitled to$2,500 per school year. This benefit is available to dependent children of deceased employees with a minimum of five (5)years of service and dependent children of total or permanently disabled employees with a minimum of ten(10)years of service. Education Assistance Loan Program All regular full-time employees who have completed at least two years of service may apply for this program. You must also be an employee,dependent child, independent child or spouse who is accepted for enrollment in an undergraduate or graduate program on at least a half-time basis. This loan program is managed by United Student Aid Funds for Siecor. THE SIECQR RETIREMENT PLAN All active employees of Siecor who complete at least 1,000 hours during the plan year (January 1 to December 31)and remain employed on December 31 will receive a contribution to their account equal to 10%of their covered compensation each year. The plan is fully funded by Siecor. You are not required to make any contributions to the plan, nor are voluntary contributions permitted. The ownership of the money S"iecor contributes to your account occurs when you become vested. The amount you will be entitled to receive depends on your account balance and your vested percentage at your termination date. You will be 100%vested in your account if you leave Siecor after completing seven(7)years or more of credited service or if you leave because of retirement,disability or death. The vesting schedule is as follows: Years of Service Percent Vested 3 years 200A 4 years 40% 5 years 60% 6 years 80% 7 years 100% You may invest your retirement money in any of the four investment funds offered by the Trustee, First Union National Bank. The funds are: *Siecor Stable Fund * Evergreen Select Balanced Fund *Vanguard Windsor 11 Fund *Spartan U.S. Equity Fund Participants have 24-hour access to information about their accounts. In addition,each participant receives quarterly statements. Siecors annual contribution is made March 1 of each year and is reflected on the first quarter statement. ii"�r ti°^ e�, C•i THE SIECOR INVESTMENT PLAN The Siecor Investment Plan is a tax-deferred retirement savings plan or 401(k)plan. Employees can join the Plan on the first day of the month after one year of employment. You decide how much money you want to contribute before taxes are taken from your paycheck(up to 12%). Therefore,you reduce your taxable income by that amount and you pay less taxes. You are always 100%vested in the value of your own contributions and their earnings. You may also choose to participate on an after tax basis. As a participant in the Siecor Investment Plan,Siecor will match a portion of your contribution up to 5%. Eventually, based on your years of service,Siecor will match your contribution dollar for dollar up to 5%. The company matching contribution is automatically invested in Coming, Incorporated Common Stock. The company match schedule is as follows: For Each$You Contribute Years of Service Siecor Contributes Up To 5% Less Than 19 $ 0.50 19, But Less Than 24 0.75 24 Or More 1.00 Your ownership of the Siecor matching contribution is based on the same vesting schedule as the Retirement Plan. While the Siecor matching contribution is always invested in Corning Common Stock, you can decide how your own contributions will be put to work. No matter how you invest,all investment earnings are sheltered from taxes until you take them out of the Plan. Your contributions can be directed to one or more of the following funds: * Siecor Stable Fund * Evergreen Select Balanced Fund * Vanguard Windsor II Fund * Spartan U.S. Equity Index Fund * Templeton Foreign Fund * Coming Stock Fund You may take a loan from your vested account balance. 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'Eww �� l�'rOI9 � !n�o VISION PIAN When you elect medical coverage, this includes vision benefits provided through Davis Vision. There is no additional charge for this benefit. Davis Vision has a directory of participating doctors from which you may select to receive your eye care treatment. When using a participating Davis Vision doctor, there is no deductible and there are no claim forms to file. You simply need to identify yourself as a Siecor employee or covered dependent.The participating doctor will verify your eligibility with Davis Vision. Item Frequency Examination 12 months Lenses 12 months (for glasses or contact lenses) Frames 24 months Item In-Network Copay Examination $10 copay Lenses • Single Vision $10 copay • Bifocal $10 copay • Trifocal $10 copay Frames • Designer $10 copay • Premier $25 copay Contacts (Annual Benefit) • Standard, soft, daily wear $25 copay (one pair per calendar year) - includes fitting fees • Disposable/planned replacement $45 copay (3-6 month supply depending on wearing habits) - includes fitting fees ilV 0 un n� a O C O E _� 4a, ^ C (Ui +� O y ce'1 v y ft 00 'O U v C C C) C "C y CU O C) O } i O �, ~ C LJ 3 7v c E C) _o C C ° a. >, •� 3 �a ; O a. c c ° C C 3 O 4. O C u C. C "� •e0 n C) 0 i �. v 5 5 E chi. b4 ye C C O v u u S •ed _C � ° w h 4. O 4". 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Liberty Mutual has been selected as the new carrier for this benefit because of their superior record of customer service and their strong financial rating. This life insurance benefit is equal to two times your annual basic rate of pay to the nearest thousand dollars, which is automatically increased at the time of any basic pay increase. Annual basic rare of pay is based on a 40-hour work week, unless an employee works 37.5 hours per week, in which case the calculation uses 37.5 hours instead of 40 hours. Payment of your life insurance benefit will be made to the beneficiary(ies) named in writing by you and on file in your location Human Resources Department. You may change your beneficiary at any time by completing a new beneficiary designation form available in your Human Resources Department. Job-share employees— Life insurance benefits will be prorated based on earnings. All employees will need ro.zomplete-.a new beneficiary.designation form, provided by Liberty Mutual. These will he distributed at your SiecorSelect Seminar. LB V SUPPLEMENTAL LIFE INSURANCE Siecor employees are eligible to purchase additional term life insurance at group rates.This monthly rate is 22 cen is per $1,000 of additional coverage purchased.Term insurance does not include any cash accumulation or policy surrender values, but it is a very economical way to purchase Iife insurance. Benefit Options: 1) 1 times annual basic rate of pay 2) 2 times annual basic rate of pay 3) 3 times annual basic rate of pay Enrollment Provision Finployees may increase their supplemental life insurance benefits by only one level during enrollment without providing evidence of insurability. For example,-if you currently have-n-crsupplemental life insurance with Aetna, YOU can select 1 times your annual basic rate of pay in supplemental life insurance. If you wanted to purchase 2 times your annual basic rate of pay, you would need to submit evidence of insurability to Liberty Mutual. If an employee currently has 2 times annual basic rate of pay, he/she may then elect to increase to 3 times the annual basic race of pay without providing evidence of insurability. How Much Insurance Do You Need? Here are some questions to ask yourself when trying to determine how much life insurance you need: • How much of the family income do I provide? If I were to die early, how would my survivors, especially my children, get by? Does anyone else depend on me financially, such as a parent, grandparent, brother, or sister? • Do I have children for whom I'd like to set aside money to finish their education in the event of my dearh? • How will my family pay final expenses-andrepaydebtsafter my death? • Do I have family members or organizations to whom I would like to leave money? • Will there be estate taxes to pay after my death? • How will inflation affect future needs? As you figure out what assets you have to meet these needs, count the life insurance that you have now, including your Siecor provided basic life insurance. Add other assets that you have: Siecor Retirement Plan, Siecor Investment Plan, savings, investments, real estate, and personal property. mb �`f 1�1i�Yi 11 i'•.�i;� 7J;h��- UL�7�1u DEPENDENT LIFE INSURANCE Siecor provides life insurance coverage for your spouse and children in the amount of$5,000 for each eligible dependent at no cost to you. You may also purchase additional dependent life insurance in the coverage levels and monthly rates as follows: Coverage Monthly Cost $5,000 spouse / $3,000 each child $1.39 $10,000 spouse / $3,000 each child $2.40 $15,000 spouse 1 $5,000 each child $3.67 Please note chat the cost for dependent life insurance is on a flat, per family basis. It is not determined according to the number of dependents you have. Job-share employees — Can purchase dependent life insurance and additional dependent life insurance. M rrn n� 13 ACCIDENTAL DEATH & DISMEMBERMENT INSURANCE Siecor provides you with accidental death and dismemberment (AD&D) insurance that will pay a benefit to you if you suffer the loss of limbs, speech, hearing, or sight, or to your beneficiary(ies) if you are killed as the result of an accident either on- or off the=job. Siecor provides $25,000 of insurance coverage to you at no charge. Because of Siecor's negotiated rates, we are able to offer employees the opportunity to purchase additional AD&D coverage themselves and coverage for their spouse and/or dependents. You may purchase coverage on yourself in 55,000 increments up to 10 times your annual salary (maximum of$500,000). You may elect to purchase up to $200,000 of coverage on your spouse (your spouse may not be insured for more than the amount you select for yourself), and up to $50,000 on your dependent children. Coverage on your dependents may be purchased in 55,000 increments. If you purchase coverage on your dependents, you will have the following benefits: • Spouse Retraining Benefit • Special Education Benefit • Day Care Benefit. AD&D coverage terminates on the date of termination of employment or the date of retirement. Even if you have previously elected optional AD&D coverage on yourself and/or your dependents, please re-elect showing the amount purchased for yourself and/or your dependents separately. Assist America As an additional benefit at no cost to you,.your AD&D coverage includes Assist America. If you and/or your dependents are traveling more than 100 miles from home and need to locate a physician, need emergency medication, or need emergency evacuation,you can call Assist America 24 hours a day at 1-800-872-1414. WHR-03 I� f SHORT-TERM DISABILITY INSURANCE Siecor's short- and long-term disability insurance (STD and LTD) will now be provided by Liberty Mutual. Again, Liberty Mutual was selected for their outstanding customer service and superior financial ratings. Both STD and LTD is still provided at no cost to you. The benefir levels will remain at current levels with the first G weeks paid at 100% and the next 20 weeks based on years of service: < 5 years of service - 25% of annual pay 5 < 10 years of service - 50% of annual pay 10 < 15 years of service- 75% annual pay 15+ years of service - 100% of pay If Liberty Mutual continues to certify that an employee is disabled, the employee would then be eligible for long- term disability coverage. STD payments are based on a rolling 12 month period starting with the first payment regardless of the number of disabilities that occur within that 12 month period. Twelve months must elapse from the last disability period for an employee to stars new disability payment of 100°'0. For example, on April 13th through May 27th you were on STD. The six weeks were paid to you at 100% of your base salary. If you have another disability(s) before next May 27th, you will be paid a percentage of your base salary depending on your years of service.Eowever, if your next-STD occurs after,next May 27th, you will again receive the 100% of your base salary for the first six weeks. To receive your STD benefits,,your must contact.Liberty-Mutual-within 3 days (if you are a 12-hour shift employee), or 5 days (if you are an 8-hour�shifc employee),of the start-of your disability at-1-800-713-7384 to ensure uninter- rupted payment of your STD benefits. No STD payments will be made until your disability is certified by Liberty Mutual. �1{0 ���1"J'�I�IIVO OLSWa cin na 15 LONG-TERM DISABILITY INSURANCE Long-term disability insurance is provided at no cost to you. Siecor wants to ensure that you will not face financial hardship if you should become disabled. After 26 weeks of disability, if Liberty Mutual certifies that you remain disabled, you will receive 60% of your pay. A summary of the definition of pay considered for disability is: Exempt Employees The sum of.. • The base monthly rate of pay in effect for the last full month before the period-of total disabiliry began; and some other forms of pay may also be included. Refer to your summary plan description for additional information. Non-Exempt Employees The sum of: • The base weekly rate of pay in effect for the last full week before the period of total disability began. Any other form of compensation (including, but not limited to, overtime, bonuses under any program not specifically noted above or allowances for business-related expenses) are excluded from consideration in the calculation of benefits under this program. JUST A REMINDER: ENROLL BY 5 :00 PM EST, MAY 22 - IT'S AS EASY AS 1 -2-3 ! Siecor reserves the right to alter, amend, or terminate its benefits plans at any time. m�M; �°�S T SIECC R SW=Operations,LLC 9275 Denton Flwy Keller,Texas 76248 Keller Plant Employee Benefits Continuous Improvement Program Incentives Onsite Credit Union Direct Bank Deposits Employee Newsletters Good Housekeeping Incentives (distributed quarterly) Perfect Attendance Incentives (for hourly employees) Quality & Safety Incentives Discount Movie Tickets for General Cinema Theaters (children: $3.00, adult $5.00 per ticket) Six Flags Discount Passes (one day pass: $25.50, season pass: $56.57) Fort Worth Zoo Discount Tickets (children: $3.00, adult: $5.50 per ticket) Siecor Company Store 15% Employee Discount at Coming/Revere Outlets w EQUAL EMPLOYMENT OPPORTUNITY To remain a successful company,we must provide the highest quality products and services to our customers. In order to achieve this,we need to hire and develop the best people we can find. Siecor will not overlook anyone as a potential employee because of race, color,religion, age,sex,rational origin, handicap or veteran status. Besides complying with the taw, it is simply good business practice to apply the principles of equal opportunity in all employment and personnel practices. To ensure equal opportunities for each employee and job applicant,we have a written company policy under which we strive to provide equal job evaluation and advancement practices. In addition to adopting a policy of equal employment and opportunity for all, Siecor has a policy of using specific Affumative Action Programs for minorities and women. ABOUT THIS PAMPHLET The benefit descriptions in this pamphlet are based upon official legal documents which are available for your review. Because legal documents can be technical and difficult to read,we've tried to write the book in understandable language. If there are any disagreements between this information and the documents,the documents will always govem. Also,these descriptions reflect the plans under current law, because laws are subject to change in the future,too. 11. Environmental Impacts Siecor Operations, LLC will incorporate Storm Water detention/control provisions in its site work during construction activities as regulations require. No other known environmental impacts are associated with the implementation of this project. 12. Benefits to the City of Fort Worth ♦ Job growth for the area. ♦ Growth in volume of services, supplies and equipment purchased from Fort Worth companies. Continued nurturing of Fort Worth businesses as suppliers to other Siecor locations as well. ♦ Increased levels of sales taxes paid to Fort Worth as Siecor population increases and business grows. Growth of the local Siecor plant as a leader in leading-edge communications technologies...good for Fort Worth as well. Via/ 16. Why is tax abatement necessary for the success of this project? Siena- is experienang a large increase in its property, sales and inventory tax costs with its annexation Fib the CAy of Fort Worth. This fbdity is a manLAKMrng plant which has a high level of overhead costs due to the marketing and prodid development activities takng place in the facility. Secor's ma xtcxMred products must be priced competitively in an aggressive market Siecor has a number of facilities that must compete at any given time for limited business e)pansion funding. Siec&s Senior Management has the option of funding projects for plants in other locations instead of expanding the Fort Worth location. Sieoor needs a significant incentive to make expansion of the Fort Worth faaity economically feasible. Signfcant tax abatement will address corporate concerns about retaining business operations in Fort Worth instead of investing in new operations at locations which offer better growth opportunities. �9KIN t' L u Revision 1 3-27-00 Exhibit 1 Siecor Operations, LLC. Tax Abatement Structure* Siecor Operations, LLC would receive a graduated ten-year tax abatement on real and personal property that could reach a maximum of 100% annually. The abatement incorporates Siecor's total workforce and total supply and service spending on an annual basis at the site located in north Fort Worth. The proposed tax abatement structure is as follows: Base abatement=35%-45%: Maintaining FW & IC employees 26%FW & 4% IC of total 15 percentage points Employing FW contractors 25% of construction costs 10 percentage points Employing M/WBE contractors 15% of construction costs 10 percentage points For maintaining 26% Fort Worth residents and 4% "inner city" residents (of the total number of employees), Siecor will receive 15 percentage points. If in any year the base employment percentages are exceeded, the base abatement will be increased by 1% for each percentage above the 26% FW residents and 2% for each percentage above the 4% "inner city" residents, for a maximum of 25 percentage points for "base" employees. If in any year the base employment percentages are not maintained, the abatement will be reduced by 1% for each percentage below the 26% FW residents and 2% for each percentage below the 4% "inner city" residents. For spending 25% of the total construction cost with Fort Worth contractors, Siecor will receive 10 percentage points and an additional 10 percentage points will be given if 15%of construction spending is with certified M/WBE contractors. Expenditures with certified Fort Worth MWBE contractors will be counted at 1.5 times. Additional tax abatement increments can be achieved in any given year through the increased employment of Fort Worth and "inner city" residents and through the company's supply and service spending. The total tax abatement has a cap of 100%per annum. The ability to increase the abatement above the base will be as follows: Employment= 25% maximum additional abatement Beyond the base employees, if 26% of new employees hired are FW residents and 4% are "inner city" residents, Siecor will receive 15 percentage points. For each percentage point above the 26% FW residents, the abatement will be increased by 1 percentage point. For each percentage point above the 4% "inner city" residents, the abatement will be increased by 2 percentage points. Conversely, for each percentage point below the 26% FW residents, the abatement will be reduced by 1 percentage point. For each percentage point below the 4% "inner city"residents, the abatement will be reduced by 2 percentage points. Supply & Service = 30% maximum additional abatement For each$100,000 spent with Fort Worth companies over a base of$10,000,000, Siecor will receive one additional percentage point of tax abatement, capped at 20 percentage points. For each $50,000 spent with certified M/WBE companies over a base of$1,500,000, Siecor will receive one additional percentage point of tax abatement; if the certified M/WBE company is a Fort Worth company, Siecor will receive an additi z� point, capped at 20 percentage points. U�rJ C 'This is a proposal for discussion purposes. Ultimately,any tax abatement agreement must be approved by the Fort Worth Ci C p o City of Fort Worth, Texas 4Va dCoun"R omunication or An DATE REFERENCE NUMBER LOG NAME PAGE 3/28/00 G-12866 02SIECOR 1 of 3 SUBJECT MAKE FINDINGS CONCERNING A PROPOSED TAX ABATEMENT AGREEMENT WITH SIECOR OPERATIONS, LLC AND AUTHORIZE EXECUTION OF THE AGREEMENT RECOMMENDATION: It is recommended that the City Council: 1. Find that the improvements contained within the attached agreement are feasible and practical and would be a benefit to the land and to the City after the expiration of the tax abatement agreement; and 2. Find that written notice of the City's intent to enter into the attached Tax Abatement Agreement and copies of the agreement were delivered to all affected taxing units in accordance with state law; and 3. Find that the terms and conditions of the Tax Abatement Agreement and the property subject to the agreement meet the criteria of the City's Tax Abatement Policy Statement for Qualifying Development Projects (the "Tax Abatement Policy") as approved by M&C G-12829 (Resolution No. 2617); and 4. Authorize the City Manager to enter into the attached Tax Abatement Agreement with Siecor Operations, LLC in accordance with the Tax Abatement Policy. DISCUSSION: The property subject to abatement is located in north Fort Worth, east of Interstate 35W and west of State Highway 377. This property, along with other property, was annexed into the City in October 1999. The City Council has designated this property as Tax Abatement Reinvestment Zone Number 35. This reinvestment zone is located in COUNCIL DISTRICT 4. Project: Siecor Operations, LLC (Siecor) has traditionally manufactured products for telecommunications providers throughout North American Free Trade Agreement countries and Japan. Siecor has recently come under the sole ownership of Corning, Inc., consequently, Siecor's customer base will potentially become worldwide. Siecor's customers are private network providers, public network providers, and original equipment manufacturers. The company is in the process of expanding its operations with two possible phases of construction. Phase 1 will include a 37,000 square foot office area with an estimated cost of construction of $5,250,000. The additional investment, including personal property and inventory, is estimated at $10,000,000. Phase 2, if constructed, will consist of a 200,000 square foot manufacturing area for optical telecommunications products. The estimated cost of construction for Phase 2 is $15,000,000. In addition to the construction cost, the investment in personal property and inventory is estimated to be $15,000,000. City of Fort Worth, Texas "ayor and Councit Communication DATE REFERENCE NUMBER I LOG NAME PAGE 3/28/00 G-12866 02SIECOR 2 of 3 SUBJECT MAKE FINDINGS CONCERNING A PROPOSED TAX ABATEMENT AGREEMENT WITH SIECOR OPERATIONS, LLC AND AUTHORIZE EXECUTION OF THE AGREEMENT Employment: It is estimated that Siecor will ultimately employ over 1300 people with the two phased planned expansion. Siecor currently has 867 employees, of whom 26% are Fort Worth residents and 4% are "inner city" residents. As a condition of this abatement, Siecor will maintain these same percentages for the existing as well as new positions. Utilization of Fort Worth Businesses: Regarding utilization of Fort Worth based businesses, Siecor has committed 25% of total construction spending to Fort Worth construction contractors and/or subcontractors. Additionally, the company has committed 50% of total supply and service expenditures to Fort Worth companies. Utilization of M/WBE Businesses: Regarding Minority Business Enterprises (MBEs) and Women Business Enterprises (WBEs), Siecor has committed 15% of total construction spending to M/WBE construction contractors and/or subcontractors. Additionally, the company has committed 15% of total supply and service expenditures to Fort Worth companies. ABATEMENT TERMS Siecor will receive a graduated ten-year tax abatement on real and personal property that could reach a maximum of 100% annually. The abatement incorporates Siecor's total workforce and total supply and service spending on an annual basis at the expansion project site. The abatement is structured as follows: Base-abatement of 50% for base commitments that meet the followin_g: • Maintaining current percentage of employees Fort Worth (FW) and Inner City (IC) 26% FW and 4% IC 30% points • Employing contractors Fort Worth contractors 25% of construction costs 10% points r? M/WBE contractors 15% of construction costs 10% points Additional tax abatement increments can be achieved in any given year through the increased employment of Fort Worth and "inner city" residents, and through the company's supply and service expenditures with Fort Worth and M/WBE companies. The ability to increase the abatement above the base is as follows: City of Fort Worth, Texas imAyor And Council Communication DATE REFERENCE NUMBER FLOG NAME PAGE 3/28/00 G-12866 02SIECOR 3 of 3 SUBJECT MAKE FINDINGS CONCERNING A PROPOSED TAX ABATEMENT AGREEMENT WITH SIECOR OPERATIONS, LLC AND AUTHORIZE EXECUTION OF THE AGREEMENT Employment = 30% maximum additional abatement Beyond the base employees, if 26% of new employees hired are Fort Worth residents, Siecor will receive an additional 26 percentage points. Likewise, if 4% of new employees hired are "inner city" residents, Siecor will receive 4 percentage points. For each percentage point below the 26% Fort Worth residents, the abatement will be reduced by 1 percentage point. For each percentage point below the 4% "inner city" residents, the abatement will be reduced by 1 percentage point. Supply& Service = 20% maximum additional abatement Siecor will receive an additional 20 percentage points if 50% of the total supply and service expenditures are spent with Fort Worth suppliers and 15% is spent with certified M/WBE suppliers. Expenditures with certified Fort Worth M/WBE suppliers will receive credit at 1.5 times. For each percentage point that expenditures with Fort Worth suppliers is below 50% and expenditures with certified M/WBE suppliers is below 15%, the abatement will be reduced by 1 percentage point. The maximum reduction will be 20 percentage points. The total tax abatement has a cap of 100% per annum. If the maximum abatement (100%) is reached, the abated -taxes are projected to be $134,963.00 annually for Phase 1 and $265,500.00 annually for Phase 2. At the 100% tax abatement level, the projected taxes paid to the City on inventory will be $20,443.00 annually. Additionally, Siecor will pay taxes of $313,758.00 annually to the City on existing real property, personal property, and inventory. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that no expenditure of City funds is associated with approval of this agreement. MG:k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) PfflOVED Mike Groomer 6140 CITY COUNCIL Originating Department Head: AS AMENDED Tom Higgins 6192 (from) l'" 28 2000Aw. Additional Information Contact: MI. Sacretasy of the Ardina Washington8003 city I Fort Wort%Tazw �5 AML-0 bi l?EQ.1 Revision 1 3-27-00 Exhibit 1 Siecor Operations, LLC. Tax Abatement Structure* Siecor Operations, LLC would receive a graduated ten-year tax abatement on real and personal property that could reach a maximum of 100% annually. The abatement incorporates Siecor's total workforce and total supply and service spending on an annual basis at the site located in north Fort Worth. The proposed tax abatement structure is as follows: Base abatement=35%-45%: Maintaining FW & IC employees 26% FW&4%IC of total 15 percentage points Employing FW contractors 25% of construction costs 10 percentage points Employing M/WBE contractors 15% of construction costs 10 percentage points For maintaining 26% Fort Worth residents and 4% "inner city" residents (of the total number of employees), Siecor will receive 15 percentage points. If in any year the base employment percentages are exceeded, the base abatement will be increased by 1% for each percentage above the 26% FW residents and 2% for each percentage above the 4% "inner city" residents, for a maximum of 25 percentage points for "base" employees. If in any year the base employment percentages are not maintained, the abatement will be reduced by 1% for each percentage below the 26% FW residents and 2% for each percentage below the 4% "inner city" residents. For spending 25% of the total construction cost with Fort Worth contractors, Siecor will receive 10 percentage points and an additional 10 percentage points will be given if 15% of construction spending is with certified M/WBE contractors. Expenditures with certified Fort Worth MWBE contractors will be counted at 1.5 times. Additional tax abatement increments can be achieved in any given year through the increased employment of Fort Worth and "inner city" residents and through the company's supply and service spending. The total tax abatement has a cap of 100%per annum. The ability to increase the abatement above the base will be as follows: r,mployment= 25% maximum additional abatement Beyond the base employees, if 26% of new employees hired are FW residents and 4% are "inner city" residents, Siecor will receive 15 percentage points. For each percentage point above the 26% FW residents, the abatement will be increased by 1 percentage point. For each percentage point above the 4% "inner city" residents, the abatement will be increased by 2 percentage points. Conversely, for each percentage point below the 26% FW residents, the abatement will be reduced by 1 percentage point. For each percentage point below the 4% "inner city"residents, the abatement will be reduced by 2 percentage points. Supply& Service=30% maximum additional abatement_ For each$100,000 spent with Fort Worth companies over a base of$10,000,000, Siecor will receive one additional percentage point of tax abatement, capped at 20 percentage points. For each $50,000 spent with certified M/WBE companies over a base of$1,500,000, Siecor will receive one additional percentage point of tax abatement; if the certified M/WBE company is a Fort Worth company, Siecor will receive an additional '/Z of a percentage point, capped at 20 percentage points. This is a proposal for discussion purposes. Ultimately,any tax abatement agreement must be approved by the Fort Worth City Council.