HomeMy WebLinkAboutIR 9869 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9869
To the Mayor and Members of the City Council April 5, 2016
h�T�i7 Page 1 of 1
�i
�i7 Y
*a SUBJECT: PROPOSED TAX ABATEMENT AGREEMENT WITH ANDREWS
rrn f
DISTRIBUTION COMPANY
Andrews Distributing Co. is one of the nation's largest beer distributors with facilities in Fort
Worth, Dallas, Allen, and Corpus Christi. The company is seeking to expand business operations
and plans to construct a 400,000 square foot distribution center to be used for inbound and
outbound shipments of beer, storage and fulfillment, along with a new office and sign shop, to be
located at 500 Northeast Loop 820. In order to facilitate the expansion opportunity in Fort Worth,
the company has requested a five year tax abatement on up to 50% of the incremental value of
real and business personal property taxes generated at the site.
The Company intends to invest at least $37,000,000 in real property improvements and business
personal property and will maintain a minimum of 460 full-time equivalent jobs at the site as of
December 31, 2017. A minimum of 225 of those jobs must be held by Fort Worth residents and
127 of those must be held by Fort Worth Central City residents. Under the terms of the
agreement, the Company must spend a minimum of $14,000,000 of its hard construction costs
with Fort Worth contractors and a minimum of $8,750,000 of its hard construction costs with
contractors that are Fort Worth certified Minority/Women-Owned Business Enterprises (M/WBE).
In addition, the Company must spend at least $100,800 in annual discretionary service and
supply expenditures with Fort Worth contractors and a minimum of $84,000 of annual
discretionary service and supply with contractors that are Fort Worth certified M/WBEs.
In return, the City will authorize a 50% tax abatement on the incremental increase in value of real
and personal property improvements for a five year period. The Company must meet specific
construction spending, annual employment and annual supply and service spending
commitments in order to achieve the maximum amount of potential incentive for each abatement
year.
Staff's recommendation is to enter into the proposed tax abatement agreement with Andrews
Distribution Company. An M&C to establish the reinvestment zone and conduct a public hearing
regarding the agreement will be placed on the April 12th agenda for City Council consideration
with a subsequent M&C to approve the Tax Abatement Agreement on the April 19th agenda.
If you have any questions please contact Robert Sturns, Director of Economic Development at (817)
212-2663.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS