HomeMy WebLinkAboutIR 9911 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9911
To the Mayor and Members of the City Council August 2, 2016
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*a SUBJECT: AMENDMENT NO. 1 TO AND CONSENT TO ASSISGNMENT OF
rrn ECONOMIC DEVELOPMENT PROGRAM AGREEMENT WITH WAL-MART
STORES TEXAS, LLC AND WAL-MART REAL ESTATE BUSINESS TRUST
On March 4, 2014, (M& C C-26697) the City Council authorized execution of an Economic
Development Program Agreement (Agreement) with Wal-Mart Stores, Texas, LLC (Wal-Mart)
under which Wal-Mart was to construct a 182,000 square foot SuperCenter and complete road
improvements to Park Vista Boulevard by June 30, 2016 (Phase 1). In addition, Wal-Mart was to
complete 20,000 square feet of commercial and/or retail shell space on the property by June 30,
2019 (Phase 11). In return, the City agreed to pay Wal-Mart certain Economic Development
Program grants, as authorized by Chapter 380, Texas Local Government Code.
On January 6, 2015, (M& C C-27137) the City Council authorized an extension of both the Phase
I Completion Deadline and the Phase 11 Completion Deadline by 6 months (to December 31, 2016
and December 31 , 2019, respectively) in order to account for delays to the project due to a
redesign of the Park Vista Road construction project.
On March 17, 2015 (M& C C-27226) the City Council authorized that the Phase I Completion
Deadline and the Phase 11 Completion Deadline would automatically be further extended for 30
day periods for each month after March 31 , 2015 that the City had not completed the necessary
right-of-way acquisitions needed for the roadway improvements to incorporate roundabouts on
Park Vista Boulevard at the intersections of Keller-Hicks Road, Golden Triangle Boulevard and
Ray White Road. Park Vista Boulevard will be four lanes as it nears the intersections of Keller-
Hicks Road and Golden Triangle Boulevard. It will then transition back down to a two lane section
between Keller Hicks Road and Golden Triangle Boulevard and Golden Triangle Boulevard and
Ray White Road.
Wal-Mart Stores continues to experience unforeseen delays in completing the road project due to
required redesign of the infrastructure to incorporate City requested changes to lower costs. As a
result, Wal-Mart Stores has requested that the Agreement be amended to more specifically allow
the December 31, 2016 completion deadline to be extended by the time required to complete the
road project.
In addition, due to changes in market forces since the effective date of the Agreement, Wal-Mart
Stores has also requested that the definition of "Phase 11 Improvements" in the Agreement be
amended to reduce the minimum square footage required for the commercial and/or retail space
comprising the Phase 11 Improvements from 20,000 square feet to 12,000 square feet. The
minimum of $3,000,000.00 in Construction Costs that must be expended for the Phase 11
Improvements will not be revised.
The Agreement allows Wal-Mart to assign, transfer or otherwise convey any of its rights or
obligations under the Agreement to an affiliated entity so long as Wal-Mart, the City and the
affiliate execute a written agreement reflecting that arrangement. Wal-Mart intends to assign the
Agreement to Wal-Mart Real Estate Business Trust, which is an affiliated entity, effective
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9911
To the Mayor and Members of the City Council August 2, 2016
r� Page 2 of 2
�i
�i7 Y
*a SUBJECT: AMENDMENT NO. 1 TO AND CONSENT TO ASSISGNMENT OF
rrn ECONOMIC DEVELOPMENT PROGRAM AGREEMENT WITH WAL-MART
STORES TEXAS, LLC AND WAL-MART REAL ESTATE BUSINESS TRUST
contemporaneously with the amendment. As a result, Wal-Mart Real Estate Business Trust will
also be a party to the amendment.
Staff will place an M&C for City Council consideration on the August 9, 2016 agenda.
If you have any questions concerning this information, please contact Robert Sturns, Economic
Development Director at 817-212-2663 or robert.sturns@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS