HomeMy WebLinkAboutIR 9969 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9969
To the Mayor and Members of the City Council December 6, 2016
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*a SUBJECT: PROPOSED ENHANCED COMMUNITY FACILITIES AGREEMENT
rrn WITH HUNT SOUTHWEST— MERCANTILE, LLC FOR THE CONSTRUCTION OF
A 655,000 SQUARE FOOT FACILITY AND IMPROVEMENTS TO N. SYLVANIA
AVENUE
Hunt Southwest (Developer) has approached staff regarding the construction of a new distribution
center at the northeast corner of N. Sylvania Avenue and Quorum Drive. The proposed site is
currently served by an asphalt road that would be insufficient for commercial traffic if the
development moves forward. Transportation & Public Works has indicated that widening N.
Sylvania Ave. into a two lane arterial with a center turn lane would better accommodate business
park traffic and is in alignment with the City's Master Thoroughfare Plan. In order to facilitate the
desired road improvements, staff is recommending that the City enter into an Enhanced
Community Facilities Agreement (ECFA) with the Developer to build both the distribution center
and the road improvements along N. Sylvania Ave.
The Developer intends to invest a minimum of $20.5 million in the construction of a 655,000
square foot shell space distribution center located at the northeast corner of N. Sylvania Avenue
and Quorum Drive by January 31 , 2018. In addition, the Developer will improve approximately
1 ,900 lineal feet of N. Sylvania including but not limited to the demolition of existing asphalt road,
grading, paving of new road and sidewalks, re-paving of driveway entrances, utility relocations
and installations, street lighting, fire hydrants, and landscaping that will be completed to City
specifications for public infrastructure by January 31, 2018. The Developer will publicly bid the
infrastructure project for improvements to N. Sylvania, and the estimated total cost for the work is
$2 million. The Developer must obtain payment and performance bonds in the full amount of the
overall infrastructure project.
In addition to construction of the facility and road improvements, the Developer has committed to
securing a tenant(s) to occupy a minimum of 50% of the building by December 31 , 2019. The
Developer will use commercially reasonable efforts to provide at least fifty (50) jobs via tenant(s)
within the facility by December 31 , 2019. The Developer will also use commercially reasonable
efforts to expend or cause to be expended with Fort Worth Certified M/WBE companies at least
25% of the public improvement costs.
In exchange for these improvements and having the building at least 50% occupied by December
31, 2019, City Staff has proposed an ECFA with the Developer for reimbursement up to a
maximum total of 50% of the public infrastructure costs or $1 million, whichever is less. If the
Developer does not have the building at least 50% occupied by December 31, 2019, the City's
maximum fixed reimbursement obligation will be reduced from $1 million to $500,000. The source
of funds for this reimbursement will come from the 2007 Critical Capital Projects Fund and the
City expects to receive $1 .7 million in incremental new taxes from this development over the next
ten years.
Staff will place an M&C for City Council consideration on the December 13, 2016 agenda.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9969
To the Mayor and Members of the City Council December 6, 2016
r� Page 2 of 2
�i
{i7 Y
*a SUBJECT: PROPOSED ENHANCED COMMUNITY FACILITIES AGREEMENT
rrn WITH HUNT SOUTHWEST— MERCANTILE, LLC FOR THE CONSTRUCTION OF
A 655,000 SQUARE FOOT FACILITY AND IMPROVEMENTS TO N. SYLVANIA
AVENUE
If you have any questions concerning this information, please contact Robert Sturns, Economic
Development Director at 817-212-2663 or robe rt.sturnsa-fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS