HomeMy WebLinkAboutContract 48534 CITY SECRETARY 6
CONTRACT NO.
STATE OF TEXAS §
COUNTY OF TARRANT §
TAX ABATEMENT AGREEMENT
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and
between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipality
organized under the laws of the State of Texas, and PARKER PRODUCTS, INC., a
Texas corporation("Company").
RECITALS
A. On June 28, 2016, the City Council adopted Resolution No. 4647-06-2016,
stating that the City elects to be eligible to participate in tax abatement and setting forth
guidelines and criteria governing tax abatement agreements entered into between the City
and various parties, entitled "General Tax Abatement Policy" (the "Policy"), which is
incorporated herein by reference and hereby made a part of this Agreement for all
purposes.
B. The Policy contains appropriate guidelines and criteria governing tax
abatement agreements to be entered into by the City as contemplated by Chapter 312 of the
Texas Tax Code, as amended(the"Code").
C. On December 6, 2016 the City Council adopted Ordinance No. 22526-12-
2016 (the "Ordinance") establishing Tax Abatement Reinvestment Zone No. 93, City of
Fort Worth, Texas (the"Zone").
D. Company owns or is under contract to purchase approximately 10.95 acres
of real property in the Lone Star Business Park near the vicinity of Northwest Loop 820
and Strawn Lane, which real property is located within the Zone and is more specifically
described in Exhibit "A" (the "Land"), attached hereto and hereby made a part of this
Agreement for all purposes. Contingent upon receipt of the tax abatement herein,
Company intends to construct a facility of at least 85,000 square feet that will include
corporate office, warehouse, research and development, and manufacturing space (more
specifically defined herein as the "Required Improvements"), and to install certain taxable
business personal property on the Land, all as more specifically set forth in this Agreement.
E. On September 9, 2016 Company submitted an application fo
abatement (the "Application") to the City concerning Company's plans for de
of the Land, including construction of the Required Improvements, which A ation is
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Tax Abatement Agreement between J
City of Fort Worth and Parker Products,Inc. OFFICIAL RECORD
CITY 8109 "ARY c�
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attached hereto as Exhibit "B" and hereby made a part of this Agreement for all
purposes.
F. The contemplated use of the Land and the terms of this Agreement are
consistent with encouraging development of the Zone and generating economic
development and increased employment opportunities in the City, in accordance with the
purposes for creation of the Zone, and are in compliance with the Policy,the Ordinance and
other applicable laws, ordinances,rules and regulations.
G. The provisions of this Agreement, and the proposed use of the Land and
nature of the proposed Required Improvements, as defined herein, satisfy the eligibility
criteria for commercial/industrial tax abatement pursuant to Section 4 of the Policy.
H. Written notice that the City intends to enter into this Agreement, along with
a copy of this Agreement, has been furnished in the manner prescribed by the Code to the
presiding officers of the governing bodies of each of the taxing units that have jurisdiction
over the Land.
NOW, THEREFORE, in consideration of the mutual benefits and promises
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows:
AGREEMENT
1. INCORPORATION OF RECITALS.
The City Council has found, and the City and Company hereby agree, that the
recitals set forth above are true and correct and form the basis upon which the parties
have entered into this Agreement.
2. DEFINITIONS.
In addition to terms defined in the body of this Agreement, the following terms
shall have the definitions ascribed to them as follows:
Abatement means the abatement of a percentage (not to exceed fifty percent
(50%) in any year of the Abatement Term) of the City's incremental ad valorem real
property taxes on any improvements located on the Land (but not on the Land itself,
which taxes shall not be subject to Abatement hereunder) and of the City's incremental
ad valorem taxes on New Taxable Tangible Personal Property, all calculated in
accordance with this Agreement.
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Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
Abatement Term means the term of ten (10) consecutive years, commencing on
January 1, 2019 and expiring on December 31, 2028, in which Company will receive the
Abatement in accordance with this Agreement.
Affiliate means all entities, incorporated or otherwise, under common control
with, controlled by or controlling Company. For purposes of this definition, "control"
means fifty percent (50%) or more of the ownership determined by either value or vote.
Application has the meaning ascribed to it in Recital E.
Central City means that area in the corporate limits of the City within Loop 820
(i) consisting of all Community Development Block Grant ("CDBG") eligible census
block groups; (ii) all state-designated enterprise zones; and (iii) all census block groups
that are contiguous by seventy-five percent (75%) or more of their perimeter to CDBG-
eligible block groups or enterprise zones, as well as any CDBG-eligible block in the
corporate limits of the City outside Loop 820, as more specifically depicted in the map of
Exhibit "C", attached hereto and hereby made a part of this Agreement for all purposes.
Central City Employment Commitment has the meaning ascribed to it in
Section 4.5.3.
Central City Employment Percentage has the meaning ascribed to it in Section
6.6.
Central City Resident means an individual whose primary residence is at a
location within the Central City.
Certificate of Completion has the meaning ascribed to it in Section 5.
Code has the meaning ascribed to it in Recital B.
Completion Date means the date as of which all occupiable space within the
Required Improvements have received a temporary or permanent certificate of
occupancy.
Completion Deadline means December 31, 2017.
Compliance Auditing Term means the term of ten (10) consecutive years,
commencing on January 1, 2018 expiring on December 31 2027, in which the City will
verify and audit Company's compliance with the various commitments set forth in
Section 4 that form the basis for calculation of the amount of each annual Abatement
percentage hereunder.
Construction Costs means Hard Construction Costs, plus costs of supplies and
materials, engineering fees, architectural and design fees, and permit fees. Construction
Costs specifically excludes any property acquisition costs.
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Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
Director means the director of the City's Economic Development Department.
Effective Date has the meaning ascribed to it in Section 3.
Event of Default means a breach of this Agreement by a party, either by act or
omission, as more specifically set forth in Section 7 of this Agreement.
Fort Worth Certified M/WBE Company means a minority or woman-owned
business that has received certification as either a minority business enterprise (MBE), a
woman business enterprise (WBE) or a disadvantaged business enterprise (DBE) by the
North Central Texas Regional Certification Agency (NCTRCA) and that has a principal
business office located within the corporate limits of the City that performs a
commercially useful function and that provides the services for which Company is
seeking credit under this Agreement.
Fort Worth Company means a business that has a principal office located within
the corporate limits of the City that performs a commercially useful function and that
provides the services for which Company is seeking credit under this Agreement.
Fort Worth Construction Commitment has the meaning ascribed to it in
Section 4.3.
Fort Worth Construction Percentage has the meaning ascribed to it in Section
6.2.
Fort Worth Employment Commitment has the meaning ascribed to it in
Section 4.5.2.
Fort Worth Employment Percentage has the meaning ascribed to it in Section
6.5.
Fort Worth Resident means an individual whose principal place of residence is
at a location within the corporate limits of the City.
Fort Worth Supply and Service Spending Commitment has the meaning
ascribed to it in Section 4.6.
Fort Worth Supply and Service Percentage has the meaning ascribed to it in
Section 6.7.
Full-time Job means a job provided to one (1) individual by Company on the
Land for at least forty(40)hours per week.
Hard Construction Costs means actual site development and construction costs,
including directly-related contractor fees.
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Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
Land has the meaning ascribed to it in Recital D.
Legal Requirements means federal, state and local laws, ordinances, rules and
regulations, including, but not limited to, all provisions of the City's charter and
ordinances, as amended.
NMBE Construction Commitment has the meaning ascribed to it in Section
4.4.
MIWBE Construction Percentage has the meaning ascribed to it in Section 6.3.
MIWBE Supply and Service Spending Commitment has the meaning ascribed
to it in Section 4.7.
MIWBE Supply and Service Percentage has the meaning ascribed to it in
Section 6.8.
New Taxable Tangible Personal Property means any personal property other
than inventory or supplies that (i) is subject to ad valorem taxation by the City; (ii) is
located on the Land; (iii) is owned or leased by Company and used by Company for the
business purposes outlined in this Agreement; and (iv) was not located in the City prior to
the Effective Date of this Agreement.
Ordinance has the meaning ascribed to it in Recital C.
Overall Employment Commitment has the meaning ascribed to it in Section
4.5.1.
Overall Employment Percentage has the meaning ascribed to it in Section 6.4.
Overall Improvement Percentage has the meaning ascribed to it in Section 6.1
Personal Property Improvement Commitment has the meaning ascribed to it in
Section 4.2.
Policy has the meaning ascribed to it in Recital A.
Real Property Improvement Commitment has the meaning ascribed to it in
Section 4.1.
Records has the meaning ascribed to it in Section 4.10.
Required Improvements means a facility constructed on the Land consisting of at
least 85,000 square feet that includes corporate office, warehouse, research and
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Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
development, and manufacturing space, as verified in the Certificate of Completion issued
by the Director in accordance with Section 5 of this Agreement.
Supply and Service Expenditures means those local discretionary expenditures
made by Company directly for the operation and maintenance of the Land and any
improvements thereon, excluding utility service costs.
Term has the meaning ascribed to it in Section 3.
Zone has the meaning ascribed to it in Recital C.
3. TERM.
This Agreement shall take effect on the date as of which both the City and
Company have executed this Agreement (the "Effective Date") and, unless terminated
earlier in accordance with its terms and conditions, shall expire simultaneously upon
expiration of the Abatement Term (the "Term").
4. COMPANY'S OBLIGATIONS AND COMMITMENTS.
4.1. Real Property Improvements.
Company must expend or cause to be expended at least Fifteen Million
Dollars ($15,000,000.00) in Construction Costs for the Required Improvements by
the Completion Date, and the Completion Date for the Required Improvements
must occur on or before the Completion Deadline (the "Real Property
Improvement Commitment". Notwithstanding anything to the contrary herein, if
the Real Property Improvement Commitment is not met, an Event of Default will
occur, as set forth in Section 7.1 of this Agreement.
4.2. Personal Property Improvements.
New Taxable Tangible Personal Property having a value of at least Two
Million Dollars ($2,000,000.00) must be in place on the Land by January 1, 2018,
as determined solely by Tarrant Appraisal District or the appraisal district having
jurisdiction over the Land at the time and reflected in the certified appraisal roll
received by the City from such appraisal district in such year (the "Personal
Property Improvement Commitment"). Notwithstanding anything to the
contrary herein, if the Personal Property Improvement Commitment is not met, an
Event of Default will occur, as set forth in Section 7.2 of this Agreement.
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Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
4.3. Construction Spending Commitment for Fort Worth Companies.
By the Completion Date, Company must have expended with Fort Worth
Companies at least the greater of (i) Three Million Seven Hundred Fifty
Thousand Dollars ($3,750,000.00) in Hard Construction Costs for the Required
Improvements or (ii) twenty-five percent (25%) of all Hard Construction Costs
for the Required Improvements, regardless of the total amount of such Hard
Construction Costs (the "Fort Worth Construction Commitment").
4.4. Construction Spending Commitment for Fort Worth Certified
M/WBE Companies.
By the Completion Date, Company must have expended or caused to be
expended with Fort Worth Certified M/WBE Companies at least the greater of(i)
Two Million Two Hundred Fifty Thousand Dollars ($2,250,000.00) in Hard
Construction Costs for the Required Improvements or (ii) fifteen percent (15%) of
all Hard Construction Costs for the Required Improvements, regardless of the
total amount of such Construction Costs (the "M/WBE Construction
Commitment"). Hard Construction Cost expenditures made with Fort Worth
Certified M/WBE Companies will also be counted as Hard Construction Cost
expenditures made with Fort Worth Companies for purposes of measuring the
Fort Worth Construction Commitment, as set forth in Section 4.3.
4.5. Employment Commitments.
Determination each year of compliance with the following employment
commitments will be based on the employment data provided to the City pursuant
to Section 4.8.2 for the year under evaluation.
4.5.1. Overall Employment.
Company must meet or exceed the following levels of overall
employment for the calendar years specified below (for each year below,
the "Overall Employment Commitment").
4.5.1.1. 2018-2021.
In 2018 and in each year thereafter through 2021,
Company will meet the Overall Employment Commitment if in the
year under evaluation Company provided and filled at least one
hundred thirty (13 0) Full-time Jobs on the Land.
4.5.1.2. 2022 and After.
In 2022 and in each year thereafter for the
remainder of the Compliance Auditing Term, Company will meet
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Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
the Overall Employment Commitment if in the year under
evaluation Company provided and filled at least one hundred sixty
(160) Full-time Jobs on the Land.
4.5.2. Employment of Fort Worth Residents.
Company must meet or exceed the following levels of employment
of Fort Worth Residents for the calendar years specified below (for each
year below, the "Fort Worth Employment Commitment"). Full-time
Jobs held by Fort Worth Residents will also be counted as Full-time Jobs
for purposes of measuring the Overall Employment Commitment outlined
in Section 4.5.1.
4.5.2.1. 2018-2021.
In 2018 and in each year thereafter through 2021,
Company will meet the Fort Worth Employment Commitment if in
the year under evaluation Company provided and filled at least the
greater of(i) sixty (60) Full-time Jobs on the Land or (ii) sixty
percent (60%) of all Full-time Jobs on the Land, regardless of the
total number of such Full-time Jobs, with Fort Worth Residents.
4.5.2.2. 2022 and After.
In 2022 and in each year thereafter for the
remainder of the Compliance Auditing Term, Company will meet
the Fort Worth Employment Commitment if in the year under
evaluation Company provided and filled at least the greater of(i)
seventy-eight (78) Full-time Jobs on the Land or (ii) sixty percent
(60%) of all Full-time Jobs on the Land, regardless of the total
number of such Full-time Jobs, with Fort Worth Residents.
4.5.3. Employment of Central City Residents.
Company must meet or exceed the following levels of employment
of Central City Residents for the calendar years specified below (for each
year below, the "Central City Employment Commitment"). Full-time
Jobs held by Central City Residents will also be counted as Full-time Jobs
for purposes of measuring the Overall Employment Commitment outlined
in Section 4.5.1 and the Central City Employment Commitment outlined
in Section 4.5.2.
4.5.3.1. 2018-2021.
In 2018 and in each year thereafter through 2021,
Company will meet the Central City Employment Commitment if
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Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
in the year under evaluation Company provided and filled at least
the greater of(i) twenty-five (25) Full-time Jobs on the Land or
(ii) twenty-five percent (25%) of all Full-time Jobs on the Land,
regardless of the total number of such Full-time Jobs, with Central
City Residents.
4.5.3.2. 2022 and After.
In 2022 and in each year thereafter for the
remainder of the Compliance Auditing Term, Company will meet
the Central City Employment Commitment if in the year under
evaluation Company provided and filled at least the greater of(i)
thirty-three (33) Full-time Jobs on the Land or (ii) twenty-five
percent (25%) of all Full-time Jobs on the Land, regardless of the
total number of such Full-time Jobs, with Central City Residents.
4.6. Supply and Service Spending Commitment for Fort Worth
Companies.
In 2018 and in each year thereafter during the Compliance Auditing Term,
Company must expend at least the greater of (i) Eighteen Thousand Dollars
($18,000.00) in Supply and Service Expenditures or (ii)thirty percent (30%) of its
Supply and Service Expenditures, regardless of the total amount of such Supply
and Service Expenditures, with Fort Worth Companies (the "Fort Worth Supply
and Service Spending Commitment").
4.7. Supply and Service Spending Commitment for Fort Worth Certified
M/WBE Companies.
In 2018 and in each year thereafter during the Compliance Auditing Term,
Company must expend at least the greater of (i) Nine Thousand Dollars
($9,000.00) in Supply and Service Expenditures or(ii) fifteen percent (15%) of its
Supply and Service Expenditures, regardless of the total amount of such Supply
and Service Expenditures, with Fort Worth Certified M/WBE Companies (the
"M/WBE Supply and Service Spending Commitment").
4.8. Reports and Filings.
4.8.1. Construction Spending Reports.
4.8.1.1. Quarterly Reports.
From the Effective Date until the Completion Date,
Company must provide the Director with a quarterly report in a
form reasonably acceptable to the City that specifically outlines the
then-current aggregate Construction Costs expended by and on
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Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
behalf of Company for the Required Improvements, together with
the then-current aggregate Construction Costs for the Required
Improvements expended by and on behalf of Company with Fort
Worth Companies and with Fort Worth Certified M/WBE
Companies. Company agrees to meet with the City's M/WBE
Office as reasonably necessary for assistance in meeting or
exceeding M/WBE Construction Commitment and to address any
related concerns that the City may have.
4.8.1.2. Final Construction Report.
Within sixty (60) calendar days following the
Completion Date, in order for the City to assess whether Company
expended or caused to be expended at least Fifteen Million Dollars
($15,000,000.00) in Construction Costs for the Required
Improvements, and the extent to which Company met the Fort
Worth Construction Commitment and the M/WBE Construction
Commitment, Company must provide the Director with a report in
a form reasonably acceptable to the City that specifically outlines
(i) the total Construction Costs and Hard Construction Costs
expended by Company for the Required Improvements, (ii) the
total Hard Construction Costs expended with Fort Worth
Companies by Company for the Required Improvements, and (iii)
the total Hard Construction Costs expended with Fort Worth
Certified M/WBE Companies by Company for the Required
Improvements, together with supporting invoices and other
documents necessary to demonstrate that such amounts were
actually paid by Company, including, without limitation, final lien
waivers signed by Company's general contractor.
4.8.2. Annual Employment Report.
On or before February 1, 2019 and February 1 of each year
thereafter through 2028, in order for the City to assess the degree to which
Company met in the previous year the Overall Employment Commitment,
the Fort Worth Employment Commitment and the Central City
Employment Commitment, Company must provide the Director with a
report in a form reasonably acceptable to the City that sets forth the total
number of individuals, the total number of Fort Worth Residents, and the
total number of Central City Residents who held Full-time Jobs on the
Land, each as of December 31 (or such other date requested by Company
and reasonably acceptable to the City) of the previous calendar year,
together with reasonable supporting documentation.
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Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
4.8.3. Annual Supply and Service Spending Report.
On or before February 1, 2019, and February 1 of each year
thereafter through 2028, in order for the City to assess the degree to which
Company met the Fort Worth Supply and Service Spending Commitment
and the M/WBE Supply and Service Spending Commitment in the
previous calendar year, Company must provide the City with a report in a
form reasonably acceptable to the City that sets forth the aggregate Supply
and Service Expenditures made during such year with Fort Worth
Companies and Fort Worth Certified M/WBE Companies, together with
reasonable supporting documentation.
4.8.4. General.
Company will supply any additional information reasonably
requested by the City that is pertinent to the City's evaluation of
compliance with each of the terms and conditions of this Agreement.
4.9. Inspections.
At any time during Company's normal business hours throughout the
Term and following reasonable notice to Company, the City will have the right to
inspect and evaluate the Land, and any improvements thereon, and Company will
provide full access to the same, in order for the City to monitor compliance with
the terms and conditions of this Agreement. Company will cooperate fully with
the City during any such inspection and evaluation. Notwithstanding the
foregoing, Company shall have the right to require that any representative of the
City be escorted by a Company representative or security personnel and to
comply with any other standard policies and procedures of Company during any
such inspection and evaluation.
4.10. Audits.
The City will have the right throughout the Term to audit the financial and
business records of Company that relate to the Required Improvements and the
Land and any other documents necessary to evaluate Company's compliance with
this Agreement or with the commitments set forth in this Agreement, including,
but not limited to construction documents and invoices (collectively "Records").
Company shall make all Records available to the City on the Land or at another
location in the City acceptable to both parties following reasonable advance
notice by the City and shall otherwise cooperate fully with the City during any
audit.
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Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
4.11. Use of Land.
The Land and any improvements thereon, including, but not limited to, the
Required Improvements, must be used at all times during the Term of this
Agreement for Company's lawful business operations, as set forth in this
Agreement, and otherwise in a manner that is consistent with the general purposes
of encouraging development or redevelopment of the Zone.
4.12. Abatement Application Fee.
The City acknowledges receipt from Company of the required Application
fee of Five Thousand Dollars ($5,000.00). Of such amount, Two Thousand
Dollars ($2,000.00) is nonrefundable and shall be used by the City for the
purposes set forth in the Policy. If construction work on the Required
Improvements begins within one (1) year from the date of the Application, the
remaining Three Thousand Dollars ($3,000.00) of such fee shall be credited to
Company's benefit against any permit, impact, inspection or other lawful fee
required by the City in connection with the Required Improvements. If
construction work for the Required Improvements does not begin within one (1)
year from the date of the Application, Company will not receive a credit or refund
of any portion of the fee. If any Application Fee funds are remaining after the
development project covered in the Application has received a final Certificate of
Occupancy (CO) from the City, the applicant must submit a letter to the director
of the City's Economic Development Department requesting a refund of the
remaining funds. The request must be made within three (3) months from the date
of the final CO.
5. CERTIFICATE OF COMPLETION.
Within ninety (90) calendar days following receipt by the City of the final
construction spending report for the Required Improvements submitted in accordance
with Section 4.8.1.2, and assessment by the City of the information contained therein
pursuant to Sections 4.9 and 4.10, if the City is able to verify that Construction Costs of
at least Fifteen Million Dollars ($15,000,000.00) were expended for Required
Improvements by the Completion Date and that the Completion Date occurred on or
before Completion Deadline, the Director will issue Company a certificate stating the
aggregate amount of Construction Costs and Hard Construction Costs expended for the
Required Improvements, as well as the amount of Hard Construction Costs expended
specifically with Fort Worth Companies and Fort Worth Certified M/WBE Companies
(the "Certificate of Completion"). The Certificate of Completion will serve as the basis
for determining the extent to which the Fort Worth Construction Commitment and the
M/WBE Construction Commitment were met.
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Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
6. TAX ABATEMENT.
Subject to the terms and conditions of this Agreement,provided that (i) Company
expended at least Fifteen Million Dollars ($15,000,000.00) in Construction Costs for the
Required Improvements by the Completion Date, as confirmed in the Certificate of
Completion issued by the Director in accordance with Section 5; (ii)the Completion Date
occurred on or before the Completion Deadline, as confirmed in the Certificate of
Completion issued by the Director in accordance with Section 5; and (iii) New Taxable
Tangible Personal Property having a value of at least Two Million Dollars
($2,000,000.00) was in place on the Land by January 1, 2018, as determined solely by the
appraisal district having jurisdiction over the Land at that time and reflected in the
certified appraisal roll received by the City from such appraisal district in such year,
Company will be entitled to receive an Abatement in the first year of the Abatement
Term and in each year thereafter for the remainder of the Abatement Term. The amount
of each Abatement that Company is entitled to receive during such years will be a
percentage of the City's ad valorem taxes on any improvements located on the Land (but
not on the Land itself, which taxes shall not be subject to Abatement hereunder) and on
New Taxable Tangible Personal Property attributable to increases in the value of such
improvements and New Taxable Tangible Personal Property over their values for the
2016 tax year, which percentage will equal the sum of the Overall Improvement
Percentage, the Fort Worth Construction Percentage, the M/WBE Construction
Percentage, the Overall Employment Percentage, the Fort Worth Employment
Percentage, the Central City Employment Percentage, the Fort Worth Supply and Service
Percentage, and the M/WBE Supply and Service Percentage, as defined in Sections 6.1
through 6.8 (not to exceed fifty percent (50%), as follows:
6.1. Completion of Required Improvements (10%).
Company will be entitled to receive a percentage of the Abatement equal
to ten percent (10%) (the "Overall Improvement Percentage") on account of
Company's having met the Real Property Improvement Commitment in
accordance with Section 4.1 and the Personal Property Improvement Commitment
in accordance with Section 4.2.
6.2. Fort Worth Construction Cost Spending (Up to 5%).
A percentage of the Abatement will be based on the extent to which the
Fort Worth Construction Commitment, as outlined in Section 4.3, was met (the
"Fort Worth Construction Percentage"). The Fort Worth Construction
Percentage will equal the product of five percent (5%) multiplied by the
percentage by which the Fort Worth Construction Commitment was met, which
will be calculated by dividing the actual Hard Construction Costs expended for
the Required Improvements by the Completion Date with Fort Worth Companies
by the number of dollars comprising the Fort Worth Construction Commitment,
as determined in accordance with Section 4.3. For example, if Company expends
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Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
$18,000,000.00 in Hard Construction Costs, the Fort Worth Construction
Commitment would be $4,500,000.00 (25% of $18,000,000.00). If Company
only expended $3,825,000.00 in Hard Construction Costs with Fort Worth
Companies by the Completion Date, the Fort Worth Construction Percentage
would be 4.25% instead of 5% (or .05 x [$3.825 million/$4.5 million], or .05 x
.85, or .0425). If the Fort Worth Construction Commitment was met or exceeded,
the Fort Worth Construction Percentage will be five percent (5%).
6.3. Fort Worth M/WBE Construction Cost Spending(Up to 5%).
A percentage of the Abatement will be based on the extent to which the
M/WBE Construction Commitment, as outlined in Section 4.4 was met (the
"M/WBE Construction Percentage"). The M/WBE Construction Percentage
will equal the product of five percent (5%) multiplied by the percentage by which
the M/WBE Construction Commitment was met, which will be calculated by
dividing the actual Hard Construction Costs expended for the Required
Improvements by the Completion Date with Fort Worth Certified M/WBE
Companies by the number of dollars comprising the M/WBE Construction
Commitment, as determined in accordance with Section 4.4. If the M/WBE
Construction Commitment was met or exceeded, the M/WBE Construction
Percentage will be five percent(5%).
6.4. Overall Employment (Up to 10%).
A percentage of the Abatement will be based on the extent to which the
Overall Employment Commitment, as outlined in Section 4.5.1, was met (the
"Overall Employment Percentage"). The Overall Employment Percentage in a
given year will equal the product of ten percent (10%) multiplied by the
percentage by which the Overall Employment Commitment was met in the
previous calendar year, which will be calculated by dividing the actual number of
Full-time Jobs provided on the Land in the previous year by the number of Full-
time Jobs constituting the Overall Employment Commitment for that year. For
example, if in 2023 only 150 Full-time Jobs were provided on the Land instead of
160, the Overall Employment Percentage for the following year would be 9.375%
instead of 10% (or .10 x [150/160]), or .10 x .9375, or .09375. If the Overall
Employment Commitment is met or exceeded in any given year, the Overall
Employment Percentage for the following year will be ten percent(10%).
6.5. Fort Worth Employment(Up to 5%).
A percentage of the Abatement will be based on the extent to which the
Fort Worth Employment Commitment, as outlined in Section 4.5.2, was met (the
"Fort Worth Employment Percentage"). The Fort Worth Employment
Percentage for a given year will equal the product of five percent (5%) multiplied
by the percentage by which the Fort Worth Employment Commitment was met in
the previous calendar year, which will be calculated by dividing the actual
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Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
number of Full-time Jobs provided on the Land to Fort Worth Residents in the
previous year by the number of Full-time Jobs constituting the Fort Worth
Employment Commitment for that year. For example, if Company provides and
fills 200 Full-time Jobs on the Land in 2019, the Fort Worth Employment
Commitment for that year will, in accordance with Section 4.5.2, be 120 Full-time
Jobs (60% of 200 Full-time Jobs). If in that year only 96 Full-time Jobs on the
Land were provided to Fort Worth Residents, the Fort Worth Employment
Percentage for the following year would be 4% instead of 5% (or .05 x [96/120]),
or .05 x .80, or .04. If the Fort Worth Employment Commitment is met or
exceeded in any given year, the Fort Worth Employment Percentage for the
following year will be five percent(5%).
6.6. Central City Employment(Up to 5%).
A percentage of the Abatement will be based on the extent to which the
Central City Employment Commitment, as outlined in Section 4.5.3, was met (the
"Central City Employment Percentage"). The Central City Employment
Percentage for a given year will equal the product of five percent (5%) multiplied
by the percentage by which the Central City Employment Commitment was met
in the previous year, which will be calculated by dividing the actual number of
Full-time Jobs provided on the Land to Central City Residents in the previous
year by the number of Full-time Jobs constituting the Central City Employment
Commitment for that year. If the Central City Employment Commitment is met
or exceeded in a given year, the Central City Employment Percentage for the
following year will be five percent (5%).
6.7. Fort Worth Supply and Service Spending(Up to 5%).
A percentage of the Abatement will be based on the extent to which the
Fort Worth Supply and Service Spending Commitment, as outlined in Section 4.6,
was met (the "Fort Worth Supply and Service Percentage"). The Fort Worth
Supply and Service Percentage for a given year will equal the product of five
percent (5%) multiplied by the percentage by which the Fort Worth Supply and
Service Spending Commitment was met in the previous calendar year, which will
be calculated by dividing the actual Supply and Service Expenditures made in the
previous calendar year with Fort Worth Companies by the Fort Worth Supply and
Service Spending Commitment for that year. For example, if Company's Supply
and Service Expenditures in a given year were $30,000.00, the Fort Worth Supply
and Service Spending Commitment for that year would be $18,000.00, as
provided by Section 4.6 of this Agreement. If in that year Company only
expended $16,200.00 in Supply and Service Expenditures with Fort Worth
Companies, the Fort Worth Supply and Service Percentage for the following year
would be 4.5% instead of 5% (or .05 x [$16,200/$18,000], or .05 x .90, or .045).
If the Fort Worth Supply and Spending Commitment is met or exceeded in any
given year, the Fort Worth Supply and Service Percentage for the following year
will be five percent(5%).
Page 15
Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
6.8. Fort Worth M/WBE Supply and Service Spending(Up to 5%).
A percentage of the Abatement will be based on the extent to which the
M/WBE Supply and Service Spending Commitment, as outlined in Section 4.7,
was met (the "M/WBE Supply and Service Percentage"). The M/WBE Supply
and Service Percentage for a given year will equal the product of five percent
(5%) multiplied by the percentage by which the M/WBE Supply and Service
Spending Commitment was met in the previous year, which will be calculated by
dividing the actual Supply and Service Expenditures made in the previous
calendar year with Fort Worth Certified M/WBE Companies by the M/WBE
Supply and Service Spending Commitment for that year. If the M/WBE Supply
and Spending Commitment is met or exceeded in any given year, the M/WBE
Supply and Service Percentage for the following year will be five percent (5%).
6.9. No Offsets.
A deficiency in attainment of one commitment may not be offset by the
exceeding attainment in another commitment. For example, if Company failed to
meet the M/WBE Construction Commitment by $5,000.00, but exceeded the Fort
Worth Construction Commitment by $5,000.00, the percentage of Abatement
available hereunder would still be reduced in accordance with Section 6.3 on
account of Company's failure to meet the M/WBE Construction Commitment.
6.10. Abatement Limitations.
In accordance with Section 8.5 of the Policy and notwithstanding anything
to the contrary herein, Company's Abatement in any given year of the Abatement
Term will be based (i) on the increase in the real property value of improvements
on the Land over their value as of January 1, 2016, if any, up to a maximum
increase of Twenty-two Million Five Hundred Thousand Dollars
($22,500,000.00) and (ii) on the increase in the value of New Taxable Tangible
Personal Property located on the Land since January 1, 2016, if any, up to a
maximum increase of Three Million Dollars ($3,000,000.00). In other words,
with regard to the real property tax Abatement, in any year in which the taxable
value of improvements on the Land exceeds (i) any value of improvements on the
Land as of January 1, 2016 plus (ii) $22,500,000.00, Company's real property tax
Abatement for that tax year will be capped and calculated as if the increase in the
value of improvements on the Land since January 1, 2016 had only been
$22,500,000.00. For example, and as an example only, if in a given year of the
Abatement Term the value of improvements on the Land is $30,000,000.00 over
their value as of January 1, 2016, Company would receive a maximum real
property tax Abatement of fifty percent (50%) of$22,500,000.00 in valuation for
that year and would pay full taxes on the $7,500,000.00 difference over the cap.
Along the same lines, if the value of New Taxable Tangible Personal Property
located on the Land in a given year of the Abatement Term is $4,000,000.00 over
Page 16
Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
the value of that Property as of January 1, 2016, Company would receive a
maximum Abatement on New Taxable Tangible Personal Property of fifty percent
(50%) of$3,000,000.00 in valuation for that year and would pay full taxes on the
$1,000,000.00 difference over the cap.
7. DEFAULT, TERMINATION AND FAILURE BY COMPANY TO MEET
VARIOUS DEADLINES AND COMMITMENTS.
7.1. Failure to Meet Real Property Improvement Commitment.
Notwithstanding anything to the contrary herein, if the Real Property
Improvement Commitment, as outlined in Section 4.1, is not met, meaning that (i)
Company failed to expend at least Fifteen Million Dollars ($15,000,000.00) in
Construction Costs for the Required Improvements by the Completion Date, or
(ii) the Completion Date did not occur on or before the Completion Deadline, an
Event of Default will occur and the City will have the right to terminate this
Agreement, effective immediately, by providing written notice to Company
without further obligation to Company hereunder.
7.2. Failure to Meet Personal Property Improvement Commitment.
Notwithstanding anything to the contrary herein, if the Personal Property
Improvement Commitment, as outlined in Section 4.2, is not met, meaning that
New Taxable Tangible Personal Property having a value of at least Two Million
Dollars ($2,000,000.00) was not in place at the Land by January 1, 2018, as
determined solely by Tarrant Appraisal District or the appraisal district having
jurisdiction over the Land at that time and reflected in the certified appraisal roll
received by the City from such appraisal district in such year, an Event of Default
will occur and the City will have the right to terminate this Agreement, effective
immediately, by providing written notice to Company without further obligation
to Company hereunder.
7.3. Knowing Employment of Undocumented Workers.
Company acknowledges that effective September 1, 2007, the City is
required to comply with Chapter 2264 of the Texas Government Code, enacted by
House Bill 1196 (80th Texas Legislature), which relates to restrictions on the use of
certain public subsidies. Company hereby certifies that Company, and any
branches, divisions, or departments of Company, does not and will not knowingly
employ an undocumented worker, as that term is defined by Section 2264.001(4)
of the Texas Government Code. In the event that Company, or any branch,
division, or department of Company, is convicted of a violation under 8 U.S.C.
Section 1324a(l) (relating to federal criminal penalties and injunctions for a
pattern or practice of employing unauthorized aliens) and such violation occurs
during the Term of this Agreement.
Page 17
Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
• if such conviction occurs during the Term of this Agreement, this
Agreement shall terminate contemporaneously upon such conviction
(subject to any appellate rights that may lawfully be available to and
exercised by Company) and Company shall repay, within one hundred
twenty (120) calendar days following receipt of written demand from the
City, the aggregate amount of Abatement received by Company
hereunder, if any,plus Simple Interest at a rate of two percent (2%)per
annum based on the amount of Abatement received in each previous year
as of December 31 of the tax year for which the Abatement was received;
or
• if such conviction occurs after expiration or termination of this
Agreement, subject to any appellate rights that may lawfully be available
to and exercised by Company, Company shall repay, within one hundred
twenty (120) calendar days following receipt of written demand from the
City, the aggregate amount of Abatement received by Company
hereunder, if any, plus Simple Interest at a rate of two percent (2%)per
annum based on the amount of Abatement received in each previous year
as of December 31 of the tax year for which the Abatement was received
For the purposes of this Section 7.3, "Simple Interest" is defined as a rate of
interest applied only to an original value, in this case the aggregate amount of
Abatement. This rate of interest can be applied each year, but will only apply to the
aggregate amount of Abatement and is not applied to interest calculated. For
example, if the aggregate amount of Abatement is $10,000 and it is required to be
paid back with two percent(2%) interest five years later,the total amount would be
$10,000 + [5 x ($10,000 x 0.02)], which is $11,000. This Section 7.3 does not
apply to convictions of any subsidiary or affiliate entity of Company, by any
franchisees of Company, or by a person or entity with whom Company contracts.
Notwithstanding anything to the contrary herein, this Section 7.3 shall survive the
expiration or termination of this Agreement.
7.4. Foreclosure on Land or Required Improvements.
Subject to Section 11, the City will have the right to terminate this
Agreement immediately upon provision of written notice to Company of any of
the following events: (i) the conveyance of the Land or the Required
Improvements pursuant to an action to foreclose or otherwise enforce a lien,
mortgage or deed of trust on the Land or the Required Improvements; (ii) the
involuntary conveyance to a third party of the Land or the Required
Improvements; (iii) execution of any assignment of the Land or Required
Improvements or deed in lieu of foreclosure to the Land or Required
Improvements; or (iv) appointment of a trustee or receiver for the Land or
Required Improvements and such appointment is not terminated within one
hundred twenty (120) calendar days after the appointment occurs.
Page 18
Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
7.5. Failure to Pay Taxes or Non-Compliance with Other Legal
Requirements.
An Event of Default will occur if any ad valorem taxes owed to the City by
Company become delinquent and Company does not timely and properly follow the
legal procedures for protest and/or contest of any such ad valorem taxes, or
Company is in violation of any material Legal Requirement due to any act or
omission connected with Company's operations on the Land; provided, however,
that an Event of Default shall not exist under this sentence unless Company fails to
cure the applicable failure or violation within thirty (30) calendar days (or such
additional time as may be reasonably required) after Company receives written
notice of such failure or violation.
7.6. General Breach.
In addition to Sections 7.1, 7.2, 7.3, 7.4, and 7.5, an Event of Default
under this Agreement will occur if either party breaches any term or condition of
this Agreement, in which case the non-defaulting party must provide the
defaulting party with written notice specifying the nature of the Default. Subject
to Sections 7.1, 7.2 and 7.4, in the event that any Event of Default hereunder
remains uncured after thirty (30) calendar days following receipt of such written
notice (or, if the defaulting party has diligently and continuously attempted to
cure following receipt of such written notice but reasonably requires more than
thirty (30) calendar days to cure, then such additional amount of time as is
reasonably necessary to effect cure, as determined by both parties mutually and in
good faith), the non-defaulting party will have the right to terminate this
Agreement, effective immediately, by providing written notice to the defaulting
party.
7.7. Failure to Meet Construction Cost Spending,Employment, or Supply
and Service Spending Commitments.
If Company fails to meet the Fort Worth Construction Commitment, the
M/WBE Construction Commitment, the Overall Employment Commitment, the
Fort Worth Employment Commitment, the Central City Employment
Commitment, the Fort Worth Supply and Service Spending Commitment, or the
M/WBE Supply and Service Spending Commitment in any year in which such
Commitments apply, any such event will not constitute an Event of Default
hereunder or provide the City with the right to terminate this Agreement, but,
rather, shall only cause the percentage or amount of Abatement available to
Company pursuant to this Agreement to be reduced in accordance with this
Agreement.
Page 19
Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
7.8. Statutory Damages.
Company acknowledges and agrees that termination of this Agreement
due to an Event of Default by Company will (i) harm the City's economic
development and redevelopment efforts on the Land and in the vicinity of the
Land; (ii) require unplanned and expensive additional administrative oversight
and involvement by the City; and (iii) be detrimental to the City's general
economic development programs, both in the eyes of the general public and by
other business entities and corporate relocation professionals, and Company
agrees that the exact amounts of actual damages sustained by the City therefrom
will be difficult or impossible to ascertain. Therefore, upon termination of this
Agreement for any Event of Default, and as authorized by Section 312.205(b)(6)
of the Code, Company must pay the City, as liquidated damages authorized by the
Code, an amount equal to all taxes that were abated in accordance with this
Agreement for each year in which an Event of Default existed and which
otherwise would have been paid to the City in the absence of this Agreement.
The City and Company agree that this amount is a reasonable approximation of
actual damages that the City will incur as a result of an uncured Event of Default
and that this Section 7.8 is intended to provide the City with compensation for
actual damages, as authorized by the Code, and is not a penalty. This amount
may be recovered by the City through adjustments made to Company's ad
valorem property tax appraisal by the appraisal district that has jurisdiction over
the Land and over any taxable tangible personal property located thereon.
Otherwise, this amount will be due, owing and paid to the City within sixty (60)
days following the effective date of termination of this Agreement. In the event
that all or any portion of this amount is not paid to the City within sixty (60) days
following the effective date of termination of this Agreement, Company shall also
be liable for all penalties and interest on any outstanding amount at the statutory
rate for delinquent taxes, as determined by the Code at the time of the payment of
such penalties and interest (currently, Section 33.01 of the Code).
8. INDEPENDENT CONTRACTOR.
It is expressly understood and agreed that Company shall operate as an
independent contractor in each and every respect hereunder and not as an agent,
representative or employee of the City. Company shall have the exclusive right to
control all details and day-to-day operations relative to the Land and any improvements
thereon and shall be solely responsible for the acts and omissions of its officers, agents,
servants, employees, contractors, subcontractors, licensees and invitees. Company
acknowledges that the doctrine of respondeat superior will not apply as between the City
and Company, its officers, agents, servants, employees, contractors, subcontractors,
licensees, and invitees. Company further agrees that nothing in this Agreement will be
construed as the creation of a partnership or joint enterprise between the City and
Company.
Page 20
Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
9. INDEMNIFICATION.
COMPANY, AT NO COST TO THE CITY, AGREES TO DEFEND,
INDEMNIFY AND HOLD THE CITY, ITS OFFICERS,AGENTS SERVANTS AND
EMPLOYEES, HARMLESS AGAINST ANY AND ALL CLAIMS, LAWSUITS,
ACTIONS, COSTS AND EXPENSES OF ANY KIND, INCLUDING, BUT NOT
LIMITED TO, THOSE FOR PROPERTY DAMAGE OR LOSS (INCLUDING
ALLEGED DAMAGE OR LOSS TO COMPANY'S BUSINESS AND ANY
RESULTING LOST PROFITS) AND/OR PERSONAL INJURY, INCLUDING
DEATH, THAT MAY RELATE TO, ARISE OUT OF OR BE OCCASIONED BY (i)
COMPANY'S BREACH OF ANY OF THE TERMS OR PROVISIONS OF THIS
AGREEMENT OR (ii)ANY NEGLIGENT ACT OR OMISSION OR INTENTIONAL
MISCONDUCT OF COMPANY, ITS OFFICERS, AGENTS, ASSOCIATES,
EMPLOYEES, CONTRACTORS (OTHER THAN THE CITY) OR
SUBCONTRACTORS, RELATED TO THE REQUIRED IMPROVEMENTS, THE
LAND AND ANY OPERATIONS AND ACTIVITIES THEREON; OR THE
PERFORMANCE OR NON-PERFORMANCE OF THIS AGREEMENT
OTHERWISE. THIS SECTION SHALL SURVIVE ANY TERMINATION OR
EXPIRATION OF THIS AGREEMENT.
10. NOTICES.
All written notices called for or required by this Agreement shall be addressed to
the following, or such other party or address as either party designates in writing, by
certified mail,postage prepaid, or by hand delivery:
City: Company:
City of Fort Worth Parker Products, Inc.
Attn: City Manager Attn: 4,,,-�
200 Texas Street _cp
Fort Worth, TX 76102
with copies to:
the City Attorney and
Economic Development Department
Director at the same address
Page 21
Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
11. EFFECT OF SALE OF LAND AND/OR REQUIRED IMPROVEMENTS;
ASSIGNMENT AND SUCCESSORS.
Company may assign this Agreement and all or any of the benefits provided
hereunder to (a) an Affiliate that owns or takes title to the Land or any New Taxable
Tangible Personal Property or (b) a successor to Company by merger or consolidation
only if (i) prior to or contemporaneously with the effectiveness of such assignment,
Company provides the City with written notice of such assignment, which notice must
include the name of the Affiliate and a contact name, address and telephone number for
the Affiliate, and (ii) the Affiliate agrees in writing to assume all terms and conditions of
Company under this Agreement. Otherwise, Company may not assign, transfer or
otherwise convey any of its rights or obligations under this Agreement to any other person
or entity without the prior consent of the City Council, which consent will not be
unreasonably withheld, conditioned on(i)the proposed assignee or successor agrees to take
title to the Land and any New Taxable Tangible Personal Property; (ii) the proposed
assignee or successor is financially capable of meeting the terms and conditions of this
Agreement; and (iii) prior execution by the proposed assignee or successor of a written
agreement with the City under which the proposed assignee or successor agrees to assume
and be bound by all covenants and obligations of Company under this Agreement. Any
attempted assignment without the City Council's prior consent shall constitute an Event of
Default under this Agreement. Any lawful assignee or successor in interest of Company of
all rights under this Agreement shall be deemed "Company" for all purposes under this
Agreement.
12. COMPLIANCE WITH LAWS, ORDINANCES,RULES AND
REGULATIONS.
This Agreement is subject to all applicable Legal Requirements.
13. GOVERNMENTAL POWERS.
It is understood that by execution of this Agreement, the City does not waive or
surrender any of it governmental powers or immunities.
14. SEVERABILITY.
If any provision of this Agreement is held to be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not in any way
be affected or impaired.
Page 22
Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
15. NO WAIVER.
The failure of either party to insist upon the performance of any term or provision
of this Agreement or to exercise any right granted hereunder shall not constitute a waiver
of that party's right to insist upon appropriate performance or to assert any such right on
any future occasion.
16. VENUE AND JURISDICTION.
If any action, whether real or asserted, at law or in equity, arises on the basis of
any provision of this Agreement, venue for such action shall lie in state courts located in
Tarrant County, Texas or the United States District Court for the Northern District of
Texas —Fort Worth Division. This Agreement shall be construed in accordance with the
laws of the State of Texas.
17. NO THIRD PARTY RIGHTS.
The provisions and conditions of this Agreement are solely for the benefit of the
City and Company, and any lawful assign or successor of Company, and are not intended
to create any rights, contractual or otherwise,to any other person or entity.
18. FORCE MAJEURE.
It is expressly understood and agreed by the parties to this Agreement that if the
performance of any obligations hereunder is delayed by reason of war, civil commotion,
acts of God, strike, inclement weather, shortages or unavailability of labor or materials,
unreasonable delays by the City (based on the then-current workload of the City
department(s) responsible for undertaking the activity in question) in issuing any permits,
consents, or certificates of occupancy or conducting any inspections of or with respect to
the Required Improvements, or other circumstances which are reasonably beyond the
control of the party obligated or permitted under the terms of this Agreement to do or
perform the same, regardless of whether any such circumstance is similar to any of those
enumerated or not, the party so obligated or permitted shall be excused from doing or
performing the same during such period of delay, so that the time period applicable to
such design or construction requirement shall be extended for a period of time equal to
the period such party was delayed. Notwithstanding anything to the contrary herein, it is
specifically understood and agreed that Company's failure to obtain adequate financing
to complete the Required Improvements by the Completion Deadline shall not be deemed
to be an event of force majeure and that this Section 18 shall not operate to extend the
Completion Deadline in such an event.
Page 23
Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
19. INTERPRETATION.
In the event of any dispute over the meaning or application of any provision of
this Agreement, this Agreement shall be interpreted fairly and reasonably, and neither
more strongly for or against any party, regardless of the actual drafter of this Agreement.
In the event of any conflict between the body of this Agreement and the Application, the
body of this Agreement shall control.
20. CAPTIONS.
Captions and headings used in this Agreement are for reference purposes only and
shall not be deemed a part of this Agreement.
21. ENTIRETY OF AGREEMENT.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement
between the City and Company, and any lawful assign and successor of Company, as to
the matters contained herein. Any prior or contemporaneous oral or written agreement is
hereby declared null and void to the extent in conflict with any provision of this
Agreement. Notwithstanding anything to the contrary herein, this Agreement shall not be
amended unless executed in writing by both parties and approved by the City Council of
the City in an open meeting held in accordance with Chapter 551 of the Texas
Government Code.
22. COUNTERPARTS.
This Agreement may be executed in multiple counterparts, each of which shall be
considered an original, but all of which shall constitute one instrument.
23. BONDHOLDER RIGHTS.
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to the rights of holders of outstanding bonds of the City.
24. CONFLICTS OF INTEREST.
Neither the Land nor any improvements thereon are owned or leased by any
member of the City Council, any member of the City Plan or Zoning Commission or any
member of the governing body of any taxing unit with jurisdiction in the Zone.
Page 24
Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
EXECUTED as of the last date indicated below:
[SIGNATURES IMMEDIATELY FOLLOW ON NEXT TWO (2) PAGES]
Page 25
Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
CITY OF FORT WORTH:
By:
Jo Robert Carman
Acting Assistant City Manager
Date:
�l OF PO
APPROVED AS TO FORM AND LEGALITY:
By:
Peter Vaky Attasted b
Deputy City Attorney
M&C:-c-28050 e � � C
Form 1295:2016-137008
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared John
Robert Carman, Acting Assistant City Manager of the CITY OF FORT WORTH, a
municipal corporation organized under the laws of the State of Texas, known to me to be
the person and officer whose name is subscribed to the foregoing instrument, and
acknowledged to me that the same was the act of the CITY OF FORT WORTH, that he
was duly authorized to perform the same by appropriate resolution of the City Council of
the City of Fort Worth and that he executed the same as the act of the CITY OF FORT
WORTH for the purposes and consideration therein expressed and in the capacity therein
stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this J9 day of
2016.
RECORD
Notary
Notary Public in and for OFFICIAL R
the State of Texas CITY SECRETARY
Z, FT.WORTH,TX
Notary's Printed Name
LOIS 01 THTT
Page 26 EeMy
ID#803Z:cL
Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc. Comm.Exp. 4,2017
PARKER PRODUCTS, INC.,
a Texas corporation:
By: l Y
Name: C�S`� ��o ��e C
Title:
Date:—
STATE OF`jfacaS §
COUNTY OF a^'� §
BEFORE ME,the undersigned��authority, on this day personally appeared
, r*
of PARKER PRODUCTS, INC., a Texas
corpo tion, known to me to be the person whose name is subscribed to the foregoing
instrument, and acknowledged to me that s/he executed the same for the purposes and
consideration therein expressed, in the capacity therein stated and as the act and deed of
PARKER PRODCCTS, INC.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this
day of Des2xyob E, , 2016.
--u
?ResTp
Notary P blic in/a d for ��•�`��•0•P4Y P(je�:V•�'���
the State of
•
Notary's Punted Name '••4'ToF
Page 27
Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
EXHIBITS
"A"—Description and Map Depicting the Land
"B"—Company's Tax Abatement Application
"C"—Map of Central City
Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
Exhibit "A"—Description and Map Depicting the Land
METES AND BOUNDS DESCRIPTION
BEING a tract of land situated in the JOSE MARIA BASQUIS SURVEY, ABSTRACT
NO. 85, in the City of Fort Worth, Tarrant County, Texas, and being a portion of Lot 2,
Block 3, Landmark Quebec Addition, an addition to the City of Fort Worth, Tarrant
County, Texas, and being more particularly described as follows:
BEGINNING at a 1/2-inch iron rod with red plastic cap stamped "W.A.I." set for corner,
said iron rod being North 00 deg 29 min 57 sec East, a distance of 500.00 feet from the
southwest corner of said Lot 2, Block 3 and being situated in the west line of said Lot 2,
Block 3;
THENCE North 00 deg 29 min 57 sec East, along said west line, a distance of 862.49 feet
to a 1/2-inch iron rod with red plastic cap stamped "W.A.I." set for corner;
THENCE South 88 deg 54 min 57 sec East, departing the west line and over and across
said Lot 2, Block 3, a distance of 547.88 feet to a 1/2-inch iron rod with red plastic cap
stamped "W.A.I." set for corner and situated in an east line of said Lot 2, Block 3, said
iron rod also being situated in the west right-of-way line of Strawn Lane (100' right-of-
way);
THENCE along the west right-of-way line of Strawn Lane and an east line of said Lot 2,
Block 3,the following:
South 01 deg 05 min 03 sec West, a distance of 50.00 feet to a 1/2-inch iron rod with red
plastic cap stamped "W.A.I." set for corner;
South 43 deg 54 min 57 sec East, a distance of 14.14 feet to a 1/2-inch iron rod with red
plastic cap stamped "W.A.I." set for corner;
South 01 deg 05 min 03 sec West, a distance of 802.45 feet to a 1/2-inch iron rod with
red plastic cap stamped "W.A.I." set for corner;
THENCE North 88 deg 54 min 57 sec West, departing the west right-of-way line of said
Strawn Land and an east line of said Lot 2, Block 3, a distance of 549.07 feet to the
POINT OF BEGINNING.
CONTAINING within these metes and bounds 10.946 acres or 476,794 square feet of
land, more or less.
Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
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Exhibit"B"—Company's Tax Abatement Application
Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
FoRTWORTH,
f
Economic Development
Incentive A
Economic Development Department
1150 South Freeway
Fort Worth, Texas 76104
(817) 871 -6021
Incentive Application
Date: Sep 12, 2016
Company Name: Parker Products, Inc
Company Address: 3020 W. Lancaster Ave
City: Fort Worth State: TX Zip: 76107
Contact Person: Greg Hodder Title/Position: President
Telephone Number: 817-336-7441
Mobile Telephone Number: 817-680-2696 Fax Number: 817-877-1261
E-Mail Address:ghodder@parkerproducts.com
1. If the applicant represents a Company. (if a Developer and not a Company,proceed to#2.)
A. Company Ownership(check one): r7 Publicly Traded Stock [✓1 Privately Held
B. Form of Business(choose one): Corporation
C. How long has the company been in operation (Years)?1951
D. Company Industry:Food Manufacturing
E. Describe the Company's principal business:
Parker conducts research and development for the world's largest consumer brands. We development candy ingredients
and produce them in our FDA regulated facility.
F. Describe the Company's international presence, if any:
Parker has products in 50 different countries.
G. Describe the Company's corporate citizenship practices:
Parker is committed to provided competitive wages and competitive benefits. Once a final location is determined we will be
looking at options to support our local community
2. If the applicant represents a Developer.
A. Describe the Developer's experience and background. Please include similar projects that you have constructed including
the project type and location (attach additional sheets as necessary):
B. Development Partners(Architect, Engineering Team, Interior Design, General Contract, etc.)
Page 2 of 6
Please include below the project description, project benefits and how the project positively impacts the community. Any
incentives given by the City should be considered only"gap"financing and should not be considered a substitute for debt and
equity. However, the City is under no obligation to provide gap financing just because a gap exists. In order for a
Company or Developer to be eligible to receive incentives for a project, the Company/Developer:
A. Must complete and submit this application and the application fee to the City;
B. Company/Developer or Company/Developer's principals must not be delinquent in paying property taxes for any
property owned in Fort Worth;
C. Company/Developer or Company/Developer's principals must not have ever been subject to the City of Fort
Worth's Building Standards Commission's Review;
D, Company/Developer or Company/Developer's principals must not have any City of Fort Worth liens filed against
any other property owned by the applicant property owner/developer. "Liens" includes, but is not limited to, weed
liens, demolition liens, board-up/open structure liens and paving liens.
1. Project Description (attach additional sheets as necessary):
Project is a 85,000 square foot facility that will include warehouse, corporate office, R&D center and manufacturing.
2. In what way will the project benefit the surrounding area or serve as a catalyst for additional development and/or business
opportunities for the local economy(i.e. attract suppliers or customers)?
Our facility will provide up to 200 jobs by year 10 in the stable food manufacturing industry. We have a wide variety of job
opportunities from executive management, food science, quality control, experienced and skilled food handlers and
warehouse management.
3. Describe how the project positively impacts the community.
Project will provide stable well paying job in an area that has less manufacturing and more service jobs.
1. Proposed Project Site Address:
2. Proposed Project Site Land Size (Acres):10.68
3. Will environmental remediation be required? No
4. Is this an existing facility or will a new facility be constructed? P New ElExisting
A. If new, what is the construction: Anticipated Start Date:12/1/16 Anticipated Completion Date:12/31/17
B. If existing, is this an adaptive reuse?
5. Type of Project(choose one): Commercial/Industrial
6. Building Area(Square Feet) Requirements:
(a) Office 16000
(b) Manufacturing 47000
(c)Warehouse 23000
(d) Showroom/Retail
(e) Other
Total Area(a+b+c+d+e): 85000 SF
7. Will this facility be LEED certified, and if so, at what level? It will be constructed to LEED silver standards
8. Public open space included within the proposed project site: SF/Acres
Page 3 of 6
9. If the applicant represents a Company,(If a Developer and not a Company,proceed to#10.)
A. Is the Company expanding its existing local operations or relocating its operations from somewhere else to our area?
.j Expansion [✓J Relocation
B. If a relocation, where is the company currently located? 3020 Lancaster Ave, 2737 Tillar St
C. Does the company plan to lease or own the facility in Fort Worth? (_j Lease Own
D. If the company is planning to lease space in Fort Worth,what is the lease term? Years
E. Describe the specific operations and services to be provided or products to be manufactured at the proposed Fort Worth
facility(attach additional sheets as necessary):
Candy ingredients, All produces are custom, unique and confidential to our end customer.
10. Development requests that will be sought for the project(select all that apply):
F✓j Replat
' Rezoning Current Zoning: Requested Zoning:
[-i Variances If yes, please describe:
Downtown Design Review Board
Landmark Commission
[; Public Infrastructure Assistance
11. Real Estate Investment
A. Current Assessed Valuation of:Land $1.6MM Improvements$ 15MM
B. Total Construction Costs: $15MM
C. Hard Construction Costs: $15MM
12. Business Personal Property and Inventory
A. Business Personal Property
Total investment on equipment, machinery, furnishing, etc.: $3.5MM j Lease Purchase
*Estimated taxable value of equipment, machinery, furnishing, etc.: $4.5MM
*This Is the value that will be on the tax rolls which includes all tangible property.
B. Inventory and Supplies
Value of Inventory: $1.5MM Value of Supplies: $
Percent of inventory eligible for Freeport Exemption (inventory, exported from Texas within 175 days) 95 %
13.Total Capital Investment(Real Estate and Business Personal Property):$21.1 MM
On the Pro'ect Site
1. How many persons are currently employed? 100
2. What percent of current employees above are Fort Worth residents?70
3. What percent of current employees above are Central City residents?30 oda
Page 4 of 6
4. Please complete the following table for new jobs to be created from direct hire by applicant.
Currently At Completion Estimated By Estimated By
Fifth Year Tenth Year
WAINUM
New Jobs to be Created 0 30 60 100
Roil
of Net Jobs to be filled by 70 70 70 70
Fort Worth Residents
oil= 111111MONEEM
5. Please attach a description of the jobs to be created, tasks to be performed for each and wage rate for each classification.
6. Does the applicant provide the following benefits: 17 Retirement r Health n Dental Domestic Partner
7.Average wage paid to employees to be located at the project site: $
8. Describe the Company's talent recruitment efforts:
Currently work with local recruiters, industry associations and monster.com
Incentive(s) Requested: Tax Abatement 0 Chapter 380 Economic Development Program Grant
Do you intend to pursue abatement of County taxes? Yes No
if requesting a Tax Abatement,please refer to the Tax Abatement Policy for a comprehensive explanation of eligibility requirements.
During Construction
1.What percent of the total construction costs described in Section III, Question 11 will be committed to:
A. Fort Worth businesses? % p�
B. Fort Worth Certified Minority and Women Business Enterprises? oda
For Annual Supply and Service Needs
Regarding discretionary supply and service expenses(i.e landscaping, office or manufacturing supplies,janitorial services,
etc., excluding utilities):
2. What is the annual amount of discretionary supply and service expenses? $
3. What percentage will be committed to Fort Worth businesses? w �
4. What percentage will be committed to Fort Worth Certified Minority and Women Business Enterprises?
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? If yes, please explain and/or attach details.
Page 5 of 6
These documents must be submitted with the application, otherwise the application will be deemed incomplete and will not be
reviewed:
a.)Attach a site plan of the project.
b.) Explain why incentives are necessary for the success of this project. Include a business pro-forma or other
documentation to substantiate your request.
c.) Describe any environmental impacts associated with this project.
d.) Describe the infrastructure improvements (water, sewer, streets, etc.)that will be constructed as part of this
project.
e.)Attach a talent recruitment plan, if applicable.
f.)Attach a legal description or surveyor's certified metes and bounds description.
g.)Attach a copy of the most recent property tax statement from the appropriate appraisal district for all parcels
involved in the project.
h.)Attach a 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.
1.)Attach a plan for the utilization of Fort Worth Certified M/WBE companies.
j.)Attach a listing of the applicant's Board of Director's, if applicable.
k.)Attach a copy of Incorporation Papers noting all principals, partners, and agents and all Fort Worth properties
owned by each.
I.)Attach the purchasing representative's company contact information if known.
The company is responsible for paying $5,000 as an application fee. If the application is withdrawn before the project is
presented to City Council in Executive Session, the fee is refunded. Upon presentation to City Council in Open Session,
$2,000 is non-refundable and is applied to offset costs incurred by the Economic Development Department. Upon approval
by City Council, the balance of$3,000 can be credited towards required building permits, inspections fees, replatting fees,
and other costs of doing business with the City related to the development. Any unused credit balance upon completion.of the
project will be refunded upon request from the company.
On behalf of the applicant, I certify the information contained in this application, including all attachments to be true and
correct. I further certify that, on behalf of the applicant, I have read the current Incentive Policy and all other pertinent City of
Fort Worth policies and I agree with the guidelines and criteria state therein,
Printed Name: Greg Hodder
Title: President
Date: Sep 12, 20Lfia
Signature:
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Tax Abatement Agreement between
City of Fort Worth and Parker Products,Inc.
C-28050 C
CERTIFICATE OF INTERESTED PARTIES FORM 1295
10f1
Complete Nos,1-4 and 6 if there are interested parties. OFFICE USE ONLY
Complete Nos.1,2,3.5,and 6 if there are no Interested parties. CERTIFICATION OF FILING
1 Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number:
of business, 2016-137008
Parker Products,Inc
Fort Worth,TX United States Date Filed;
2 Name of govemmental entity or state agency that is a party to the contract for which the form is 11/15/2016
being filed.
City of Fort Worth Date Acknowledged;,
I �6
3 Provide the Identification number used by the governmental entity or state agency to track or identify the contract,and provide a
description of the services,goods,or other property to be provided under the contract.
ED—PARKER
Economic Development Agreement
4 Nature of interest
Name of Interested Party City,State,Country(place of business) (check applicable)
Controlling I intermediary
5 Check only if there is NO Interested Party. ❑
X
6 AFFIDAVIT0
1
��11N1111INf1/y� I swear,or affirm,under penalty of perjury,that the above disclosure is true and correct.
c•'s
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i s Signature of dti4porized agent of contracting business entity
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AFFIXNO7 f�'�' T; JO ••/� /`E
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Sworn to and subscribed before me,by the said this the day of* �
201��to certify which,witness my hand and seal of
Signatur o o icer administering oath Printed nanvjt officer administering oath Tide of officer administering oath
Forms provided by Texas Ethics Commission www.ethics.state.tx,us Version V1.0.277
M&C Review Page 1 of 3
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FOR7��RT111
COUNCIL ACTION: Approved on 12/13/2016
DATE: 12/13/2016 REFERENCE NO.: C-28050 LOG NAME: 17ED_PARKER
CODE: C TYPE: NON- PUBLIC CONSENT HEARING: NO
SUBJECT: Authorize Execution of a Tax Abatement Agreement with Parker Products, Inc. for the
Construction of an 85,000 Square Foot Facility to be Located at Northwest Loop 820 and
Strawn Lane (COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute a Tax Abatement
Agreement with Parker Products, Inc. for the Construction of an 85,000 Square Foot Corporate Office
and Operations Facility to be Located at Northwest Loop 820 and Strawn Lane in the Lone Star
Business Park.
DISCUSSION:
Parker Products, Inc. (Company) would like to construct an 85,000 square foot facility to be located at
Northwest Loop 820 and Strawn Lane in the Lone Star Business Park. The facility will include
warehouse, corporate office, research and development, and manufacturing space.
Construction Commitments:
The Company is consolidating two existing facilities and intends to invest at least $15,000,000.00 in
real property improvements to construct the new facility by December 31, 2017. The Company has
also pledged to install $2,000,000.00 in taxable business personal property within the facility by
January 1, 2018. The Economic Development Department is proposing a 10-year Tax Abatement
(Agreement) with Company that could potentially abate up to 50 percent of the City's taxes on the
incremental value of real and business personal property at the site.
Failure to meet the overall investment is a condition of default and will result in immediate termination
of the Agreement.
Utilization of Fort Worth Companies and Fort Worth Certified MIWBE Companies (Real
Property Improvements):
The Company will spend the greater of 25 percent or $3,750,000.00 of hard construction costs with
Fort Worth companies and the greater of 15 percent or $2,250,000.00 of hard construction costs with
companies that are Fort Worth certified Minority/Women-Owned Business Enterprises (M/WBE)
companies (with an understanding that dollars spent with Fort Worth certified M/WBE companies will
also count as dollars spent with Fort Worth companies).
Employment Commitments:
The Company will retain 100 full-time jobs and create 30 new full-time jobs at the site by December
31, 2018. The Company will create an additional 30 full-time jobs by December 31, 2022 for a total of
160 jobs. The Company will fill the greater of 60 percent or 60 of the full-time jobs with Fort Worth
residents by December 31, 2018, and the greater of 60 percent or 78 of the full-time jobs with Fort
Worth residents by December 31, 2022. The Company will fill the greater of 25 percent or 25 of the
full-time jobs with Fort Worth Central City residents by December 31, 2018, and the greater of 25
http://apps.cfwnet.org/council_packet/Mc—review.asp?ID=241 I I&councildate=12/13/2016 1/3/2017
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percent or 33 of the full-time jobs with Fort Worth Central City residents by December 31, 2022.
Utilization of Fort Worth Companies and Fort Worth Certified M/WBE Companies (Service and
Supply):
The Company will spend the greater of 30 percent or $18,000.00 in annual discretionary service and
supply expenditures with Fort Worth companies and greater of 15 percent or $9,000.00 of annual
discretionary service and supply with companies that are Fort Worth certified M/WBEs (with an
understanding that dollars spent with Fort Worth certified M/WBE companies will also count as dollars
spent with Fort Worth companies).
Supply and Service Expenditures means all expenditures by the Company expended directly for the
operation and maintenance of the development excluding amounts paid for electric, gas, water and
any other utility services.
City Commitments:
In return, the City will grant up to a 50 percent tax abatement on the incremental increase in value of
real and business personal property improvements (above a base year value) for a period of 10
years. 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. The weighted values for each of the commitments are as follows:
Property Owner or Company Commitment Potential Abatement
Real and Business Personal Property Investment Base Commitment 10 percent
25 percent Fort Worth Companies 5 percent
15 percent Fort Worth Certified M/WBE Companies 5 percent
Overall Employment 10 percent
60 percent Employment of Fort Worth Residents 5 percent
25 percent Employment of Fort Worth Central City Residents 5 percent
30 percent Utilization of Fort Worth Companies for Services and Supplies 5 percent
15 percent Utilization of Fort Worth Certified M/WBE Companies for Services and
Supplies 5 percent
TOTAL 50 percent
Except for cases of default, failure to meet a commitment will result in a reduction of the corresponding
component of the abatement for that year proportional to the amount the commitment was not met or
for the duration of the Agreement term in the case of construction commitments.
This project is located in COUNCIL DISTRICT 7, Mapsco 60A.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that approval of the above recommendation will have no material
effect on the Fiscal Year 2017 Budget. Upon approval of this Agreement, the long term financial
impacts will be included in the multi-year financial forecast.
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID I I ID I I I Year Chartfield 2
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M&C Review Page 3 of 3
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year Chartfield 2
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Robert Sturns (212-2663)
Additional Information Contact: Ana Alvarado (871-6029)
Natalie Moore (212-2680)
ATTACHMENTS
20161114 Parker Products RZ No. 93 Map.pdf
20161116 Parker Products Form 1295.pdf
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=24111&councildate=12/13/2016 1/3/2017