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HomeMy WebLinkAboutIR 10012 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10012 To the Mayor and Members of the City Council May 16, 2017 h�T�i7 Page 1 of 2 �i �i7 Y *a SUBJECT: PROPOSED REINVESTMENT ZONE NO. 91A AND ENHANCED rrn f COMMUNITY FACILITIES AGREEMENT WITH AMERICAN AIRLINES FOR THE HEADQUARTERS AND ROAD IMPROVEMENTS ALONG TRINITY BOULEVARD On November 10, 2015 the City Council adopted M&C G-18605, designating Tax Abatement Reinvestment Zone No. 91, City of Fort Worth, Texas, and approved execution of a Tax Abatement Agreement with American Airlines, Inc. (Company), and the Dallas/Fort Worth International Airport Board for development of a corporate headquarters facility (the "Headquarters Project") on property at Dallas-Fort Worth International Airport located within the City of Fort Worth (City Secretary Contract No. 47341 , as amended). Under the Tax Abatement Agreement, the City has agreed to abate a maximum of between 75 to 90 percent of the incremental real and personal property taxes from the site for a period of one year provided that Company expended at least $200 million in real property improvements by December 31 , 2019 on property in the reinvestment zone. Company now wishes to construct the Headquarters Project with multiple buildings, which would require a portion of the Headquarters Project to be constructed to the north of the existing reinvestment zone, on land controlled by Company. In order for this property to be covered under the Tax Abatement Agreement, the City Council must also designate this property as a reinvestment zone and hold a public hearing as required by Chapter 312 of the Texas Tax Code. Staff is recommending the expansion of Reinvestment Zone No. 91 , creating Reinvestment Zone No. 91A. As part of the project the Company will also be expending approximately $1,653,313.00 in the construction of deceleration lanes, signaling, and sidewalk and street light improvements on Trinity Boulevard and American Boulevard ("Public Infrastructure"). Company has agreed to provide at its expense, all necessary rights-of-way and easements across the property controlled by Company as necessary to construct the Public Infrastructure. The Economic Development Department, as previously presented to the City Council, is recommending participation in the cost of the Public Infrastructure through an Enhanced Community Facilities Agreement ("ECFA") in the amount of $950,000.00. The Public Project must be completed by December 31 , 2019, subject to extensions due to delays by weather, force majeure, and City and other governmental changes or delays in review procedure, approvals, or inspections. If the Public Infrastructure is not completed by then, Company will be in default under the ECFA, and the City will then have the right to utilize a financial guarantee provided by Company in accordance with the City's CFA Policy to complete the Public Infrastructure. If the Headquarters Project is not completed by the established deadline under the Tax Abatement Agreement, Company will still be required to complete the Public Infrastructure in accordance with the ECFA, but it will not be entitled to any portion of the $950,000.00 reimbursement. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10012 To the Mayor and Members of the City Council May 16, 2017 h�T�i7 Page 2 of 2 �i �i7 Y *a SUBJECT: PROPOSED REINVESTMENT ZONE NO. 91A AND ENHANCED rrn f COMMUNITY FACILITIES AGREEMENT WITH AMERICAN AIRLINES FOR THE HEADQUARTERS AND ROAD IMPROVEMENTS ALONG TRINITY BOULEVARD Staff will place an M&C for City Council consideration on the Tax Abatement Reinvestment Zone No. 91A on the June 6t" agenda followed by an M&C for consideration of the Tax Abatement Amendment and Enhanced Community Facilities Agreement on June 13tH 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