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Home My WebLink AboutContract 33286-A1 CITY SECRETARY 3M -AL CONMCT W. STATE OF TEXAS § COUNTY OF TARRANT § AMENDMENT NO. 1 TO CITY SECRETARY CONTRACT NO. 33286 TAX ABATEMENT AGREEMENT BETWEEN CITY OF FORT WORTH AND ALLIED ELECTRONICS, INC. This AMENDMENT NO. 1 TO CITY SECRETARY CONTRACT NO. 33286 ("Amendment") is entered into by and between the CITY OF FORT WORTH (the "City"), a home rule municipality organized under the laws of the State of Texas, and ALLIED ELECTRONICS, INC. ("Owner"), a Delaware corporation. The City and Owner hereby agree that the following statements are true and correct and constitute the basis upon which the City and Owner have entered into this Amendment: A. The City and Owner entered into a Tax Abatement Agreement effective as of March 2, 2006. The Tax Abatement Agreement is a public document on file in the City Secretary's Office as City Secretary Contract No. 33286 (the "Agreement"). Under the Agreement, Owner agreed to expend at least $18 million in Construction Costs to build an electronics distribution center and supporting office facilities on property owned by Owner in the Riverbend Business Park in east Fort Worth and to locate at least $10 million in new taxable tangible personal property on that site. In return for completing those improvements and purchases by December 31, 2007, the City agreed to abate a declining percentage of Owner's real and personal property taxes over a period of ten (10) years, beginning with the first full year following the year in which a certificate of occupancy was issued for the new distribution center and office facilities (the "Abatement Term"). B. The certificate of occupancy for Owner's electronic distribution center and supporting office facilities was issued on April 9, 2007, making 2008 as the first year of the Abatement Term. However, the City and Owner failed to file certain required tax CI abatement exemption forms with Tarrant Appraisal District that were necessary for the Abatement to be recorded for the 2008 tax year and, as a result, the first Abatement did 2 not occur until the 2009 tax year. JTa C. In order for Owner to receive an Abatement for the intended ten (10)-year term, and in order for the amount of such Abatement to be calculated correctly each year during that time, the parties wish to amend the Agreement to provide that the first ve the Abatement Term is 2009 rather than 2008. w Page I OFFICIAL RECORD Amendment No. 1 to CSC No.33286 CITY SECRETARY Tax Abatement Agreement between City of Fort Worth and Allied Electronics,Inc. FTS WORTH,TX RECEIVED MAY 30 2013 D. This Amendment is authorized under § 312.208 of the Texas Tax Code because (i) the provisions of this Amendment could have been included in the original Agreement and (ii) this Amendment has been entered into following the same procedure in which the Agreement was approved and executed. This Amendment will not result in any increase in the rate of Tax Abatement originally granted by the City Council. NOW, THEREFORE, the City and Owner, for and in consideration of the terms and conditions set forth herein, do hereby contract, covenant and agree as follows: 1. The fourth and fifth sentences of Section 2.8 of the Agreement (Terms) are hereby amended to read as follows: The term during which Owner may receive an Abatement shall begin on January 1 of the second year following the first year of the Compliance Auditing Term (the "Abatement Term"). In other words, taxes will not be abated until the second full tax year following the calendar year in which the Completion Date occurs. For example, if the Completion Date occurs in 2007, the Compliance Auditing Term will have commenced on January 1, 2007 and the Abatement Term will begin January 1, 2009, meaning that the first Abatement granted hereunder would be for the 2009 tax year and the last Abatement would be for the 2018 tax year. 3. Capitalized terms used but not identified in this Amendment shall have the same meanings assigned to them in the Agreement. 4. Except as otherwise specifically amended in this Amendment, the Agreement shall remain in full force and effect. 5. This Amendment contains the final written expression of the City and Company with respect to the subject matter hereof. This Amendment may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. 6. This Amendment shall be effective as of the Effective Date of the later date set forth below. EXECUTED as of the last date indicated below: [SIGNATURES IMMEDIATELY FOLLOW ON NEXT TWO (2)PAGES] Page 2 Amendment No. 1 to CSC No.33286 Tax Abatement Agreement between City of Fort Worth and Allied Electronics.Inc. CITY OF FORT WORTH: ATTEST: By: _ Fernando Costa Name.A" J• itQ v— Assistant City Manager Title: t,4 h, SCC fp}a-t I on Date: ezvz�tj Date: ps °°W\, �rw� o�4,1I c�..0 o� APPROVED AS TO FORM AND LEGALITY:000 °oa°O a o 00000010 By: By: Peter Vaky Deputy City Attorney STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa, Assistant City Manager of the CITY OF FORT WORTH, a municipality 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 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. 19 GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2013. � Notary Public in and for the State of Texas Py EVONIA DANIELS 'IV CQ04P ISSION EXPIRES Notary's Printed NameLI F 4°' duly 10,2013 � OFFICIAL RECORD Page 3 CITY SECRETARY Amendment No. 1 to CSC No.33286 Tax Abatement Agreement between City of Fort Worth and Allied Electronics,Inc. FT- WORTH, TX ALLIED ELECTRONICS, INC., a Delaware corporation: By: Name: 1&,7 Title: C 14--u Date:—OK-2:, ' ? vGi 7 ATTEST: By: 0(-,l �— STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared of ALLIED ELECTRONICS, INC., 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 his act and that s/he executed the same as the act of ALLIED ELECTRONICS, INC. for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE thisc�_day of , 2013. z N-6-fary Public in and for the State of Texas Notary's Printed Name CANDICE B. ANSPE a.�r'prv4l`• = Notary Public,State of Texas My Commission�O� es January 26, Page 4 Amendment No. 1 to CSC No.33286 Tax Abatement Agreement between City of Fort Worth and Allied Electronics,Inc. M&C Review Page 1 of 2 Official site of the City of Fort Worth,Texas FoRTMR CITY COUNCIL AGENDA N COUNCIL ACTION: Approved on 4/23/2013 DATE: 4/23/2013 REFERENCE NO.: "C-26207 LOG NAME: 17ALLIEDAMENDI CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: Authorize Amendment No. 1 to City Secretary Contract No. 33286, Tax Abatement Agreement with Allied Electronics, Inc., to Redefine the Abatement Term for the Development at 7151 Jack Newell Boulevard South in the Riverbend Business Park (COUNCIL DISTRICT 4) RECOMMENDATION: It is recommended that the City Council authorize the execution of Amendment No. 1 to City Secretary Contract No. 33286, Tax Abatement Agreement with Allied Electronics, Inc., to redefine the abatement term for the development at 7151 Jack Newell Boulevard South in the Riverbend Business Park. DISCUSSION: On November 1, 2005, (M&C C-21130) the City Council approved a 10-year Tax Abatement Agreement (City Secretary Contract No. 33286) (Agreement) with Allied Electronics, Inc. (Allied), to facilitate the construction of its new corporate headquarters and distribution facility at 7151 Jack Newell Boulevard South in the Riverbend Business Park. Allied finished construction of its new facility in 2007 and has been in compliance with the terms of the Agreement to date. Pursuant to Section 2.8 of the Agreement, Allied was to be granted its first abatement in the 2008 tax year. In no event will the value of the abatement in 2018 exceed the amount of $628,000.00, which would have been the estimated value of the initial abatement to be granted in the 2008 tax year. After an administrative review, Housing and Economic Development Department Staff discovered that the first abatement was not awarded to Allied until the 2009 tax year. In order to coincide with the Tarrant Appraisal District records and to allow Allied to earn its full 10-year abatement, an amendment to the Agreement needs to be executed to redefine the abatement term as a 10-year period beginning with the 2009 tax year rather than beginning with the 2008 tax year. Allied paid full taxes to the City in 2008. This amendment will not cause Allied to earn a greater abatement than originally set forth in the Agreement. All other terms of the Agreement will remain the same. Allied's headquarters and distribution center is located in COUNCIL DISTRICT 4. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that this action will not increase the total appropriations on City funds. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by: Fernando Costa(6122) http://apps.cfwnet.org/council_packet/mc—review.asp?ID=l 8273&councildate=4/23/2013 04/24/2013 M&C Review Page 2 of 2 Originating Department Head: Jay Chapa(5804) Additional Information Contact: Robert Sturns (8003) ATTACHMENTS http://apps.cfwnet.org/council_packet/mc—review.asp?ID=l 8273&councildate=4/23/2013 04/24/2013