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HomeMy WebLinkAboutIR 10025 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10025 To the Mayor and Members of the City Council June 20, 2017 ter$4 Page 1 of 1 �i s SUBJECT: STOCKYARDS CORPORATE RELOCATION CHAPTER 380 1q IFrn 1875 DEVELOPMENT AGREEMENT AND COMMUNITY FACILITIES AGREEMENT On November 11 , 2016 (M&C C-27995), the City Council authorized execution of: • an Economic Development Program Agreement (EDPA) with Rural Media Group, LLC, (RMG) authorizing payment of economic development grants of up to $1 million in return for the relocation of its corporate headquarters and broadcasting operations to the Fort Worth Stockyards • a Community Facilities Agreement with Fort Worth Heritage Development, LLC, (CFA) for public improvements to E. Exchange Avenue and Mule Alley • a TIF Development Agreement with the Board of TIF 15 (Stockyards/Northside) for reimbursement to the City of up to $7.9 million for costs of those and other, additional public improvements in the Stockyards.. RMG is continuing with plans to relocate its corporate headquarters and primary broadcasting studio to the Fort Worth Stockyards (although the broadcasting studio is now currently planned for the Auction Barn, rather than in the Mule Barns as originally proposed). However, RMG has decided to leave some of its back office operations at its current location in Omaha, Nebraska, thereby reducing its capacity needs in the Stockyards from the originally-estimated 30,000 square feet to approximately 14,000 square feet of space. RMG will also be reducing the initial employment associated with the relocation of its corporate headquarters to between 35 and 40 initial employees, although that number may increase to over 100 employees in future years. As a result of these changes, the approved EDPA between RMG and the City will not be executed. However, construction of the public improvements to E. Exchange by Fort Worth Heritage Development, LLC and the City, will proceed as originally contemplated. All remaining agreements previously approved by the City Council and Stockyards TIF Board including the two CFA's (which may be divided into two separate CFA documents) and the TIF Development Agreement will be executed. As required by the approved agreements, RMG must still complete its relocation by January 1, 2020 and continue its corporate headquarters operations for a period of 10 years thereafter. 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