HomeMy WebLinkAboutContract 19469 CITY SECR€V'RY C�
CONTRACT NO
STATE OF TEXAS § TAX ABATEMENT AGREEMENT BETWEEN
COUNTY OF TARRANT § THE CITY OF FORT WORTH AND
CITY OF FORT WORTH § THE DANNON COMPANY, INC.
This Tax Abatement Agreement (this "Agreement" ) is entered
into by and between the City of Fort Worth, Texas (the "City" ) ,
duly acting herein by and through its City Manager, and The Dannon
Company, Inc . ( "Owner" ) , a Delaware corporation in good standing
to do business in the State of Texas, duly acting by and through
its authorized officers .
WHEREAS, the City has adopted a resolution stating that it
elects to be eligible to participate in tax abatement; and
WHEREAS, on the 8th day of December, 1992, the City Council
of the City of Fort Worth, Texas ( "City Council" ) adopted an
amended Policy Statement for Tax Abatement to Qualifying
Commercial/Industrial Projects (the "Policy Statement" ) , attached
hereto and incorporated herein as Exhibit "A" ; and
WHEREAS, the Policy Statement constitutes appropriate "guide
lines and criteria" governing tax abatement agreements to be
entered into by the City as contemplated by the Texas Tax Code, as
amended (the "Code" ) ; and
WHEREAS, on the 8th day of December, 1992 , the City Council
passed Ordinance No. 11224 (the "Ordinance" ) establishing Tax
Abatement Reinvestment Zone No. 11, City of Fort Worth, Texas, a
commercial reinvestment zone for tax abatement (the "Zone" ) , as
authorized by Title 3, Chapter 312, Subchapter B, of the Code; and
WHEREAS, Owner owns certain real property, more particularly
described in Exhibit "B" attached hereto and incorporated herein
by reference (the "Premises" ) , located totally within the Zone;
and
WHEREAS, on the 9th day of November, 1992 , Owner submitted an
application for tax abatement with various attachments to the City
concerning the contemplated use of the premises (the "Application
for Tax Abatement" ) , attached hereto and incorporated herein as
Exhibit "C" ; and
WHEREAS, the contemplated use of the Premises, the Required
Improvements (as hereinafter defined) to the Premises as set forth
in this Agreement, and the other terms hereof are consistent with
encouraging development of said Zone in accordance with the
purposes for its creation and are in compliance with the Policy
Statement and the Ordinance and similar guidelines and criteria
adopted by the City and all applicable law; and
C�( E�GA�TAIt�
fT. WORTH, TEX.
WHEREAS, the City Council finds that the terms of this
Agreement, and the Premises and Required Improvements, meet the
applicable guidelines and criteria heretofore adopted by the City
Council, which are set forth in the Policy Statement; and
WHEREAS, written notice that the City intends to enter into
this Agreement, along with a copy of this Agreement has been
furnished, in the manner and by the time prescribed by the Code,
to the presiding officers of the governing bodies of each of the
taxing units in which the Premises is located.
NOW, THEREFORE, the City and Owner for and in consideration
of the premises and the promises contained herein, to hereby con-
tract, covenant and agree as follows:
I .
OWNER'S COVENANTS
A. During the 1991 and 1992 calendar years the Owner has
authorized or expended approximately $14, 000,000 in connection
with the Project on the Premises, including the acquisition of
properties since 1989 .
Owner shall construct, or cause to be constructed, on and
within the Premises improvements ( "Required Improvements" )
(i) consisting of the expansion and rehabilitation of the existing
yogurt processing/packaging operation and support facilities; and
(ii) having a cost to the owner of not less than the $3,500,000 to
be expended in the 1993 calendar year, $1,000,000 to be expended
in the 1994 calendar year and $1,000,000 to be expended in the
1995 calendar year.
Owner intends to develop the Required Improvements generally in
accordance with the schematic drawings and other specifications
submitted by Owner with the "Application for Tax Abatement. " The
kind, number and location of the Required Improvements is more
particularly described in the Application. As long as the condi-
tions in the first two sentences of this Paragraph A are met and
the Required Improvements are used for the purposes and in the
manner described in the Application, variations in the required
Improvements from the description provided in the application
shall not be an Event of Default.
B. Owner completed the cooler distribution work on the
Premises in October 1992 and this facility is operational. Owner
covenants that (i) the processing and production facilities will
be completed by June 1993; (ii) the rehabilitation of the
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existing facilities and the final completion of the Project shall
be completed in 1994 and 1995 .
C. Owner covenants that the Required Improvements shall be
constructed and the premises shall be used in accordance with the
description of the project set forth in the Application for Tax
Abatement. The Owner covenants to comply with and satisfy all of
the provisions and requirements for the project as set forth in
the Application for Tax Abatement, including but not limited to
(i) the project description and location; (ii) the activities to
be performed; (iii) the eligibility criteria for the project;
(iv) the employment impact from construction including the number
of construction jobs, payroll for the jobs, amounts to be spent
with Fort Worth contractors, subcontractors and Disadvantaged
Business Enterprises; (v) the employment impact from permanent
employment, including the number of new jobs, annual payroll for
the jobs, and number of jobs to be held by Fort Worth residents;
(vi) the cost and fiscal impact of the project; and (vii) the
dollar amount and type of annual supplier and professional service
contracts that will be awarded to Fort Worth companies .
D. As part of its obligations under Paragraph C, Owner
covenants that there shall be created at least 25 jobs by the end
of 1993 in connection with operation of the manufacturing and
distribution facilities on the premises . At least 50 percent of
the jobs will be held by Fort Worth residents.
E. Owner covenants that (i) as of the date of this
Agreement, there are existing Improvements on the Premises;
(ii) all Required Improvements and any other improvements to the
Premises (all improvements to the Premises, including Required
Improvements, shall be referred to as "Improvements" ) shall comply
with all applicable City building codes and ordinances, including,
but not limited to, subdivision, building, electrical, plumbing,
and fire prevention codes and ordinances; (iii) construction of
the Improvements will be in accordance with all applicable federal
and state laws and regulations; and (iv) throughout the Term of
the Abatement, the Required Improvements shall be continuously
operated and maintained for the purposes set forth herein so that
the uses of the Premises shall be consistent with the general
purposes of encouraging development or redevelopment of the Zone,
except as otherwise authorized or modified by this Agreement.
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II .
GENERAL PROVISIONS
A. The City has adopted guidelines and criteria governing
tax abatement agreements for the City such that it can enter into
this Agreement containing the terms set forth herein.
B. Procedures followed by the City conform to the require-
ments of the Code and the Ordinance, and have been and will be
undertaken in coordination with Owner's corporate, public,
employee, and business relations requirements .
C. The Premises are not in an improvement project financed
by tax increment bonds.
D. Neither the Premises nor any of the Improvements covered
by this Agreement are owned or leased by any member of the City
Council, any member of the City Plan or Zoning Commission of the
City or any member of the governing body of any taxing units
joining in or adopting this Agreement.
E. This Agreement is subject to rights of holders of out
standing bonds of the City.
F. In the event of any conflict between the City zoning
ordinances, or other City ordinances or regulations, and this
Agreement, such ordinances or regulations shall control .
G. A portion or all of the Premises and/or Improvements may
be eligible for complete or partial exemption from ad valorem
taxes, as a result of existing law or future legislation. This
Agreement is not to be construed as evidence that no such exemp-
tions apply to the Premises and/or Improvements .
III .
ABATEMENT TERMS AND CONDITIONS
A. The City hereby grants a tax abatement ( "Abatement" ) to
Owner relative to the Premises and the Improvements, subject to
the following terms and conditions .
B. The value of the Abatement shall be the following portion
of the increase in value of the Improvements on the Premises over
their value in 1992, the year in which this Agreement is executed:
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One hundred percent ( 100%) of the increase in value from
construction of the Required Improvements,
provided, however, that the Abatement shall terminate when the
total amount of taxes abated by all taxing entities under this
Agreement reaches $250,000 . Owner shall have the right to protest
and contest any or all appraisals or assessments of the Premises
and/or Improvements .
C. The term of the Abatement (the "Term" ) shall begin on
January 1 of the year following the calendar year in which a
certificate of occupancy is issued by the City for the Required
Improvements (the "Beginning Date" ) and, unless sooner terminated
as herein provided, shall end on the December 31st immediately
preceding the fifth (5th) anniversary of the Beginning Date.
IV.
RECORDS, AUDITS AND EVALUATION OF PROJECT
A. The City shall have the right to review the financial
condition of the project to determine compliance with this
Agreement. The City shall annually (or such other times deemed
appropriate by the City) evaluate the project to insure compliance
with this Agreement. Owner shall provide information to the City
on a form provided by the City for the evaluation. The informa-
tion shall include, but not be limited to, the following:
(i) the number and dollar amounts of all construction
contracts and subcontracts awarded on the project, specifying
which companies are Fort Worth entities (to be provided
quarterly) ;
(ii) the total number of employees who work on the
premises, their total salaries, the number of employees who
reside in Fort Worth and their gross salaries . These jobs
shall be reported in job classifications appropriate to the
employees (to be provided annually) ;
(iii) the gross dollars spent on supplier and profes-
sional service contracts, broken down to demonstrate the
amounts by contract awarded and performed by Fort Worth
individuals and entities (to be provided semi-annually) ;
(iv) the dollar amount of contracts awarded to
Disadvantaged Business Enterprises (to be provided annually) ;
and
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(v) if the dollars or percentages do not equal the
original or City Council modified requirements of this
Agreement, the Owner shall explain the reason for the failure
to meet the requirements and state a recommended course of
rectification.
B. The City shall make a decision and rule on the eligi-
bility of the project for tax abatement based on the information
furnished each year on or before May 1 of the taxable year and
shall so notify the Owner. The City Council 's decision on the
matter shall be binding, final and not appealable, except for
arbitrary and capricious acts and actions, gross negligence or
willful misconduct, and any appeal shall be under the substantial
evidence rule.
C. At all times throughout the Term of this Agreement, the
City shall have access to the Premises by City employees for the
purpose of inspecting the Premises and the Required Improvements
to ensure that the Required Improvements or repairs are made in
accordance with the specifications and conditions of this
Agreement and to verify that the conditions of this Agreement are
being complied with, provided that such inspection shall not
interfere with owner's normal business operations .
V.
BREACH
A. In the event that (i) the Required Improvements for which
an abatement has been granted are not completed in accordance with
this Agreement or with the guidelines and criteria adopted by City
Council in the Policy Statement to govern this Agreement; or
(ii) the schedule of Improvements listed in Paragraph B of
Article I of this Agreement is not satisfied; or (iii) Owner
allows its ad valorem real property taxes with respect to the
Premises or Improvements owed the City to become delinquent and
fails to timely and properly follow the legal procedures for
protest and/or contest of any such ad valorem real property taxes;
or (iv) Owner breaches any of the other terms or conditions of
this Agreement, then Owner shall be in default of this Agreement
(an "Event of Default" ) . In the event that an Event of Default
occurs, the City shall give Owner written notice of such Event of
Default and if Owner has not cured such Event of Default within
ninety (90) days of said written notice, this Agreement may be
terminated by the City; provided, however, that if such Event of
Default is not reasonably susceptible of cure within such ninety
(90) day period and Owner has commenced and is pursuing the cure
of same, then after first advising City Council of Owner's efforts
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to cure same, Owner may utilize an additional ninety (90) days .
Time in addition to the foregoing 180 days may be authorized by
the City Council . As liquidated damages for an Event of Default
after the expiration of the applicable notice and cure periods,
all taxes which otherwise would have been paid to the City for
each year when an Event of Default existed, without the benefit of
Abatement (after taking into account any applicable exemptions) ,
and penalties and interest thereon charged at the statutory rate
for delinquent taxes as determined by Section 33. 01 of the Code,
as in effect at the time of the payment of such penalties and
interest, for each such year for which such taxes were abated,
will become a debt to the City. Such amount shall be due, owing
and paid to the City within sixty (60) days of the expiration of
the above-mentioned applicable cure period(s) as the sole and
exclusive remedy of the City, subject to any and all lawful
offsets, settlements, deductions, or credits to which owner may be
entitled. The parties acknowledge that actual damages in the
event of default and termination would be speculative and diffi-
cult to determine.
B. Notwithstanding the foregoing paragraph, if the City and
Owner mutually determine that the development or use of the
Premises or Required Improvements as contemplated herein is no
longer appropriate or feasible or that a higher or better use is
preferable, the parties may terminate this Agreement by a writing
signed by both parties, the period of Abatement shall expire as of
the effective date of the termination, there shall be no recapture
of amounts previously abated, and neither party shall have any
further rights or obligations hereunder.
VI .
EFFECT OF SALE, ASSIGNMENT OR LEASE OF PROPERTY
The Abatement shall vest in Owner and cannot be assigned to a
new owner or lessee of all or a portion of the Premises and/or
Improvements, and any such assignment shall be grounds for termi-
nation of this Agreement and the tax abatement hereunder upon ten
(10) days' written notice from the City to Owner.
VII .
NOTICE
All notices called for or required by this Agreement shall be
addressed to the following, or such other party or address as
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either party designates in writing, by certified mail postage
prepaid or by hand delivery:
OWNER:
The Dannon Company, Inc .
1111 Westchester Avenue
White Plains, N.Y. 10604
Attn. : Donald E. Devine II
Chief Financial Officer
CITY:
City Manager
1000 Throckmorton Street
Fort Worth, Texas 76102
VIII .
CITY COUNCIL AUTHORIZATION
This Agreement was authorized by the City Council at its
meeting on the 8th day of December, 1992, by Council approving
Mayor and Council Communication No. G-9963 authorizing the City
Manager to execute this Agreement on behalf of the City.
IX.
BOARD OF DIRECTORS AUTHORIZATION
This Agreement was entered into by The Dannon Company, Inc . ,
pursliant to authority granted by its Board of Directors on the
day of December, 1992 , whereby one or more officers of The
Dannon Company, Inc . were authorized by corporate resolution to
execute this Agreement on behalf of The Dannon Company, Inc . ; a
certificate evidencing such resolution and consent is attached
hereto as Exhibit "D" .
X.
SEVERABILITY
In the event any section, subsection, paragraph, sentence,
phrase or word is held invalid, illegal or unconstitutional, the
balance of this Agreement shall stand, shall be enforceable and
shall be read as if the parties intended at all times to delete
said invalid section, subsection, paragraph, sentence, phrase or
word. In the event that (i) the Term of the Abatement with
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respect to any property is longer than allowed by law, or (ii) the
Abatement applies to a broader classification of property than is
allowed by law, then the Abatement shall be valid with respect to
the classification of property abated hereunder, and the portion
of the Term, that is allowed by law.
XI .
ESTOPPEL CERTIFICATE
Any party hereto may request an estoppel certificate from
another party hereto so long as the certificate is requested in
connection with a bona fide business purpose. The certificate,
which if requested will be addressed to a subsequent purchaser or
assignee of Owner, shall include, but not necessarily be limited
to, statements that this Agreement is in full force and effect
without default (or if default exists the nature of default and
curative action, which should be undertaken to cure same) , the
remaining term of this Agreement, the levels and remaining term of
the Abatement in effect, and such other matters reasonably
requested by the party(ies) to receive the certificates .
XII .
OWNER STANDING
Owner, as a party to this Agreement, shall be deemed a proper
and necessary party in any litigation questioning or challenging
the validity of this Agreement or any of the under lying ordi-
nances, resolutions, or City Council actions authorizing same and
Owner shall be entitled to intervene in said litigation.
XIII .
APPLICABLE LAW
This Agreement shall be construed under the laws of the State
of Texas. Venue for any action under this agreement shall be the
State's District Court of Tarrant County, Texas . This Agreement
is performable in Tarrant County, Texas .
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XIV.
RECORDATION OF AGREEMENT
A certified copy of this Agreement in recordable form shall
be recorded in the Deed Records of Tarrant County, Texas .
XV.
AMENDMENT
This Agreement may be modified by the parties hereto to
include other provisions which could have originally been included
in this Agreement or to delete provisions that were not originally
necessary to this Agreement pursuant to the procedures set forth
in Title 3, Chapter 312 of the Code.
EXECUTED this _ day of Aw"ex, , 1992, by
the City.
EXECUTED this *c day of ��8� 1992, by
The Dannon Company, Inc .
ATTEST: CITY OF FORT WORTH, TEXAS
-A�e� 464-�'6� By.
City Secretary City Manager
APPROVED AS TO FORM AND LEGALITY;
A"� t Contract buthtLrizat3ron
City Attorney f
Date:
Date
THE DANNON COMPANY, INC. ,
ATTEST: a IK/qwa- Corporation
By:
cretary Its: fgrsr
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STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME th undersigned authority, on this day personally
appeared 0c�+eX i-- `- ACity Manager of the CITY OF FORT WORTH, a
municipal corporation, krin to me to be the person and officer
whose name is subscribed to the foregoing instrument, and acknowl-
edged to me that the same was the act of the said CITY OF FORT
WORTH, TEXAS, a municipal corporation, 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 said City for the purposes and consideration therein
expressed and in the capacity therein stated. (�},,��/►
GIVEN UNDER MY HAND AND SEAL OF OFFICE this — ` ' day of
1992 .
�xrq V.ROB�t�O�q
t4ctar;•PuD�;IC Notary Public in and for
* * the State of Texas
' TEXAS
; � ATEE U7
11.1, cite.JlH.Y 211994
arxstwo..-<aeyyy.:
�
/ Notary's Printed Name
STATE OF Ne [vim" §
COUNTY O � TLJ�_s
BEFOR MFS t e and ig dd a 1Lhority, o th" personally
appeared ilii rr �' �� of
THE DANNON COMPANY, INC. , a corporation, known to
me to be the person whose name is subscribed to the foregoing
instrument, and acknowledged to me that he executed the same for
the purposes and consideration therein expressed, in the capacity
therein stated and as the act and deed of said corporation.
GI DER MY HAND AND SEAL OF OFFICE this day of
1992 .
Nota Public in`�a'���d
the State of
Notary's Printed Name
My Commission Expires :
-11- 7&EXANDER M. MfLNE
NOTARY PUBLIC, STATE Or NEW YORK
No. 4704466
Qualified in omnsgye county
Commission Ex?ires
S�3c
EXHIBIT "A"
POLICY STATEMENT
TAX ABATEMENT FOR COMMERCIAL/INDUSTRIAL PROJECTS
CITY OF FORT WORTH
L General Purpose and Objectives
Certain types of business investment result in the creation of new jobs, new income
and provide for positive economic growth and inner-city economic stabilization
which is beneficial to the City as a whole. The City Council of the City of Fort Worth
has approved this Tax Abatement Policy, which provides the general guidelines for
all commercial/industrial tax abatement projects. This policy will be considered, in
accordance with state law, on a case-by-case basis in evaluating
commercial/industrial projects for potential tax abatement.
This policy applies to the owners of real property and it is not the general policy of
the City of Fort Worth to approve abatements to landlord or lease holders interest.
Nothing in the policy shall be construed as an obligation by the City of Fort Worth to
approve any tax abatement application.
It is the policy of the City of Fort Worth to give priority consideration for projects
that:
(a) are located in the enterprise zones;
(b) result in a development with little or no additional cost to the City; or
(c) result in 1,000 or more new jobs.
It is further the policy of the City of Fort Worth to encourage the use of
disadvantaged business enterprises. (Any final tax abatement contract may include
specific goals and objectives relative to disadvantaged business enterprises, utilization
of Fort Worth based firms, prospective'employment commitments for Fort Worth
residents and other specific criteria as may be negotiated.)
H. Def nitions
"Abatement" means the full or partial exemption from ad valorem taxes of eligible
properties in a reinvestment zone designated as such by the City of Fort Worth for
economic development purposes.
"Modernization" means the replacement and/or upgrading of existing facilities which
increases production, updates technology, or substantially lowers the cost of
operation and extends the economic life of the facility.
"Reinvestment Zone" is an area designated as such by the City of Fort Worth in
accordance with the Texas Property Redevelopment and Tax Abatement Act, Sections
312.001 through 312.209, Tax Code.
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"Fort Worth Company" is one which has a principal office within the city limits of
Fort Worth.
"Inner City" is a census tract having at least two of the following four criteria, based
on 1990 census data regarding the residents in the census tract:
(1) Unemployment rate greater than 1.5 times the state rate.
(2) 207o' or more poverty.
(3) Low income (70% or more of the household have income at or
below 80% of the city median).
(4) Population loss equal to or greater than 20% (between 1980 and
1990).
A map of the eligible areas is included as Attachment "A."
III. Criteria
A. Tax abatement may be granted for a development project, excluding land, which
has a minimum capital investment of one of the following:
1. $10 million if the project is located anywhere in the City of Fort Worth.
2. $500,000 if the project is located in the "inner city" or property adjacent to
the major thoroughfares as identified on Exhibit "A":
Specifically:
Mansfield Highway Adjacent to Tracts 1061.02, 1046.03
Wichita Adjacent to Tracts 1046.02, 1046.03 & 1046.04
Felix Adjacent to Tract 1059.00
Hemphill Adjacent to Tracts 1045.03, 1045.02 & 1040.00
8th Avenue Adjacent to Tracts 1041.00, 1030.00 & 1029.00
Henderson Adjacent to Tracts 1018.00 & 1010.00
21st Street Adjacent to Tract 1004.00
Highway 199 Adjacent to Tract 1004.00
Azle Avenue Adjacent to Tract 1005.01
N. Main Adjacent to Tract 1003.00
Decatur Adjacent to Tract 1002.02
Dean Road Adjacent to Tract 1050.06
28th Street Adjacent to Tracts 1050.06, 1002.02 & 1049.00
Riverside Dr. Adjacent to Tract 1017.00
Meadowbrook Dr. Adjacent to Tracts 1014.02 & 1014.03
Miller Ave. Adjacent to Tracts 1046.02 & 1046.03
Wilbarger Adjacent to Tracts 1062.01 & 1062.02
Camp Bowie Blvd. Adjacent to Tract 1020.00
Montgomery Adjacent to Tract 1020.00
Vickery Blvd. Adjacent to Tract 1053.00
(The criteria of the adjacent census tract shall apply to any application
from property abutting the thoroughfares as listed above.)
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OR commits to hiring residents from an eligible "inner-city" area for full-
time, permanent positions.
3. Less than $500,000 if the project is located in the inner-city areas having
three of the four criteria listed above under the "inner-city" definition or
property adjacent to the major thoroughfares bordering those tracts as
identified on Exhibit "A":
B. The state law prohibits tax abatement of existing tax base. Abatement can be
considered only for the increase in valuation above the existing valuation of a
particular property and for a maximum term of 10 years. The amount and
terms of the abatement will be determined by factors such as the costs to the
City, the project's increased valuation to the tax base, and the number and types
of new jobs and new or expanding local businesses resulting from the project.
C. The "Application for Tax Abatement" form must be completed and submitted
(*with an application fee of 1% of project cost, fee not to exceed $15,000) to the
City Manager outlining the following:
1. project specifications,
2. costs and benefits to the City,
3. employment impact in the City and the region,
4. fiscal impact,
5. community impact,
6. projected construction dollars to be spent on the project with a percentage
of such dollars that would be awarded to Fort Worth contractors and
subcontractors, and
7. projected total annual supplier and professional service contracts in terms
of dollars, and the projected percentages of each such category that will be
awarded to Fort Worth companies and entities, during the abatement
period.
* If construction on the project is begun within a one (1) year period from the date of
the application (with or without a tax abatement), this fee shall be credited to any
permit, impact, inspection or any other lawful fee required by the City of Fort
Worth. If the project is not constructed, the application fee shall not be refunded or
otherwise credited.
D. Improvements subject to tax abatement are those which will take place after the
agreement is executed.
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IV. Procedural Guidelines
Any applicant desiring that the City of Fort Worth consider providing tax abatement
to encourage location, expansion and/or modernization of operations within the city
limits of Fort Worth shall be required to comply with the following procedural
guidelines. Nothing within these guidelines shall imply or suggest that Fort
Worth is under any obligation to provide tax abatement in any amount or value to
any applicant.
Preliminary Application Steps
A. Applicant must complete a City of Fort Worth "Application For Tax Abatement"
and pay an application fee. The application shall include financial and other
information deemed appropriate for evaluating the financial capacity and other
factors of the applicant. If the applicant is not the owner of the property at the
time of application, the property owner's authorization must also be included.
B. A complete legal description of the property and tax certificate verifying that no
taxes are past due on the applicant's property shall be provided as part of the
application.
C. For an unplatted site, the applicant shall prepare a survey map showing the
precise location of the property, all roadways within five hundred (500) feet of
the site, all existing land uses and zoning within five hundred (500) feet of the
site.
D. Applicant shall provide a survey, plat or site plan on which is shown the kind,
number and location of all proposed improvements.
E. City may request applicant to provide substantiation of the economic feasibility
of the overall project to assist in determining the long term benefit to the City.
F. Applicant shall complete all forms and information detailed in items A through
E above and submit them to the City Manager, City of Fort Worth, 1000
Throckmorton, Fort Worth, Texas 76102.
Application Review Steps
G. All information in the application package detailed above will be reviewed for
completeness and accuracy. The application may be distributed to the
appropriate City departments for internal review and comments. Additional
information may be requested.
H. Copies of the complete application package and staff comments will be
provided to the City Council. The City Manager's Office will make a
recommendation as to whether or not it is in the City's (and the other taxing
authorities') best interest to offer tax abatement to a particular applicant.
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Consideration of the Application
I. The City Council will consider the application at meetings conducted pursuant
to the Open Meetings Act and the Property Redevelopment and Tax Abatement
Act. Additional information may be requested.
J. The City Council shall consider calling a public hearing to consider
establishment of a reinvestment zone.
IC The City Council shall hold the public hearing and determine whether the
creation of the reinvestment zone meets the economic development objectives of
the City and the criteria specified by state law, and if appropriate, adopt an
ordinance creating the specific reinvestment zone for tax abatement purposes.
Consideration of the Tax Abatement Agreement
L. The City Council may consider action which approves the terms and conditions
of an agreement between the City and the applicant, and governs the provision
of the tax abatement. At minimum, the agreement shall include the following:
1. General description of the project;
2. Amount of the tax abatement and percent of value to be abated each year;
3. Duration of the abatement;
4. Type, number, location and timetable of planned improvements;
5. Proposed use of the facility;
6. Number of jobs to be created or retained and a percentage of employment
in Fort Worth;
7. Any specific terms and conditions to be met by the applicant; and
8. Reporting information.
M. Any tax abatement granted a project will become effective on January 1 of the
year following the issuance of a Certificate of Occupancy (CO) for the new
facilities (unless otherwise specified in the tax abatement agreement).
V. Recapture
If a project is not completed as specified, or if the terms of the tax abatement
agreement are not met, the City has the right to cancel or amend the abatement
agreement and abated taxes shall become due to the City and other affected taxing
units as provided by law. If a project granted a tax abatement ceases to operate or is
no longer in conformance with the tax abatement agreement, the agreement shall not
be in effect for the period of time during which the project is not operating or is not
in conformance.
-5-
VI. Inspection and Financial Verification
The City of Fort Worth reserves the right to review and verify the applicant's
financial statements prior to granting a tax abatement and to review the financial
condition of the project during the term of the abatement. The City of Fort Worth
also reserves the right for a representative to inspect the facilities of the applicant
during the term of the abatement and to verify the information provided in the tax
abatement agreement. Provisions to this effect shall be incorporated into the
agreement.
VII. Evaluation
Upon completion of construction of the facilities, the City Manager's designate may
annually (or such other times deemed appropriate by the City) evaluate each facility
receiving abatement to insure compliance with the agreement and report possible
violations of the agreement to all affected taxing units.
Any individual or entity receiving a tax abatement from the City of Fort Worth
shall provide information in the manner described in the tax abatement agreement
including, but not limited to, the following:
(A) The number of dollar amounts of all construction contracts and
subcontracts awarded on the job, specifying which companies are Fort
Worth entities. (To be provided quarterly.)
(B) The total number of employees of the company, their total salaries, the
number of employees who reside in Fort Worth and their gross salaries.
These jobs shall be reported in job classifications appropriate to the
employees. (To be provided annually.)
(C) The gross dollars spent on supplier and professional service contracts,
broken down to demonstrate the amounts by contract awarded and
performed by Fort Worth individuals and entities. (To be provided semi-
annually.)
(D) The dollar amount of contracts awarded to Disadvantaged Business
Enterprises (DBE). (To be provided annually.)
(E) If the dollars or percentages do not equal the original or City Council
approved modified projections, the party receiving the abatement shall
state the explanation for the failure to meet the projection, together with a
recommended course of rectification.
-6-
(It is the policy of the City of Fort Worth that an agreed upon percentage of the
employees of companies receiving an abatement shall reside in Fort Worth. At the
end of each City fiscal year, the company shall submit a certified list of employees
with their addresses to the City Manager's Office. If the percentage is below that
agreed upon for the prior year, the abatement may be lowered for the next year on a
pro rata basis. A separate calculation shall occur yearly.)
VIII. Effect Of Sale, Assignment Or Lease Of Property
No tax abatement rights may be sold, assigned or leased unless otherwise specified in
the tax abatement agreement. Any sale, assignment or lease of the property which is
not permitted in the tax abatement agreement results in a forfeiture of all tax
abatement rights on the property.
Adopted by the Fort Worth City Council on December 8, 1992.
-7-
EXHIBIT "B"
Page 1 of 2
Being a portion of Lot 2-R, Block 24, JENNING' S SOUTH
ADDITION, to the City of Fort Worth, Tarrant County, Texas,
according to the plat recorded in Volume 388-120, Page 72,
Plat Records, Tarrant County, Texas; Together with a portion
of, Lot 1R, Block 25 , HYDE JENNINGS SUBDIVISION, to the City of
Fort Worth, Tarrant County, Texas, according to the plat
recorded in Volume 388-144, Page 28, Plat Records, Tarrant
County, Texas; Together with Lots 5 thru 11 , and a portion of
Lot 12 , Block 25, and Lots 1 thru 8 , b 11 thru 16, Block 30,
HYDE JENNINGS SUBDIVISION of Block 25, 29 and 30, JENNINGS
SOUTH ADDITION to the City of Fort Worth, Tarrant County,
Texas , according to the Plat recorded in Volume 106 , Page 62 ,
Plat Records , Tarrant County, Texas; Together with South Lake
Street, a portion of West Broadway Street and a portion of a
24 feet wide alley as closed by City Ordinance, and bding
described as one tract by metes and bounds as follows :
BEGINNING at a 1/2" iron pin found at the+ intersection of the r
west line of South Lake Street with the north line of West
Peter Smith Street for the southeast of said Lot 8, Block 30,
HYDE JENNINGS SUBDIVISION;
THENCE North 89 degrees 48 minutes 19 seconds West a distance
of 188.03 feet along the north line of West Peter Smith Street
to ,the east line of a 24 feet wide alley and the' southwest
corner of said Lot 8;
THENCE North 0 degrees 03 minutes 54 seconds East a
distance of 103.06 feet along the east line of said alley to a
1/2" iron pin set for the southwest corner of said Lot 6,
Block 30, HYDE JENNINGS SUBDIVISION;
THENCE North 89 degrees 52 minutes 50 seconds West a distance
of 211. 88 feet to a Bois D'arc Stake found in the east line of
Ballinger Street for the southwest corner of Lot 11 , Block 30,
HYDE JENNINGS SUBDIVISION ;
THENCE North 0 degrees 04 minutes 11 , seconds East a distance
of 339. 91 feet along said east line to an "X" found cut in
concrete for the southwest corner of Lot 9, Block 25 , HYDE
JENNINGS SUBDIVISION;
THENCE North 0 degrees 02 minutes 27 seconds East a distance
of 168 .09 feet along the east line of Ballinger Street to a
1/2" iron pin found for the southwest corner of Lot 1R, Block
25, HYDE JENNINGS SUBDIVISION;
THENCE NORTH. a distance cf 48 .30 feet , continuing along the
east line of Ballinger Street and the west line of said Block
25 to a 5/8" iron pin found for the most westerly northwest
corner of Lot 1R;
THENCE North 56 degrees 38 minutes 25 seconds East a distance
of 192. 53 feet along the northwesterly line of Lot 1R to a
1/2" iron pin found in the proposed south right-of-way of
Interstate Highway 30, said pin lying in a curve, concave to
the south, having a radius of 384.74 feet and a chord which
bears 97 .05 feet, South 77 degrees 21 minutes 30 seconds East ;
EXHIBIT "B"
Page 2 of 2
THENCE Easterly along said curve, and along said proposed
right-of-way, passing through a central angle of 14 degrees 29
minutes 32 seconds for a distance of 97 . 3,1 feet to a 1/2" iron
r
pin found for the end of said curve;
THENCE the following courses and distances along the proposed
south right-of-way of Interstate Highway 30 :
South 70 degrees 06 minutes 51 seconds East a distance of
153. 61 feet to a 1/2"iron pin found in the west line of
South Lake Street and in the east line of said Lot 1R;
South 69 degrees 31 minutes 49 seconds East a distance of
64 . 51 feet to a "Y" found cut in concrete in the east line
of South Lake Street and in the west line of Lot 2-R,
Block 24 , JENNING' S SOUTH ADDITION, ;
South 69 degrees 55 minutes 44 seconds East a distance of
164 .06 feet to a "Y" found cut in concrete;
South 89 degrees 57 minutes 18 seconds East.a distance of
100 .00 feet to a Texas Highway Department monument found
in the east line of said Lot 2-R;
THENCE South 0 degrees 13 minutes 32 seconds West. a distance
of 171 . 13 feet along the most easterly line of Lot 2-R to an
"X" cut in concrete in 'the north line of West Broadway Street;
THENCE North 89 degrees 50 minutes 02 seconds West S Aistance
of 42 .00 feet along the north line of West Broadway -Street to
a "Y" found cut in concrete for a corner of Lot 2-11 in the
west line of Bradner Avenue;
THENCE South 0 degrees 09 minutes 58 seconds West a distance
of 429 . 86 feet along an east line of Lot 2-R and along the
west line of Bradner Avenue to a "Y" found cut in concrete for
the southeast corner of Lot 2-R in the north line of West
Peter Smith Street (as dedicated in plat recorded in Volume
388-120 , Page 72 , Plat Records , Tarrant County , Texas ) ;
THENCE South 89 degrees 51 minutes 17 seconds West a distance
of 212 . 12 feet along said dedicated north line of West Peter
Smith Street to a "Y" found cut in concrete in the east line
of South Lake Street for the southwest corner of Lot 2-R;
THENCE South 85 degrees 36 minutes 34 seconds West a distance
of 59. 37 feet to a 1/2" iron pin set with cap marked "AREA
SURVEYING" in the west line of South Lake Street ;
THENCE South 0 degrees 01 minutes 48 seconds West a distance
of 9.00 feet along the west line of South Lake Street to the
POINT OF BEGINNING, said described tract containing 10. 28
acres of land.
EXHIBIT "C"
APPLICATION FOR TAX ABATEMENT
CITY OF FORT WORTH
1. Property Owner. The Dannon Compa=. Inc.
Company or Project Name: Ft. Worth Manufacturing/Distribution Facility Expansion
Mailing Address: Site: 401 South Lake Street HQ: 1111 Westchester Avenue
Ft. Worth, Texas 76104 White Plains, New York 10604
Telephone Number. (817) 332-1264 (914) 697-9700
Company representative to be contacted:
Name and title: Donald E. Devine II, Chief Financial Officer/VP Finance
Mailing Address: 1111 Westchester Avenue
White Plains, New York 10604
Fax Number: (914) 934-2805
Telephone Number. (914) 934-2770
2. Project Description andIomtion: Expansion of Dannon Ft. Worth facility-
1) Building of 24,000 sq. ft. finished-goods refrigerated distribution center
2) Expansion of yogurt processing/packaging operation and support facilities
(electrical, employee common areas, etc.) . Additional 58.,O00sq, ft. '
See Exhibit "A" for location description.
3. Brief description of activities to be performed at this location, including a description of products to be
produced and/or services to be provided:
Production and distribution of Dannon refrigerated yogurt products for the South/
Central, Southwest and Western United States.
4. Date Projected for Occupancy of
Project/Initiation of Operations: Q4, 1992 Distribution facility
' 1993/1994 Maanufacutring Expansion
5. Eligibility Criteria (Attach statement describing how project meets taxhagSatemerR po�iecytc�n�t naafi:
(See Attached)
6. Project Fiscal Impact
A. Existing Value (per Tarrant Appraisal District):
1. Land $ 1.2 Million
2. Improvements $ 2.3 Million
3. Personal Property $ 10.3 Million
ED012991 Page 1 of 4
CITY OF FORT WORTH APPLICATION FOR TAX ABATEMENT
B. Estimated Total Cost of Project (i.e., new value): New Investment only
1. Site Development (excludes Land Purchase $1.8 $ . 1.5 Million
2. Structures Million) $ 8.0 Million
3. Other Improvements (Please specify) $ 9.5 Million
4. Personal Property (Please cite examples) $
7. Local Business/DBE Impact:
A. Percentage of Project Development and Construction Dollars to
be Spent With Fort Worth Based Contractors or Sub-Contractors: 40-50% %
B. Percentage of Project Development and Construction
Dollars to DBE(Disadvantaged Business Enterprises): unknown
8. Employment Impact:
A. Construction Employment Estimates:
1. Start: Month/Year June / 1992
2. Completion Date: 1992 - 1994
3. Number of Construction jobs: 70 (Peak)
4. Estimated Total Construction Payroll: F.-,t_ $3-0 mi 1 1 i nn
B. Permanent, Full-Time Employment Estimates at Project Location*:
1. Current (if applicable):
a. Annual payroll: $ 3.8 Million
b. Number of permanent, full-time employees: 128
2. At Start/Opening Date:
a. Annual payroll: $ 4.5 Million
b. Total number of permanent, full-time employees: 153
c. Number of employees transferred from
outside the city of Fort Worth: -0-
d. Number of new permanent full-time jobs: 25
e. Percentage of new,jobs to be filled by 50%
Fort Worth residents:
3. 5 Years After Opening:
a. Annual payroll: $ 5.5 Million
b. Total number of permanent, full-time employees: 183 - 200
c. Number of employees transferred from
outside the city of Fort Worth: -0-
d. Number of new permanent full-time jobs: Total 55
e. Percentage of new jobs to be filled by 50%
Fort Worth residents:
*Each application will be reviewed on its merits. However, absent extraordinary circumstances, a minimum of 25% of the
employees should be Fort Worth residents. Company shill report annually and a prorata reduction of the abatement may
occur if the percentage is not met.
ED012991 Page 2 of 4
CITY OF FORT WORTH APPLICATION FOR TAX ABATEMENT
4. 10 Years After Opening. Dependant on Volume
a. Annual payroll: $ 8.0
b. Total number of permanent, full-time employees: 200
c. Number of employees transferred from
outside the city of Fort Worth: -0-
d. Number of new permanent full-time jobs: Total 72
e. Percentage of new jobs to be filled by
Fort Worth residents: 50%
C Types of Jobs Created Qob Titles)
Production Operators Maintenance Technicians
Warehouse Operators Lab Technicians
Supervisors
9. Describe Any Off-Site Infrastructure Requirements:
Water.
SanitarySewer. None required
Streets: Possible widening of West Peter Smith Street
Storm Sewer. None required
Other.
10. Is Property Zoned Appropriately? Yes X No
Current Zoning. Industrial
Required Zoning- Industrial
11. Is Property Platted? Yes X No
Will Replatting be Necessary? Yes X No
ED012991 Page 3 of 4
CITY OF FORT WORTH APPLICATION FOR TAX ABATEMENT
12. Impact on Local Business (When Project is Fully Operational):
A. Annual value of total supplier and services contracts: (Excluding Salaries/Wages)
$ 27 Million Incremental ($70 Million Total)
B. Percentage of total supplier and services contracts to be awarded to Fort Worth businesses:
Est. 40-50 %
C. Percentage of total supplier and services contract dollars to be awarded to DBE:
Est. 5 %
13. Describe any other direct benefits to the City of Fort Worth as a result of this project(e.g.,sales tax revenue):
- Sales Tax Revenue - Project Investment $140.000
- Sales Tax Revenue from local merchants/employees, as a result of increased D nno
purchases salaries.
- Major Fruit Packaging suppliers also based in Ft. Worth. Milk/Sugar suppliers
are based in Arlington/Dallas. Increased volumes will also benefit the City
14. Environmental Impacts, if any, created by the project: favorably (sales tax, salaries
This project will result in no adverse environm ntal imparts_ Nnta- Thn Cnnling
equipment in the distribution center will utilize an ammonia system.
15. justification for Tax Abatement Request (Attach documentation to substantiate and more fully describe the
justification for this request. Include the amount of the abatement requested and show how it will contribute
to the financial viability of the project.)
(See Attached)
16. Financial Information-Attach a copy of the latest audited financial statements or,in the rase of a new project,
a business plan.
The application for tax abatement is submitted with the acknowledgment that additional certified financial
information may be required. It is further understood and acknowledged that the City Council of the City
of Fort Worth encourages the use of local consultants,construction firms and suppliers(with special emphasis
given to disadvantaged business enterprises)and that,if approved,the final abatement agreement will require
use of local firms when possible in conjunction with this project.
Authorized Signature
November 9, 1992
Date
ED012991 Page 4 of 4
THE DANNON COMPANY, INC.
REQUEST FOR FORT WORTH TAX ABATEMENT
The Dannon Company, Inc. is currently undergoing a major expansion of its Fort Worth,
Texas facility, and is requesting abatement of future tax obligations to defray expansion
costs.
Dannon is the leading manufacturer and marketer of yogurt products in the United States,
distributing products in both the retail cup market and institutional/food service cup
yogurt and frozen yogurt markets. Dannon currently has a 32% share of the retail cup
yogurt market, leading General Mills (Yoplait), with a 16% share, and Kraft General
Foods (Light'N Lively, Breyers and Knudsen), with a 14% share. Net Sales Revenues
grew from $249 million in 1989 to $276 million in 1991. 1992 results are showing a
significant acceleration of this strong trend, with Net Revenue projected at $320 million.
Dannon manufacturers its products at two facilities - Fort Worth, Texas and Minster,
Ohio, distributing products nationwide from these two sites. The Forth Worth facility
ships product to the South Central, Southwest and Western United States.
Dannon is proud of its long-standing commitment to Fort Worth, manufacturing yogurt
products here since 1979. Currently, 128 people are employed on-site, 36% of whom
live in Fort Worth proper. Dannon contributes significantly to the economic and social
vitality of the Forth Worth area. Payments to suppliers and employees total $46 million
annually, and an additional $2 million is invested annually in equipment and physical
plant upgrades.
Property tax payments to the City of Forth Worth totalled $276,000 in 1990 (plus
$57,000 to Tarrant County) and $129,000 in 1991 (plus $243,000 to Tarrant County),
and sales taxes payments on capital equipment to Fort Worth totalled $40,000 for 1990
(plus $170,000 to the State of Texas).
Minority and ethnic groups are strongly represented in Dannon's workforce, as follows:
Black 25% Females 36%
Hispanic 11%
Asian 6%
46% of these minority group workers live within the City of Fort Worth.
a:109.doc
The Dannon business is growing, with a projected sales revenue increase of 16% in 1992
(See attached financial data). To accommodate this growth, Dannon must expand and
modernize its manufacturing and distribution infrastructure. Given its commitment to the
City of Fort Worth, Dannon has elected to expand the existing Fort Worth site, almost
doubling its manufacturing capacity and adding a new refrigerated distribution center.
This proposed expansion would have the following impacts on the Fort Worth area:
Project Investment (New) $19 Million (Committed 1992-1994)
plus $1.8 Million - Land
plus $4.0 Million Potential 1995/96
Sales Tax on Capital Investment - Ft. Worth $140,000
- Texas $600,000
Employment 55 incremental (183 total)
Supplier/Employee Payments $29 Million incremental (+63%)
($75 million total)
Additionally, incremental supplier payments and employment will likely lead to increased
sales tax revenues for the City of Fort Worth.
This planned expansion meets all required criteria for tax abatement consideration, being
located in a designated re-investment zone and involving an investment of well over $10
million.
In summary, The Dannon Company is an important, long-standing member of the Fort
Worth community, significantly contributing to the area's livelihood. The facility
expansion will bring substantial additional benefits to Fort Worth and its citizens.
Therefore, Dannon requests consideration for abatement of future taxes to help offset the
significant investment made.
a:109.doc
THE DANNON COMPANY, INC.
FINANCIAL RESULTS/PROJECTIONS
$ MILLION
ACTUAL RESULTS PROJECTED RESULTS
1989 1990 1991 1992 1993
Income
Net Sales $249 $267 $276 $320 $375
Cost of Goods Sold 153 163 160 194 231
Sales, General&
Administrative Costs 83 87 106 116 130
Operating Income 1 13 17 10 1 10 14
Balance Sheet/Assets
Cash/Marketable
Securities 1 - 9 5 5
Accounts Receivable 15 16 16 18 20
Inventory 6 5 6 7 8
Other Current Assets 1 3 3 3 3
Total Current Assets 23 24 33 32 36
Plant,Property and
Equipment(Net) 55 59 59 69 74
Goodwill/Other Assets 50 48 45 44 42
Total Assets 128 131 137 145 152
a:109.doc
EXHIBIT "A"
Page 1 of 2
Being a portion of Lot 2-R, Block 24, JENNING' S SOUTH
ADDITION, to the City of Fort Worth, Tarrant County, Texas ,
according to the plat recorded in Volume 388-120, Page 72,
Plat Records, Tarrant County, Texas; Together with a portion
of Lot 1R, Block 25 , HYDE JENNINGS SUBDIVISION, to the City of
Fort Worth, Tarrant County, Texas, according to the plat
recorded in Volume 388-144, Page 28, Plat Records, Tarrant
County, Texas; Together with Lots 5 thru 11 , and a portion of
Lot 12, Block 25, and Lots 1 thru 8, b 11 thru 16, Block 30,
HYDE JENNINGS SUBDIVISION of Block 25, 29 and 30, JENNINGS
SOUTH ADDITION to the City of Fort Worth, Tarrant County,
Texas, according to the Plat recorded in Volume 106, Page 62 ,
Plat Records, Tarrant County, Texas; Together with South Lake
Street , a portion of West Broadway Street and a portion of a
24 feet wide alley as closed by City Ordinance, and being
described as one tract by metes and bounds as follows :
BEGINNING at a 1/2" iron pin found at they intersection of the •
west line of South Lake Street with the north line of West
Peter Smith Street for the southeast of said Lot 8, Block 30,
HYDE JENNINGS SUBDIVISION;
THENCE North 89 degrees 48 minutes 19 seconds West a distance
of 188.03 feet along the north line of West Peter Smith Street
to ,the east line of a 24 feet wide alley and the, sotithwest
corner of said Lot 8;
THENCE North 0 degrees 03 minutes 54 seconds East a
distance of 103.06 feet along the east line of said alley to a
1/2" iron pin set for the southwest corner of said Lot 6,
Block 30, HYDE JENNINGS SUBDIVISION;
THENCE North 89 degrees 52 minutes 50 seconds West a distance
of 211 . 88 feet to a Bois D' arc Stake found in the east line of
Ballinger Street for the southwest corner of Lot 11 , Block 30,
HYDE JENNINGS SUBDIVISION ;
THENCE North 0 degrees 04 minutes 11 seconds East a distance
of 339. 91 feet along said east line to an "X" found cut in
concrete for the southwest corner of Lot 9, Block 25, HYDE
JENNINGS SUBDIVISION;
THENCE North 0 degrees 02 minutes 27 seconds East a distance
of 168.09 feet along the east line of Ballinger street to a
1/2" iron pin found for the southwest corner of Lot 1R, Block
25 , HYDE JENNINGS SUBDIVISION;
THENCE NORTH. a dista.^.ce of 48 . 30 feet , continuing alerig the
east line of Ballinger Street and the west line of said Block
25 to a 5/8" iron pin found for the most westerly northwest
corner of Lot 1R;
THENCE North 56 degrees 38 minutes 25 seconds East a distance
of 192. 53 feet along the northwesterly line of Lot 1R to a
1/2" iron pin found in the proposed south right-of-way of
Interstate Highway 30, said pin lying in a curve, concave to
the south, having a radius of 364.74 feet and a chord which
bears 97 .05 feet, South 77 degrees 21 minutes 30 seconds East;
SECRETARY'S CERTIFICATION
I, DONALD E. DEVINE, II, do hereby certify that I am the
Secretary of The Dannon Company, Inc. (the "Corporation") , a
corporation duly organized and existing under and by virtue of the
laws of the State of Delaware, and having its office at 1111
Westchester Avenue, White Plains, New York, and that as such
Secretary I have access to all original records of said corpor-
ation, and that I am one of the duly authorized and proper officers
of the Corporation to certify copies of its records in its behalf;
and I do hereby further certify that the following resolution was
duly adopted by all of the members of the Board of Directors of the
Corporation and filed in the minute book of said corporation:
RESOLVED, that the President and Secretary/Treasurer of
the Corporation be, and they hereby are, authorized and
directed to execute a Tax Abatement Agreement Between the
City of Fort Worth and the Corporation, a copy of which
is annexed hereto, and to execute any further documenta-
tion as may be required by said Tax Abatement Agreement.
IN WITNESS WHEREOF, I have hereunto set my hand and
affixed the corporate seal this day of December, 1992 .
__�o 6'
DONALD E. DEVINE, II, Secretary
AZZ0035E
Exhibit D
r.
'+ ". EE -y,..y. ann+w.w.•.. .'f.-..':'.'.'P' � i- • ,.wv-ii,we.�tY•"-- .` _v_I l .�}t^: y:)t n
:UAW �' EFEREKCEAVKBERS� ARE *—*4 AG
No
-
�un : . ;Z M FOI E-ABREEMEidT�
RECOMMENDATIONS ' ''
It..is7recomaie�, I t t-..the.�.Jej y Caunc=�. taM f ing;4act ons4regardT.n
Projecta t ante Company face 1 ftj,es S th Lake S y"
1. Find that=the improvements. sought . armw:`ieasiole and - a andar
benefit to, the land and to the City, after the„expiration of:ythe tax atat�merit Y
agreement .and . :. ,
2. Find that written notice of the City's intent to enter the attached Tax Abatement
Agreement and copies of the Agreement were mailed by. certified
affected`taxi ngr uni is, i n,accordance 44Ctate:l aw, ';ands'
aQ
3. Find that the terms and conditions of° thea Agreement and the property subject to
the agreement meet the City's PolicyStatement for Tax Abatement to. Q4alified
Commercial/Industrial Projects as established in M&C G-9945, -and
4. Authorize the City Manager to enter into It the Tax Abatement-Agreement with The
Dannon Company, Inc. , in accordance with the Policy Statement on Tax Abatement to,
Qualified Commercial/Industrial Projects (Guidelines and Criteria) which was
adopted by the City Council on December�3; .1992 (M&C G-9945) .
DISCUSSION: .,
Ear ier in this City Council meeting, it is. proposed that the City Council establish
the Tax Abatement Reinvestment Zone #11. The property subject to the tax abatement
agreement is located within this Reinvestment Zone.
In accordance with the Council approved Policy- Statement, Jhe proposed Tax Abatement
Agreement would- authorize a 100% abatement` of• the increase irr. valuation of, the
improvements until the total amount of abated taxes from all taxing entities reaches
$250,000.00. The property owner indicates that the company has authorized or expended
approximately $14 million on' the project since 1989. In exchange for the abatement,
the company will continue the project and will expend $3.5 million in 1993, $1 million
in 1994 and $1 million in 1995; 25 new jobs and 50% of new jobs to be held by Fort
Worth residents.
Submitted or City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: to
APPROVED
Originating Department Head:
CITY COUNCIL
rom
136C 6 IM
For Additional In ormat on
Contact:
City secrawy leas
City of FW Wortb,
4„ _ �M 4