HomeMy WebLinkAboutIR 10064 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10064
To the Mayor and Members of the City Council November 14, 2017
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*a SUBJECT: AMENDMENT TO TAX ABATEMENT AGREEMENT WITH
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ANDREWS DISTRIBUTING COMPANY OF NORTH TEXAS, LLC TO
EXTEND THE COMPLETION DEADLINE
On April 19, 2016 (M&C C-27686) the City Council authorized the execution of a tax abatement
agreement (Agreement) (City Secretary Co. 48535) with Andrews Distributing Company of North
Texas, LLC (Company) for the construction of a 400,000 square foot distribution center to be
located at 100 Northeast Loop 820. Per the Agreement, the Company must invest at least $37
million dollars in real property improvements and business personal property by December 31,
2017.
The Company also made a commitment to maintain a minimum of 460 full-time equivalent jobs at
the site as of December 31, 2017.
Due to delays in the development process, the 18 months' construction schedule had to be
pushed out, as noted in a letter received by Economic Development from Magee Architects. In
order to fulfill the commitments of the Agreement, the Company has requested a revised
completion deadline of October 31, 2018, as well as the date by which a minimum of 460 full-time
equivalent jobs will be retained at the new site.
In addition to the deadline extension request, a clarification to the employment numbers as
presented in the M&C should have reflected the employment terms negotiated in the original term
sheet negotiated between the parties and as stated in the executed agreement, which is that at
least 50% of those jobs must be held by Fort Worth residents and 25% of those must be held by
Fort Worth Central City residents.
Staff will place an M&C for City Council consideration on the December 5, 2017 agenda,
requesting that the completion deadline be revised to October 31, 2018.
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