HomeMy WebLinkAboutIR 10070 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10070
To the Mayor and Members of the City Council December 5, 2017
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*a SUBJECT: AMENDMENT TO M&C C-27976 WHICH AUTHORIZED EXECUTION
rrn OF AN ECONOMIC DEVELOPMENT PROGRAM AGREEMENT WITH PARKER-
HANNIFIN CORPORATION TO EXTEND THE COMPLETION DEADLINE
On October 25, 2016 Mayor and Council Communication (M&C C-27976) the City Council
authorized the execution of an Economic Development Program Agreement (Agreement) with
Parker-Hannifin Corporation (Company) for the consolidation of its existing business operation
into a 242,000 square foot expansion to support increasing business needs at 4701 Mercantile
Drive. Under the Agreement, the Company must invest at least $25.5 million in real and business
personal property improvements (exclusive of land costs) and have at least 525 full-time
equivalent jobs filled on the property by a date certain (defined as the Completion Deadline). In
return, as authorized by Chapter 380, Texas Local Government Code, the City will pay Company
10 annual economic development program grants in an amount not to exceed 60 percent of
incremental real and personal property taxes.
Due to delays in finalizing development plans upon conducting an environmental assessment on
the site, the construction schedule had to be pushed out. In order to fulfill the commitments of the
Agreement, the Company has requested a revised completion deadline of March 31, 2019. Staff
has no objection to this request. It should be noted that in the course of negotiations with
Company, Staff agreed to a completion deadline of December 31, 2018. However, the M&C
incorrectly referenced a deadline of December 31, 2017.
All other terms and conditions spelled out in the M&C will remain the same. The Company will
spend or cause to be expended the greater of 20 percent or $4,340,000.00 of all hard
construction costs with Fort Worth companies, and will spend or cause to be expended the
greater of 15 percent or $3,255,000.00 of all hard construction costs with companies that are Fort
Worth Certified Minority/Women Owned Business Enterprise companies. The Company will fill a
minimum of 40 percent of all FTEs with Fort Worth residents and a minimum of 20 percent of all
FTEs with Fort Worth Central City residents.
The Company will also spend the greater of 35 percent or $1,400,000.00 in annual discretionary
service and supply expenses with Fort Worth companies and the greater of 20 percent or
$800,000.00 in annual discretionary service and supply expenses with companies that are Fort
Worth Certified Minority/Women Owned Business Enterprise companies the maximum annual
program grant will be equal to 60 percent of the incremental value of real and business personal
property taxes on the development.
Staff will place an M&C for City Council consideration on the December 12, 2017 agenda,
requesting that the completion deadline be revised to March 31, 2019.
If you have any questions concerning this information, please contact Robert Sturns, Economic
Development Director at 817-212-2663 or robe rt.sturns(o-)-fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS