HomeMy WebLinkAboutResolution 4868-12-2017 A Resolution
NO. 4868-12-2017
AUTHORIZING EXECUTION BY THE CITY OF FORT WORTH, IN ITS
CAPACITY AS AN OWNER CITY OF DALLAS FORT WORTH
INTERNATIONAL AIRPORT, OF A TAX ABATEMENT AGREEMENT
BETWEEN AMERICAN AIRLINES, INC. AND TARRANT COUNTY FOR
CONSTRUCTION OF A NEW CORPORATE HEADQUARTERS AND RELATED
USES ON PROPERTY LOCATED AT DALLAS FORT WORTH
INTERNATIONAL AIRPORT
WHEREAS, on October 29, 2015 the Dallas Fort Worth International Airport Board
(the "DFW Board") approved execution of an Amendment and Extension of American
Airlines Special Facilities Agreement under which American Airlines, Inc. ("American")
will lease certain real property at Dallas Fort Worth International Airport ("DFW") for
purposes of, among other things, constructing a corporate headquarters facility (the
"Headquarters Facility") on the leased premises; and
WHEREAS, on November 10, 2015 the City Council approved M&C C-27526,
authorizing execution of a one-year Tax Abatement Agreement (City Secretary Contract No.
47341) (the "City Tax Abatement Agreement") and a 14-year Economic Development
Program Agreement between the City and American (City Secretary Contract No. 47694);
and
WHEREAS, as part of the overall economic development incentive for American
to construct the Headquarters Facility on the leased premises at DFW, Tarrant County (the
"County") also previously entered into a Tax Abatement Agreement with American for
abatement of certain County taxes related to the Headquarters Facility and related leasehold
(the "County Tax Abatement Agreement"); and
WHEREAS, the County Tax Abatement Agreement was authorized by S e c t i o n
312.206(a) of the Texas Tax Code, which permitted the County to enter into a tax abatement
agreement with American provided that (i) the City had also granted American a tax
abatement and (ii) the County Tax Abatement Agreement was executed by the "owner" of
the property subject to the abatement; and
WHEREAS, because the Cities of Dallas and Fort Worth (the "Cities") technically
are the owners of the property comprising DFW, and in order to remove any doubt as to
whether a tax abatement agreement between the County and American met all legal
requirements of Section 312.206(a), the City Councils of both Cities authorized
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execution of the County Tax Abatement Agreement by their Cities (Fort Worth City
Council Resolution No. 4545 -12-2015); and
WHEREAS, on June 6, 2017 the City Council approved M&C G-19018 to expand the
reinvestment zone to accommodate construction of the Headquarters Facility on an additional
parcel of land and to amend the City Tax Abatement Agreement accordingly; and
WHEREAS, the County now wishes to execute a new Tax Abatement Agreement with
American for the same purpose; a n d
WHEREAS, the City Council wishes to authorize execution by the City, in its capacity
as an owner city of DFW, of this new County Tax Abatement Agreement, just as it did for
the original County Tax Abatement Agreement;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
1. THAT provided that the new County Tax Abatement Agreement makes clear that
neither the Cities nor the DFW Board will assume any liability under the
Agreement with respect to the abatement or otherwise, the City Manager is hereby
authorized to execute the new County Tax Abatement Agreement, subject to the
City Attorney's approval as to form; and
2. THAT this Resolution will take effect immediately from and after its adoption.
Adopted this 5th day of December, 2 0 17 .
ATTEST: ORT
By' --------- --- ------------- :?
i
Mary J, a ser, City Secretary *'
.,1 EXPOS
ORTWO