HomeMy WebLinkAboutIR 10094 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10094
To the Mayor and Members of the City Council January 23, 2018
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*a SUBJECT: ECONOMIC DEVELOPMENT PROGRAM AGREEMENT WITH NT
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NT Window, Inc. (Company), a 27 year old window manufacturer with $11 million in taxable sales,has
outgrown its current facility located in unincorporated Tarrant County and is proposing to renovate 2900
West Seminary Drive, a vacant manufacturing facility constructed in 1958 that has been vacant for 6 years.
The financial gap for the project is created by the requirement to bring the building to current energy code,
fire lane, and stormwater standards; and the need to update the dock height. The site provides the ability to
expand this growing manufacturing business. More than thirty new central city jobs anticipated,with the
potential for 175 additional in 3 years.
The Company plans to invest at least$5.6 million in total construction costs (exclusive of land acquisition
costs) and at least $3.8 million in new-to-Fort-Worth business personal property by December 31, 2019.
Hard construction costs for the project are estimated at $4.08 million. Failure to meet the minimum total
construction cost and business personal property investment is an event of default,which will result in
immediate termination of the Agreement. The Company will spend or cause to be expended at least 15
percent or$720,000 of all hard construction costs with contractors that are Fort Worth Certified
Minority/Women Owned Business Enterprises.
The Company currently employs 130 full-time employees with an average wage of$18.33 per hour. The
Company has committed to continuing to fill the greater of 25% or 32 of the Full Time Employee positions
with Fort Worth residents.
In return for these commitments, the City will grant up to a 60 percent reimbursement on the incremental
increase in value of real and personal property improvements (above a base year value) and a 60 percent
reimbursement on the City's 1% sales tax (which is all new to the City of Fort Worth)for a period of six
years, capped at $660,000 total gross. The Company must meet specific construction spending and annual
employment commitments in order to achieve the maximum amount of potential incentive for each
abatement year. The weighted value for each of the commitments is as follows:
Company Commitment Potential
Grant
Total Construction Cost Investment 45%
15%Hard Construction Spending with FW Certified M/WBE Contractors 5%
25%Full Time Employees are Fort Worth Residents 10%
TOTAL 60%
Staff recommends that the City Council authorize the City Manager to execute an Economic Development
Incentive Agreement with NT Window, Inc., or an affiliate thereof, for the renovation of an existing
manufacturing facility at 2900 West Seminary Drive. An M&C for City Council consideration will be
placed on the January 30, 2018 agenda. This project is located in COUNCIL DISTRICT 9.
If you have any questions, please contact Robert Sturns, Director of Economic Development, at 817-
392-2663.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS