HomeMy WebLinkAboutContract 48084 RECEIVED CITY SECRETARY
CONTRACT010. I/aO 3
AUG 15 2016
CITY OFFORT WDXili ECONOMIC DEVELOPMENT PROGRAM AGREEMENT
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This ECONOMIC DEVELOPMENT PROGRAM AGREEMENT ("Agreement")
is entered into by and between the CITY OF FORT WORTH, TEXAS (the "City"), a
home rule municipality organized under the laws of the State of Texas, and TANGER
FORT WORTH, LLC, a North Carolina limited liability company, its successors and
assigns("Company").
RECITALS
The City and Company hereby agree that the following statements are true and
correct and constitute the basis upon which the City and Company have entered into this
Agreement:
A. Company owns or will own approximately 43.791 acres of real property in
the vicinity of the southwest corner of Interstate Highway 35 and State Highway 114 (the
"Development Property"), as more specifically described in Exhibit "A", attached hereto
and hereby made a part of this Agreement for all purposes. The Development Property
currently consists of vacant Iand. Company,either itself or through an Affiliate, wishes to
construct a commercial development consisting mainly of Retail uses of up to 400,000
square feet on the Development Property in two stages, as more specifically set forth in
this Agreement.
B. The 2015 Comprehensive Plan, which was adopted by the City Council
pursuant to Ordinance No. 21693-03-2015 (the "Comprehensive Plan"), observes that the
City relies very heavily on property taxes as a revenue source. The Comprehensive Plan
notes that the City has a significantly higher property tax rate than other comparable
municipalities in Texas and recommends that the City establish potential incentives to
promote the development of vacant land in the City and to explore ways to increase the
sales tax base in order to offset reliance on property taxes. The Development Property is
situated in a developing corridor of the City that is bordered by other municipalities that
potentially could compete with the City for economic development opportunities. In
order to ensure that there is a balance between residential development and appropriate
retail and commercial development in this area of the City, both to serve citizens moving
into this area as well as to generate new sales tax revenues in an effort to offset the
property tax burden on residents, the City wishes to encourage retail development in the
vicinity of the Development Property.
C. As recommended by the Comprehensive Plan and in accordance with
Resolution No. 3716-03-2009, adopted by the City Council on March 10, 2009, the City
has established an economic development program pursuant to which the City will, on a
case-by-case basis, offer economic incentive packages authorized by Chapter 380 of the
Texas Local Government Code that include monetary loans and grants of public money,
as well as the provision of personnel and services of the City, to businesses and entities
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Economic Development Program Agreement OFFICIAL RECORD
between City of Fort Worth and Tanger Fort Worth.LLC CITY SECRETARY
FT. WORTH, TX
that the City Council determines will promote state or local economic development and
stimulate business and commercial activity in the City in return for verifiable
commitments from such businesses or entities to cause specific infrastructure,
employment and other public benefits to be made or invested in the City (the "380
Program").
D. The City Council has determined that the 380 Program is an appropriate
means to achieve the construction of this retail development, which the City Council has
determined is necessary and desirable, and that the potential economic benefits that will
accrue to the City pursuant the terms and conditions of this Agreement are consistent
with the City's economic development objectives as outlined in the Comprehensive Plan.
The Agreement is authorized by Chapter 380 of the Texas Local Government Code.
E. The City has determined that the feasibility of constructing this retail
development on the Development Property is contingent on Company's receipt of the
Program Grants, as provided in this Agreement. The City's analysis is specifically based
on financial information provided by Company.
F. This development is being constructed in conjunction with another
development of up to two million square feet of new commercial, rental residential and
office space that is being undertaken by Roanoke 351114 Partners, L.P. or an affiliate
thereof on land that is adjacent to the Development Property (the "Champions Circle
Development"). The City has agreed to provide separate economic development program
grants under the 380 Program for the Champions Circle Development. Nevertheless, the
City Council has determined that the benefits to the City that will result from the retail
development covered under this Agreement will significantly be enhanced by the
Champions Circle Development. In addition, the City would not be entering into this
Agreement but for the enhancements brought by the Champions Circle Development in
conjunction with the commercial development on the Development Property.
NOW, THEREFORE, in consideration of the mutual benefits and promises
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged,the parties agree as follows:
AGREEMENT
1. INCORPORATION OF RECITALS.
The City Council has found, and the City and Company hereby agree, that the
recitals set forth above are true and correct and form the basis upon which the parties
have entered into this Agreement.
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2. DEFINITIONS.
In addition to terms defined in the body of this Agreement, the following terms
will have the definitions ascribed to them as follows:
380 Program has the meaning ascribed to it in Recital C.
Affiliate means any entity, incorporated or otherwise, under common control
with, controlled by or controlling Company. For purposes of this definition, "control"
means fifty percent (50%) or more of the ownership determined by either value or vote.
Base Grant Percentage has the meaning ascribed to it in Section 6.1.1.
Certificate of Completion has the meaning ascribed to it in Section 5.
Champions Circle Develo ment has the meaning ascribed to it in Recital F.
Champions Circle EDPA means that certain Economic Development Program
Agreement by and between the City and Roanoke 351114 Partners, L.P. pertaining to the
Champions Circle Development, which Agreement is a public document on file in the City
Secretary's Office as City Secretary Contract No. 48085, as may subsequently be amended
or assigned.
Completion Deadline means the Phase I Completion Deadline and/or the Phase II
Completion Deadline, depending on the context, and is a general term used herein to refer
to such various Completion Deadlines.
Comprehensive Plan has the meaning ascribed to it in Recital B.
Comptroller means the Texas Comptroller for Public Accounts.
Consent to Collateral Assignment Agreement has the meaning ascribed to it in
Section 11.
Construction Costs means the aggregate of Hard Construction Costs, Tenant
Improvement Costs, and the following costs directly expended or caused to be expended
by Company or by third parties other than Company for the Development and the Public
Infrastructure: engineering fees; architectural and design fees; real estate commissions;
costs of third party consultants, including attorneys and environmental consultants;
developer fees; development fees, zoning fees, water and sewer tap fees, and impact fees
charged by the City; other costs and fees customarily incidental to construction of a
commercial project; insurance and taxes directly related to the Development and any
Public Infrastructure that Company elects to construct; and financing costs, including
capitalized interest.
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Development means all improvements on the Development Property, including,
but not limited to,the Phase I Improvements and the Phase II Improvements.
Development Property has the meaning ascribed to it in Recital A.
Development Property User means any person or entity, and any employee, agent,
Tenant, or invitee thereof, that has the legal right to use or occupy and conduct Sales on
any portion of the Development Property.
Development Sales Tax Revenues means revenues received by the City from the
one percent(1%)available City sales tax that is presently in effect pursuant to Texas Tax
Code §§ 321.101(a) and 321.103, resulting from taxes collected by Development
Property Users on Sales transacted on the Development Property; provided, however,that
Development Sales Tax Revenues specifically excludes all revenues from (a) the Crime
Control District Sales Tax imposed by the City pursuant to Texas Tax Code § 323.105
and Texas Local Government Code § 363.005, as may be amended, and (b) the Transit
Authority Sales Tax paid to the City by the Fort Worth Transportation Authority pursuant
to City Secretary Contract No_ 19689, as previously or subsequently amended or restated,
from the sales tax imposed by the Fort Worth Transportation Authority pursuant to Texas
Tax Code Chapter 322. If the City's sales tax rate is ever decreased to the extent that the
City receives available sales tax revenues based on less than a one percent (1%) sales tax,
then the meaning of Development Sales Tax Revenues will automatically be adjusted to
equal that lesser percentage. If the City's sales tax rate is ever decreased to the extent
that the City receives available sales tax revenues based on less than a one percent (M)
sales tax and is then increased to a higher percentage whose use is not otherwise
controlled, regulated, restricted or otherwise dedicated to a specific use by the City, then
Development Sales Tax Revenues will be computed to reflect that increased percentage
up to a maximum aggregate of one percent(1%).
Director means the director of the City's Economic Development Department.
Effective Date has the meaning ascribed to it in Section 3.
Employment Goal has the meaning ascribed to it in Section 4.5.
First Dperatiniz Y means the first full calendar year following the year in which
the Phase I Completion Date occurs.
Fort Worth Certified MIWBE Company means a minority or woman-owned
business that (i) has received certification as either a minority business enterprise (MBE),
a woman business enterprise(WBE) or a disadvantaged business enterprise (DBE) by the
North Central Texas Regional Certification Agency (NCTRCA); (ii) has a principal
business office located within the corporate limits of the City; and (iii) from such
principal business office performs a function or provides a service useful or necessary for
the Development for which Company is also seeking credit under this Agreement. For
purposes of this definition, a"principal" office does not mean its headquarters and can be
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one of multiple offices throughout the State of Texas and/or the United States of America
maintained by such company.
Fort Worth Company means a business that has a principal office located within
the corporate limits of the City that performs a commercially useful function and that
provides the services for which Company is seeking credit under this Agreement. For
purposes of this definition, a"principal"office does not mean its headquarters and can be
one of multiple offices throughout the State of Texas and/or the United States of America
maintained by such company.
Fort Worth Construction Commitment has the meaning ascribed to it in Section
4.3.
Fort Worth Construction Percentage has the meaning ascribed to it in Section
6.1.2.
Fort Worth Supply and Service Percentage has the meaning ascribed to it in
Section 6.1.4.
Fort Worth Supply and Service Spending Commitment has the meaning ascribed
to it in Section 4.6.
Full-time YAuivalent Job means a job or combination of jobs on the Development
Property provided to one or more individuals by Company, Company's Affiliate, or a
Development Property User for a total period of not less than forty (40) hours per week.
By way of example, jobs on the Development Property provided to two separate
individuals for periods of twenty (20) hours per week each would be considered, in
combination,one Full-time Equivalent Job.
Hard Construction Costs means the aggregate of the following costs expended or
caused to be expended by Company for the Development and the Public Infrastructure:
actual site development and construction costs, general contractor and subcontractor fees,
and the costs of supplies, materials and construction labor, but excludes land acquisition
costs paid by Company for the various parcels that make up the Development Property.
Hard Construction Costs specifically excludes Tenant Improvement Costs and any
Construction Costs expended for the Development by third parties other than Company,
Company's Affiliates and its contractors and subcontractors.
Infrastructure Construction Agreement means an Infrastructure Construction
Agreement, Community Facilities Agreement or other agreement or agreements
requested by the City governing construction of any of the Public Infrastructure
Improvements.
Leasable Square Footage means the leasable Retail square footage contained in
the Development.
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Minimum Sales Per Occupied Square Foot Goal means a goal by Company that in
each calendar year following the year in which the fifth (5th) Program Grant is payable,
Sales Per Occupied Square Foot will equal Three Hundred Dollars($300.00).
MIWBE Construction Commitment has the meaning ascribed to it in Section 4.4.
MIWBE Construction Percentage has the meaning ascribed to it in Section 6.1.3.
MIWBE Supply and Service Percentage has the meaning ascribed to it in Section
6.1.5.
M/WBE Supply and Service Spending Commitment has the meaning ascribed to
it in Section 4.7.
Notice of Com letion has the meaning ascribed to it in Section 4.8.1.
Occupied Square Footage means the Leasable Square Footage that is occupied
and under a current lease or any other agreement with a Tenant to occupy all or a portion
of any building on the Development Property at any given point in time.
Phase means generally the Phase I Improvements or the Phase II Improvements.
Phase I Completion Date means the date as of which (i) all occupiable space
comprising the Retail portion of the Phase I Improvements has received at least a
temporary certificate of occupancy for shell building space issued by the City and (ii) if
Company elects to construct any of the Public Infrastructure Improvements as part of the
Phase I Improvements, the punch list for the Public Infrastructure Improvements portion
of the Phase I Improvements has been completed and signed by both an authorized
representative of the City and Company's general contractor for such Public
Infrastructure Improvements.
Phase I Completion Deadline means December 31, 2018.
Phase I Improvement Commitment has the meaning ascribed to it in Section 4.1.
Phase I Improvements means at least 350,000 square feet of Retail space
constructed on the Development Property plus any of the Public Infrastructure
Improvements that Company elects to construct in connection therewith.
Phase II Completion Date means the date as of which (i) all occupiable space
comprising the Retail portion of the Phase II Improvements has received at least a
temporary certificate of occupancy for shell building space issued by the City and (ii) if
Company elects to construct any of the Public Infrastructure Improvements as part of the
Phase II Improvements, the punch list for the Public Infrastructure Improvements portion
of the Phase II Improvements has been completed and signed by both an authorized
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representative of the City and Company's general contractor for such Public
Infrastructure Improvements.
Phase II Completion Deadline means December 31, 2021.
Phase II Improvement Commitment has the meaning ascribed to it in Section 4.2.
Phase II Improvements means at least 50,000 square feet of Retail space
constructed on the Development Property plus any of the Public Infrastructure
Improvements that Company elects to construct in connection therewith, excluding any
of the Phase I Improvements.
Program Cap means the maximum number of gross dollars comprising the sum of
the aggregate amount of all Program Grants paid by the City pursuant to this Agreement,
as follows:
(a) If the Phase I Improvement Commitment is met, as verified in the
Certificate of Completion for that Phase issued by the City in accordance with
Section 5, the Program Cap will equal Twenty-two Million Five Hundred Eleven
Thousand Five Hundred Fifty Dollars ($22,511,550.00), gross.
(b) If both the Phase I Improvement Commitment and Phase II Improvement
Commitment are met, as verified in the Certificate of Completion for those Phases
issued by the City in accordance with Section 5, the Program Cap will be
increased to equal an aggregate Twenty-four Million Nine Hundred Seventy-four
Thousand Three Hundred Sixty-eight Dollars ($24,974,368.00), gross.
Program Grants means the annual economic development grants paid by the City
to Company in accordance with this Agreement and as part of the 380 Program.
Program Source Funds means an amount of City funds available for inclusion in a
Program Grant that is payable in a given Program Year, which will equal eighty-five
percent (85%) of the Development Sales Tax Revenues which were received by the City
during the previous calendar year.
Program Year means a calendar year in which the City is obligated pursuant to
this Agreement to pay Company a Program Grant, beginning with the second full
calendar year following the Phase I Completion Date (which is also defined herein as the
"Second Operating Year") (Program Year 1).
Public Infrastructure Improvements means that public infrastructure related to or
necessary for the Development outlined in Exhibit `B", attached hereto and hereby made
a part of this Agreement for all purposes.
Records has the meaning ascribed to it in Section 4.9.
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Retail means a facility for the retail sale of merchandise, food and beverages, or
services, including by way of example but not limited to a retail store, restaurant,
entertainment use (e.g., a theater), or personal service use (e.g., a health spa or beauty
shop). Retail space includes any accessory areas, service corridors, management offices,
or customer facilities that are incidental to and/or used for Retail use(s).
Sales means all sales of merchandise (including gift and merchandise certificates),
food, alcohol, services and other receipts whatsoever of all business conducted in, on or
from the Development, whether cash or credit, including mail, telephone, telefax,
telegraph, internet or catalogue orders received or filled at or from the Development,
deposits not refunded to purchasers, orders taken (although such orders may be filled
elsewhere), sales to employees, and sales through vending machines or other devices.
Sales will not include (i) any sums collected and paid for any sales or excise tax imposed
by any duly constituted governmental authority, (ii) the exchange of merchandise
purchased on and returned to the Development, (iii) the amount of returns to shippers and
manufacturers or(iv)the sale of any fixtures.
Sales Per Occupied Square Foot means an amount equal to the total Sales from
the Occupied Square Footage within the Development Property during a particular
calendar year, divided by the total Occupied Square Footage. This number shall be
calculated on the last day of each month during each calendar year. At the end of each
calendar year, the numbers for each of the twelve (12) months of such calendar year will
be added together and divided by twelve (12) to calculate the average Sales Per Occupied
Square Foot for such year. The total Sales for the purposes of calculating Sales Per
Occupied Square Foot shall be determined as set forth in Section 4.8.2, Annual Sales Tax
and Sales Per Occupied Square Foot Reports.
Second Operating Year means the second full calendar year following the year in
which the Phase I Completion Date occurs.
Supply and Service Expenditures means all expenditures by or caused by
Company,whether pursuant to a written contract or on an ad hoc basis, expended directly
for the operation and maintenance of the Development, including amounts paid to third
parties for the provision of personnel services, but excluding amounts paid for electric,
gas, water and any other utility services.
Supply and Service Provider means any person or entity that provides supplies
and services for the operation and/or maintenance of the Development, whether pursuant
to a written contract or on an ad hoc basis.
Tenant means a tenant or licensee with the legal right to occupy any portion of the
Development Property under a lease, license, or other similar agreement.
Tenant Improvement Costs means Tenant allowances paid by Company and any
Tenant expenditures in excess of Tenant allowances on all costs associated with the
design, construction, and fixturization of a Tenant's premises, including, but not limited
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to, architectural, contractor, engineering and design fees, building materials and work on
a Tenant's behalf, electrical and lighting, plumbing, fire protection and sprinklers,
HVAC work, storefront and glazing, demolition, barricades and staging, and other work
performed within the Tenant's premises along with the Tenant's permanent fixtures, as
well as any other costs directly expended for the Development, but outside of the
Tenant's premises, pursuant to the Tenant's lease or other similar agreement, including,
but not limited to, common areas.
Term has the meaning ascribed to it in Section 3.
Third Operating Year means the third full calendar year following the year in
which the Phase I Completion Date occurs.
3. TERM.
This Agreement will take effect on the date as of which both the City and
Company have executed it (the "Effective Date") and, unless terminated earlier in
accordance with this Agreement, will expire on the earlier of(i) the date as of which the
City has paid all Program Grants required hereunder, or (ii) the date as of which the
amount of aggregate Program Grants paid by the City equals the applicable Program Cap
(the "Term").
4. COMPANY OBLIGATIONS GOALS AND COMMITMENTS.
4.1. Improvements for Phase I.
By the Phase I Completion Date, Company must have expended or caused
to be expended at least Seventy Million Dollars ($70,000,000.00) in Construction
Costs for the Phase I Improvements, and the Phase I Completion Date must occur
on or before the Phase I Completion Deadline, all as verified in the Certificate of
Completion for that Phase issued by the City in accordance with Section 5
(collectively, the "Phase I Improvement Commitment"). Subject to all extensions
of time allowed under this Agreement, if the Phase I Improvement Commitment
is not met, a default will occur under this Agreement, and Section 7.1 will apply.
4.2. Improvements for Phase II.
By the Phase II Completion Date, Company must have expended or
caused to be expended at least Ten Million Dollars ($10,000,000.00) in
Construction Costs for the Phase II Improvements, and the Phase II Completion
Date must occur on or before the Phase II Completion Deadline, all as verified in
the Certificate of Completion for that Phase issued by the City in accordance with
Section 5 (collectively,the "Phase II Improvement Commitment"). If the Phase II
Improvement Commitment is not met, a default will not occur under this
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Agreement, but the Program Cap will not be increased as provided in the
definition of that term in Section 2.
4.3. Construction Spending Commitment for Fort Worth Companies.
Company, either itself, through an Affiliate or through a general
contractor, must make or cause to be made the following minimum expenditures
in Hard Construction Costs with Fort Worth Companies for each Phase of the
Development (the "Fort Worth Construction Commitment"). Payments to a
general contractor which is a Fort Worth Company will be counted toward the
Fort Worth Construction Commitment, regardless of whether any subcontractors
of such general contractor are themselves Fort Worth Companies. Likewise,
payments to subcontractors which are Fort Worth Companies will be counted
toward the Fort Worth Construction Commitment, regardless of whether the
general contractor of such subcontractors is itself a Fort Worth Company.
4.3.1. For Phase I.
By the Phase I Completion Date, Company must have expended or
caused to be expended at least thirty percent (30%) of all Hard
Construction Costs for the Phase I Improvements, regardless of the total
amount of such Hard Construction Costs, with Fort Worth Companies.
4.3.2. For Phase II.
If the Phase II Improvement Commitment is met, the Fort Worth
Construction Commitment will increase, as follows: By the Phase II
Completion Date, company must have expended or caused to be expended
at least thirty percent (30%) of the sum of all Hard Construction Costs for
the Phase I Improvements and the Phase II Improvements, regardless of
the total amount of such Hard Construction Costs, with Fort Worth
Companies.
4.4. Construction Spending Commitment for Fort Worth Certified M/WBE
Companies.
Company, either itself or through an Affiliate, must make or cause to be made the
following minimum expenditures in Hard Construction Costs with Fort Worth
Certified M/WBE Companies for the Development (the "M/WBE Construction
Commitment"). Dollars spent with Fort Worth Certified M/WBE Companies will
also count as dollars spent with Fort Worth Companies for purposes of the Fort
Worth Construction Commitment outlined in Section 4.3. Payments to a general
contractor which is a Fort Worth Certified M/WBE Company will be counted
toward the M/WBE Construction Commitment, regardless of whether any
subcontractors of such general contractor are themselves Fort Worth Certified
M/WBE Companies. Likewise, payments to subcontractors which are Fort Worth
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Certified MIWBE Companies will be counted toward the MIWBE Construction
Commitment, regardless of whether the general contractor of such subcontractors
is itself a Fort Worth Certified MIWBE Company.
4.4.1. For Phase I.
By the Phase I Completion Date, Company must have expended or
caused to be expended at least twenty-five percent (25%) of all Hard
Construction Costs for the Phase I Improvements, regardless of the total
amount of such Hard Construction Costs, with Fort Worth Certified
MIWBE Companies.
4.4.2. For Phase II_
If the Phase 11 Improvement Commitment is met, the MIWBE
Construction Commitment will increase, as follows: By the Phase II
Completion Date, Company must have expended or caused to be
expended at least twenty-five percent (25%) of the sum of all Hard
Construction Costs for the Phase I Improvements and the Phase 11
Improvements, regardless of the total amount of such Hard Construction
Costs, with Fort Worth Certified MIWBE Companies.
4.5_ Employment Goal.
Throughout the Second Operating Year and each calendar year thereafter,
Company will use commercially reasonable efforts to cause at least three hundred
fifty (350) Full-time Equivalent Jobs to be provided on the Development
Property, whether by Company or one or more Development Property Users (the
"Employment Goal").
4.6. Supply and Service Spending Commitments for Fort Worth Companies.
In the Second Operating Year and each calendar year thereafter, Company
must expend or cause to be expended at least Fifty Thousand Dollars ($50,000.00)
in annual Supply and Service Expenditures with Fort Worth Companies(the "Fort
Worth Supply and Service Spending Commitment").
4.7. Supply and Service Spending Commitment for Fort Worth Certified
MIWBE Companies.
In the Second Operating Year and each calendar year thereafter, Company
must expend or cause to be expended at least Twenty-five Thousand Dollars
($25,000.00) in annual Supply and Service expenditures with Fort Worth
Certified MIWBE Companies (the "MIWBE Supply and Service Spending
Commitment"). Dollars spent with Fort Worth Certified MIWBE Companies will
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also count as dollars spent with Fort Worth Companies for purposes of the Fort
Worth Supply and Service Spending Commitment outlined in Section 4.6.
4.8. Reports and Filings.
4.8.1. Notices of Completion and Final Construction Reports.
Within thirty (30) calendar days following either the Phase l
Completion Date or the Phase 11 Completion Date, as applicable,
Company will provide a written notice to the City (a "Notice of
Completion"). A Notice of Completion must be filed with the City on or
before the Completion Deadline for the Phase covered by the notice. The
purpose of a Notice of Completion is to allow the City to (i) assess
whether Company met the Phase I Improvement Commitment or the
Phase 1I Improvement Commitment, as applicable; (ii) assess the extent to
which Company met the Fort Worth Construction Commitment and the
MIWBE Construction Commitment applicable to such Phase; and (iii)
establish the amount of the Program Cap under this Agreement. Each
Notice of Completion must include a final construction report
substantially in the form attached hereto as Exhibit "C" that specifically
outlines the total Construction Costs and Hard Construction Costs
expended or caused to be expended for improvements constructed as part
of such Phase, together with supporting invoices and other documents
necessary to demonstrate that such amounts were actually paid, including,
without limitation, final lien waivers signed by Company's or an
Affiliate's general contractor, as well as the total Construction Costs and
Hard Construction Costs expended for construction of the improvements
comprising such Phase with Fort Worth Companies and Fort Worth
Certified MIWBE Companies, together with supporting invoices and any
other documents reasonably necessary to demonstrate that such amounts
were actually paid to such contractors. Improvements constructed on the
Development Property that do not at least have temporary certificates of
occupancy for shell building space issued by the City as of the Phase I
Completion Date, and any Construction Costs expended for such
improvements, will not be considered far purposes of determining whether
the Phase I Improvement Commitment has been met, with the
understanding that those Construction Costs will be considered by the
City in its evaluation as to whether the Phase II Improvement Commitment
was met, so long as those improvements at least have a temporary
certificate of occupancy for shell building space issued by the Phase II
Completion Date. Notwithstanding the foregoing, Construction Costs
expended for such improvements will be considered for purposes of
assessing the extent to which the Fort Worth Construction Commitment or
the WWBE Construction Commitment applicable to Phase I was met in
accordance with Sections 4.3 and 4.4 of this Agreement.
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4.8.2. Annual Sales Tax and Sales Per Occupied Square Foot Reports.
To the extent reasonably possible, Company will require
Development Property Users to provide Company and/or the City with
annual Sales data sufficient for determining annual sales tax payments and
Sales Per Occupied Square Foot as required by this Section 4.8.2. On or
before February 1 of the Second Operating Year and of each year
thereafter, Company must provide or cause to be provided the City with
annual report(s) that set forth (i) the total amount of Sales generated from
the Occupied Square Footage in the Development during the previous
calendar year; (ii) the total Leasable Square Footage and the total
Occupied Square Footage in the Development as of December 31 of the
previous calendar year; (iii) the Sales Per Occupied Square Foot for the
Occupied Square Footage in the Development during the previous
calendar year; (iv) the aggregate amount of sales tax paid to the
Comptroller by Development Property Users during the previous year (the
"Aggregate Development Property Sales Tax Payments"); (v) a copy of
the Comptroller report verifying Aggregate Development Property Sales
Tax Payments; and (vi) a list containing the retail site address and sales
tax identification number of each Development Property User. The Sales
for purposes of determining Sales Per Occupied Square Foot for the
previous calendar year shall be based upon the Aggregate Development
Property Sales Tax Payments stated in the Comptroller report for such
year divided by the combined state and local tax rate for that yearn.
However, if the aforementioned method of calculation does not yield the
Minimum Sales Per Occupied Square Foot Goal in any year. Company
may submit a supplemental report to the City, on or before April l of the
same year in which the initial report was due, to be used as a basis for
determining if the Minimum Sales Per Occupied Square Foot Goal for the
previous year was attained and calculating the Base Grant Percentage in
Section 6.1.1 (the "Supplemental Sales Report"). In such an event, the
Supplemental Sales Report shall be based upon annual Sales statements
provided by Tenants to Company. Company understands and agrees that
the City's calculation of Development Sales Tax Revenues in a given year
will be based solely on sales tax payments made by Development Property
Users in such year.
4.8.3_ Annual Supply and Service Spending Report.
On or before February l of the Third Operating Year and of each
year thereafter, Company must provide the Director with a report in a
form reasonably acceptable to the City that sets forth the total Supply and
Service Expenditures made during the previous calendar year as well as
the total Supply and Service Expenditures made during such calendar year
For example,in 2016 the combined state and local tax rate is 8.25%,so the total sales would be
determined by dividing the Aggregate Development Property Sales Tax Payments by 0.0825.
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with Fort Worth Companies and with Fort Worth Certified MIWSE
Companies, together with supporting invoices and any other documents
necessary to demonstrate that such amounts were actually paid.
4.8.4. Annual Employment Report.
On or before February 1 of the Second Operating Year and of each
year thereafter, in order for the City to assess the degree that the
Employment Goal was met in the previous calendar year, Company must
provide the Director with a report in a form reasonably acceptable to the
City that sets forth the total number of Full-time Equivalent Jobs on the
Development Property as of December 1 (or such other date requested by
Company and reasonably acceptable to the City) of the previous calendar
year, together with reasonable supporting documentation. If the
Employment Goal was not met in the previous calendar year, Company
will include an explanation as to why Company believes the Employment
Goal was not met and the efforts that were utilized to meet the
Employment Goal.
4.9. Audits.
Provided that reasonable notice is given and to the extent necessary to
verify compliance with the terms of this Agreement or to otherwise administer the
terms of this Agreement, but no more than once per calendar year, the City will
have the right throughout the Term to audit the financial and business records of
Company that relate to the Development and are necessary to evaluate
Company's compliance with this Agreement or with the commitments set forth in
this Agreement, including, but not limited to construction documents and invoices
(collectively "Records"). If such documentation is contained in financial and
business records of Company that also contain unrelated matters, and the City
cannot verify such expenditures or costs in any other documents of Company,
such expenditures and costs will not be counted for purposes of this Agreement
unless Company allows the City to audit those records; provided, however, that if
Company allows the City to audit those records, Company may redact any
unrelated matters that are non-essential to the audit of Company's compliance
with this Agreement or with the commitments set forth in this Agreement.
Company must make all Records available to the City (i) at Company's corporate
offices; (ii) electronically; or (iii) at another location mutually acceptable to both
parties following at least 34 days advance written notice by the City and will
otherwise cooperate fully with the City during any audit. Further, Company may
require that all individuals reviewing the financial and business records of
Company, an Affiliate, a Development Property User, or another party must first
sign a reasonable confidentiality agreement under which they agree to not discuss
or publicize information contained in those records except as necessary for them
to complete an audit of such records in accordance with this Agreement.
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Economic Development Program Agreement
between City of Fort Worth and Tanger Fort Worth.LLC
4.10. Inspections of Development and Development Property.
At any time during the Development's normal business hours throughout
the Term and following reasonable notice to Company, the City will have the
right to inspect and evaluate the Development Property and any improvements
thereon, and Company will provide reasonable access to the same, to the extent
necessary for the City to monitor or verify compliance with the terms and
conditions of this Agreement. Company will reasonably cooperate with the City
during any such inspection and evaluation. Notwithstanding the foregoing,
Company will have the right to require that any representative of the City be
escorted by a representative or security personnel of Company during any such
inspection and evaluation.
4.11. Public Infrastructure Improvements.
Company may not initiate construction of any Public Infrastructure
Improvements unless Company has first executed an Infrastructure Construction
Agreement with the City governing such work. All Public Infrastructure
Improvements must be constructed in accordance with the terms and conditions of
the Infrastructure Construction Agreement covering such Improvements and with
all applicable federal, state and local laws, ordinances rules and regulations. If
any Public Infrastructure Improvements are constructed in a manner that does not
comply with this Section 4.11, the Construction Costs for such Public
Infrastructure Improvements will not be counted for purposes of measuring
attainment of the Phase I Improvement Commitment or the Phase I1 Improvement
Commitment.
5. CERTIFICATES OF COMPLETION FOR EACH PHASE.
Within ninety (94) calendar days following receipt by the City of a Notice of
Completion submitted by Company in accordance with Section 4.8.1, and assessment by
the City of the information contained therein, including a final construction report
substantially in the form attached hereto as Exhibit "C" for the Phase in question, if the
City is able to verify that the Phase I Improvement Commitment or the Phase 11
Improvement Commitment, as the case may be, was met, the Director will issue
Company a certificate confirming that fact, including the amount of Construction Costs
and Hard Construction Costs expended on that Phase, as well as amounts expended
specifically with Fort Worth Companies and Fort Worth Certified MIWBE Companies
(each a"Certificate of Completion").
In the event that the City determines, after receipt of a Notice of Completion and
assessment of the final construction reports included therein, that the Phase I
Improvement Commitment or the Phase II Improvement Commitment, as the case may
be, has not been met, the City will notify Company in writing, in which case Company
may file supplemental construction reports in accordance with Section 4.8.1 for the City's
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Economic Development Program Agreement
between City of Fort Worth and Tanger Fort Worth,LI,C
consideration at any time prior to the later of(i)the Completion Deadline for the Phase in
question or (ii) thirty (30) calendar days following the City's notification (provided that
such supplemental construction reports will be considered only for Construction Costs
expended on or prior to the Completion Deadline applicable to the Phase in question),
and the City will reassess whether Company subsequently has met the Please I
Improvement Commitment or the Phase II Improvement Commitment, as applicable.
6. PROGRAM GRANTS.
Subject the terms and conditions of this Agreement, provided that the Phase I
Improvement Commitment was met, Company will be entitled to receive from the City
fifteen (15) annual Program Grants, subject to the applicable Program Cap. The amount
of each annual Program Grant will equal a percentage of the Program Source Funds, and,
depending upon the year in which a Program Grant is due, this percentage will be based
on a combination of some or all of the extent to which Company met or caused to be met
the various construction and operational expenditures for the Development at the time as
well as the extent to which a certain annual level of Sales Per Occupied Square Foot in
the Development was maintained, all as more specifically set forth in this Section 6.
Notwithstanding anything to the contrary herein, aggregate Program Grants payable
under this Agreement will be subject to and will not exceed the applicable Program Cap.
6.1. Calculation.
Subject to the terms and conditions of this Agreement, the amount of a
given annual Program Grant will equal the sum of the Base Grant Percentage, the
applicable Fort Worth Construction Percentage and the applicable MIWBE
Construction Percentage, as defined in Sections 6.1.1, 6.1.2 and 6.1.3,
respectively, plus, to the extent applicable, the Fort Worth Supply and Service
Percentage and the MIWBE Supply and Service Percentage, as defined in
Sections 6.1.4 and 6.1.5, respectively, multiplied by the Program Source Funds
available for that Program Grant.
6.1.1. Completion of Development(50%for Program Years 1-5,Up to
50%Thereafter).
Each annual Program Grant will include an amount that is based
on completion of the Phase I Improvements. If the Phase I Improvement
Commitment was met, as confirmed by the City in the Certificate of
Completion issued for by the Director in accordance with Section 5, each
Program Grant payable in Program Years 1 through 5 will include fifty
percent (50%) of the Program Source Funds (the "Base Grant
Percentage"). For all subsequent Program Grants, if the Minimum Sales
Per Occupied Square Foot Goal, as defined in Section 2, was not attained
in the previous calendar year,the Base Grant Percentage from the Program
Grant payable in the following Program Year will be reduced. This
reduction will be calculated by multiplying fifty percent (5011/o) by the
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Economic Development Program Agreement
between City of Fort Worth and Tanger Fort Worth_LLC
percentage by which the Minimum Sales Per Occupied Square Foot Goal
was attained. For example, if in a given year after the fifth Program Grant
was paid Sales Per Occupied Square Foot for the Occupied Square
Footage in the Development equaled only $240.00, then the overall Base
Grant Percentage for the Program Grant payable in the following Program
Year would be 40% instead of 50% (or .50 x [$2401$300], or .50 x. 80, or
.40). Notwithstanding anything to the contrary herein, regardless of the
amount of Sales Per Occupied Square Foot for the Occupied Square
Footage in any given year, the Base Grant Percentage will never be less
than twenty-five percent (25%) and will never be more than fifty percent
(50%). Sales Per Occupied Square Foot for the Occupied Square Footage
in the Development will be based on the annual Sales and sales tax report
submitted by Company to the Director in accordance with Section 4.8.2
and any supporting documentation necessary for the City to ascertain that
information.
6.1.2. Fort Worth Construction Cost SWnding(Up to 25% for Prop am
Year 1, Up to 10%Thereafter}.
Each annual Program Grant will include an amount that is based
on the percentage by which the Fort Worth Construction Commitment, as
outlined in Section 4.3, was met (the "Fort Worth Construction
Percentage"). In accordance with Section 4.3.2, if the Phase II
Improvement Commitment is met, the Fort Worth Construction
Percentage will be recalculated for purposes of all Program Grants payable
following the Phase 11 Completion Date. The Fort Worth Construction
Percentage for the Program Grant payable in Program Year I will equal
the product of twenty-five percent (25%) multiplied by the percentage by
which the applicable Fort Worth Construction Commitment was met,
which will be calculated by dividing the actual Hard Construction Costs
expended with Fort Worth Companies by the Phase I Completion Date by
the number of dollars comprising the Fort Worth Construction
Commitment, as determined in accordance with Section 4.3. The Fort
Worth Construction Percentage for all subsequent annual Program Grants
will equal the product of ten percent (10%) multiplied by the percentage
by which the applicable Fort Worth Construction Commitment was met,
calculated in accordance with the preceding sentence. For example, if
$30,000,000.00 in Hard Construction Costs were expended for the Phase I
Improvements as of the Phase I Completion Date, the Fort Worth
Construction Commitment would be $9,000,000.04 (30% of$30 million).
However, if only $8,100,000.00 in Hard Construction Costs for the Phase
I Improvements were expended with Fort Worth Companies as of the
Phase I Completion Date, the Fort Worth Construction Percentage for the
Program Grant payable in Program Year I would be 22.5% instead of
25% (or _25 x [$8.1 million/$9 million],or.25 x .90, or .225), and the Fort
Worth Construction Percentage for all subsequent Program Grants, unless
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Economic Development Program Agreement
between City of Fort Worth and"ranger Fort Worth.LLC
and until the Fort Worth Construction Commitment is recalculated in
accordance with Section 4.3.2, would be 9% instead of 10% (or .10 x
[$8.1 million/$9 million], or .10 x .90, or .09). If the applicable Fort
Worth Construction Commitment is met or exceeded, the Fort Worth
Construction Percentage will be twenty-five percent (25%) for the
Program Grant payable in Program Year 1 and ten percent (10%) for all
subsequent Program Grants. In no event will the Fort Worth Construction
Percentage exceed those percentages for the respective Program Year in
which a Program Grant is payable.
6.1.3. Fort Worth M/WBE Construction Cost Spending Up to 25% for
Program Year 1• Up to 10%Thereafter).
Each annual Program Grant will include an amount that is based
on the percentage by which the MIWBE Construction Commitment, as
outlined in Section 4.4, was met (the "MIWBE Construction Percentage").
In accordance with Section 4.4.2, if the Phase II Improvement
Commitment is met, the MIWBE Construction Commitment will be
recalculated for purposes of all Program Grants payable following the
Phase I1 Completion Date. The MIWBE Construction Percentage for the
Program Grant payable in Program Year 1 will equal the product of
twenty-five percent (25%) multiplied by the percentage by which the
applicable MIWBE Construction Commitment was met, which will be
calculated by dividing the actual Hard Construction Costs expended with
Fort Worth Certified MIWBE Companies by the Phase I Completion Date
by the number of dollars comprising the MIWBE Construction
Commitment, as determined in accordance with Section 4.4. The MIWBE
Construction Percentage for all subsequent annual Program Grants will
equal the product of ten percent (10%) multiplied by the percentage by
which the applicable MIWBE Construction Commitment was met,
calculated in accordance with the preceding sentence. For example, if
$30,000,000.00 in Hard Construction Costs were expended for the Phase I
Improvements as of the Phase I Completion Date, the MIWBE
Construction Commitment would be $7,500,000.00 (25% of$30 million).
However, if only $6,000,000.00 in Hard Construction Costs were
expended with Fort Worth Certified MIWBE Companies by the Phase I
Completion Date, the MIWBE Construction Percentage for the Program
Grant payable in Program Year 1 would be 20% instead of 25% (or .25 x
[$6 million/$7.5 million], or .25 x .80, or .20), and the MIWBE
Construction Percentage for all subsequent Program Grants until the
MIWBE Construction Commitment is recalculated in accordance with
Section 4.4.2 would be 8% instead of 10% (or .10 x [$6 million/$7.5
million], or .10 x .80, or .08). If the applicable MIWBE Construction
Commitment is met or exceeded, the MIWBE Construction Percentage
will be twenty-five percent (25%) for the Program Grant payable in
Program Year 1 and ten percent(10%) for all subsequent Program Grants.
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Economic Development Program Agreement
between City of Fort Worth and Tanger Fort Worth. LF.0
6.1.4. Fort Worth Supply and Service Spending(Up to 15%after
Program Year 1).
Except for the Program Grant payable in Program Year 1, each
annual Program Grant will include an amount that is based on the
percentage by which the Fort Worth Supply and Service Spending
Commitment, as outlined in Section 4.6, was met (the"Fort Worth Supply
and Service Percentage"). The Fort Worth Supply and Service Percentage
will equal the product of fifteen percent (15%) multiplied by the
percentage by which the Fort Worth Supply and Service Spending
Commitment was met, which will be calculated by dividing the actual
Supply and Service Expenditures made in the previous calendar year with
Fort Worth Companies by $50,000.00, which is the Fort Worth Supply
and Service Spending Commitment_ For example, if only $45,000.00 in
Supply and Service Expenditures were made with Fort Worth Companies
in the previous calendar year, the Fort Worth Supply and Service
Percentage for the Program Grant payable in the following Program Year
(other than Program Year 1) would be 13.5% instead of 15% (or .15 x
[$45,4001$50,000], or .15 x .90, or .135). If the Fort Worth Supply and
Service Spending Commitment is met or exceeded in any given year, the
Fort Worth Supply and Service Percentage for the Program Grant payable
in the following Program Year will be fifteen percent (15%). Calculation
of the Program Grant payable for Program Year 1 does not include the
Fort Worth Supply and Service Percentage because the Fort Worth Supply
and Service Commitment does not apply to the First Operating Year.
6.1.5. Fort Worth MIWBE Supply and Service Spending U to 15%
after Program Year 1).
Except for the Program Grant payable in Program Year 1, each
annual Program Grant will include an amount that is based on the
percentage by which the MIWBE Supply and Service Spending
Commitment, as outlined in Section 4.7, was met (the "MIWBE Supply
and Service Percentage"). The MIWBE Supply and Service Percentage
will equal the product of fifteen percent (15%) multiplied by the
percentage by which the MIWBE Supply and Service Spending
Commitment was met, which will be calculated by dividing the actual
Supply and Service Expenditures made in the previous calendar year with
Fort Worth Certified MIWBE Companies by $25,000.00, which is the
MIWBE Supply and Service Spending Commitment. For example, if only
$17,500.00 in Supply and Service Expenditures were made with Fort
Worth Certified MIWBE Companies in the previous calendar year, the
MIWBE Supply and Service Percentage for the Program Grant payable in
the following Program Year(other than Program Year 1) would be 10.5%
Page 19
Economic Development Program Agreement
between City of Fort Worth and Tanger Fort Worth.LLC
instead of 15% (or .15 x [$17,5001$25,000], or .15 x .70, or .105). If the
MIWBE Supply and Service Spending Commitment is met or exceeded in
any given year, the MIWBE Supply and Service Percentage for the
Program Grant payable in the following Program Year will be fifteen
percent (15%). Calculation of the Program Grant payable for Program
Year 1 does not include the MIWBE Supply and Service Percentage
because the MIWBE Supply and Service Commitment does not apply to
the First Operating Year.
6.1.6. No Cross-Offsets Between Commitments.
A deficiency in attainment of one commitment may not be offset
by the exceeding attainment in another commitment. For example, if in a
given year Company failed to meet the MIWBE Supply and Service
Spending Commitment by $5,000.00, but exceeded the Fort Worth Supply
and Service Spending Commitment by $5,000.00, the Program Grant
payable in the following year would still be reduced in accordance with
Section 6.1.5 on account of Company's failure to meet the MIWBE
Supply and Service Spending Commitment.
6.2. Program Cat).
The amount of the Program Cap will increase if the Phase II Improvement
Commitment is met, as more specifically set forth in the definition provided in
Section 2 for the term "Program Cap." Once the City has paid Company annual
Program Grants that, in the aggregate, are equal to the applicable Program Cap,
the Term of this Agreement wiII expire. If in any Program Year the amount of the
Program Grant calculated in accordance with Section 6.1 would cause aggregate
Program Grants paid made by the City pursuant to this Agreement, in the
aggregate, to exceed the applicable Program Cap, the amount of the Program
Grant payable in that Program Year will equal the difference between the
aggregate of all Program Grants paid as of the previous Program Year and the
Program Cap, in which case, upon payment of such Program Grant, this
Agreement will expire automatically-
6.3. Deadline for Payments and Source of Funds.
The first Program Grant payable hereunder (in other words, the Program
Grant payable for Program Year 1) will be paid by the City on or before June 1 of
the Second Operating Year. Each subsequent annual Program Grant payment will
be made by the City to Company on or before June 1 of the Program Year in
which such payment is due. It is understood and agreed that all Program Grants
paid pursuant to this Agreement will come from currently available general
revenues of the City and not directly from Development Sales Tax Revenues.
Company understands and agrees that any revenues of the City other than those
dedicated for payment of a given annual Program Grant pursuant to this
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Economic Development Program Agreement
between City of Fort Worth and Tanger Fort Worth.LLC
Agreement may be used by the City for any lawful purpose that the City deems
necessary in the carrying out of its business as a home rule municipality and will
not serve as the basis for calculating the amount of any future Program Grant or
other obligation to Company. For any applicable year in which the City fails to
appropriate funds for any Program Grant rightly due and payable to Company
pursuant to this Agreement, the Term of this Agreement shall he automatically
extended until the City has paid all Program Grants payable hereunder.
7. DEFAULT, TERMINATION AND FAILURE BY COMPANY TO MEET
VARIOUS DEADLINES AND COMMITMENTS.
7.1. Failure to Complete Phase 1.
If the Phase I Improvement Commitment is not met, the City's sole
remedy shall be the right to terminate this Agreement by providing written notice
to Company without further obligation to Company hereunder. A failure to meet
the Phase II Improvement Commitment will have no effect on this Agreement or
its effectiveness, but will only affect the amount of the Program Cap, as defined in
Section 2 and further set forth in Section 5.2.
7.2. Failure to Achieve-1-10 Million Investment Combined with Champions
Circle Development.
As outlined in Recital F, this Agreement and the anticipated economic
benefits that will accrue to the City from the Development are, in part, predicated
on the City's expectation that the Development will be further enhanced by the
Champions Circle Development that is intended to be constructed on land
adjacent to the Development Property. Accordingly, notwithstanding anything to
the cgntrary herein, even if the Phase 1 Improvement Commitment is met, i the
City cannot also verJ& that, as of the Phase I Completion Deadline (subject to
any extensions of time allowed pursuant to this Agreement and/or the Champions
Circle EDPA, as applicable), at least One Hundred Million Dollars
($100,000,000.DOJ in Construction Costs have been expended for both the Phase I
Improvements hereunder plus a im rovements constructed as pqrt oL the
Cham ions Circle Development in accordance with the Cham ions Circle EDPA
the Ci will have the right to terminate this A eement immediately by Providin
written notice to CoMpany without further obligation to CoMpany Companyhereunder. For
purposes of this Section 7.2, the City's verification of Construction Cost
expenditures for the Champions Circle Development will be made solely in
accordance with and is subject to the terms and conditions of the Champions
Circle EDPA. Company understands and agrees that the City's verification of
Construction Cost expenditures for the Champions Circle Development under the
Champions Circle EDPA will be subject to various reporting requirements by
Roanoke 351114 Partners, L.P., affiliates thereof or third parties, and that the City
will have no obligation to pursue any legal remedy or enforcement action under
the Champions Circle EDPA if Roanoke 351114 Partners, L.P., affiliates thereof
Page 21
Economic Development Program Agreement
between City of Fort Worth and Tanger Fort Worth,LLC
or any third parties fail to properly report Construction Cost expenditures for the
Champions Circle Development or fail to maintain or aIIow review of financial or
business records in accordance with the Champions Circle EDPA that are
necessary for the City to verify such Construction Cost expenditures. Company
hereby represents to the City that it has reviewed the Champions Circle EDPA
and that it understands the provisions of the Champions Circle EDPA. The term
"Construction Costs" for purposes of the Champions Circle Development will
have the same meaning as that set forth in the Champions Circle EDPA.
Notwithstanding the foregoing, any default by Roanoke 35/114 Partners, L.P. or
its successors or assigns, other than the failure to achieve at Ieast One Hundred
Million Dollars ($100,004,404.00) in Construction Costs for both the Phase I
Improvements and improvements constructed as part of the Champions Circle
Development as described in this Section 7.2 shall have no effect on this
Agreement or its effectiveness and will not give City any rights to terminate this
Agreement.
7.3. Failure to Pay City Taxes.
An event of default will occur under this Agreement if any City taxes
owed on the Development Property by Company or an Affiliate or arising on
account of Company's or an Affiliate's operations on the Development Property
become delinquent and Company or the Affiliate does not either pay such taxes or
properly follow the Iegal procedures for protest and/or contest of any such taxes.
In this event, the City will notify Company in writing and Company will have
thirty (30) calendar days to cure such default. If Company fails to cure such
default within thirty (30) calendar days following receipt of such written notice,
the City will provide a second written notice to Company. If the default has not
been fully cured within five (5) business days following receipt of this second
written notice, the City will have the right to terminate this Agreement
immediately by providing written notice to Company and will have all other
rights and remedies that may be available to it under the law or in equity. Either
payment of such taxes or initiation of and ongoing engagement in legal
proceedings for protest and/or contest of such taxes shall constitute a full cure
pursuant to this Section 7.3.
7.4. Violations of City Code, State or Federal Law.
An event of default will occur under this Agreement if any written citation
is issued to Company or an Affiliate due to the occurrence of a material violation
of a material provision of the City Code on the Development Property or on or
within any improvements thereon (including, without limitation, any material
violation of the City's Building or Fire Codes and any other material City Code
violations related to the environmental condition of the Development Property;
the environmental condition other land or waters which is attributable to
operations on the Development Property; or to matters concerning the public
health, safety or welfare) and such citation is not paid or the recipient of such
Page 22
Economic Development Program Agreement
between City of Fort Worth and Tanger Fort Worth,LLC
citation does not properly follow the legal procedures for protest and/or contest of
any such citation. An event of default will occur under this Agreement if the City
is notified by a governmental agency or unit with appropriate jurisdiction that
Company or an Affiliate, or any successor in interest thereto; or an occupant or
Tenant with access to any portion of the Development Property owned or
operated by Company or an Affiliate pursuant to the express or implied
permission of Company or an Affiliate, or a successor in interest thereto if action
was not taken within thirty (30) days of actual knowledge by Company or an
Affiliate to resolve, mitigate or protest and/or contest such violation under proper
legal procedures; or the City is in material violation of any material state or
federal law, rule or regulation on account of any portion of the Development
Property owned or operated by Company or an Affiliate, or on account of
improvements owned or operated by Company or an Affiliate or any operations
therein on the Development Property (including, without limitation, any material
violations related to the environmental condition of any portion of the
Development Property owned or operated by Company or an Affiliate; the
environmental condition of other land or waters which is attributable to operations
on any portions of the Development Property owned or operated by Company or
an Affiliate; or to matters concerning the public health, safety or welfare). Upon
the occurrence of any default described by this Section 7.4, the City shall notify
Company in writing and Company will have (i) thirty (34) calendar days to cure
such default or(ii) if Company has diligently pursued cure of the default but such
default is not reasonably curable within thirty (30) calendar days, then such
amount of time as is reasonably necessary to cure such default. If the default has
not been fully cured by such time, the City will have the right to terminate this
Agreement immediately by providing written notice to Company and will have all
other rights and remedies that may be available under the law or in equity.
7.5. Foreclosure on Development Property_
Subject to any rights of a lender that is a party to a Consent to Collateral
Assignment Agreement executed pursuant to and in accordance with Section 11,
upon the occurrence of any of the following events, the City will have the right to
terminate this Agreement immediately upon provision of written notice to
Company: (i) the institution of an action to foreclose or otherwise enforce a lien,
mortgage or deed of trust on the Development or Development Property; (ii) the
involuntary conveyance to a third party of the Development or Development
Property; (iii) execution by Company or an Affiliate of any assignment of the
Development or Development Property or deed in lieu of foreclosure to the
Development or Development Property; or (iv) the appointment of a trustee or
receiver for the Development or Development Property_
7.5. Failure to Submit Reports.
If Company fails to submit any report required by and in accordance with
Section 4.8, the City will provide written notice to Company. If Company fails to
Page 23
Economic Development Program Agreement
between City of Fort Worth and Tanger Fort Worth,LLC
or any third parties fail to properly report Construction Cost expenditures for the
Champions Circle Development or fail to maintain or allow review of financial or
business records in accordance with the Champions Circle EDPA that are
necessary for the City to verify such Construction Cost expenditures. Company
hereby represents to the City that it has reviewed the Champions Circle EDPA
and that it understands the provisions of the Champions Circle EDPA. The term
"Construction Costs" for purposes of the Champions Circle Development will
have the same meaning as that set forth in the Champions Circle EDPA.
Notwithstanding the foregoing, any default by Roanoke 35/114 Partners, L.P. or
its successors or assigns, other than the failure to achieve at least One Hundred
Million Dollars ($100,000,000-00) in Construction Costs for both the Phase I
Improvements and improvements constructed as part of the Champions Circle
Development as described in this Section 7.2 shall have no effect on this
Agreement or its effectiveness and will not give City any rights to terminate this
Agreement_
7.3. Failure to Pa City Taxes.
An event of default will occur under this Agreement if any City taxes
owed on the Development Property by Company or an Affiliate or arising on
account of Company's or an Affiliate's operations on the Development Property
become delinquent and Company or the Affiliate does not either pay such taxes or
properly follow the legal procedures for protest and/or contest of any such taxes_
In this event, the City will notify Company in writing and Company will have
thirty (34) calendar days to cure such default. If Company fails to cure such
default within thirty (30) calendar days following receipt of such written notice,
the City will provide a second written notice to Company. If the default has not
been fully cured within five (5) business days following receipt of this second
written notice, the City will have the right to terminate this Agreement
immediately by providing written notice to Company and will have all other
rights and remedies that may be available to it under the law or in equity. Either
payment of such taxes or initiation of and ongoing engagement in legal
proceedings for protest and/or contest of such taxes shall constitute a full cure
pursuant to this Section 7.3.
7.4. Violations of City Code, State or Federal Law.
An event of default will occur under this Agreement if any written citation
is issued to Company or an Affiliate due to the occurrence of a material violation
of a material provision of the City Code on the Development Property or on or
within any improvements thereon (including, without limitation, any material
violation of the City's Building or Fire Codes and any other material City Code
violations related to the environmental condition of the Development Property;
the environmental condition other land or waters which is attributable to
operations on the Development Property; or to matters concerning the public
health, safety or welfare) and such citation is not paid or the recipient of such
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Economic Development Program Agreement
between City of Fort Worth and Tanger Fort Worth. LLC
citation does not properly follow the legal procedures for protest and/or contest of
any such Citation. An event of default will occur under this Agreement if the City
is notified by a governmental agency or unit with appropriate jurisdiction that
Company or an Affiliate, or any successor in interest thereto; or an occupant or
Tenant with access to any portion of the Development Property owned or
operated by Company or an Affiliate pursuant to the express or implied
permission of Company or an Affiliate, or a successor in interest thereto if action
was not taken within thirty (30) days of actual knowledge by Company or an
Affiliate to resolve, mitigate or protest and/or contest such violation under proper
legal procedures; or the City is in material violation of any material state or
federal law, rule or regulation on account of any portion of the Development
Property owned or operated by Company or an Affiliate, or on account of
improvements owned or operated by Company or an Affiliate or any operations
therein on the Development Property (including, without limitation, any material
violations related to the environmental condition of any portion of the
Development Property owned or operated by Company or an Affiliate; the
environmental condition of other land or waters which is attributable to operations
on any portions of the Development Property owned or operated by Company or
an Affiliate; or to matters concerning the public health, safety or welfare). Upon
the occurrence of any default described by this Section 7.4, the City shall notify
Company in writing and Company will have (i) thirty (30) calendar days to cure
such default or(ii) if Company has diligently pursued cure of the default but such
default is not reasonably curable within thirty (30) calendar days, then such
amount of time as is reasonably necessary to cure such default. If the default has
not been fully cured by such time, the City will have the right to terminate this
Agreement immediately by providing written notice to Company and will have all
other rights and remedies that may be available under the law or in equity.
7.5. Foreclosure on Development Property.
Subject to any rights of a lender that is a party to a Consent to Collateral
Assignment Agreement executed pursuant to and in accordance with Section 11,
upon the occurrence of any of the following events, the City will have the right to
terminate this Agreement immediately upon provision of written notice to
Company: (i) the institution of an action to foreclose or otherwise enforce a lien,
mortgage or deed of trust on the Development or Development Property; (ii) the
involuntary conveyance to a third party of the Development or Development
Property; (iii) execution by Company or an Affiliate of any assignment of the
Development or Development Property or deed in lieu of foreclosure to the
Development or Development Property; or (iv) the appointment of a trustee or
receiver for the Development or Development Property.
7.5. Failure to Submit Reports_
If Company fails to submit any report required by and in accordance with
Section 4.8, the City will provide written notice to Company. If Company fails to
Page 23
Economic Development Program Agreement
between City of Fort Worth and Tanger Fort Worth.LLC
provide any such report within thirty (30) calendar days following receipt of such
written notice, the City, as a courtesy, will provide Company with a second
written notice. If Company fails to provide any such report within fifteen (15)
calendar days following receipt of the second written notice, the City will have
the right to suspend payments of any Program Grants until Company has provided
all required reports or, in the City's sole discretion, to terminate this Agreement
immediately by providing written notice to Company.
7.7. mowing Employment of Undocumented Workers.
Company acknowledges that the City is required to comply with Chapter
2264 of the Texas Government Code, enacted by House Bill 1196 (80th Texas
Legislature), which relates to restrictions on the use of certain public subsidies.
Company hereby certifies that Company, and any branches, divisions. or
departments of Company, does not and will not knowingly employ an
undocumented worker, as that term is defined by Section 2264.00](4) of the Texas
Government Code, on the Development Property. In the event that Company, or
any branch, division, or department of Company, is convicted Ufa violation under 8
US.C Section 1324a(f) (relating to_federal criminal penalties and injunctions for a
pattern or practice of employing unauthorized aliens), subject to any appellate
rights that may lawfully be available to and exercised by Company, Company
must repay, within one hundred twenty (120) calendar days following receipt of
written demand from the City. the aggregate amount of Program Grants received
by Company hereunder, if any, plus Simple Interest at a rate of four percent (4,)
per annum.
For the purposes of this Section 7.7. "Simple Interest" is defined as a rate of
interest applied only to an original value, in this case the aggregate amount of
Program Grants paid pursuant to this Agreement. This rate of interest can be
applied each year, but will only apply to the amount of Program Grants received
hereunder and is not applied to interest calculated. For example, if the aggregate
amount of Program Grants received by Company hereunder is $10,000 and it is
required to be paid back with four percent (4%) interest five years later, the total
amount would be$10,040 + [5 x($10,000 x 0.04)], which is $12,004. This Section
7.7 does not apply to convictions of any Affiliate of Company, any franchisees of
Company,or any person or entity with whom Company contracts. Notwithstanding
anything to the contrary herein, this Section 7.7 will survive the expiration or
termination of this Agreement.
7.8. Failure to Meet Construction Cost Spending and/or Supply and Service
Spending;Failure to Meet Employment Goal.
The failure to meet the applicable Fort Worth Construction Commitment
or the applicable M/WBE Construction Commitment, or the failure to meet the
Fort Worth Supply and Service Spending Commitment or the MIWBE Supply
and Service Spending Commitment in any given year, will not constitute a default
Page 24
Economic Development Program Agreement
between City of Fort Worth and Tanger Fon Worth, LLC:
hereunder or provide the City with the right to terminate this Agreement, but,
rather, will only cause the amount of the Program Grants that the City is required
to pay pursuant to this Agreement to be reduced in accordance with this
Agreement. If Company fails to meet the Employment Goal in any given year,
such event will not constitute a default hereunder and will not cause the amount of
the Program Grant that the City is required to pay in the following Program Year
to be reduced_
7.9. Termination of Infrastructure Construction Agreement.
An uncured breach by Company of any Infrastructure Construction
Agreement will also constitute a breach of this Agreement. In this event, the City
will comply with any requirements under the Infrastructure Construction
Agreement in question to notify Company of such breach, and the City will have
no additional notification requirements under this Agreement_ If the City lawfully
terminates an Infrastructure Construction Agreement on account of an uncured
breach by Company or an Affiliate thereunder, this Agreement will automatically
terminate without further action required by the City.
7.10. General Breach.
Unless and to the extent stated elsewhere in this Agreement, Company
will be in default under this Agreement if Company breaches any term or
condition of this Agreement and such breach remains uncured after thirty (30)
calendar days following receipt of written notice from the City referencing this
Agreement (or, if Company has diligently and continuously attempted to cure
following receipt of such written notice but reasonably requires more than thirty
(30) calendar days to cure, then such additional amount of time as is reasonably
necessary to effect cure, as determined by both parties mutually and in good
faith), the City will have the right to terminate this Agreement immediately by
providing written notice to Company.
8. INDEPENDENT CONTRACTOR.
It is expressly understood and agreed that Company will operate as an
independent contractor in each and every respect hereunder and not as an agent,
representative or employee of the City. Company will have the exclusive right to control
all details and day-to-day operations relative to the Development Property and any
improvements thereon and will be solely responsible for the acts and omissions of its
officers, agents, servants, employees, contractors, subcontractors, licensees and invitees.
Company acknowledges that the doctrine of respondeat superior will not apply as
between the City and Company, its officers, agents, servants, employees, contractors,
subcontractors, licensees, and invitees. Company further agrees that nothing in this
Agreement will be construed as the creation of a partnership or joint enterprise between
the City and Company.
Page 25
Economic Development Program Agreement
between City of Fort Worth and Tanger Fort Worth.I.I.0
9_ INDEMNIFICATION.
COMPANY, AT NO COST TO THE CITY, AGREES TO DEFEND, INDEMNIFY
AND HOLD THE CITY, ITS OFFICERS, AGENTS SERVANTS AND EMPLOYEES,
HARMLESS AGAINST ANY AND ALL CLAIMS LAWSUITS ACTIONS. COSTS AND
EXPENSES OF ANY KIND, INCLUDING, BUT NOT LIMITED TO, THOSE FOR
PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO
COMPANY'S BUSINESS AND ANY RESULTING LOST PROFITS) ANDIOR
PERSONAL INJURY, INCLUDING DEATH, THAT MAY RELATE TO, ARISE OUT OF
OR BE OCCASIONED BY (i) COMPANY S BREACH OF ANY OF THE TERMS OR
PROVISIONS OF THIS AGREEMENT OR (ii) ANY NEGLIGENT ACT OR OMISSION
OR INTENTIONAL MISCONDUCT OF COMPANY, ITS OFFICERS, AGENTS
ASSOCIATES. EMPLOYEES, CONTRACTORS (OTHER THAN THE CITY) OR
SUBCONTRACTORS RELATED TO THE DEVELOPMENT PROPERTY, THE
DEVELOPMENT AND ANY OPERATIONS AND ACTIVITIES THEREON OR
OTHERWISE TO THE PERFORMANCE OF THIS AGREEMENT.
THE CITY HEREBY RELEASES AND AGREES TO HOLD HARMLESS
COMPANY, ITS OFFICERS AGENTS, AFFILIATES AND EMPLOYEES, FROM AND
AGAINST ANY AND ALL CLAIMS, LAWSUITS ACTIONS, COSTS AND EXPENSES OF
ANY KIND, INCLUDING. BUT NOT LIMITED TO. THOSE FOR PROPERTY DAMAGE
OR L USS AND/OR PERSONAL INJUR Y, INCL UDING DEA TH, THA T MA Y RELATE
TO, ARISE OUT OF OR BE OCCASIONED BY(i) THE CITY'S BREACH OF ANY OF
THE TERMS OR PROVISIONS OF THIS AGREEMENT OR (ii) ANY NEGLIGENT ACT
OR OMISSION OR INTENTIONAL MISCONDUCT OF THE CITY, ITS OFFICERS,
SERVANTS AGENTS, ASSOCIATES, EMPLOYEES CONTRACTORS (OTHER THAN
COMPANY) OR SUBCONTRACTORS, RELATED TO THE DEVELOPMENT
PROPERTY. IMPROVEMENTS ON THE DEVELOPMENT PROPERTY AND ANY
OPERATIONS AND ACTIVITIES THEREON, OR OTHERWISE TO THE
PERFORMANCE OF THIS AGREEMENT.
10. NOTICES.
All written notices called for or required by this Agreement must be addressed to
the following, or such other party or address as either party designates in writing, by
certified mail, hostage prepaid,or by hand delivery:
City: Company:
City of Fort Worth Tanger Factory Outlet Center, Inc.
Attn. City Manager Attn: Jim Williams
1004 Throckmorton Senior VP and Chief Accounting Officer
Fort Worth,TX 76102 3200 Northline Ave., Suite 360
Greensboro,NC 27408
Page 26
Economic Development Program Agreement
between City of Fort Worth and Tanger Fort Worth,LLC
with copies to: with copies to:
the City Attorney and Tanger Factory Outlet Center, Inc.
Economic/Community Development Attn: Brian A. Auger
Director at the same address Vice President and Corporate Counsel
3200 Northline Ave., Suite 350
Greensboro, NC 27408
11. ASSIGNMENT AND SUCCESSORS.
Company may at any time assign, transfer or otherwise convey any of its rights or
obligations under this Agreement to an Affiliate that is in good standing to do business in
the State of Texas, as determined by the Texas Secretary of State, without the consent of
the City Council so long as Company, the Affiliate and the City first execute an
agreement under which the Affiliate agrees to assume and be bound by all covenants and
obligations of Company under this Agreement. In addition, Company may assign its
rights and obligations under this Agreement to a financial institution or other lender for
purposes of granting a security interest in the Development and/or Development Property
without the consent of the City Council, provided that Company and the financial
institution or other lender first execute a written agreement with the City in substantially
the same form as that attached hereto as Exhibit "D", together with such other terms and
conditions as may be agreed by the City, Company and the financial institution or other
lender with respect to such security interest (a "Consent to Collateral Assignment
Agreement"). Except as otherwise provided, Company may not assign, transfer or
otherwise convey any of its rights or obligations under this Agreement to any other person
or entity without the consent of the City Council, which consent will not be unreasonably
withheld, conditioned on(i)the prior approval of the assignee or successor and a finding by
the City Council that the proposed assignee or successor is financially capable of meeting
the terms and conditions of this Agreement and (ii) prior execution by the proposed
assignee or successor of a written agreement with the City under which the proposed
assignee or successor agrees to assume and be bound by all covenants and obligations of
Company under this Agreement. Except for an assignment to an Affiliate or lender as
described above, any attempted assignment without the City Council's prior consent will
constitute grounds for termination of this Agreement following ten (10) calendar days of
receipt of written notice from the City to Company. Any lawful assignee or successor in
interest of Company of all rights under this Agreement will be deemed "Company" for all
purposes under this Agreement.
12. COMPLIANCE WITH LAWS,ORDINANCES, RULES AND REGULATIONS.
This Agreement will be subject to all applicable federal, state and local laws,
ordinances, rules and regulations, including, but not limited to, all provisions of the
City's Charter and ordinances, as amended.
Page 27
Economic Development Program Agreement
between City of Fort Worth and Tanger Fort Worth_LLC
13. GOVERNMENTAL POWERS.
It is understood that by execution of this Agreement, the City does not waive or
surrender any of its governmental powers or immunities.
14. NO WAIVER.
The failure of either party to insist upon the performance of any tern or provision
of this Agreement or to exercise any right granted hereunder will not constitute a waiver
of that party's right to insist upon appropriate performance or to assert any such right on
any future occasion.
15. VENUE AND JURISDICTION.
If any action, whether real or asserted, at law or in equity, arises on the basis of
any provision of this Agreement, venue for such action will lie in state courts located in
Tarrant County. Texas or the United States District Court for the Northern District of
Texas — Fort Worth Division. This Agreement will be construed in accordance with the
laws of the State of Texas.
16. SEVERABILITY.
If any provision of this Agreement is held to be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions will not in any way be
affected or impaired.
17. NO THIRD PARTY RIGHTS.
The provisions and conditions of this Agreement are solely for the benefit of the
City and Company, and any lawful assignee or successor of Company, and are not
intended to create any rights, contractual or otherwise,to any other person or entity_
l8. FORCE MAJEURE.
It is expressly understood and agreed by the parties to this Agreement that if the
performance of any obligations hereunder is delayed by reason of war, civil commotion,
acts of God, strike, inclement weather, shortages or unavailability of labor or materials,
unreasonable delays by the City (based on the then-current workload of the City
department(s) responsible for undertaking the activity in question) in issuing any permits,
consents, or certificates of occupancy or conducting any inspections of or with respect to
Page 28
Economic Development Program Agreement
between City of Fort Worth and Tanger Fort Worth. t.l_C
the Development, or other circumstances which are reasonably beyond the control of the
party obligated or permitted under the terms of this Agreement to do or perform the same,
regardless of whether any such circumstance is similar to any of those enumerated or not,
the party so obligated or permitted will be excused from doing or performing the same
during such period of delay, so that the time period applicable to such design or
construction requirement will be extended for a period of time equal to the period such
party was delayed. Notwithstanding anything to the contrary herein, it is specifically
understood and agreed that Company's failure to obtain adequate financing to complete
the Phase I Improvements by the Phase I Completion Deadline or the Phase II
Improvements by the Phase II Completion Deadline will not be deemed to be an event of
force majeure and that, in such an event, this Section 18 will not operate to extend the
Phase I Completion Deadline or Phase II Completion Deadline, as the case may be_
19. INTERPRETATION.
In the event of any dispute over the meaning or application of any provision of
this Agreement, this Agreement will be interpreted fairly and reasonably, and neither
more strongly for or against any party,regardless of the actual drafter of this Agreement.
24. CAPTIONS.
Captions and headings used in this Agreement are for reference purposes only and
shall not be deemed a part of this Agreement.
21. ENTIRETY OF AGREEMENT.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement
between the City and Company, and any lawful assignee or successor of Company, as to
the matters contained herein. Any prior or contemporaneous oral or written agreement is
hereby declared null and void to the extent in conflict with any provision of this
Agreement. Notwithstanding anything to the contrary herein, this Agreement shall not be
amended unless executed in writing by both parties and approved by the City Council of
the City in an open meeting held in accordance with Chapter 551 of the Texas
Government Code.
22. COLNTERPARTS_
"Phis Agreement may be executed in multiple counterparts, each of which shall be
considered an original, but all of which shall constitute one instrument.
Page 29
Economic Development Program Agreement
between City of Fort Worth and-manger Fort Worth.LLC
EXECUTED as of the last date indicated below:
CITY OF FORT WORTH: APPROVED AS TO FORM AND
LEGALITY:
By: By:
1z s u s 7. G h a►�S a� Peter V aky
A ssl; City Manager Deputy City Attorney
Date: �f L Y M&C: G-18485 05-19-I5
?-D14 33 a0i�
TANGER FORT WORTH, F�1��'
LLC, a North Carolina limited liability AWMd by:
company: ❑
By: Tanger Devco, LLC, its Manager: a �. ei, �i1
By:
Thomas E. Mc on ugh
Vice President
Date:
OFFICIAL RECORD
CITY SECRETARY
Page 30 FT.WORTH,Tx
Economic Development Program Agreement
between City of Fort Worth and Tanger Fort Worth,LLC
EXHIBITS
"A"—Description and Map Depicting the Development Property
"B"—Public Infrastructure Improvements
"C"—Form of Final Construction Report
"D"— Form of Consent to Collateral Assignment
EXHIBIT"A"
Description and Map Depicting the Development Property_
PROPERTY DESCRIPTION
STATE OF TEXAS §
COUNTY OF DENTON §
BEING a tract of land situated in the G.W. SHAMBLIN SURVEY, ABSTRACT
NO. 1191 and the R. DANIEL SURVEY, ABSTRACT NO. 382, in the Fort Worth,
Denton County, Texas, being a portion of a tract of land (Tract 3) described in
deed to Roanoke 351114 Partners, L.P. and Roanoke 351114 O & G Partners,
L.P., recorded in Document Number: 2007-21421, Official Records, Denton
County, Texas, and also being a portion of Interstate Highway 35-W, and being
more particularly described as follows:
COMMENCING at a 112-inch iron rod with a plastic cap stamped "HALFF" found
for the Southeast corner of said Tract 3, said point being in the Northwest right-
of-way of Interstate Highway 35-W (North Freeway), a variable width right-of-
way;
THENCE North 30 deg 20 min 52 sec East, departing the South line of said Tract
3 and along the Northwest right-of-way of said Interstate Highway 35-W, a
distance of 952.59 feet to a 518-inch iron rod with plastic cap found for corner;
THENCE North 58 deg 20 min 42 sec West, a distance of 58.85 feet to a 112-inch
iron rod with red plastic cap stamped "W.A.I." set for corner on the Northwest
right-of-way of said Interstate Highway 35-W at its intersection with the Northeast
right-of-way of Outlet Boulevard, a 100-foot right-of-way per Champions Circle
Addition, an addition to the City of Fort Worth, Denton County, Texas, according
to the Plat thereof recorded in Doc Number 2016-1, Plat Records, Denton
County, Texas, said point being the POINT OF BEGINNING;
THENCE North 58 deg 20 min 42 sec West, departing the Northwest right-of-way
of said Interstate Highway 35-W, along the Northeast right-of-way of said Outlet
Boulevard, a distance of 937.57 feet to a 112-inch iron rod with red plastic cap
stamped "WA.I." set for corner, said point being the beginning of a curve to the
left having a radius of 510.00 feet, a central angle of 27 deg 05 min 25 sec, a
chord bearing of North 71 deg 53 min 25 sec West, and a chord length of 238.89
feet;
THENCE along said curve to the left, an arc distance of 241.13 feet to a 112-inch
iron rod with red plastic cap stamped "W.A.I." set for corner at the Southerly end
of a corner clip at the intersection of the Northerly right-of-way of said Outlet
Boulevard with the East right-of-way of Pilgrim Drive, a 66-foot right-of-way per
said Champions Circle Addition;
THENCE North 43 deg 00 min 18 sec West, along said corner clip, a distance of
14.63 feet to a 112-inch iron rod with red plastic cap stamped "W.A.I." set for
corner at the Northerly end of said corner clip;
THENCE North 00 deg 00 min 46 sec West, along the East right-of-way of said
Pilgrim Drive, a distance of 978.75 feet to a 112-inch iron rod with red plastic cap
stamped "W.A.I." set for corner at the Southerly end of a radial corner clip at the
intersection of said Pilgrim Drive with the South right-of-way of Bucees Boulevard
per said Champions Circle Addition, said point being the beginning of a curve to
the right having a radius of 50.00 feet, a central angle of 90 deg 00 min 45 sec, a
chord bearing of North 44 deg 59 min 37 sec East, and a chord length of 70.72
feet;
THENCE along said radial corner clip and said curve to the right, an arc distance
of 78.55 feet to a 112-inch iron rod with a red plastic cap stamped "W.A.I."found
for corner;
THENCE along the South right-of-way of said Bucees Boulevard, the following
courses and distances:
North 89 deg 59 min 59 sec East, a distance of 905.57 feet to a 112-inch
iron rod with red plastic cap stamped "W.A.I." set for corner, said point being
the beginning of a curve to the right having a radius of 400.13 feet, a central
angle of 32 deg 16 min 48 sec, a chord bearing of South 73 deg 51 min 28
sec East and a chord length of 222.46 feet;
Along said curve to the right, an arc distance of 225.43 feet to a 112-inch
iron rod with red plastic cap stamped 'W.A.I." set for corner;
South 58 deg 07 min 09 sec East, a distance of 674.53 feet to a 112-inch
iron rod with red plastic cap stamped 'W.A.L" set for corner on the
Northwest right-of-way of said Interstate Highway 35-W;
THENCE South 35 deg 06 min 04 sec West, along the Northwest right-of-way of
said Interstate Highway 35-W, a distance of 4.07 feet to a 112-inch iron rod with
red plastic cap stamped 'W.A.L" set for corner;
THENCE South 01 deg 34 min 50 sec East, continuing along the Northwest right-
of-way of said Interstate Highway 35-W, a distance of 16.89 feet to a 112-inch
iron rod with red plastic cap stamped "W.A.I." set for corner, said point being the
beginning of a non-tangent curve to the right having a radius of 6,536.67 feet, a
central angle of 02 deg 09 min 51 sec, a chord bearing of South 33 deg 35 min
32 sec West, and a chord length of 246.89 feet;
THENCE continuing along the Northwest right-of-way of said Interstate Highway
35-W and along said non-tangent curve to the right, an arc distance of 246.90
feet to a 1I2-inch iron rod with red plastic cap stamped 'W.A.U' set for corner on
the North line of a tract of land awarded to the State of Texas per judgement
recorded in Volume 530, Page 118, Deed Records, Denton County, Texas, said
North line being the existing right-of-way of said Interstate Highway 35-W;
THENCE South 32 deg 46 min 13 sec West, over and across said State of Texas
tract, a distance of 98.51 feet to a 112-inch iron rod with a red plastic cap
stamped 'W.A.L" set for corner,-
THENCE
orner;THENCE South 30 deg 21 min 45 sec West, along the future Northwest sight-of-
way of said Interstate Highway 35-W, a distance of 1,018.67 feet to the POINT
OF BEGINNING.
CONTAINING within these metes and bounds 1,907,522 square feet or 43.791
acres of land, more or less. Bearings shown hereon are based upon an on-the-
ground Survey performed in the field on the 9th day of July, 2014, utilizing a
G.P.S. measurement (NAD 83, Grid) from the GeoShack VRS network.
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- _ 1
EXHIBIT"B"
Public Infrastructure Improvements
1. The public improvements generally described as Paving, Drainage, Water&
Sanitary Sewer to served Tanger Outlet Centers and more specifically described
in—City of Fort Worth City project No. 02628 & DDE No 7489
EXHIBIT"C"
Form of Final Construction Report
FORT WORTH. City of Fort Worth
Project Completion Report
I. PROJECT INFORMATION
Property Owner.
Company/Project Name:
Project Contact: Title:
Telephone: Fax: E-Mail:
Property Owner Address(If Different):
Address of Property Subject to Agreement:
Construction completion Date:
Date of issuance of the Certificate of Occupancy:(Please attach a copy)
Date installation of Business Personal Property was completed:
Total Actual Dollars Spent on Machinery,Equipment,and Other Business Personal Property:$
II.CONSTRUCTION SPENDING
Company names,addresses,and the amounts paid during the reporting period should be attached to this report.Please
verify that M/WBE companies are located in Fort Worth by contacting the M/WBE office at(817)212-2574 or tasha.
ki Igore@fortwo rthtexas.gov.
CONSTRUCTION
Total Construction dollars Spent this Reporting Period(A):$
AWARDS TO FORT WORTH COMPANIES
Total Construction Dollars Spent with Fort Worth Companies(8):$
Percentage of Total Construction Dollars Spent with Fort Worth Companies(B/A): %
AWARDS TO FORT WORTH MINORITY/WOMEN OWNED BUSINESS ENTERPRISES(MIWBE)
Total Construction Dollars Spent with Fort Worth M/WBE Companies(C):$
Percentage of Total Construction Dollars Spent with Fort Worth M/WBE Companies(CIA): %
III.ADDITIONAL INFORMATION (TO BE ATTACHED)
F_ List of Real Property Appraisal District Account Numbers(Applicable to Projects with Real Property Commitments)
I List of Business Personal Property Appraisal Dlstrlct Account Numbers(Applicable to Projects with Personal Property Commitments)
F— Copy of the Certificate of Occupancy issued by the City of Fort Worth's Planning and Development Department
r Copy of Certification from the North Central Texas Regional Certification Agency for each.M/WBE vendor
List of all Company Names,Addresses,Invoice Numbers,and Amounts Paid During Construction.Clea rty note the Fort
F Worth and Fort Worth MIINBE Companies.(Excel Format)
ADDITIONAL DOCUMENTATION FOR SELECTED SAMPLE(Initially.City Staffwill review the above mentioned list of all invoices reiated toTotal
Construction Dollars Spent.Staff will then select a sample of Invoices/Pay Applications to test,com m u n i c ate to the Project Contact which items have been selected for the
sample,and request the following documentation for the selected sample only.Please see'Project completion Audit Process"on the reverse side for more details.)
Copies of Invoices/Pay Applications for the Sample.Clearly note the Fort Worth and Fort Worth MIWSE Companies.
F_ (InvoiceslPay Applications must have the name and address of the company,and include dates,description of services andior products,quantities of each item and
unit cost of each item)
r Front/back copies of cancelled checks and bank statements showing checks cleared for above-mentioned invoices
F— Copies of general ledger documenting checks posting to general ledger
FORT WORTH City of Fort Worth
Project Completion Report
A.CERTIFICATION
In connection with the review of the tax abatement/economic development grant agreement for the respective project,
between the City of Fort Worth and (Company Name)
we confirm,to the best of our knowledge and belief,the following representations made to the City of Fort Worth.
1.) We are responsible for the information provided in the Project Completion Report.
2.) We have made available all information that we believe is relevant to the Project Completion Report.
3.) We will respond fully to all inquiries made by the City of Fort Worth during the audit process.
4.) We acknowledge that the City of Fort Worth is responsible for evaluating the criteria and determining that the criteria
are appropriate for meeting the terms of the agreement.
Name of Certifying Officer: Phone:
Title: Fax:
Signature of Certifying Officer. Date:
In order to remain eligible for the incentive,you must return the completed report by February 1 st,2015 to:
City of Fort Worth
Economic Development Department
Business Development Division
Attn:Ms.Natalie Moore-Business Development Coordinator
1150 South Freeway
Fort Worth,Texas 75104
Please forward an electronic copy of the completed report to: natalie.mooreC@fortworthtexas.gov. You must also submit
two original hard copies of the report and ail attachments to the above stated physical address for proper filing and
review.For assistance call Natalie Moore at(817)217-7680.
About the Project Completion Audit Process
Initially,the City of Fort Worth's Internal Audit Department will review the provided list of all Invoices/Pay Applications for
Total Construction costs, Fort Worth Construction costs,and Fort Worth M/WBE Construction costs (if applicable to your
agreement).City Staff will then select a sample of Invoices/Pay Applications to test, communicate to the Project Contact
which items have been selected for the sample, and request additional documentation for the selected sample only.
(Please see "ADDITIONAL DOCUMENTATION FOR SELECTED SAMPLE" on the reverse side for the list of documentation
required.)If Staff is able to successfully trace the Invoice/Pay Applications to cancelled checks and the general ledger,and
the information on the Invoices/Pay Applications is correct and contains all required information, Staff will utilize the
information from the sample to form a conclusion regarding compliance with the agreement.However,if Staff finds more
than the minimum allowable deviations (this number varies based upon the sample size), Staff will have to expand the
sample size and review more Invoices/Pay Applications. Therefore, it is imperative that Staff receives complete and
accurate information.
Staff will work closely with the Certifying Officer and/or the appropriate representatives of the companies to try to resolve
questions, and differences in reported amounts. Staff will also keep the contact persons apprised of any issues and/or
non-compliant categories as they are determined.
EXI IIBIT"D"
Form of Consent to Collateral Assignment
CONSENT TO ASSIGNMENT
FOR SECURITY PURPOSES OF
ECONOMIC DEVELOPMENT PROGRAM AGREEMENT
BETWEEN CITY OF FORT WORTH AND
TANGER FORT WORTI1, LLC
(CITY SECRETARY CONTRACT NO. )
This CONSENT TO ASSIGNMENT FOR SECURITY PURPOSES OF
ECONOMIC DEVELOPMENT PROGRAM AGREEMENT ("Consent") is entered into
by and between the CITY OF FORT WORTH ("City"), a home rule municipal
corporation organized under the laws of the State of Texas; TANGER FORT WORTI1,
LLC ("Company"), a North Carolina limited liability company; and
("Lender"), a
RECITALS
The City, Company and Lender hereby agree that the following statements are
true and correct and constitute the basis upon which the parties have entered into this
Consent:
A. The City and Company previously entered into that certain Economic
Development Program Agreement, dated as of , 2016 (the "EDPA")
pursuant to which the City agreed to pay Company certain Program Grants in return for
Company's construction of a commercial development consisting mainly of Retail uses
in the City in the vicinity of the southwest corner of Interstate I Iighway 3 5 W and State
Highway 114, as more specifically outlined in the EDPA (the "Development"). The
EDPA is a public document on file in the City Secretary's Office as City Secretary
Contract No
B. Section 11 of the EDPA allows Company to assign its rights and
obligations under the EDPA to a financial institution or other lender for purposes of
granting a security interest in the Development and/or Development Property without the
approval of the City Council, provided that Company and the financial institution or other
lender first execute a written agreement with the City governing the rights and
obligations of the City, Company, and the financial institution or other lender with
respect to such security interest.
C. Company wishes to obtain a loan from Lender in order to [state reason for
loan] (the "Loan"). As security for the Loan, certain agreements between Company and
Lender governing the Loan and dated , including, but not limited
to, that certain Loan Agreement and [list other related documents] (collectively, the
"Loan Documents") require that Company assign, transfer and convey to Lender all of
Company's rights, interest in and to the EDPA until such time as Company has fully
satisfied all duties and obligations set forth in the Goan Documents that are necessary to
discharge Lender's security interest in the EDPA(the"Assignment").
D. The City is willing to consent to this Assignment specifically in
accordance with the terms and conditions of this Consent.
AGREEMENT
1_ The City, Company and Lender hereby agree that the recitals set forth above are
true and correct and form the basis upon which the City has entered into this Consent.
2. The City hereby consents to the Assignment at the request of Company and
Lender solely for the purpose of Lender's securing the Loan pursuant to and in
accordance with the Loan Documents. Notwithstanding such consent, the City does not
adopt, ratify or approve any of the particular provisions of the Loan Documents and,
unless and to the extent specifically acknowledged by the City in this Consent, does not
grant any right or privilege to Lender or any assignee or successor in interest thereto that
is different from or more extensive than any right or privilege granted to Company under
the EDPA.
3. In the event that the City is required by the EDPA to provide any kind of written
notice to Company, including notice of breach or default by Company, the City will also
provide a copy of such written notice to Lender, addressed to the following, or such other
party or address as Lender designates in writing, by certified mail, postage prepaid, or by
hand delivery:
or such other address(es) as Lender may advise City from time to time.
4. If Company fails to cure any default under the EDPA, the City agrees that Lender,
its agents or designees will have an additional thirty (30) calendar days or such greater
time as may specifically be provided under the EDPA to perform any of the obligations
or requirements of Company imposed by the EDPA and that the City will accept
Lender's performance of the same as if Company had performed such obligations or
requirements; provided, however, that in the event such default cannot be cured within
such time, Lender, its agents or designees, will have such additional time as may be
reasonably necessary if within such time period Lender has commenced and is diligently
pursuing the remedies to cure such default, including, without limitation, such time as
may be required for lender to gain possession of Company's interest in the Company
property pursuant to the terms of the Loan Documents.
5. If at any time Lender wishes to exercise any foreclosure rights under the Loan
Documents, before taking any foreclosure action Lender will first provide written notice
to the City of such intent (a "Notice"). Lender will copy Company on the Notice and
deliver such Notice to Company by both first class and certified mail return receipt
concurrent with its transmittal of the Notice to the City and represent in the Notice that it
has done so. Notwithstanding anything to the contrary herein, unless Lender enters into a
written agreement with the City to assume and be bound by all covenants and obligations
of Company under the EDPA, bender understands and agrees that the City will not be
bound to pay Lender any Program Grants pursuant to the EDPA. In addition, Lender
understands and agrees that if Lender wishes to sell all or any portion of the Development
Property or improvements thereon to a third party following Lender's exercise of any
foreclosure rights under the Loan Documents, the City will not be bound to pay such
third party any Program Grants pursuant to the EDPA unless Lender and such third party
comply with the procedure for assignment set forth in Section l i of the EDPA, including
the obligation of such third party to enter into a written agreement with the City to
assume and be bound by all covenants and obligations of Company under the EDPA. In
the event that payment of any Program Grants are withheld by the City pursuant to this
Section 5, any rights to receipt of those Program Grants are hereby waived, but the
number and amount(s) of any such Program Grant(s) will nevertheless be counted for
purposes of calculating the Term of the EDPA, as set forth in Section 3 of the EDPA.
6_ In the event of any conflict between this Consent and the EDPA or any of the
Loan Documents, this Consent will control. In the event of any conflict between this
Consent and any of the Loan Documents, this Consent will control. In the event of any
conflict between the EDPA and any of the Loan Documents,the EDPA will control.
7. This Consent may not be amended or modified except by a written agreement
executed by all of the parties hereto_ Notwithstanding anything to the contrary in the
Loan Documents, an amendment to any of the Loan Documents will not constitute an
amendment to this Consent or the EDPA.
8. Once Company has fully satisfied all duties and obligations set forth in the Loan
Documents that are necessary to discharge Lender's security interest in the EDPA and
such security interest is released, Lender will provide written notice to the City that
Lender has released such security interest, in which case this Consent will automatically
terminate.
9. This Consent will be construed in accordance with the laws of the State of Texas.
Venue for any action arising under the provisions of this Consent will lie in state courts
located in Tarrant County, Texas or in the United States District Court for the Northern
District of Texas, Fort Worth Division.
M Capitalized terms used but not specifically defined in this Consent will have the
meanings ascribed to them in the EDPA.
11. This written instrument contains the entire understanding and agreement between
the City, Company and Lender as to the matters contained herein. Any prior or
contemporaneous oral or written agreement concerning such matters is hereby declared
null and void to the extent in conflict with this Consent.
12. This Consent will be effective on the tater date as of which all parties have
executed it. This Consent may be executed in any number of duplicate originals and each
duplicate original will be deemed to be an original. The failure of any party hereto to
execute this Consent, or any counterpart hereof, will not relieve the other signatories
from their obligations from their obligations hereunder.
EXECUTED as of the last date indicated below:
[SIGNATURES IMMEDIATELY FOLLOW ON NEXT PAGE]
CITY OF FORT WORTH: APPROVED AS TO FORM
AND LEGALITY:
By: By:
Name: Name:
Assistant City Manager Assistant City Attorney
Date: M&C: none required
TANGERFORT WORTH,
LLC,a North Carolina limited
liability company:
By:
Name:
Title:
Date:
4844-0387-1541 •.2 48601-2
M&C Review Page l of 3
Official site of the City of Fort Worth.Texas
CITY COUNCIL AGENDA FoRTWRTH
COUNCIL ACTION: Approved on 511912015
DATE: 5/19/2015 REFERENCE G_18485 LOG NAME: 17ED CHAMPIONSEDPA2
NO..
CODE: G TYPE: NOW PUBLIC NO
CONSENT HEARING:
SUBJECT: Authorize Execution of an Economic Development Program Agreement with Tanger
Devco, LLC or Affiliates for the Development of an Outlet Mall to be Located at the
Southwest Corner of Interstate 35 and Highway 114(COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council:
1, Authorize the City Manager to execute an Economic Development Program Agreement with
Tanger Devco, LLC or Affiliates related to the development of an outlet mall to be located at the
southwest corner of Interstate 35 and Highway 114; and
2. Find that the terms and conditions of the Agreement, as outlined below, constitute a custom-
designed Economic Development Program, as recommended by the 2015 Comprehensive Plan and
authorized by Chapter 380 of the Texas Local Government Code.
DISCUSSION:
Tanger Devco, LLC (Developer) or affiliates thereof, will construct a 400,000 square foot retail
development project in two phases. The project will be located at the southwest corner of Interstate
35 and Highway 114. The proposed project is estimated to have a development cost of$80
million. In return, the City will pay the Developer 15 annual Economic Development Program grants,
as authorized by Chapter 380, Texas Local Government Code. The maximum annual program grant
will be equal to 85 percent of the City's $0.01 sales tax attributable to the development.
The grants will be tied to the amount of project investment made by the Developer and to the
satisfaction of other project and spending requirements. The minimum investment levels, maximum
incentive schedule and required improvements for each phase are summarized as follows:
Phase I:
- Minimum investment of$70 million in total development costs (exclusive of land acquisition costs)
including public infrastructure improvements and amenities;
- Minimum 350,400 square feet retail space; and
- Must be complete by December 31, 2018.
Failure to meet the Phase i minimum investment is an event of default and will result in immediate
termination of the Agreement. Additionally, if a combined $100 million is not spent between Tanger
Devco, LLC and Roanoke 351114 Partners, LP the Agreement will terminate.
Phase It:
- Minimum additional investment of$10 million to achieve an aggregate total development costs of
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IVAOGI, Neview
Page 2 of 3
$80 million (exclusive of land acquisition costs) including public infrastructure improvements and
amenities;
- Minimum 50,000 square feet additional retail space; and
- Must be complete by December 31, 2021.
In exchange for achieving the specified levels of investment, the Developer will be eligible to receive
up to 15 annual Economic Development Grants equal to 85 percent of the incremental City$4.01
sales tax attributable to the development.
Utilization of Fort Worth Companies and Fort Worth Certified MfWBE Companies Real
Pro a Im rovements :
The Developer is required to spend 30 percent of hard construction costs with contractors that are
Fort Worth companies. The Developer is also required to spend 25 percent of hard construction
costs with contractors that are Fort Worth certified Minority/Women-Owned Business Enterprise
(MIWBE) companies (with an understanding that dollars spent with Fort Worth certified M/WBE
companies will also count as dollars spent with Fort Worth companies.)
Employment Commitments:
The Developer will employ a minimum of 354 full-time equivalent employees on the property through
its contractors, tenants and affiliated company employees within 365 calendar days from the
completion of Phase 1.
Utilization of Fort Worth Companies and Fort Worth Certified MIWBE Com artier (Supply &
Services):
The Developer will spend a minimum of$50,040.00 of annual discretionary service and supply
expenditures with Fort Worth companies beginning in the second year following the completion of
Phase 1. The Developer will spend a minimum of$25,000.04 of annual discretionary service and
supply expenditures with Fort Worth certified MfWBE companies beginning in the second year
following the completion of Phase I (with an understanding that dollars spent with Fort Worth certified
MNVBE companies will also count as dollars spent with Fort Worth companies.)
Supply and service expenditures shall include all expenditures, whether under written contract or ad
hoc purchases, other than for electric, gas and water utilities related to the operation and
maintenance of the project, including amounts paid to eligible companies or contractors for
personnel.
City Commitments:
All grant payments are based on and shall not exceed 85 percent of the City's $0.01 sales tax
attributable to the development for a 15-year term up to an overall incentive cap as outlined below.
Phase Incentive Cap(Gross)
Phase 1 $22,511,550
Phase li $24,971,368
Developer's ability to earn the maximum 85 percent grant each year will be based on the extent to
which Developer meets the various spending commitments outlined above, each of will be weighted
in accordance with the following percentages:
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M&C Review Page 3 of 3
Developer Commitment Weighted Percentage
Minimum Project Investment 50 Percent
Fort Worth Construction Spending 11 25 Percent Year-1,10 Percent Year-2-15
Fort Worth certified M/WBE Construction Spending 25 Percent Year-1,
10 Percent Year-2-15
Fort Worth Supply and Service Spending 25 Percent Year-2-15
Fort Worth certified M1WBE Supply and Service Spending 25 Percent Year-2-15
Total 100 Percent
This protect is located in COUNCIL DISTRICT 7, Mapsco 643P, 643Q, 643S, 643T and 643U.
FISCAL INFORMATIONXERTIFICATION:
The Financial Management Services Director certifies that if approved, the components of this
Agreement will be incorporated into our long-term financial forecast.
TO Fund/Account/Centers FROM FundfAccount/Centers
Submitted for City Manager's Off_ice_by: David Cooke (6116)
Originating_Department Head: Jay Chapa (5804)
Additional information Contact: Jay Chapa (5804)
ATTACHMENTS
Champions Circle Map,pdf
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=21084&councildate=511912015 $11712016
CERTIFICATE OF INTERESTED PARTIES FORM 1295
J.of 1
Complete Nos.1-4 and 6 if there are interested parties. OFFICE USE ONLY
Complete Nos,1,2,3,5,and 6 if there are no interested parties. CERTIFICATION OF FILING
1 Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number:
of business. X016-33044
Tanger Fort Worth,LLC
Fort Worth,TX United States Date Filed:
2 Name of governmental entity or state agency that is a party to the contract for which the farm is 03130!2016
being filed.
City of Fort Worth,Texas Date Acknowledged:
9Ihz ( / �-
3 Provide the identification number used by the governmental entity or state agency to track or identify the contract,and provide a
description of the goods or services to be provided under the contract.
M&C G-18485
Chapter 380 Economic Development Agreement for a commercial development consisting primarily of retail uses.
4 Nature of interest(check applicable)
Name of Interested Party City,State, Country(place of business)
Controlling Intermediary
Tanger Devco, LLC Greensboro, NC United States X
Tanger Properties Limited Partnership Greensboro, NC United States X
Pettit,David Fort Worth,TX United States X
Hunter,Barton Old Greenwich, CT United States X
Mann,Tommy Dallas,TX United States x
Hoffmann, Laura Dallas, TX United States X
5 Check only if there is NO Interested Party. ❑
fi AFFIDAVIT I swear,or affirm,under penalty of perjury,that the above disclosure Is true and correct.
TANGER FORT WORTH.LLC,
a North Carolina limited liability company
By: Tanger Devco, LLC,
a North Carolina limited liability company,
+t5`idlarrag _ ( By:
KIMBERLY W. HERNANDEZ Signature❑ author ed agent of contracting business entity
Notary Public-North Carolina T�301�1a5 • M onough
AF x NOTARY 4!�Wfig6Ul-i'`9OVE Vice resident
Sworn to and subscribed before me,by the said V this the �} day of�_L�
24_V4L_—,to certify which,witness my hand and seal of office.
Signature It facer administering oath Printed name of❑4er administering oath Title of officer k ministering oath
Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.312