HomeMy WebLinkAboutIR 10152 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10152
To the Mayor and Members of the City Council June 5, 2018
Page 1 of 2
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SUBJECT: PROPOSED ENHANCED COMMUNITY FACILITIES AGREEMENT
rrn WITH AMERICAN AIRLINES FOR THE HEADQUARTERS AND
ROAD IMPROVEMENTS ALONG TRINITY BOULEVARD,
AMERICAN BOULEVARD AND US HIGHWAY 360
On November 10, 2015 the City Council adopted Ordinance No. 21968-11-2015 (M&C G-18605)
designating Tax Abatement Reinvestment Zone No. 91 , City of Fort Worth, Texas, and approved
execution of a Tax Abatement Agreement with American Airlines, Inc. (Company), and the
Dallas/Fort Worth International Airport Board for development of a corporate headquarters facility
(the "Headquarters Project") on property at Dallas-Fort Worth International Airport located within
the City of Fort Worth (City Secretary Contract No. 47341, as amended). Under the Tax
Abatement Agreement, the City has agreed to abate a maximum of between 75 to 90 percent of
the incremental real and personal property taxes from the site for a period of one year provided
that Company expended at least $200 million in real property improvements by December 31 ,
2019 on property in the reinvestment zone and consider up to $2,000,000.00 for enhanced
community facility funds for public infrastructure projects associated with the Headquarters
Project.
As part of the project the Company anticipated expending approximately $1 ,650,000.00 for the
construction of road improvements including deceleration lanes, turn lanes, signaling, sidewalks
and street light improvements on Trinity Boulevard, American Boulevard and US Highway 360
Frontage Roads ("Public Infrastructure"). The Company has agreed to provide at its expense, all
necessary rights-of-way and easements across the property controlled by the Company as
necessary to construct the Public Infrastructure. On June 13, 2017, the City Council authorized
execution of an Enhanced Community Facilities Agreement ("ECFA") under which the City would
reimburse Company up to $950,000.00 of construction costs.
The Company has now proposed to expand the scope of the Public Infrastructure project to
include widened roadways and turn lanes on Trinity Boulevard and Southbound US Highway 360
Frontage Road to accommodate the planned additional employee traffic at a total approximate
cost of $7,000,000.00. It is anticipated that the Regional Transportation Council of the North
Texas Council of Governments will receive a recommendation to authorize funding in support of
this project. As a result, the Economic Development Department is recommending cancelling the
2017 ECFA, which never was executed, and approving a new ECFA increasing the City's
participation in an amount not to exceed $1 ,700,000.00 to satisfy the required local match of
twenty percent (20%). The Public Infrastructure must still be completed by December 31 , 2019,
subject to extensions due to delays by weather, force majeure, and City and other governmental
changes or delays in review procedure, approvals, or inspections.
If the Public Infrastructure is not completed by then, the Company will be in default under the
ECFA, and the City will then have the right to utilize a financial guarantee provided by Company
in accordance with the City's CFA Policy to complete the Public Infrastructure. If the
Headquarters Project is not completed by the established deadline under the Tax Abatement
Agreement, the Company will still be required to complete the Public Infrastructure in accordance
with the ECFA, but it will not be entitled to any portion of the $1 ,700,000.00 reimbursement.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10152
To the Mayor and Members of the City Council June 5, 2018
Page 2 of 2
RL
i7 Y
SUBJECT: PROPOSED ENHANCED COMMUNITY FACILITIES AGREEMENT
rrn WITH AMERICAN AIRLINES FOR THE HEADQUARTERS AND
ROAD IMPROVEMENTS ALONG TRINITY BOULEVARD,
AMERICAN BOULEVARD AND US HIGHWAY 360
Staff will place an M&C for City Council consideration on the Enhanced Community Facilities
Agreement on June 12tH
If you have any questions concerning this information, please contact Robert Sturns, Economic
Development Director at 817-392-2663 or robert.sturns@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS