HomeMy WebLinkAboutIR 10169 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10169
To the Mayor and Members of the City Council August 7, 2018
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*a SUBJECT: AMENDMENT NO. 2 TO TAX ABATEMENT AGREEMENT WITH
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PARKER PRODUCTS, INC. TO EXTEND THE COMPLETION
DEADLINE
On December 13, 2016 (M&C C-28050) the City Council authorized the execution of a Tax
Abatement Agreement (City Secretary Contract No. 48534) with Parker Products, Inc. (Company)
for the construction of an 85,000 square foot corporate office and operations facility to be located
at Northwest Loop 820 and Strawn Lane in the Lone Star Business Park. On December 5, 2017
(M&C C-28487) the City Council authorized an amendment to the Tax Abatement Agreement to
allow for an extension of the completion deadline at the request of the company.
The Agreement, as amended, required the Company to complete all required construction
improvements and obtain a temporary certificate of occupancy by March 1 , 2018.
Per the Agreement, the Company must also invest at least $15 million in real property
improvements and $2 million in business personal property on the site by March 1, 2018. The
Company committed to maintain a minimum of 100 full-time jobs and create 30 full-time jobs at
the site by December 31 , 2018. A minimum of 60% of all jobs must be held by Fort Worth
residents and at least 25% of those must be held by Fort Worth Central City residents.
All of the required construction improvements at the facility have been completed. However, due
to unforeseen delays in the Company's completion of the project, the temporary certificate of
occupancy was not issued until March 22, 2018. Failure to complete this requirement gives the
City the right, but not the obligation, to terminate the Agreement. The Company acted in good
faith to continue the project after the deadline and received the final certificate of occupancy on
May 17, 2018. In order to receive its tax abatement, as anticipated by both Company and the
City, the Company has requested that the City consider amending the Agreement to extend the
completion deadline. This request is acceptable to City staff.
Staff will place an M&C for City Council consideration on the August 14, 2018 agenda,
recommending that the completion deadline under the Agreement be revised to June 1, 2018.
If you have any questions concerning this information, please contact Robert Sturns, Economic
Development Director at 817-212-2663 or robert.sturns@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS