HomeMy WebLinkAboutContract 48534-A2 STATE OF TEXAS § CITY SECRETARY
CONTRACT N0.
COUNTY OF TARRANT §
AMENDMENT NO. 2 TO
CITY SECRETARY CONTRACT NO. 48534
TAX ABATEMENT AGREEMENT BETWEEN
CITY OF FORT WORTH AND
PARKER PRODUCTS, LLC
This AMENDMENT NO. 2 TO CITY SECRETARY CONTRACT NO.
48535 ("Amendment") is entered into by and between the CITY OF FORT WORTH
(the "City"), a home rule municipality organized under he laws of the State of Texas,
and PARKER PRODUCTS,LLC ("Company"), a Texas limited liability company.
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
Amendment:
A. The City and Parker Products, Inc. previously entered into that certain Tax
Abatement Agreement on file in the City Secretary's Office as City Secretary Contract
No. 48534, as previously amended by City Secretary Contract No. 48534-A1
(collectively, the "Agreement"). Under the Agreement, the City agreed to abate certain
ad valorem real property taxes on improvements proposed to be constructed on property
owned by Parker Products, Inc. in the vicinity of Northwest Loop 820 and Strawn Lane
(identified in Exhibit "A" of the Agreement and defined as the "Land") and certain ad
valorem taxes on business personal property located on the Land in return for the
commitment by Parker Products, Inc. to construct a facility on the Land of at least 85,000
square feet for corporate office, warehouse, research and development, and
manufacturing purposes (the "Required Improvements"), as more specifically outlined
in the Agreement.
B. On September 25, 2017, Parker Products, Inc. filed a Certificate of
Conversion with Texas Secretary of State converting itself to a newly-formed limited
liability company named Parker Products, LLC pursuant to an Agreement and Plan of
Conversion of even date, and pursuant to City Secretary Contract No. 48534-A1, the City
recognized Parker Products, LLC as "Company" under the Agreement for all purposes.
C. The Agreement requires that Company complete all Required
red
ed
RFC�IV�j of the date he City has issImprovements by March 1, ued a temporary or final certificate of o. The Required Improvements are ccupancy upancy olrta l
17
A1,132 2
C11yprF0R?INQ ge I
C/TySCCRETgR Amendment No.2 to CSC No.48534 OFFICIAL RECORD
Tax Abatement Agreement between City of Fort Werth and Parker Products,LLC CITY SECRETARY
FT.WORTfI,TX
occupiable space within the Required Improvements. Failure to complete the Required
Improvements by the Completion Deadline gives the City the right, but not the
obligation, to terminate the Agreement. Due to unanticipated delays in completing this
project, a temporary certificate of occupancy was not issued for the Required
Improvements until March 22, 2018.
D. In order to keep the Agreement in effect, and so that Company will
continue to be eligible to receive the tax abatement originally offered by the City as
incentive for Company to construct the Required Improvements and to locate its business
operations in the City, Company has requested that the City consent to an amendment to
the Agreement to extend the Completion Deadline for the Required Improvements.
Because of Company's commitment to the City and its good faith effort to meet all
requirements set forth in the Agreement, including continuing with work on the Required
Improvements even after issuance of the temporary certificate of occupancy (a final
certificate of occupancy was issued May 17, 2018), and in return for the economic
benefits that the City will receive on account of Company's business development in the
City,the City is willing to forgo its right to terminate the Agreement and, instead, consent
to the amendment requested by Company, solely on the terms and conditions set forth
herein.
E. Under the Agreement, Company is not entitled to receive a tax abatement
until the 2019 tax year. Accordingly, this Amendment is authorized under § 312.208 of
the Texas Tax Code because (i) the provisions of this Amendment could have been
included in the original Agreement and (ii) this Amendment has been entered into
following the same procedure in which the Agreement was approved and executed.
NOW, THEREFORE, the City and Company, for and in consideration of the
terms and conditions set forth herein, do hereby contract, covenant and agree as follows:
1. Section 2 of the Agreement (Definitions) is hereby amended to change the
definitions of the following terms, as follows:
Completion Deadline means June 1, 2018.
2. Capitalized terms used but not identified in this Amendment shall have the same
meanings assigned to them in the Agreement.
3. Except as otherwise specifically amended in this Amendment, the Agreement shall
remain in full force and effect.
Page 2
Amendment No.2 to CSC No.48534
Tax Abatement Agreement between City of Fort Worth and Parker Products,LLC
4. This Amendment contains the final written expression of the City and Company
with respect to the subject matter hereof. This Amendment may be executed in multiple
counterparts, each of which shall be considered an original, but all of which shall
constitute one instrument.
EXECUTED as of the last date indicated below:
CITY OF FORT WORTH:
4
By: a-�
S an Alanis
Assistant City Manager
Date: 5. 12 ( I t q
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Susan
Alanis, Assistant City Manager of the CITY OF FORT WORTH, a municipal
corporation organized under the laws of the State of Texas, known to me to be the person
and officer whose name is subscribed to the foregoing instrument, and acknowledged to me
that the same was the act of the CITY OF FORT WORTH, that she was duly authorized
to perform the same by appropriate resolution of the City Council of the City of Fort Worth
and that he executed the same as the act of the CITY OF FORT WORTH for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVgN UNDER MY HAND AND SEAL OF OFFICE this 1 day of
2018.
EE
No Public in and for MAP,IA S.SANCHEZthe State of TexasMy Notary 0#2256490xpires December•19,2021
�5 Sa�I��z
Notary's Printed Name
Page 3 OFFICIAL RECORD
Amendment No.2 to CSC No.48534 CITY SECRETARY
Tax Abatement Agreement between City of Fort Worth and Parker Products,LLC
FT,WORTHo TX
APPROVED AS TO FORM AND LEGALITY:
By• - !4�, F0RT�,I,o
Peter Vaky
Deputy City Attorney _ S
U`
M&C: 2
Form 1295: Z 0/�1-- 3 r7 7 q �XAS
CONTRACT COMPLIANCE MANAGER:
By signing below, I hereby acknowledge that I
am the person responsible for the monitoring
and administration of this contract, including
ensuring all performance and reporting
requirements:
By. &J _�
N e o ty Employee:
Title: FORTS
O. 0?�.
U :S
Attesled by• �XAS
ary J. Kay r, City Secretary
Page 4 OFFICIAL RECORD
Amendment No.2 to CSC No.48534 CITY SECRETARY
Tax Abatement Agreement between City of Fort Worth and Parker Products,LLC
FT.WORTH, TX
PARKER PRODUCTS, LLC, a Texas
limited liability company:
By: t��• —Name.-
Title:
ame:Title:
Date: -X
STATE OF
COUNTY OF
BEFORE ME,the unde igned authority, on this day personally appeared
0 � kk2LC �_( reser)(? of PARKER PRODUCTS, LLC, a Texas
limited liability company, known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that s/he executed the same for the
purposes and consideration therein expressed, in the capacity therein stated and as the act
and deed of PARKER PRODUCTS,LLC.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this
O_-r— day of J, kA. j , 2018.
I U ZL
Notary Public i and for
the State of
\`Nqulni�b�gi
0���R PREST
Notary's Prited Name
OF S'y ••
Page 5 OFFICIAL RECORD
Amendment No.2 to CSC No.48534 CITY SECRETARY
Tax Abatement Agreement between City of Fort Worth and Parker Products,LLC
FT.WORTH,TX
M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FoR`�H
COUNCIL ACTION: Approved on 8/14/2018
DATE: 8/14/2018 REFERENCE NO.: **C-28789 LOG NAME: 17ED AMEND2
PARKER
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Amendment to Tax Abatement Agreement, City Secretary Contract No. 48534
with Parker Products, Inc., to Extend the Deadline for Completion of a Corporate Office and
Operations Facility to be Located at Northwest Loop 820 and Strawn Lane (COUNCIL
DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute an Amendment to Tax
Abatement Agreement, City Secretary Contract No. 48534 with Parker Products, Inc. to extend the
deadline for completion of a corporate office and operations facility to be located at Northwest Loop
820 and Strawn Lane from March 1, 2018 to June 1, 2018.
DISCUSSION:
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 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 percent of all jobs must be held by Fort Worth residents and at least 25 percent 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 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 to June 1, 2018. This request is
acceptable to City staff.
This project is located in COUNCIL DISTRICT 7.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that approval of this Agreement will have no material effect on the
Fiscal Year 2018 Budget. While no current year impact is anticipated from this action, any effect on
expenditures and revenues will be budgeted in future Fiscal Years and will be included in the long-
term financial forecast.
http://apps.cfwnet.org/council_packet/mc review.asp?ID=26087&councildate=8/14/2018 8/21/2018
r �
M&C Review Page 2 of 2
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year Chartfieid 2
FROM'
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year Chartfield 2
Submitted for City Manager's Office by: Susan Alanis (5804)
Originating Department Head: Robert Sturns (2663)
Additional Information Contact: Marlon Goff(2680)
ATTACHMENTS
Parker Products LLC 1295.pdf
http://apps.cfwnet.org/council_packet/mc review.asp?ID=26087&councildate=8/14/2018 8/21/2018
C-gm�sl
CERTIFICATE OF INTERESTED PARTIES FORM 1295
lofi
Complete Nos.i-4 and 6 if there are interested parties. OFFICE USE ONLY
Compete Nos.1,2,3,51 and 61f there are no interested parties. CERTIFICATION OF FILING
I Name of business entity filing form,and the city,state and country of the business entity's place ertificate Number.
of business. 1,12, 018-377453
Parker Products,LLC
Fort Worth,TX,TX United States Date Filed:
2 Name of governmental entity or state agency that is a party to the contract for which the form is 07(1012018
being filed.
City of Fort Worth Date Ackno ged•
r7 N'
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 services,goods,or other property to be provided under the contract.
ED Parker
Economic Development Agreement
Nature of interest
4
Name of Interested Party City,State,Country(place of business) (check applicable)
Controlling Intermediary
5 Check only if there is NO Interested Party. ❑
X
6 UNSWORN DECLARATION ``•%. ff
My name is /1'.e.0— 1-1 and my date of birth Is
My address is 1?A54bb PCkw-o �s . (�'pc-\ yJo.c-k'-, �-r-4 ''16.\$.4 aT4�io�wi
(•tom) (CRY) (fie) (zip oods) (CoufM
1 declare under penalty of perjury that the foregoing is true and correct
Executed in �(�e s Q.v. C.pu�r 3r�l CptyKy,State of'Te44-1L1-1Lk ,on the at day of 3e-.Ny .20 VW .
(mom) (Yw)
SW MWM of of OOr*acd%btalineea er*y
Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.6711