HomeMy WebLinkAboutContract 33828 CITE' SECRETARY'
CONTRACT NO.
STATE OF TEXAS §
COUNTY OF TARRANT §
TAX ABATEMENT AGREEMENT
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and
between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal
corporation organized under the laws of the State of Texas and acting by and through Dale
Fisseler, its duly authorized Assistant City Manager, and CUNA MUTUAL INSURANCE
SOCIETY ("CUNA"), a mutual insurance company acting by and through Jeff Post, its duly
authorized President and Chief Executive Officer.
The City Council of the City of Fort Worth ("City Council")hereby finds and the City and
CUNA hereby agree that the following statements are true and correct and constitute the basis
upon which the City and CUNA have entered into this Agreement:
A. On June 15, 2004, the City Council adopted Resolution No. 3092, stating that the
City elects to be eligible to participate in tax abatement and including guidelines and criteria
governing tax abatement agreements entered into between the City and various third parties,
entitled "Tax Abatement Policy Statement for Qualifying Development Projects" (the "Policy"),
which is attached hereto as Exhibit "A" and hereby made a part of this Agreement for all
purposes.
B. The Policy contains appropriate guidelines and criteria governing tax abatement
agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax Code,
as amended (the"Code").
C. On May 23, 2006, the City Council adopted Ordinance No. 16959-05-2006 (the
"Ordinance") establishing Tax Abatement Reinvestment Zone No. 54, City of Fort Worth, Texas
(the "Zone").
D. Contingent on receipt of the tax abatement set forth herein, CUNA wishes to
establish a financial services office and call center in the City and, for such purpose, has leased
certain real property located entirely within the Zone and that is more particularly described in
Exhibit "B", attached hereto and hereby made a part of this Agreement for all purposes (the
"Land"). The Land is owned by Centerport Properties, Inc. ("Centreport"). A copy of the
material terms and conditions set forth in the lease that Centreport and CUNA have executed or
will execute is attached hereto as Exhibit "C". The actual lease document containing the terms
and conditions set forth in Exhibit"C" shall be referred to in this Agreement as the"Lease".
E. On June 13, 2006, the City Council approved execution of a tax abatement
agreement with Centreport under which the City has agreed to abate a certain percentage of
Centreport's real property taxes on the Land, as more particularly described in such tax abatement
agreement (the "Centreport Abatement"). The Centreport Abatement, once executed, will be a
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Tax Abatement Agreement between 03-07-06 P05 :01 I N
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public document on file in the City Secretary's Office and will be incorporated herein by reference
for all purposes.
F. CUNA plans to cause to be constructed the Required Improvements, as defined in
Section 1.1 of this Agreement and in accordance with the Lease, on the Land for the use as and
operation of a financial services offices and call center(the"Project").
G. On May 10, 2006 CUNA submitted an application for tax abatement to the City
concerning the contemplated use of the Land (the "Application"), attached hereto as Exhibit "D"
and hereby made a part of this Agreement for all purposes.
H. The contemplated use of the Land, the Required Improvements, as defined in
Section 1.1, and the terms of this Agreement are consistent with encouraging development of the
Zone and generating economic development and increased employment opportunities in the City,
in accordance with the purposes for creation of the Zone, and are in compliance with the Policy
Statement, the Ordinance and other applicable laws, ordinances, rules and regulations.
L The terms of this Agreement, and the Land and Required Improvements, satisfy the
eligibility criteria of the Policy.
J. Written notice that the City intends to enter into this Agreement, along with a copy
of this Agreement, has been furnished in the manner prescribed by the Code to the presiding
officers of the governing bodies of each of the taxing units in which the Land is located.
NOW, THEREFORE, the City and CUNA, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
1. CUNA'S COVENANTS.
1.1. Real Property Improvements.
In accordance with the Lease, CUNA shall cause to be constructed, certain
improvements on the Land consisting of a financial services office and call center of (i)
approximately 108,000 square feet in size and (ii) having a minimum aggregate
Construction Cost upon completion of $10,000,000 (collectively, the "Required
Improvements") and shall cause at least $2,000,000 worth of taxable new tangible
personal property to be placed on the Land. The kind, number and location of the Required
Improvements are more particularly described in Exhibit "E", attached hereto and hereby
made a part of this Agreement for all purposes. Minor variations in the Required
Improvements from the description provided in the Application for Tax Abatement shall
not constitute an Event of Default, as defined in Section 4.1, provided that the conditions in
the first sentence of this Section 1.1 and the completion deadline set forth in Section 1.2 are
met. For purposes of this Agreement, "Construction Costs" shall mean site development
costs, actual construction costs, including contractor fees, the costs of supplies and
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Tax Abatement Agreement between
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materials, engineering fees, architectural fees and other professional, development and
permitting fees expended directly in connection with the Project.
1.2. Completion Date of Required Improvements and Installation of Tangible
Personal Property.
The Required Improvements shall be deemed complete on the date as of which the
City has issued a final certificate of occupancy for all Required Improvements (the
"Completion Date"). CUNA covenants and agrees that the Completion Date shall occur
by December 31, 2007 and that at least $2,000,000 worth of taxable new tangible personal
property will be placed on the Land by December 31, 2007, unless delayed because of
Force Majeure, in which case the December 31, 2007 date shall be extended by the number
of days comprising the specific Force Majeure (the "Completion Deadline"). For
purposes of this Agreement, "Force Majeure" shall mean an event beyond CUNA's
reasonable control, including, without limitation, acts of God, fires, strikes, national
disasters, wars (declared or undeclared), terrorism, riots, material or labor restrictions, and
unreasonable delays by the City in issuing any permits with respect to the Required
Improvements or inspecting any of the Required Improvements (taking into account the
City's then-current workload with respect to the issuance of permits or the conducting of
inspections), but shall not include construction delays caused due to purely financial
matters involving CUNA, such as, without limitation, delays in the obtaining of adequate
financing.
1.3. Use of Land.
CUNA covenants that the Required Improvements shall be constructed and the
Land shall be used in accordance with the description of the Project set forth in Exhibit
"E". In addition, CUNA covenants that throughout the Term, the Required
Improvements shall be operated and maintained for the purposes set forth in this
Agreement and in a manner that is consistent with the general purposes of encouraging
development or redevelopment of the Zone.
2. ABATEMENT AMOUNTS,TERMS AND CONDITIONS.
Provided that the Lease is in full force and effect at the time, the City will grant to CUNA
annual property tax abatements on the leasehold interest, if any, in the Land and any improvements
thereon, and on taxable tangible personal property owned by CUNA and located on the Land for a
period of ten (10) years, as specifically provided in this Section 2 and subject to and in accordance
with this Agreement (collectively, the "Abatement"). The actual amount of the Abatement
granted under this Agreement shall be based upon the increase in value of the leasehold interest, if
any, in the Land and any improvements thereon, and the increase in value of taxable tangible
personal property owned by CUNA and located on the Land over their respective values as of
January 1, 2006, which is the year in which this Agreement was entered into, and upon
attainment by CUNA of certain employment, contracting and spending benchmarks set forth in
this Section 2.
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Tax Abatement Agreement between
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2.1. Amount of Abatement.
Subject to Sections 2.2 and 4 of this Agreement, during each year of the Term, the
Abatement granted hereunder may range up to a maximum of seventy-five percent (75%)
of the increased value of the leasehold interest, if any, in the Land and any improvements
thereon, and up to a maximum of seventy-five percent (75%) of the increased value of
taxable tangible personal property owned by CUNA and located on the Land, and shall
be calculated as follows:
2.1.1. Abatement Based on Construction and Personal Property
Expenditures (10%).
CUNA shall receive a ten percent (10%) Abatement in each year of the
Abatement Term, as defined in Section 2.5, if by the Completion Deadline (i) at
least $10,000,000 in Construction Costs are expended on the Required
Improvements and (ii) at least $2,000,000 in tangible personal property owned by
CUNA is located on the Land. If by the Completion Deadline less than
$10,000,000 in Construction Costs have been expended on the Required
Improvements or less than $2,000,000 in tangible personal property owned by
CUNA is located on the Land, not only will CUNA be ineligible to receive the ten
percent (10%) Abatement under this Section 2.1.1, but an Event of Default, as
defined and addressed in Section 4, shall also occur.
2.1.2. Abatement Based on Construction Spending with Fort Worth
Companies (10%).
CUNA shall receive a ten percent (10%) Abatement in each year of the
Abatement Term, as defined in Section 2.5, if by the Completion Deadline at least
(i) 25% of all Construction Costs for the Required Improvements, regardless of
the total amount of such Construction Costs, or (ii) $2,500,000 in Construction
Costs for the Required Improvements, whichever amount is greater, are spent
with Fort Worth Companies. For purposes of this Agreement, "Fort Worth
Company" means a business that has a principal office located within the
corporate limits of the City from which the service claimed is provided.
2.1.3. Abatement Based on Construction Spending with Fort Worth
Certified M/WBE Companies (10%)
CUNA shall receive a ten percent (10%) Abatement in each year of the
Abatement Term, as defined in Section 2.5, if by the Completion Deadline at least
(i) 25% of all Construction Costs for the Required Improvements, regardless of
the total amount of such Construction Costs, or (ii) $2,500,000 in Construction
Costs for the Required Improvements, whichever amount is greater, are spent
with Fort Worth Certified M/WBE Companies. For purposes of this Agreement,
"Fort Worth Certified M/WBE Company" means a business that (i) has
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Tax Abatement Agreement between
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received certification as either a minority-owned or woman-owned business
enterprise by the North Texas Central Regional Certification Agency (NCTRCA)
or the Texas Department of Transportation, highway Division, and (ii) has a
principal office located within the corporate limits of the City from which the
service claimed is provided. Dollars spent with a Fort Worth Certified M/WBE
Company shall also count as dollars spent with a Fort Worth Company for
purposes of measuring CUNA's compliance with the commitment set forth in
Section 2.1.2.
2.1.4. Abatement Based on Overall Number of Full-time Jobs (5%).
CUNA will be eligible to receive a percentage of the Abatement available
under this Agreement if CUNA meets the Base Employment Commitment, as
more specifically set forth in this Section 2.1.4. The "Base Employment
Commitment" is defined in Section 2.1.4.1 for purposes of the first year of the
Abatement Term and is defined in Section 2.1.4.2 for purposes of each year
thereafter.
2.1.4.1. First Year of Abatement Term.
CUNA shall receive a five percent (5%) Abatement in the
first year of the Abatement Term, as defined in Section 2.5, if in the
previous calendar year at least 125 Full-time Jobs were provided and filled
on the Land. For purposes of this Agreement, a "Full-time Job" means a
job filled by one (1) individual for a period of not less than forty (40)
hours per week.
2.1.4.2. Subsequent Years of Abatement Term.
CUNA shall receive a five percent (5%) Abatement in a
given year of the Abatement Term, as defined in Section 2.5, other than
the first year of the Abatement Term, if in the previous calendar year at
least 400 Full-time Jobs were provided and filled on the Land.
2.1.5. Abatement Based on Number of Full-time Jobs with Fort Worth
Residents (Up to 20%).
CUNA will be eligible to receive a percentage of Abatement available
under this Agreement if CUNA meets the Fort Worth Employment Commitment,
as more specifically set forth in this Section 2.1.5. The "Fort Worth
Employment Commitment" is defined in Section 2.1.5.1 for purposes of the first
year of the Abatement Term and is defined in Section 2.1.5.2 for purposes of each
year thereafter. Determination of compliance with the Fort Worth Employment
Commitment shall be based on CUNA's employment data on August 1 of each
year during the Compliance Auditing Term, as defined in Section 2.5.
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Tax Abatement Agreement between
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2.1.5.1. First Year of Abatement Term.
CUNA shall receive a twenty percent (20%) Abatement in
the first year of the Abatement Term, as defined in Section 2.5, if in the
previous calendar year at least (i) twenty-five percent (25%) of all Full-
time Jobs provided and filled on the Land, regardless of the total number
of such Full-time Jobs, or (ii) 31 Full-time Jobs provided and filled on the
Land, whichever number is greater, were held by individuals residing at a
location within the corporate limits of the City. If CUNA fails to meet the
Fort Worth Employment Commitment in that year, and such failure is by
less than twenty (20) Full-time Jobs, then CUNA shall receive an
Abatement in the following year equal to twenty percent (20%) minus one
percent (1%) for each Full-time Job by which the Fort Worth Employment
Commitment was not met. If CUNA fails to meet the Fort Worth
Employment Commitment in that year, and such failure is by twenty (20)
Full-time Jobs or more, then CUNA shall not be eligible to receive any
portion of the twenty percent (20%) Abatement available under this
Section 2.1.5.1.
2.1.5.2. Subsequent Years of Abatement Term.
CUNA shall receive a twenty percent (20%) Abatement in
a given year of the Abatement Term, as defined in Section 2.5, other than
the first year of the Abatement Term, if in the previous calendar year at
least (i) twenty-five percent (25%) of all Full-time Jobs provided and
filled on the Land, regardless of the total number of such Full-time Jobs,
or (ii) 100 Full-time Jobs provided and filled on the Land, whichever
number is greater, were held by individuals residing at a location within
the corporate limits of the City. If CUNA fails to meet the Fort Worth
Employment Commitment in a given year, and such failure is by less than
twenty (20) Full-time Jobs, then CUNA shall receive an Abatement in the
following year equal to twenty percent (20%) minus one percent (1%) for
each Full-time Job by which the Fort Worth Employment Commitment
was not met. If CUNA fails to meet the Fort Worth Employment
Commitment in a given year, and such failure is by twenty (20) Full-time
Jobs or more, then CUNA shall not be eligible to receive any portion of
the twenty percent (20%) Abatement available under this Section 2.1.5.2.
2.1.6. Abatement Based on Number of Full-time Jobs with Central City
Residents (Up to 10%).
CUNA will be eligible to receive a percentage of Abatement available
under this Agreement if CUNA meets the Central City Employment
Commitment, as more specifically set forth in this Section 2.1.6. The "Central
City Employment Commitment" is defined in Section 2.1.6.1 for purposes of
the first year of the Abatement Term and is defined in Section 2.1.6.2 for
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Tax Abatement Agreement between N'S
City of Fort Worth and CUNA Mutual Insurance Society Ij _ '"7 �'
purposes of each year thereafter. Determination of compliance with the Central
City Employment Commitment shall be based on CUNA's employment data on
August 1 of each year during the Compliance Auditing Term, as defined in
Section 2.5.
2.1.6.1. First Year of Abatement Term.
CUNA shall receive a ten percent (10%) Abatement in the
first year of the Abatement Term, as defined in Section 2.5, if in the
previous calendar year at least (i) ten percent (10%) of all Full-time Jobs
provided and filled on the Land, regardless of the total number of such
Full-time Jobs, or (ii) 12 Full-time Jobs provided and filled on the Land,
whichever number is greater, were held by individuals residing at a
location within the Central City, as defined in Exhibit "A". If CUNA fails
to meet the Central City Employment Commitment in that year, and such
failure is by less than ten (10) Full-time Jobs, then CUNA shall receive an
Abatement in the following year equal to ten percent (10%) minus one
percent (1%) for each Full-time Job by which the Central City
Employment Commitment was not met. If CUNA fails to meet the
Central City Employment Commitment in that year, and such failure is by
ten (10) Full-time Jobs or more, then CUNA shall not be eligible to
receive any portion of the ten percent (10%) Abatement available under
this Section 2.1.6.1.
2.1.6.2. Subsequent Years of Abatement Term.
CUNA shall receive a ten percent (10%) Abatement in a
given year of the Abatement Term, as defined in Section 2.5, other than
the first year of the Abatement Term, if in the previous calendar year at
least (i) ten percent (10%) of all Full-time Jobs provided and filled on the
Land, regardless of the total number of such Full-time Jobs, or (ii) 40 Full-
time Jobs provided and filled on the Land, whichever number is greater,
were held by individuals residing at a location within the Central City, as
defined in Exhibit "A". If CUNA fails to meet the Fort Worth
Employment Commitment in a given year, and such failure is by less than
twenty (20) Full-time Jobs, then CUNA shall receive an Abatement in the
following year equal to twenty percent (20%) minus one percent (1%) for
each Full-time Job by which the Central City Employment Commitment
was not met. If CUNA fails to meet the Central City Employment
Commitment in a given year, and such failure is by twenty (20) Full-time
Jobs or more, then CUNA shall not be eligible to receive any portion of
the ten percent (10%) Abatement available under this Section 2.1.6.2.
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Tax Abatement Agreement between
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2.1.7. Abatement Based on Supply and Service Expenditures with Fort
Worth Companies (5%).
CUNA shall receive a five percent (5%) Abatement if during the previous
calendar year (i) CUNA expended at least $300,000 in local discretionary funds
for supplies and services directly in connection with CUNA's operation of the
Required Improvements ("Supply and Service Expenditures") and (ii) the
greater of at least (a) twenty-five percent (25%) of all Supply and Service
Expenditures, regardless of the total amount of such Supply and Service
Expenditures were made with Fort Worth Companies, or (b) $75,000 in Supply
and Service Expenditures were made with Fort Worth Companies.
2.1.8. Abatement Based on Supply and Service Expenditures with Fort
Worth M/WBE Companies (5%).
CUNA shall receive a five percent (5%) Abatement if during the previous
calendar year (i) CUNA spent at least $300,000 in Supply and Service
Expenditures and (ii) the greater of at least (a) fifteen percent (15%) of all such
Supply and Service Expenditures, regardless of the total amount of such Supply
and Service Expenditures, were made with Fort Worth Certified M/WBE
Companies, or (b) $45,000 in Supply and Service Expenditures were made with
Fort Worth Certified M/WBE Companies.
2.2. Effect of Failure to Meet Section Certain 2.1 Commitments.
Subject to Section 2.1.1, the failure to meet any or all of the numerical
commitments or percentages, as the case may be, for Construction Cost expenditures,
employment commitments, and Supply and Service Expenditures, as set forth in Sections
2.1.2, 2.1.3, 2.1.4, 2.1.5, 2.1.6, 2.1.7 and 2.1.8, shall result only in the failure to earn an a
percentage of Abatement that would otherwise have been available hereunder, and shall not
constitute an Event of Default as defined in Section 4.1 of this Agreement or trigger the
cure periods and remedies set forth in Section 4.
2.3. Abatement Limitation.
Notwithstanding anything that may be interpreted to the contrary in this
Agreement, CUNA's Abatement in any given year of the Abatement Term shall be based
(i) on the increase in the real property value of the leasehold interest, if any, in the Land
and any improvements thereon since January 1, 2006, up to a maximum of seventy-five
percent (75%) of $15,000,000 and (ii) on the increase in the value of taxable tangible
personal property owned by CUNA and located on the Land since January 1, 2006, up to
a maximum of seventy-five percent (75%) of$3,000,000. In other words, with regard to
the real property tax Abatement on the Land and any improvements thereon, in any year
in which the value of the leasehold interest, if any, in the Land and any improvements
thereon exceeds (i) the value of the leasehold interest in the Land and any improvements
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Tax Abatement Agreement between
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thereon as of January 1, 2006 plus (ii) $15,000,000, CUNA's real property tax Abatement
for that tax year shall be capped and calculated as if the increase in the value of the
leasehold interest in the Land and any improvements thereon since January 1, 2006 had
only been $15,000,000. For example, and as an example only, if the value of the
leasehold interest in the Land and any improvements thereon in the sixth year of the
Compliance Auditing Term is $17,000,000 over the value of the leasehold interest in the
Land and any improvements thereon as of January 1, 2006, CUNA would receive a
maximum real property tax Abatement of seventy-five percent (75%) of$15,000,000 in
the sixth year of the Abatement Term. Along the same lines, if the value of the taxable
tangible personal property owned by CUNA and located on the Land in the sixth year of
the Abatement Term is $4,000,000 over the value of that property as of January 1, 2006,
CUNA would receive a maximum personal property tax Abatement of seventy-five
percent (75%) of$3,000,000 in the sixth year of the Abatement Term.
2.4. Protests Over Appraisals or Assessments.
CUNA shall have the right to protest and contest any or all appraisals or
assessments of the Land and/or improvements or taxable tangible personal property
thereon.
2.5. Terms.
This Agreement shall take effect on the date as of which both the City and CUNA
have executed this Agreement and, unless terminated earlier in accordance with its terms
and conditions, shall expire simultaneously upon expiration of the Abatement Term, as
defined below (the "Term"). The percentage of overall Abatement available to CUNA in
any given year will be based in part on CUNA's compliance with certain annual
commitments pertaining to employment and Supply and Service Expenditures, as set forth
in Sections 2.1.4, 2.1.5, 2.1.6, 2.1.7 and 2.1.8. The term during which the City will audit
CUNA's compliance with such commitments shall commence in the calendar year
following the year in which the Completion Date occurs (the "Compliance Auditing
Term"). The term during which CUNA may receive an Abatement shall begin on January
1 of the year following the first year of the Compliance Auditing Term (the "Abatement
Term"). In other words, taxes will not be abated until the second full tax year following
the calendar year in which the Completion Date occurs. For example, if the Completion
Date occurs in 2007, the Compliance Auditing Term will commence on January 1, 2008
and the Abatement Term will commence on January 1, 2009, meaning that the first
Abatement granted hereunder would be for the 2009 tax year and the last Abatement would
be for the 2018 tax year. Unless this Agreement is terminated earlier in accordance with its
terms and conditions, the Compliance Auditing Term and the Abatement Term shall end on
the December 31st immediately preceding their respective tenth (10th) anniversaries.
Nevertheless, information for the last year of the Compliance Auditing Term shall be
submitted as indicated in Section 3.3.
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Tax Abatement Agreement between
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2.6. Abatement Application Fee.
The City acknowledges receipt from CUNA of the required Application fee of one
percent (1%) of Project's estimated cost, not to exceed $15,000. If CUNA diligently
begins or causes to begin construction of the Required Improvements on the Land within
one (1) year from the date of the Application, this Application fee shall be creditable in full
to the benefit of CUNA against any permit, impact, inspection or other lawful fee required
by the City in connection with the Project, and any remaining amounts shall be refunded to
CUNA.
2.7. Coordination with Centreport Abatement.
It is the intention of the parties that the Abatement granted hereunder plus the
Centreport Abatement shall equal the value of the abatement that would be available to
CUNA if CUNA were the owner of both the Land and the Required Improvements. In
recognition that, under the terms of the Lease, CUNA will construct or cause to be
constructed at its initial expense the Required Improvements for use and occupancy by
CUNA, and that the rent under the Lease is calculated such that CUNA will pay for the
costs of construction (as well as other costs) over the term of the Lease, the parties agree
that any provision in this Agreement or the Centreport Abatement by which either CUNA
or Centreport covenants to perform or cause to be performed, or to require the other to
perform or cause to be performed, a particular act or to comply with a particular condition
shall be deemed to be satisfied so long as the particular act is performed and the particular
condition is met, regardless of whether it is CUNA or Centreport who actually performs or
causes to be performed the act or who actually complies or causes compliance with the
condition.
3. RECORDS,AUDITS AND EVALUATION OF PROJECT.
3.1. Inspection of Property and the Lease.
At any time during CUNA's normal office hours throughout the Term and the year
following the Term and following reasonable notice to CUNA, the City shall have and
CUNA shall provide access to the Land and any improvements thereon, including the
Required Improvements, in order for the City to inspect the Land and evaluate the Required
Improvements to ensure compliance with the terms and conditions of this Agreement.
CUNA shall cooperate fully with the City during any such inspection and/or evaluation.
Notwithstanding the foregoing, CUNA shall have the right to require that any
representative of the City be escorted by CUNA's security personnel while on the Land. In
addition, upon request of the City at any time during the Term and the year following the
Term and following reasonable notice to CUNA, CUNA will make available a copy of the
Lease in effect at the time for review by the City to ensure compliance under this
Agreement.
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3.2. Audits.
The City shall have the right to audit the financial and business records of CUNA
that relate to the Lease, the Project and this Agreement (collectively, the "Records") at
any time during the Compliance Auditing Term in order to determine compliance with
this Agreement and to calculate the correct percentage of Abatement available to CUNA.
CUNA shall make all Records available to the City on the Land or at another location in
the City following reasonable advance notice by the City and shall otherwise cooperate
fully with the City during any audit.
3.3. Reports and Filings.
3.3.1. Plan for Use of Fort Worth Certified M/WBE Companies.
Within ninety (90) calendar days following execution of this Agreement,
CUNA will file a plan with the City as to how the commitments for the use of Fort
Worth Certified M/WBE Companies outlined in this Agreement will be attained.
CUNA agrees to meet with the City's M/WBE Office and Minority and Women
Business Enterprise Advisory Committee as reasonably necessary for assistance in
implementing such plan and to address any concerns that the City may have with
such plan.
3.3.2. Monthly Spending Reports.
From the date of execution of this Agreement until the Completion Date, in
order to enable the City to assist CUNA in meeting its commitment for construction
spending with Fort Worth Certified M/WBE Companies, CUNA will provide the
City with a monthly report in a form reasonably acceptable to the City that
specifically outlines the then-current aggregate Construction Costs expended by and
on behalf of CUNA with Fort Worth Certified M/WBE Companies for construction
of the Required Improvements.
3.3.3. Construction Spending Report.
Within ninety (90) calendar days following the Completion Date, CUNA
will provide the City with a report in a form reasonably acceptable to the City that
specifically outlines the Construction Costs expended by and on behalf of CUNA
for construction of the Required Improvements, together with supporting invoices
and other documents necessary to demonstrate that such amounts were actually
paid by CUNA, including, without limitation, final lien waivers signed by CUNA's
general contractor. This report shall also include actual Construction Costs
expended by and on behalf of CUNA for construction of the Required
Improvements with Fort Worth Companies and Fort Worth Certified M/WBE
Companies, together with supporting invoices and other documents necessary to
demonstrate that such amounts were actually paid by or on behalf of CUNA to such
contractors.
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Tax Abatement Agreement between
City of Fort Worth and CUNA Mutual Insurance Society
3.3.4. Employment Report.
On or before February 1 following the end of each year of the Compliance
Auditing Term, CUNA shall provide the City with a report in a form reasonably
acceptable to the City that sets forth (i) the total number of individuals who held
Full-time Jobs on the Land; (ii) the total number of Fort Worth Residents who held
Full-time Jobs on the Land; and (iii) the total number of Central City Residents who
held Full-time Jobs on the Land, all as of August 1 of the previous year, together
with reasonable documentation regarding the residency of such employees.
3.3.5. Quarterly Supply and Service Spending Report.
Within thirty (30) calendar days following the end of each calendar quarter
of the Compliance Auditing Term, CUNA will provide a report to the City in a
form reasonably acceptable to the City that specifically outlines the then-aggregate
Supply and Service Expenditures made in the same calendar year with Fort Worth
Certified M/WBE Companies. CUNA agrees to meet with the City's M/WBE
Office and Minority and Women Business Enterprise Advisory Committee as
reasonably necessary to address any concerns arising from the report. The City will
use the fourth quarter report for each year of the Compliance Auditing Term to
determine the percentage of Abatement earned for the following year that is
attributable to the Supply and Service Expenditure commitment outlined in Section
2.1.8.
3.3.6. General.
CUNA shall supply any additional information requested by the City that is
pertinent to the city's evaluation of CUNA's compliance with each of the terms
and conditions of this Agreement. Failure to provide all information required by
this Section 3.3 shall constitute an Event of Default, as defined and more
specifically outlined in Section 4.1.
Any non-public personal information provided to the City by CUNA,
pursuant to this Section 3, shall be subject to applicable federal and state privacy
laws and regulations. All other information provided to the City by CUNA
pursuant to Section 3 shall be considered CUNA confidential information and shall
held by the City in confidence, with the understanding that all information provided
by CUNA to the City is subject to Chapter 552 of the Texas Government Code
(Texas Open Records Act) and that if the City receives a request to release any such
information that is deemed confidential, the City will first notify CUNA and submit
such information to the Attorney General of Texas for a ruling as to whether such
information must be released pursuant to the Texas Open Records Act.
Page 12 6,PAK,
Tax Abatement Agreement between
City of Fort Worth and CUNA Mutual Insurance Society
..�J 'I lSGeo
3.4. Determination of Compliance.
On or before August 1 following the end of each year during the Compliance
Auditing Term, the City shall make a decision and rule on the actual annual percentage of
Abatement available to CUNA for the following year of the Term based on the City's
review of the reports provided pursuant to Section 3.3, the City's audit of the Records and
any inspections of the Land and/or the Required Improvements, and shall notify CUNA in
writing of such decision and ruling. If CUNA reasonably disagrees with the City's
decision and ruling, CUNA shall notify the City in writing within fourteen (14) calendar
days of receipt. In this event, CUNA, at CUNA's sole cost and expense, may request an
independent third party who is reasonably acceptable to the City to verify the findings of
the City within not more than thirty(30) calendar days following receipt of CUNA's notice
to the City, and if any discrepancies are found, the City, CUNA and the independent third
party shall cooperate with one another to resolve the discrepancy. If resolution cannot be
achieved, the matter may be taken to the City Council for consideration in an open public
meeting at which both City staff and CUNA's representatives will be given an opportunity
to comment. The ruling and determination by the City Council shall be final.
The actual percentage of the Abatement granted for a given year of the Term is
therefore based upon CUNA's compliance with the terms and conditions of this Agreement
during the previous year of the Compliance Auditing Term. Notwithstanding the
foregoing, once the City makes a decision and ruling as to whether CUNA is entitled to the
percentages of Abatement available pursuant to Section 2.1.1, 2.1.2 and 2.1.3, CUNA shall
be entitled to the benefits of percentage of Abatement in each year of the Abatement Term
without the necessity of providing any additional information and documentation or
obtaining any additional decision or ruling from the City.
4. EVENTS OF DEFAULT.
4.1. Defined.
CUNA shall be in default of this Agreement if(i) any of the covenants set forth in
any portion or all of Sections 1.1, 1.2 and 1.3 of this Agreement are not met; or (ii) the
Lease expires or is terminated for any reason; or (iii) ad valorem real property taxes with
respect to CUNA's leasehold interest in the Land or the Project, or CUNA's ad valorem
taxes with respect to the tangible personal property located on the Land subject to the
leasehold interest, become delinquent and CUNA does not timely and properly follow the
legal procedures for protest and/or contest of any such ad valorem real property or tangible
personal property taxes; or (iv) subject to Section 2.3, CUNA breaches any of the other
terms or conditions of this Agreement (collectively, each an"Event of Default").
4.2. Notice to Cure.
Page 13
Tax Abatement Agreement between
City of Fort Worth and CUNA Mutual Insurance Society
Subject to Section 5, if the City determines that an Event of Default has occurred,
the City shall provide a written notice to CUNA that describes the nature of the Event of
Default. If the Event of Default is on due to a breach under Section 1.1 or Section 1.2 of
this Agreement or on account of the expiration or termination of the Lease, the City will
have the right to terminate this Agreement immediately. For any other Event of Default,
CUNA shall have sixty (60) calendar days from the date of receipt of this written notice to
fully cure or have cured the Event of Default. If CUNA reasonably believes that CUNA
will require additional time to cure the Event of Default, CUNA shall promptly notify the
City in writing, in which case (i) after advising the City Council in an open meeting of
CUNA's efforts and intent to cure, CUNA shall have one hundred twenty (120) calendar
days from the original date of receipt of the written notice, to cure the Event of Default, or
(ii) if CUNA reasonably believes that CUNA will require more than one hundred twenty
(120) days to cure the Event of Default, after advising the City Council in an open meeting
of CUNA's efforts and intent to cure, such additional time, if any, as may be offered by the
City Council in its sole discretion.
4.3. Termination for Event of Default and Payment of Liquidated Damages.
If an Event of Default has not been cured within the time frame specifically allowed
under Section 4.2, the City shall have the right to terminate this Agreement immediately
upon provision of written notice to CUNA. CUNA acknowledges and agrees that an
uncured Event of Default will (i) harm the City's economic development and
redevelopment efforts on the Land and in the vicinity of the Land; (ii) require unplanned
and expensive additional administrative oversight and involvement by the City; and (iii)
otherwise harm the City, and CUNA agrees that the amounts of actual damages therefrom
are speculative in nature and will be difficult or impossible to ascertain. Therefore, upon
termination of this Agreement for any Event of Default, CUNA shall pay the City, as
liquidated damages, all taxes that were abated in accordance with this Agreement for each
year when an Event of Default existed and which otherwise would have been paid to the
City in the absence of this Agreement. The City and CUNA agree that this amount is a
reasonable approximation of actual damages that the City will incur as a result of an
uncured Event of Default and that this Section 4.3 is intended to provide the City with
compensation for actual damages and is not a penalty. This amount may be recovered by
the City through adjustments made to CUNA's ad valorem property tax appraisal by the
appraisal district that has jurisdiction over the Land and over any taxable tangible personal
property located thereon. Otherwise, this amount shall be due, owing and paid to the City
within sixty (60) days following the effective date of termination of this Agreement. In the
event that all or any portion of this amount is not paid to the City within sixty (60) days
following the effective date of termination of this Agreement, CUNA shall also be liable
for all penalties and interest on any outstanding amount at the statutory rate for delinquent
taxes, as determined by the Code at the time of the payment of such penalties and interest
(currently, Section 33.01 of the Code). If this Agreement is terminated on account of
CUNA's failure to construct or to cause to be constructed the Required Improvements in
accordance with Sections 1.1 and/or 1.2 of this Agreement, no liquidated damages will be
owed to the City because taxes will not yet have been abated hereunder.
Page 14
Tax Abatement Agreement between
City of Fort Worth and CUNA Mutual Insurance Society
4.4. Termination at Will.
If the City and CUNA mutually determine that the development or use of the Land
or the anticipated Required Improvements are no longer appropriate or feasible, or that a
higher or better use is preferable, the City and CUNA may terminate this Agreement in a
written format that is signed by both parties. In this event, (i) if the Term has commenced,
the Term shall expire as of the effective date of the termination of this Agreement; (ii)there
shall be no recapture of any taxes previously abated; and (iii) neither party shall have any
further rights or obligations hereunder.
5. EFFECT OF SALE OF LAND AND/OR REQUIRED IMPROVEMENTS.
CUNA may assign this Agreement and the benefits provided hereunder to an Affiliate
without the consent of the City, provided that (i) prior to or contemporaneously with the
effectiveness of such assignment, CUNA provides the City with written notice of such assignment,
which notice shall include the name of the Affiliate and a contact name, address and telephone
number, and (ii) the Affiliate agrees in writing to assume all terms and conditions of CUNA under
this Agreement. For purposes of this Agreement, an"Affiliate"means all entities, incorporated or
otherwise, under common control with CUNA, controlled by CUNA or controlling CUNA. For
purposes of this definition, "control" means fifty percent (50%) or more of the ownership
determined by either value or vote.
Prior to the Completion Date, the Abatement granted hereunder shall vest only in CUNA or
an Affiliate to whom this Agreement has been assigned in accordance with the paragraph above
and cannot be assigned to a new owner of all or any portion of the leasehold interest in the Land
and/or Required Improvements and/or tangible personal property on the Land subject to
Abatement hereunder without the prior consent of the City Council, which consent shall not be
unreasonably withheld provided that (i) the City Council finds that the proposed assignee is
financially capable of meeting the terms and conditions of this Agreement and (ii) the proposed
assignee agrees in writing to assume all terms and conditions of CUNA under this Agreement.
After the Completion Date, the Abatement granted hereunder may be assigned to a new owner of
all or any portion of the leasehold interest in the Land and/or Required Improvements and/or
tangible personal property on the Land subject to Abatement hereunder without the consent of the
City Council, provided that (i) prior to or contemporaneously with the effectiveness of such
assignment, CUNA provides the City with written notice of such assignment, which notice shall
include the name of the Affiliate and a contact name, address and telephone number, and (ii) the
assignee agrees in writing to assume all terms and conditions of CUNA under this Agreement,
including, but not limited to, the obligation to operate the Required Improvements in accordance
with this Agreement.
CUNA may not otherwise assign, lease or convey any of its rights under this Agreement.
Any attempted assignment without the City Council's prior consent shall constitute grounds for
termination of this Agreement and the Abatement granted hereunder following ten (10) calendar
days of receipt of written notice from the City to CUNA.
Page 15
Tax Abatement Agreement between
City of Fort Worth and CUNA Mutual Insurance Society
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the
following, or such other party or address as either party designates in writing, by certified mail,
postage prepaid, or by hand delivery:
City: CUNA:
City of Fort Worth CUNA Mutual Insurance Society
Attn: City Manager Attn: Joseph F. Taricani, Jr.
1000 Throckmorton 5910 Mineral Point Road
Fort Worth, TX 76102 Madison, WI 57305
with copies to: with copies to:
the City Attorney and CUNA Mutual Insurance Society
Economic/Community Development Attn: General Counsel
Director at the same address 5910 Mineral Point Road
Madison, WI 53705
7. COMPLIANCE WITH LAWS, ORDINANCES, RULES AND REGULATIONS;
ALL GRANTS SUBJECT TO APPROPRIATION.
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.
8. GOVERNMENTAL POWERS.
It is understood that by execution of this Agreement, the City does not waive or surrender
any of it governmental powers or immunities.
9. NO WAIVER.
The failure of either party to insist upon the performance of any term or provision of this
Agreement or to exercise any right granted hereunder shall not constitute a waiver of that party's
right to insist upon appropriate performance or to assert any such right on any future occasion.
Page 16
Tax Abatement Agreement between
City of Fort Worth and CUNA Mutual Insurance Society
10. VENUE AND JURISDICTION.
If any action, whether or not real or asserted, at law or in equity, arises on the basis of any
provision of this Agreement, venue for such action shall lie in state courts located in Tarrant
County, Texas or the United States Court for the Northern District of Texas—Fort Worth Division.
This Agreement shall be construed in accordance with the laws of the State of Texas.
11. NO THIRD PARTY RIGHTS.
The provisions of this Agreement are solely for the benefit of the City and CUNA, and any
assign or successor of CUNA that has satisfied the requirements of Section 5 of this Agreement,
and are not intended to create any rights, contractual or otherwise, in any other person or entity.
12. FORCE MAJEURE.
In addition to those instances where Force Majeure is addressed elsewhere in this
Agreement, it is expressly understood and agreed that if the performance by either party of any
obligation hereunder is delayed by reason of Force Majeure, the time period applicable to
performance of such obligation shall be extended for a period of time equal to the period of the
specific event of Force Majeure.
13. INTERPRETATION.
In the event of any dispute over the meaning or application of any provision of this
Agreement, this Agreement shall be interpreted fairly and reasonably, and neither more strongly
for or against either party, regardless of the actual drafter of this Agreement. In the event of any
conflict between the City's zoning ordinances, or other City ordinances and regulations, and this
Agreement, such ordinances or regulations shall control. In the event of any conflict between the
body of this Agreement and Exhibit "D",the body of this Agreement shall control.
14. BONDHOLDER RIGHTS.
The Required Improvements will not be financed by tax increment bonds. This Agreement
is subject to the rights of holders of outstanding bonds of the City.
15. CONFLICTS OF INTEREST.
Neither the Land nor any of the Required Improvements covered by this Agreement are
owned or leased by any member of the City Council, any member of the City Plan or Zoning
Commission or any member of the governing body of any taxing unit with jurisdiction in the Zone.
Page 17 41
Tax Abatement Agreement between
City of Fort Worth and CUNA Mutual Insurance Society fV((pup77���1 ('II7 ({p�/7`E \7�
16. CAPTIONS.
Captions and headings used in this Agreement are for reference purposes only and shall not
be deemed a part of this Agreement.
17. 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 CUNA,
their assigns and successors in interest, 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. This Agreement shall not be amended unless
executed in writing by both parties and approved by the City Council.
18. COUNTERPARTS.
This Agreement may be executed in multiple counterparts, each of which shall be
considered an original,but all of which shall constitute one instrument.
IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed
as of the later date below:
CITY OF FORT WORTH: APPROVED AS TO FORM AND LEGALITY:
9
By; ' �-(X � i�i -� -�-` By:
Dale Fisseler Peter Vaky
Assistant City Manager Assistant City Attorney
Date: M & C: C-2/507 6-13-OL
ATTEST:
By: Dc\
City Secretary
Page 18
Tax Abatement Agreement between
City of Fort Worth and CUNA Mutual Insurance Society 7 ..^^ Lr
R. "6`VU,!, � �s.
CUNA MUTUAL INSU TY:
By:
Jeff Post
President and Chief Executive Officer
Date:
ATTEST:
By:
Page 19 ILIg
Tax Abatement Agreement between
City of Fort Worth and CUNA Mutual Insurance Society G'QI H R \7
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Dale Fisseler,
Acting 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 he 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.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this V^ Lday of
2006.
nA'aFIA S. SANCHEZ
Notary Public in and for `� NO TARY PUBLIC
State of Texasn, STATE OF TEXAS
M Comm.Exp.'i2-14-2009
::- y'
arta 5 � n�h�y
Notary's Printed Name
STATE OF WISCONSIN §
COUNTY OF §
BEFORE ME, the undersigned authority, on this day personally appeared Jeff Post,
President and Chief Executive Officer of CUNA MUTUAL INSURANCE SOCIETY, known to
me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to
me that he executed the same for the purposes and consideration therein expressed, in the capacity
therein stated and as the act and deed of CUNA MUTUAL INSURANCE SOCIETY.
C V'El`1 ViVLER MY HAND AND SEAL OF OFFICE this day
of�6� , 2006.
L
t:otary Public in and for
the State of Wisconsin
M . A'
rNotary's Printed Name
00Ve"A �✓ �� zo0�'
EXHIBITS
"A"—Tax Abatement Policy
"B"—Map and Legal Description of the Land
"C"—Lease Term Sheet
"D"—CUNA's Tax Abatement Application
"E"—Depiction and Description of the Required Improvements
H 215
CO
Ml!"N
FV. •Gj!(i�U�UU ��4
EXHIBIT "A"
TAX ABATEMENT POLICY
A Resolution
NO. 3363-06-2006
PROVIDING THAT THE CITY OF FORT WORTH (`CITY") ELECTS TO BE
ELIGIBLE TO PARTICIPATE IN TAX ABATEMENT AUTHORIZED BY CHAPTER
312 OF THE TEXAS TAX CODE AND ESTABLISHING A TAX ABATEMENT
POLICY GOVERNING SUBSEQUENT TAX ABATEMENT AGREEMENTS
WHEREAS, a municipality may enter into tax abatement agreements authorized by
Chapter 312 of the Texas Tax Code ("Code") only if the governing body of the
municipality has previously adopted a resolution stating that the municipality elects to be
eligible to participate in tax abatement and has established guidelines and criteria
governing tax abatement agreements ("Tax Abatement Policy"); and
WHEREAS, pursuant to Code, a Tax Abatement Policy is effective for two (2) years from
the date of its adoption; and
WHEREAS, the City last adopted a tax abatement policy in 2004;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
1. THAT the City hereby elects to be eligible to participate in tax abatement in
accordance with Chapter 312 of the Code.
2. THAT the City hereby adopts the Tax Abatement Policy attached hereto as Exhibit
"A", which constitutes the guidelines, criteria, and procedures governing tax abatement
agreements entered into by the City, to be effective from June 15, 2006 through June
14, 2008, unless earlier amended or repealed by a vote of at least three-fourths (3/4) of
the members of the City Council.
3. THAT this Tax Abatement Policy, as it may subsequently be amended, will expressly
govern all tax abatement agreements entered into by the City during the period in
which such Tax Abatement Policy is in effect.
APPROVED
ADOPTED this 13th day of June 2006. CITY COUNCIL
JUN 13 2006
ATTEST: ��� k`a.
ela City Secy 0!
By:_�-- ----- ----- City o[Fort Worth,Texas
Marty He rix, City Secretary
expry or 1 awr vmavmAk ° ' � ;
0�1;It���i5 /�1�UpV
tU �`JU°r�W� U56�e
City of Fort Worth
General Tax Abatement Policy
Effective June 15,2006 through June 14,2008
1. GENERAL PROVISIONS.
1.1. Purpose.
Chapter 312 of the Texas Tax Code allows,but does not obligate or require, the City to
grant a tax abatement on the value added to a particular property on account of a specific
development project that meets the eligibility requirements set forth in this Policy. In order for
the City to participate in tax abatement, the City is required to establish guidelines and criteria
governing tax abatement agreements. This Policy is intended to set forth those guidelines and
criteria for persons or entities interested in receiving a tax abatement from the City. This
Policy shall expire on June 14,2008.
1.2. General Eligibility Criteria.
A tax abatement can only be granted to persons or entities eligible for tax abatement
pursuant to Section 312.204(a) of the Texas Tax Code, which persons or entities as of the
effective date of this Policy are(i)the owner of taxable real property located in a tax abatement
reinvestment zone; or (ii) the owner of a leasehold interest in real property located in a tax
abatement reinvestment zone. Although the City will consider all applications for tax
abatement that meet the eligibility requirements set forth in this Policy, it is especially
interested in development projects that: -
• result in the creation of new full-time jobs for Fort Worth Residents and Central City
Residents; and
• are located in the Central City; and
• result in development with little or no additional cost to the City while producin a
positive economic impact to the tax paying citizens of Fort Worth; and
• have a positive impact on Fort Worth Companies and Fort Worth Certified M/WBE
Companies; and
• promotes quality,affordable housing and/or mixed income development.
1.3. General Exclusions and Limitations.
1.3.1. Lessees of Real Property.
A person or entity seeking tax abatement on real property that is leased from a
third party should be advised that,pursuant to state law,the City can only abate taxes on
the increased value of the taxable leasehold interest in the real property, if any, and the
increase in value of taxable improvements and tangible personal property located on the
real property and subject to the leasehold interest, if any. Before applying for a tax
abatement from the City, such persons or entities should seek professional and legal
guidance, and may wish to consult with the appraisal district having jurisdiction over
the property in question, as to whether their development projects will result in a
taxable leasehold interest in the property and, if so, the anticipated value of that
leasehold interest.
City of Fort Worth General Tax Abatement Policy
Page I of 11
1.3.2. Property Located in Neighborhood Empowerment Zones("NEW).
The City Council has designated certain distressed areas of the City needing
affordable housing, economic development and expanded public services as NEZs.
Notwithstanding anything that may be interpreted to the contrary, this Policy does not
apply to property located in a NEZ. A person or entity seeking tax abatement on
property owned or leased in a NEZ should refer to the NEZ Policy.
1.3.3. Property Located in Tax Increment Reinvestment Zones("TIFs").
The City Council has designated certain areas of the City as TIFs. This Policy
does apply to property located in a TIF. However, a person or entity seeking tax
abatement on property owned or leased in a TIF should be advised that state law
requires a TIF's board of directors and the governing bodies of all taxing jurisdictions
contributing tax increment revenue to a TIF to approve a City tax abatement agreement
on property located in that TIF before the agreement can take effect.
1.3.4. Property Located in Enterprise Zones.
The State of Texas has designated certain areas of the City with high
unemployment as enterprise zones. Various economic development incentives are
available to owners of property located in enterprise zones. In accordance with state
law, all property located within an enterprise zone is automatically designated as a tax
abatement reinvestment zone. However, the City typically designates individual tax
abatement reinvestment zone overlays when it wishes to grant tax abatements on
property located in an enterprise zone.
2. DEFINITIONS.
Capitalized terms used in this Policy but not defined elsewhere shall have the following
meanings:
Abatement or Tax Abatement-A full or partial exemption from ad valorem taxes on eligible taxable
real and personal property located in a Reinvestment Zone for a specified period on the difference
between (i) the amount of increase in the appraised value (as reflected on the certified tax roll of the
appropriate county appraisal district) resulting from improvements begun after the execution of a
written Tax Abatement Agreement and (ii) the appraised value of such real estate prior to execution of
a written Tax Abatement Agreement (as reflected on the most recent certified tax roll of the
appropriate county appraisal district for the year prior to the date on which the Tax Abatement
Agreement was executed).
Abatement Benefit Term — The period of time specified in a Tax Abatement Agreement, but not to
exceed ten(10) years, that the recipient of a tax abatement may receive the Abatement.
Abatement Compliance Term —The period of time specified in a Tax Abatement Agreement during
which the recipient of a tax abatement must comply with the provisions and conditions of the Tax
City of Fort Worth General Tax Abatement Policy
Page 2of11
Abatement Agreement and file an annual report with the City which outlines and documents the extent
of the recipient's compliance with such provisions and conditions.
Business Expansion Project — A project in the square footage of a facility or facilities currently
located in the City will be expanded.
Capital Investment - Only real property improvements such as, without limitation, new facilities and
structures, site improvements, facility expansion, and facility modernization. Capital Investment does
NOT include (i) land acquisition costs; (ii) any improvements existing on the property prior to
execution of a Tax Abatement Agreement; or (iii) personal property such as, without limitation,
machinery,equipment, supplies and inventory.
Central City—A geographic area within the City, defined by the City Council and shown in the map
of Exhibit"A"of this Policy.
Central City Resident— An individual whose principle place of residence is at a location within the
Central City.
CommerciaUlndustrial Development Project — A development project in which a facility or
facilities will be constructed or renovated on property that is or meets the requirements to be zoned for
commercial or industrial use pursuant to the City's Zoning Ordinance.
CDBG Eligible Area.—Any census tract in which fifty-one percent (51%) or more of the residents in
that census tract have low to moderate incomes, as defined by the United States Department of
Housing and Urban Development.
Commitment - An agreed upon amount and/or percentage related to the utilization of Fort Worth
Companies and Fort Worth Certified M/WBE Companies for construction spending on a given project
or for Supply and Service Expenditures and related to the hiring of Fort Worth Residents and Central
City Residents.
Fort Worth Certified M/WBE Company — A minority or woman-owned business that has a
principal office located within the corporate limits of the City and has received certification as either a
minority business enterprise (MBE) or a woman business enterprise (WBE) by the North Central
Texas Regional Certification Agency (NCTRCA) or the Texas Department of Transportation
(TxDOT),Highway Division.
Fort Worth Company— A business that has a principal office located within the corporate limits of
the City.
Fort Worth Resident — An individual whose principal place of residence is at a location within the
corporate limits of the City.
Mixed-Use Development Project — A development project in which a facility or facilities will be
constructed or renovated such that(i) at least twenty percent(20%)of the total gross floor area will be
used as residential space and (ii)at least ten percent(10%) of the total gross floor area will be used for
office,restaurant,entertainment and/or retail sales and service space.
M/WBE Advisory Committee (MWBEAC) — A committee appointed by the Fort Worth City
Council to review and make recommendations as to Commitments proposed by an applicant for Tax
City of Fort Worth General Tax Abatement Policy
Page 3 of 11
Abatement if any such Commitments contain less than a 25% expenditure with Fort Worth Certified
M/WBE companies for construction spending and for Supply and Service Expenditures and to advise
the City as to the availability of Fort Worth Certified M/WBEs.
Reinvestment Zone — An area designated by the City as a tax abatement reinvestment zone in
accordance with Chapter 312 of the Texas Tax Code.
Residential Development Project — A development project in which a facility or facilities will be
constructed or renovated as multi-family living units on property that is or meets requirements to be
zoned for multi-family or mixed-use pursuant to the City's Zoning Ordinance.
Supply and Service Expenditures — Discretionary expenditures made as part of normal business
operations on the real property subject to tax abatement, such as, by way of example only, office
supplies,janitorial supplies and professional services.
Tax Abatement Agreement — A written Agreement that the recipient of a tax abatement must enter
into with the City and that outlines the specific terms and conditions pertaining to and governing the
tax abatement.
3. RESIDENTIAL DEVELOPMENT PROJECTS ELIGIBLE FOR TAX ABATEMENT.
To be eligible for tax abatement under this Policy, a Residential Development Project must meet
all of the criteria set forth in one of the following paragraphs:
3.1. (i) Be located in the Central City; and (ii) Satisfy the Capital Investment and
affordability criteria necessary for a Residential Development Project to be eligible for tax abatement
under the NEZ Policy; and (iii) Meet all of the Commitments set forth in Section 7 of this Policy
(Standard Requirements for Residential Development Projects, Certain Commercial/ Industrial and
Mixed-Use Development Projects); or
3.2. (i)Be located in a CDBG Eligible Area; and(ii)Have a capital investment of at least$5
million; and (iii) Meet all of the Commitments set forth in Section 7 of this Policy (Standard
Requirements for Residential Development Projects and Certain Commercial /Industrial and Mixed-
Use Development Projects); or
3.3. (i)Be located outside of the Central City;and(ii)Have a capital investment of at least$5
million; and (iii) Meet all of the Commitments set forth in Section 7 of this Policy (Standard
Requirements for Residential Development Projects and Certain Commercial/Industrial and Mixed-
Use Development Projects).
In addition, an applicant for a Residential Development Project tax abatement that includes, in
whole or in part, the renovation of one or more existing structures shall provide, as part of the
applicant's Tax Abatement Application, a detailed description and the estimated costs of the
renovations contemplated.
4. COMMERCIAL/INDUSTRIAL DEVELOPMENT PROJECTS ELIGIBLE FOR TAX
ABATEMENT.
City of Fort worth General Tax Abatement Policy
Page 4 of I t
To be eligible for tax abatement under this Policy, a Commercial/Industrial Development
Project must meet all of the criteria set forth in one of the following paragraphs:
4.1. (i) Have a minimum Capital Investment of$250,000; and (ii) Be located in the Central
City or on property immediately adjacent to the major thoroughfares which serve as boundaries to the
Central City, or within a CDBG Eligible Area; and (iii) meet all of the Commitments of Section 7 of
this Policy (Standard Requirements For Residential Development Projects, Certain
Commercial/Industrial Development Projects, Mixed-Use Development Projects, And Business
Expansion Projects); or
4.2. (i) Have a minimum Capital Investment of $10 million; and (ii) meet all of the
Commitments of Section 7 of this Policy (Standard Requirements For Residential Development
Projects, Certain Commercial/Industrial Development Projects, Mixed-Use Development Projects,
And Business Expansion Projects); or
4.3. (i) Have a minimum Capital Investment of $100 million; and (ii) satisfy additional
requirements that may be set forth by the City on a project-specific basis.
In addition, an applicant for tax abatement on a CommerciaVIndustrial Development Project
that includes, in whole or in part, the renovation of one or more existing structures shall provide, as
part of the applicant's Tax Abatement Application, a detailed description and the estimated costs of the
renovations contemplated.
5. MIXED-USE DEVELOPMENT PROJECTS ELIGIBLE FOR TAX ABATEMENT.
To be eligible for tax abatement under this Policy, a Mixed-Use Development Project must
meet all of the criteria set forth in one of the following paragraphs:
5.1. (i) Have a minimum Capital Investment of$250,000; and (ii) Be located in the Central
City or on property immediately adjacent to the major thoroughfares which serve as boundaries to the
Central City,or within CDBG Eligible Area; and (iii)meet all of the Commitments of Section 7 of this
Policy (Standard Requirements For Residential Development Projects, Certain Commercial/Industrial
Development Projects,Mixed-Use Development Projects,And Business Expansion Projects); or
5.2. (i) Have a minimum Capital Investment of $10 million; and (ii) meet all of the
Commitments of Section 7 of this Policy (Standard Requirements For Residential Development
Projects, Certain Commercial/Industrial Development Projects, Mixed-Use Development Projects,
And Business Expansion Projects);or
5.3. (i) Have a minimum Capital Investment of $100 million; and (ii) consist of multiple
land uses, whereby no single-land use would comprise greater than 40%of the project's land area; and
(iii) emphasize live/work/play opportunities with multi-modal access; and, (iv) satisfy additional
requirements that may be set forth by the City on a project-specific basis.
In addition, an applicant for tax abatement on a Mixed-Use Development Project that includes,
in whole or in part, the renovation of one or more existing structures shall provide, as part of the
applicant's Tax Abatement Application, a detailed description and the estimated costs of the
renovations contemplated.
City of Fort Worth General Tax Abatement Policy
Page 5 of 11
6. BUSINESS EXPANSION PROJECTS FOR EXISTING FORT WORTH BUSINESSES
To be eligible for tax abatement under.this Policy, a Business Expansion Project must meet all
of the criteria set forth in on the following paragraphs:
6.1 (i) Be located in the Central City or a CDBG Eligible Area; and (ii) Have been in
business continuously for at least six months prior to the submission of an Application
to the City for Tax Abatement, and (iii) Have a total real and personal property
investment of at least $250,000; and (iv) Meet all of the Commitments set forth in
Section 7 of this Policy (Standard Requirements For Residential Development Projects,
Certain Commercial/Industrial Development Projects, .Mixed-Use Development
Projects, And Business Expansion Projects); or
6.2 (i)Be located outside of the Central City and CDBG Eligible Area and(ii)Have been in
business continuously for at least five years prior to the submission of an Application to
the City for Tax Abatement, and(iii)Have a total real and personal property investment
of at least $10 million (a minimum Capital Investment of$1 million) and(iv) Meet all
of the Commitments set forth in Section 7 of this Policy (Standard Requirements For
Residential Development Projects, Certain Commercial/Industrial Development
Projects, Mixed-Use Development Projects, And Business Expansion Projects)
improvements.
7. STANDARD REQUIREMENTS FOR RESIDENTIAL DEVELOPMENT PROJECTS,
CERTAIN COMMERCIAL/INDUSTRIAL DEVELOPMENT PROJECTS,MIXED-
USE DEVELOPMENT PROJECTS,AND BUSINESS EXPANSION PROJECTS.
To be eligible for property tax abatement, a Residential Development Project meeting the
requirements set forth in Sections 3.1, 3.2 or 3.3 of this Policy; a Commercial/Industrial Development
Project meeting the requirements set forth in Sections 4.1 and 4.2 of this Policy; a Mixed-Use
Development Project meeting the requirements set forth in Sections 5.1 and 5.2; and a Business
Expansion Project meeting the requirements set forth in Sections 6.1 or 6.2 shall meet all of the
following requirements:
7.1. Commit to provide full-time employment to a set number and/or a percentage of full-
time jobs offered on the real property where the Development is located, to Central City Residents,
which Commitment will be agreed upon and set forth in the Tax Abatement Agreement; and
7.2. Commit to provide full-time employment to a set number and/or a percentage of full-
time jobs offered on the real property where the Development is located, to Fort Worth Residents,
which Commitment will be agreed upon and set forth in the Tax Abatement Agreement; and
7.3. Commit to spend a set amount or percentage of total construction costs and annual
Supply and Service Expenses with Fort Worth Companies, which Commitment will be agreed upon
and set forth in the Tax Abatement Agreement; and
City of Fort Worth General Tax Abatement Policy
Page 6 of 11
7.4 Commit to spend a set amount or percentage of total construction costs and annual
Supply and Service Expenditures with Fort Worth Certified M/WBE Companies. Any Commitment
below 25% of the total construction costs and of the annual Supply and Service Expenses will require
an applicant for Abatement to meet with the City of Fort Worth's M/WBE Advisory Committee to
seek input and assistance prior to action by the City Council. The M/WBE Advisory Committee will
provide the City Council with a recommendation related to the utilization of Fort Worth Certified
M/WBEs. The M/WBE Advisory Committee's recommendation, if different from the Commitment
made by the applicant for Abatement, will be non-binding, but should be taken under advisement by
the City Council
7.5 All Commitments established pursuant to Sections 7.1 through 7.4 will be agreed upon
and set forth in the Tax Abatement Agreement and, if not met, will serve to reduce the value of
Abatement in accordance with the specific terms and conditions of the Tax Abatement Agreement;and
7.6. Commit to file a plan with the City (within six weeks of City Council approval of the
Tax Abatement Agreement) as to how the Commitments for use of Fort Worth Certified M/WBE
Companies will be attained and, in order to demonstrate compliance with that plan, (i) to file monthly
reports with the City and the Minority and Women Business Enterprise Advisory Committee
throughout the construction phase of any improvements required by the Tax Abatement Agreement
reflecting then-current expenditures made with Fort Worth Certified M/WBE Companies, (ii) list the
name of a contact person that will have knowledge of the construction phase of the project, and (iii)
from the start of the First Compliance Auditing Year (as defined in Section 8) until expiration of the
Tax Abatement Agreement, to file quarterly reports with the City reflecting then-current expenditures
made with Fort Worth Certified M/WBE Companies.
The City Council may, in its sole discretion, require a Commercial/Industrial Development
Project meeting the criteria set forth in Section 4.3 of this Policy and a Mixed-Use Development
Project meeting the criteria set forth in Section 5.3 of this Policy to satisfy some, all or none of the
requirements set forth in this Section 7.
8. TAX ABATEMENT CALCULATION.
All Tax Abatement Agreements shall require the recipient to construct or cause construction of
specific improvements on the real property that is subject to the abatement. Failure to.construct these
specific improvements at the minimum Capital Investment expenditure and by the deadline established
in the Tax Abatement Agreement shall give the City the right to terminate the Tax Abatement
Agreement. The amount of a particular tax abatement shall be negotiated on a case-by-case basis and
specifically set forth in the Tax Abatement Agreement. The calculation of tax abatement for a
Commercial/Industrial Project that meets the requirements of Section 4.3 of this Policy or for a Mixed-
Use Development Project that meets the requirements of Section 5.3 of this Policy shall be negotiated
on a case-by-case basis and governed solely by the terms and conditions of the Tax Abatement
Agreement. The calculation of tax abatement for any other project shall be negotiated on a case-by-
case basis, but shall be governed directly in accordance with the degree to which the recipient.meets
the four (4) Commitments set forth in Sections 7.1, 7.2, 7.3 and 7.4 of this Policy, which will be
outlined in the Tax Abatement Agreement. A Tax Abatement Agreement may establish a base
abatement that is (i) reduced in accordance with the recipient's failure to meet one or more of such
Commitments or (ii) increased in accordance with the recipient's meeting and/or exceeding one or
more of such Commitments.
City of Fort Worth General Tax Abatement Policy
Page 7 of 11
9. TAX ABATEMENT IMPLEMENTATION.
The term of a tax abatement shall be negotiated on a case-by-case basis and specified in the
Tax Abatement Agreement. The City will audit and determine the recipient's compliance with the
terms and conditions of the Tax Abatement Agreement for a full calendar year prior to the first year in
which the tax abatement is available (the "First Compliance Auditing Year"). The Compliance
Auditing Year shall either be the full calendar year in which a final certificate of occupancy is issued
for the improvements required by the Tax Abatement Agreement for the real property subject to
abatement or the following calendar year,as negotiated and set forth in the Tax Abatement Agreement.
The first tax abatement will be available to the recipient for the tax year following the Compliance
Auditing Year. In other words, the degree to which the recipient meets the Commitments set forth in
the Tax Abatement Agreement will determine the percentage of taxes abated for the following tax
year. The City will continue to audit and determine the recipient's compliance with the terms and
conditions of the Tax Abatement Agreement for each subsequent calendar year, which findings shall
govern the percentage of taxes abated for the following tax year, until expiration of the Tax Abatement
Agreement.
10. TAX ABATEMENT APPLICATION PROCEDURES.
Each tax abatement application shall be processed in accordance with the following standards
and procedures:
10.1. Submission of Application.
If a given development project qualifies for tax abatement pursuant to the eligibility
criteria detailed in Section 4, Section 5, Section 6, or Section 7 of this Policy, as the case may
be, an applicant for tax abatement must complete and submit a City of Fort Worth Tax
Abatement Application (with required attachments) (the "Application"). An Application can
be obtained from and should be submitted to the City's Economic and Community
Development Department. In order to be complete, the Application must include
documentation that there are no delinquent property taxes due for the property on which the
development project is to occur.
10.2. Application Fee.
Upon submission of the Application, an applicant must also pay an application fee. This
application fee shall be $15,000 ("Application Fee") of which $13,000 will be credited to any
pen-nit, impact, inspection or other fee paid by the applicant and required by the City directly in
connection with the proposed project, as long as substantive construction on the project, as
determined by the City in its sole and reasonable discretion, has been undertaken on the
property specified in the application within one (1) year following the date of its submission.
The remaining $2,000 is non-refundable and will be utilized for City staff expenses associated
with processing the Application and fees associated with legal notice requirements.
10.3. Application Review and Evaluation.
The Economic and Community Development Department will review an Application
for accuracy and completeness. Once complete, the Economic and Community Development
Department will evaluate an Application based on the perceived merit and value of the project,
including,without limitation,the following criteria:
City of Fort Worth General Tax Abatement Policy
Page 8 of 11
• Types and number of new jobs created, including respective wage rates, and employee
benefits packages such as health insurance, day care provisions, retirement packages,
transportation assistance, employer-sponsored training and education, and any other
benefits;
• Percentage of new jobs committed to Fort Worth Residents;
• Percentage of new jobs committed to Central City Residents;
• Percent of construction contracts committed to (i) Fort Worth Companies and (ii) Fort
Worth Certified M/WBE Companies;
• Percentage of Supply and Service Contract expenses committed to (i) Fort Worth
Companies and(ii)Fort Worth Certified M/WBE Companies;
• Financial viability of the project;
• The project's reasonably projected increase in the value of the tax base;
• Costs to the City(such as infrastructure participation,etc.);
• Remediation of an existing environmental problem on the real property;
• The gender, ethnic background and length of employment of each member of the
applicant's board of directors, governing body or upper management, as requested by
the City;and
• For residential projects, number or percentage of units reserved as affordable housing
for persons with incomes at or below eighty percent (80%) of median family income
based on family size (as established and defined by the United States Department of
Housing and.Urban Development)
• Other items that the City may determine to be relevant with respect to the project.
.Based upon the outcome of the evaluation,the Economic and Community Development
Office will present the Application to the City Council's Central City Revitalization and
Economic Development Committee. In an extraordinary circumstance, the Economic and
Community Development Department may elect to present the Application to the full City
Council without initial input from the Central City Revitalization and Economic Development
Committee.
10.4. Consideration by Council Committee.
The City Council's Central City Revitalization and Economic Development Committee
will consider the Application in an open meeting or, if circumstances dictate and the law
allows, a closed meeting. The Committee may either (i) recommend approval of the
Application, in which case City staff will incorporate the terms of the Application into a Tax
Abatement Agreement for subsequent consideration by the full City Council with the Central
City of Fort Worth General Tax Abatement Policy
Page 9 of 11
City Revitalization and Economic Development Committee's recommendation to approve the
Agreement; (ii) request modifications to the Application, in which case Economic
Development Office staff will discuss the suggested modifications with the applicant and,if the
requested modifications are made, resubmit the modified Application to the Central City
Revitalization and Economic Development Committee for consideration; or (iii) deny to
recommend consideration of the Application by the full City Council.
10.5. Consideration by the City Council.
A Tax Abatement Agreement will only be considered by the City Council if the
applicant has first executed the Tax Abatement Agreement. The City.Council retains sole
authority to approve or deny any Tax Abatement Agreement and is under no obligation to
approve any Application or Tax Abatement Agreement.
11. GENERAL POLICIES AND REQUIREMENTS.
Notwithstanding anything that may be interpreted to the contrary herein, the following general
terms and conditions shall govern this Policy:
11.1. A tax abatement shall not be granted for any development project in which a building
permit application has been filed with the City's Development Department. In addition, the City will
not abate taxes on the value of real or personal property for any period of time prior to the year of
execution of a Tax Abatement Agreement with the City.
11.2. The applicant for a tax abatement must provide evidence to the City that demonstrates
that a tax abatement is necessary for the financial viability of the development project proposed.
11.3. In accordance with state law,the City will not abate taxes levied on inventory, supplies
or the existing tax base.
11.4. An applicant for tax abatement shall provide wage rates, employee benefit information
for all positions of employment to be located in any facility covered by the Application.
11.5. Unless otherwise specified in the Tax Abatement Agreement, the amount of real
property taxes to be abated in a given year shall not exceed one hundred fifty percent (150%) of the
amount of the minimum Capital Investment expenditure required by the Tax Abatement Agreement for
improvements to the real property subject to abatement multiplied by the City's tax rate in effect for
that same year, and the amount of personal property taxes to be abated in a given year shall not exceed
one hundred fifty percent (150%) of the minimum value of personal property required by the Tax
Abatement Agreement to be located on the real property, if any, subject to abatement multiplied by the
City's tax rate in effect for that same year.
11.6. The owner of real property for which a Tax Abatement has been granted shall properly
maintain the property to assure the long-term economic viability of the project. In addition, if a
citation or citations for City Code violations are issued against a project while a Tax Abatement
Agreement is in effect, the amount of the tax abatement benefit will be subject to reduction, as
provided in the Tax Abatement Agreement.
City of Fort Worth General Tax Abatement Policy
Page 10 of 11
11.7. If the recipient of a tax abatement breaches any of the terms or conditions of the Tax
Abatement Agreement and fails to cure such breach in accordance with the Tax Abatement Agreement,
the City shall have the right to terminate the Tax Abatement Agreement. In this event, the recipient
will be required to pay the City any property taxes that were abated pursuant to the Tax Abatement
Agreement prior to its termination.
11.8. As part of the consideration under all Tax Abatement Agreements, the City shall have,
without limitation, the right to (i) review and verify the applicant's financial statements and records
related to the development project and the abatement in each year during the term of the Tax
Abatement Agreement prior to the granting of a tax abatement in any given year and (u) conduct an
on-site inspection of the development project in each year during the term of the Tax Abatement to
verify compliance with the terms and conditions of the Tax Abatement Agreement. Any incidents of
non-compliance will be reported to all taxing units with jurisdiction over the real property subject to
abatement.
11.9. The recipient of a tax abatement may not sell, assign, transfer or otherwise convey its
rights under a Tax Abatement Agreement unless otherwise specified in the Tax Abatement Agreement.
A sale, assignment, lease, transfer or conveyance of the real property that is subject to the abatement
and which is not permitted by the Tax Abatement Agreement shall constitute a breach of the Tax
Abatement Agreement and may result in termination of the Tax Abatement Agreement and recapture
of any taxes abated after the date on which the breach occurred. For additional information about this
Tax Abatement Policy, contact the City of Fort Worth's Economic & Community Development
Department using the information below:
City of Fort Worth
Economic&Community Development Department
1000 Throckmorton Street
Fort Worth,Texas 76102
(817) 392-6103
http://fortworthgov.oro/ecodev/
FORT WORTH
City of Fort Worth General Tax Abatement Policy
Page I I of l I
EXHIBIT "B"
DESCRIPTION OF THE LAND
Block 311, Area 3, Section 4 of the CentrePort Addition
EXHIBIT C
Lease Term Sheet
Landlord: Centreport Properties Inc.
c/o Koll Development
Tenant: CUNA Mutual Insurance Society
Building Size: 108,OOOsf, build-to-suit
Lease term: 12 years, plus renewal options
Commencement: March 1, 2007
Taxes: Operating expenses and all property taxes will be the responsibility
of the Tenant
Notwithstanding anything to the contrary herein, the City will have the right to review the
actual Lease in its entirety in accordance with Section 3.2 of the Agreement
EXHIBIT "D"
TAX ABATEMENT APPLICATION
Incentive Application
GENERAL INFORMATION
1. Applicant Information:
Company Name CUNA Mutual Insurance Society
Company Address 5910 Mineral Point Rd
City, State, Zip Code Madison, WI 53705
Contact Person(include title/position): Mr. Joseph Taricani—VP Program Mpt Office
Telephone Number 608-231-7800 ext.
Mobile Telephone Number n/a
Fax Number n/a
E-mail address: joseph.taricani2eunamutual.com
2. Project Site Information (if different from above):
Address/Location: Multiple sites being considered
3. Development requests that will be sought for the project (check all that apply):
A. Replat:
B. Rezoning: Current zoning: Requested zoning:
C. Variances: If yes, please describe:
D. Downtown Design Review Board:
E. Landmark Commission:
4. Incentive(s) Requested:1 Real and Personal Property Tax Abatement
5. Specify elements of project that make it eligible for the requested incentive(s):
1) At least$10 million in real property investment excluding acquisition costs
2)At least$2 million in personal property investment over 3 years
1 Please see Incentive Policy for a list of incentives.
Page 2 of 31
6. Do you intend to pursue abatement of:
County Taxes? ►BYes ❑ No
7. What level of abatement will you request: Years? 10 Percentage? _Varies_
PROJECT INFORMATION
For real estate proj ects,please include below the project concept, project benefits and how the project
relates to existing community plans. A real estate project is one that involves the construction or
renovation of real property that will be either for lease or for sale. Any incentives given by the City should
be considered only "gap" financing and should not be considered a substitute for debt and equity.
However, the City is under no obligation to provide gap financing just because a gap exists. In order
for a property owner/developer to be eligible to receive incentives and/or tax abatement for a Project, the
property owner/developer:
A. Must complete and submit this application and the application fee to the City;
B. Owner/developer or owner/developer's principals must not be delinquent in paying property
taxes for any property owned in Fort Worth;
C. Owner/developer or owner/developer's principals must not have ever been subject to the City
of Fort Worth's Building Standards Commission's Review;
D. Owner/developer or owner/developer's principals must not have any City of Fort Worth liens
filed against any other property owned by the applicant property owner/developer. "Liens"
includes, but is not limited to, weed liens, demolition liens, board-up/open structure liens and
paving liens.
For business expansion projects2,please include below services provided or products manufactured, major
customers and locations, etc. For business expansion project involving the purchase and/or construction of
real estate, please answer all that apply.
8. Type of Project: Residential X Commercial/Industrial Mixed-use
9. Will this be a relocation? X No Yes If yes, where is the company currently
located?
10. Project Description Cis\..!? %VN �� ` UIF'':V
U
2 A business expansion project involves assistance to a business entity that seeks to expand its existing operations within Fort
Worth. The business is in a growth mode seeking working capital,personal property or fixed asset financing.
Page 3 of 31
ECD092705
A. Please provide a brief description of the proiect
The CUNA Mutual Group is the leading provider of financial services to credit unions and their
members worldwide, offering lending,protection, financial, employee and member solutions
through strategic partnerships, technological innovations and multiple service channels. The
mutual insurers of the CUNA Mutual Group are owned by their policyholders and operate to serve
their best interests. CUNA Mutual Group is transitioning its Claims and Product Administration
operations to a multi-product line, contact center environment that will include property/casualty
claims, disability claims, and collateral protection. In their search for an appropriate location,
CUNA Mutual seeks to gain the benefits of a less expensive,higher quality and more available
labor market. This operation will handle claims processing,product administration and customer
services for its property/casualty and life insurance businesses. The required positions and skill
sets span a wide band,ranging from entry-level claims processing and customer service to senior
insurance specialists.
B. Real Estate Development
1. Current Assessed Valuation of. Land$ n/a Improvements: at least$10M
2. New Development or Expansion(please circle one):
Size 100.000 sq. ft. Cost of Construction at least$1 OM
For mixed-use projects,please list square footage for each use
3. Site Development(parking, fencing, landscaping, etc.):
Type of work to be done n/a
Cost of Site Development$ n/a
C. Personal Property & Inventory
1. Personal Property:
• Cost of equipment, machinery, furnishing, etc: $2M over 3 years
• Purchase or lease? Purchase
2. Inventory& Supplies:
• Value of: Inventory$ n/a Supplies $ n/a
• Percent of inventory eligible for Freeport exemption(inventory, exported from Texas
within 175,days) n/a %
Page 4 of 31
ECDO92705
11. Employment and Job Creation:
A. During Construction
1. Anticipated date when construction will start? n/a
2. How many construction jobs will be created? n/a
3. What is the estimated payroll for these jobs? n/a
B. From Development
1. How many persons are currently employed? None
2. What percent of current employees above are Fort Worth residents? n/a %
3. What percent of current employees above are Central City residents? n/a %
4. Please complete the following table for new jobs to be created from direct hire by
applicant.
First Year By Fifth Year By Tenth Year
Total Jobs to be Created 150 501 501
0 0 0
Less Transfers*
150 150 150
Net Jobs
% of Net Jobs to be filled by Target 25% Target 25% Target 25%
Fort Worth Residents
% of Net Jobs to be filled by Target 10% Target 10% Target 10%
Central City Residents
* If any employees will be transferring, please describe from where they will be transferring.
n/a
Please attach a description of the jobs to be created, tasks to be performed for each, wage rate for each
classification, and a brief description of the employee benefit package(s) offered including the portion
paid by employee and employer respectively. See question 14 for more information.
Please describe any ancillary(not direct hire by applicant)job creation that will occur as a result of
completing this project.
Page 5 of 31
ECA092705
12. Local Commitments:
A. During Construction
1. What percent of the construction costs described in question 11 above will be committed to:
• Fort Worth businesses? 25 %
• Fort Worth Certified Minority and Women Business Enterprises? 25 %
B. For Annual,Supply & Service Needs
Regarding discretionary supply and service expenses (i.e. landscaping, office or manufacturing
supplies,janitorial services, etc.):
1. What is the annual amount of discretionary supply and service expenses? $ x.300,,606 j
2. What percentage will be committed to Fort Worth businesses? A4 oZ %
3. What percentage will be committed to Fort Worth Certified Minority and Women Business
Enterprises? % +?
r
`J
DISCLOSURES
13. Is any person or firm receiving any form of compensation, commission or other monetary
benefit based on the level of incentive obtained by the applicant from the City of Fort
Worth? If yes, please explain and/or attach details.
No
3 Discretionary expenses are those which are incurred during the normal operation of business and which are not subject to a
national purchasing contract.
Page 6 of 31
ECD092705
14. Please provide the following information as attachments:
a) Attach a site plan of the project.
b) Explain why incentives are necessary for the success of this project. Include a business
pro-forma or other documentation to substantiate your request.
c) Describe any environmental impacts associated with this project.
d) Describe the infrastructure improvements (water, sewer, streets, etc.) that will be
constructed as part of this project.
e) Describe any direct benefits to the City of Fort Worth as a result of this project.
f) Attach a legal description or surveyor's certified metes & bounds description.
g) Attach a copy of the most recent property tax statement from the appropriate appraisal
district for all parcels involved in the project.
h) Attach a description of the jobs to be created (technician, engineer, manager, etc.),tasks
to be performed for each, and wage rate for each classification.
i) Attach a brief description of the employee benefit package(s) offered (i.e. health
insurance, retirement, public transportation assistance, day care provisions, etc.)
including portion paid by employee and employer respectively.
j) Attach a plan for the utilization of Fort Worth Certified M/WBE companies.
k) Attach a listing of the applicant's Board of Directors, if applicable.
1) Attach a copy of Incorporation Papers noting all principals, partners, and agents and all
Fort Worth properties owned by each.
On behalf of the applicant, I certify the information contained in this application, including all
attachments to be true and correct. I further certify that, on behalf of the applicant, I have read the current
Incentive Policy and all other pertinent City of Fort Worth policies and I agree to comply with the
guidelines and criteria stated therein.
.7%14 -4A/f �fz
Printed Name Title
Signa Date
Page 7 of 31
ECD092705
ATTACHMENTS
h)Attach a description of the jobs to be created (technician, engineer, manager, etc.), tasks to be
performed for each, and wage rate for each classification.
Page 9 of 31
Job Description for
Claims Generalist
EO Category: Fill in when available Job Function: Fill in when available
Union Code: Not Applicable Salary Admin Plan: $34,000 - $42,000
Grade: Fill in when available FLSA Status: Fill in when available
Status: Fill in when available Effective Date: Fill in when available
Reports To: Claims Team Lead
Physical requirements: Duties may require the following physical activities:lifting and carrying boxes weighing 20 pounds;bending and kneeling to
retrieve and replace files. Approximately 80%to 90%of time spent on the job involves the use of a computer.
Role Under the direct supervision of the Team Leah the Claims Generalist is responsible for handling a variety of
customer claim inquires,including claim maintenance and claim status. In addition,the Claim Generalist will
complete all claim notifications,perform general administrative functions including the processing of
payments,and be accountable for meeting performance targets.
Products Handled:
• Collateral Protection Insurance
Responsibilities Primary Responsibilities:
• Receives claim notification,determines the claim type,and sends notification letters
• Receives and distributes incoming mail and processes outgoing mail
• Removes items from printers,Le.,correspondence,drafts,estimates,and matches and routes as directed
• Operates a variety of office equipment,to include computers,printers,copy machines,facsimile
receiver/transmitter,and mailing equipment
• Initiates service and research requests
• Segments and distributes claim to the correct employee or department
• Sets up new claims
• Organizes roundtable discussions
• Distributes claim payments
Secondary Responsibilities:
• Completes project work as specified by the Team Lead
Knowledge and Skills . Clear verbal and written communication in English
• Basic mathematical,typing(35 wpm minimum),computer(basic usage and functions)and data entry skills
• Basic telephone skills
• Strong interpersonal and customer service skills
• Ability to identify customer needs and recommend solutions
• Application ofgood judgment and decision making
• Ability to work efficiently both independently and as part of a team
• Desire to learn and develop professionally
Positive attitude and enthusiasm
Prior Education and • High school degree or equivalent
Experience • At least I year prior customer service and/or administrative experience is required, especially in an
insurance servicing environment is preferred
Next Potential Positions Claims Professional
(Career Path) Contact Center Generalist
Product Administration Generalist
Page 11 of 31
Job Description for
Claims Professional
EO Category: Fill in when available Job Function: Fill in when available
Union Code: Not Applicable Salary Admin Plan: $45,000 - $60,000
Grade: Fill in when available FLSA Status: Fill in when available
Status: Fill in when available Effective Date: Fill in when available
Reports To: Claims Team Lead
Physical requirements: Approximately 60%to 80%of time spent on the job involves the use of a computer.
Role Under the limited direction of the Team Lead,the Claims Professional is responsible for performing non-routine claim
analysis with a limited reserve authority and settlement authority,consistently applying knowledge of state laws and
regulations pertaining to the insurance industry as trained. The Claims Professional will examine claims submitted by
Credit Unions and/or third parties to determine whether additional or specialized investigation is necessary for claim
resolution.A Claim Professional provides guidance to Claims Generalists and participates in project work.
Products Handled:
• Collateral Protection Insurance
Responsibilities Primary Responsibilities:
• Investigates,evaluates,negotiates and concludes claims to include verification of coverage,legal liability and
extent of damage
• Examines claims submitted by Credit Unions and/or third parties to determine whether additional or specialized
investigation is necessaryfor claim resolution
• Resolves a large volume of claim calls in an electronic claim environment
• Reviews,processes and settles applicable routine claims as trained and directed
• Recognizes claims which are beyond scope of authority and take appropriate actions
• Applies knowledge of state laws and regulations pertaining to the insurance industry as trained
Secondary Responsibilities:
• Completes project work as specified by the Team Lead
Knowledge and • Clear verbal and written communication in English
Skills • Basic computer and telephone skills
• Strong interpersonal and customer service skills
• Ability to identify customer needs and recommend solutions
• Application ofgood judgment and decision making
• Ability to work efficiently both independently and as part of a team
• Desire to learn and develop professionally
• Positive attitude and enthusiasm
Prior Education • 4 year degree or equivalent work experience
and Experience • I-3 years work experience is required,in an insurance claims environment is preferred
****Must be licensed in assigned states within 6 months of being hired.
Next Potential Senior Claims Professional
Positions
(Career Path)
Page 12 of 31
ECD092705
Job Description for
Senior Claims Professional
EO Category: Fill in when available Job Function: Fill-in when available
Union Code: Not Applicable Salary Admin Plan: $50,000 - $65,000
Grade: Fill in when available FLSA Status: Fill in when available
Status: Fill in when available Effective Date: Fill in when available
Reports To: Claims Team Lead
Physical requirements: Approximately 60%to 80%of time spent on the job involves the use of a computer.
Role Under the limited direction of the Team Lead,the Senior Claims Professional is responsible for performing non-routine
claim analysis with a limited reserve authority and settlement authority,consistently applying knowledge of state laws and
regulations pertaining to the insurance industry as trained. The Senior Claims Professional will examine claims submitted
by Credit Unions and/or third parties to determine whether additional or specialized investigation is necessary for claim
resolution.A Senior Claim Professional serves as back up to the Team Lead assisting with the resolution of complex claim
issues and quality assurance.
Products Handled:
• Collateral Protection Insurance
Responsibilities Primary Responsibilities:
• Investigates,evaluates,negotiates and concludes claims to include verification of coverage,legal liability and
Went of damage
• Examines claims submitted by Credit Unions and/or third parties to determine whether additional or specialized
investigation is necessaryfor claim resolution
• Resolves a large volume of claim calls in an electronic claim environment
• Reviews,processes and settles applicable routine claims as trained and directed
• Recognizes claims which are beyond scope of authority and take appropriate actions
• Applies knowledge of state laws and regulations pertaining to the insurance industry as trained
Secondary Responsibilities:
• Completes project work as specified by the Team Lead
Knowledge and • Clear verbal and written communication in English
Skills • Basic computer and telephone skills
• Ability to follow CUNA Mutual Group claim processes
• Strong interpersonal and customer service skills
• Ability to identify customer needs and recommend solutions
• Application ofgood judgment and decision making
• Ability to work efficiently both independently and as part of a team
• Desire to learn and develop professionally
• Positive attitude and enthusiasm
Prior Education • 4 year degree or equivalent work experience
and Experience • 3-5 years experience in Property& Casualty insurance claims environment is required
****Must be licensed in assigned states within 6 months of being hired.
Next Potential Claims Team Lead
Positions
(Career Path)
Page 13 of 31
ECD09270
Job Description for
Claims Team Lead
EO Category: Fill in when available Job Function: Fill in when available
Union Code: Not Applicable Salary Admin Plan: $50,000 - $75,000
Grade: Fill in when available FLSA Status: Fill in when available
Status: Fill in when available Effective nate: Fill in when available
Reports To: Claims Manager
Physical requirements: Approximately 50%to 70%of time spent on the job involves the use of a computer.
Role Under the direction of Claims management,the Claims Team Lead provides direct support and leadership to the claims
team,manages day-to-day operations,and works to ensure the timely and effective application of CUNA Mutual Group
processes and policies. The Claims Team Lead provides coaching to team members,conducts claim file reviews and
assists in career development. In addition,the Claims Team Lead assists with complex claim issue resolution and quality
assurance.
Products Handled.•
• Collateral Protection Insurance
Time Allocation:
50%-Leadership and Career Development,20%Performance Management,20%-Issue Resolution,10%-Admin
Responsibilities Primary Responsibilities:
Leadership/Coaching
• Provides day-to-day leadership and supervision to Claims Professionals and Generalists
• Inspires team to focus on adherence to CUNA Mutual Group claims policies and processes, as well as state laws
and regulations by developing and coaching team members to provide superior claims service
• Assists in coaching team to be able to identify claims which are beyond scope of authority and take appropriate
actions
• Fosters a positive work environment
Career Development/Performance&Dialogue
• Provides on-going dialogue to team members about their performance
• Coaches and helps establish Individual Development and Career Plans with Claims Professionals and
Generalists
• Coordinates with Training on career development opportunities for Claims Professionals and Generalists
Performance Management
• Completes quality assurance reviews of claim files for each Claims Professional and Generalist
• Ensures staff compliance with company processes
• Monitors and evaluates Quality Assurance and metrics reports for each team member and identifies required
actions necessary to achieve service level and quality targets
• Prepares employee performance appraisals and reports
Issue Resolution
Investigates and resolves complex claims questions
Secondary Responsibilities:
Operations Management/Continuous Improvement
• Identifies and makes recommendations for process changes to improve customer experience
• Maintains an awareness of company and legalpractices impacting claim investigation andlor settlements by
reading related claim literature and/or by attending workshops,classes
Knowledge and . Clear verbal and written communication in English
Skills . Basic computer skills
• Strong interpersonal and customer service skills
Application ofgood judgment and decision making
• Ability to communicate effectively,conduct meetings and deliver formal presentations
Possesses coaching/teamwork/collaboration skills—effective listener,mentors,evaluates and provides training,
guidance and constructive feedback to staff
• Positive attitude and enthusiasm
Prior Education • 4 year degree
Page 14 of 31
ECD09270S
and Experience • Progressively responsible experience in a related environment
• 5 years progressive work experience in Property& Casualty insurance claims environment
****Must be licensed in assigned states within 6 months of being hired.
Next Potential Technical Specialist
Positions Claims Manager
(Career Path)
DR
Page 15 of 31
D0927C
Job Description for
Claims Manager
EO Category: Fill in when available Job Function: Fill in when available
Union Code: Not Applicable Salary Admin Plan: $65,000-$85,000
Grade: Fill in when available FLSA Status: Fill in when available
Latus: Fill in when available Effective Date: Fill in when available
Reports To:Fill in when available
Role Supervise the Claims department by providing leadership to Claims Team Leads and Intake Lead. The Claims
manager deals with escalated issue resolution and more formal quality assurance. The Claims manager is also
responsible for approving the highest claim value and review of the most complex claim files. In addition,the
Claims manager manages time and a work balance. The Claims Manager also provides guidance at round table
discussions.
Responsibilities - Manage all operational responsibilities to ensure consistent,professional and timely knowledge of policies and
procedures needed to pay good faith claims
- Oversee staff training on CPI products,claims processes and state regulations to effectively and efficiently
adjudicate claims to be in compliance with insurance regulations.
- Coach,motivate,educate and develop a professional claims staff:
- Lead the team in a total customer focused manner by creating a culture of quality.
- Complete performance reviews and coach claims staff on personal development.
- Develop department and customer service standards to continually improve client satisfaction and manage claims
turnaround and coach claims staff on meeting and/or exceeding these standards.
• Oversee and develop standards and goals for subrogation and salvage activities.
a Analyze key process and business reports to identify,implement or recommend process improvements and
operational projects that will assist in meeting standards. These improvements may include projects to enhance
claims,billing,or servicing processes within CPI or technology projects to increase efficiency within the
division.
a The above statements describe the general nature and level of work being performed in this job. They are not
intended to be an exhaustive list of duties and indeed additional responsibilities may be assigned,as required,
by management
a SUPERVISION--Does the position directly supervise employees? Yes-2 management,direct; 11 represented,
indirect
Knowledge and Skills - Demonstration of effective verbal and written customer focused communication skills,interpersonal,leadership
negotiation,analytical,critical thinking skills,and presentation skills through previous experience.
• Demonstrated effective interpersonal skills.
• Demonstrated ability to achieve positive results through influence,leadership,and coaching.
- Strong analytical and problem solving skills.
Effective utilization of time management.
Prior Education and - Bachelor's Degree in Insurance or Business or equivalent trade-off in related professional work
Experience experience-At least I year prior customer service and/or administrative experience is required,especially in
an insurance servicing environment is preferred
- Seven(7 years work experience in investigating and adjusting commercial properly/casualty claims to
include substantial supervisory experience-
Next Potential Positions
(Career Path)
Page 16 of 31
ECD092705
Job Description for
Contact Center Generalist(Credit Union)
EO Category: Fill in when available Job Function: Fill in when available
Union Code: Not Applicable Salary Admin Plan: $24,000—$32,000
Grade: Fill in when available FLSA Status: Fill in when available
Latus: Fill in when available Effective nate: Fill in when available
Reports To: Contact Center Team Lead
Physical requirements: Agent must be able to communicate by telephone and sit in a chair for up to eight hours per day.
Role Under the direct supervision of the Team Lead,the Contact Center Generalist is responsible for applying
knowledge of CUNA Mutual's organization and products in order to provide courteous and efficient service to
Credit Union,and will be accountable for meeting performance targets.
Products Handled:
• Collateral Protection Insurance
Responsibilities Primary Responsibilities:
• Takes incoming telephone calls Credit Union personnel.
• Navigates computer systems to properly address client inquiries.
• Provides information and instruction to clients to facilitate proper resolution to inquiries.
• Resolves problems within bounds of authority or requests assistance from other colleagues or supervisor as
necessary.
• Inputs necessary information into computer system with information obtained from clients.
• Maintains a high level of service with clients and meets performance targets
Secondary Responsibilities:
• Completes project work as specified by the Team Lead
Knowledge and Skills • Clear verbal and written communication in English
• Basic mathematical,typing(35 wpm minimum),computer(basic usage and functions)and data entry skills
• Basic telephone skills
• Strong interpersonal and customer service skills
• Ability to identify customer needs and recommend solutions
• Application ofgood judgment and decision making
Ability to work efficiently both independently and as part of a team
• Desire to learn and develop professionally
• Positive attitude and enthusiasm
• General awareness of CUNA Mutual products,and detailed knowledge of Collateral Protection Insurance
Prior Education and • High school degree or equivalent
Experience • At least 1 year prior customer service and/or administrative experience is required,especially in an
insurance servicing environment is preferred
Next Potential Positions Contact Center Specialist
(Career Path)
Page 17 of 31
ECD0927C
Job Description for
Contact Center Generalist (Member)
Eo Category: Fill in when available Job Function: Fill in when available
Union Code: Not Applicable Salary Admin Plan: $24,000- $32,000
Grade: Fill in when available FLSA Status: Fill in when available
Status: Fill in when available Effective nate: Fill in when available
Reports To: Contact Center Team Lead
Physical requirements: Agent must be able to communicate by telephone and sit in a chair for up to eight hours per day.
Role Under the direct supervision of the Team Lea4 the Contact Center Generalist is responsible for applying
knowledge of CUNA Mutual's organization and products in order to provide courteous and efficient service to
customers,and will be accountable for meeting performance targets.
Products Handled:
• Collateral Protection Insurance
Responsibilities Primary Responsibilities:
• Takes incoming telephone calls from members.
• Navigates computer systems to properly address member inquiries.
• Provides information and instruction to members to facilitate proper resolution to inquiries.
• Resolves problems within bounds of authority or requests assistance from other colleagues or supervisor as
necessary.
• Inputs necessary information into computer system with information obtained from members.
• Maintains a high level of service with members and meets performance targets
Secondary Responsibilities:
• Completes project work as specified by the Team Lead
Knowledge and Skills • Clear verbal and written communication in English
• Basic mathematical,typing(35 wpm minimum),computer(basic usage and functions)and data entry skills
• Basic telephone skills
• Strong interpersonal and customer service skills
• Ability to identify customer needs and recommend solutions
• Application ofgood judgment and decision making
• Ability to work efficiently both independently and as part of a team
• Desire to learn and develop professionally
• Positive attitude and enthusiasm
• General awareness of CUNA Mutual products,and detailed knowledge of Collateral Protection Insurance
Prior Education and • High school degree or equivalent
Experience
Next Potential Positions Contact Center Generalist(Credit Union)
(Career Path)
Page 18 of 31
ECD092705
Job Description for
Contact Center Specialist
Eo Category: Fill in when available Job Function: Fill in when available
Union Code: Not Applicable Salary Admin Plan: $30,000 - $38,000
Grade: Fill in when available FLSA Status: Fill in when available
IS tatas: Fill in when available ffective Date: fill in when available
Reports To: Contact Center Team Lead
Physical requirements:Agent must be able to communicate by telephone and sit in a chair for up to eight hours per day.
Role Under the limited direction of the Team Lead,the Contact Center Specialist is responsible for escalated customer
situations. The Contact Center Specialist will answer complex inquires by both Credit Union personnel and members,
provide guidance Contact Center Generalists,participate in project work and be accountable for meeting performance
targets
Products Handled.-
*
andled:• Collateral Protection Insurance
Responsibilities Primary Responsibilities:
• Takes incoming telephone calls from both Credit Union personnel and members.
• Navigates computer systems to properly address customer complex inquiries.
• Provides detailed information and instruction to customers to facilitate proper resolution to complex inquiries.
• Resolves problems within bounds of authority or requests assistance from other colleagues or supervisor as
necessary.
• Inputs necessary information into computer system with information obtained from customers.
• Maintains a high level of service with customers and meets performance targets
Secondary Responsibilities:
• Completes project work as specified by the Team Lead
Knowledge and • Strong verbal and written communication in English
Skills • Basic telephone skills
• Advanced interpersonal and customer service skills
• Ability to identify customer needs and recommend solutions
• Application ofgood judgment and decision making
• Ability to work efficiently both independently and as part of a team
• Desire to learn and develop professionally
• Positive attitude and enthusiasm
• General awareness of CUNA Mutual products,and detailed knowledge of Collateral Protection Insurance
Prior Education • Bachelor degree
and Experience • 3-5 years call center and/or insurance experience is required
Next Potential Contact Center Team Lead
Positions
(Career Path)
Page 19 of 31
ECD09270`
Job Description for
Contact Center Team Lead
EO Category: Fill in when available Job Function: Fill in when available
Union Code: Not Applicable Salary Admin Pian: $36,000- $45,000
Grade: Fill in when available FLSA Status: Fill in when available
tatus: Fill in when available Pffective Date: Fill in when available
Reports To: Contact Center Manager
Physical requirements: Approximately 50%to 70%of time spent on the job involves the use of a personal computer.
Role Under the direction of Contact Center Manager,the Contact Center Team Lead provides direct support and leadership to
the Contact Center team,manages day-to-day operations,and works to ensure the timely and effective application of
CUNA Mutual Group processes and policies. The Contact Center Team Lead provides coaching to team members,
conducts claim file reviews and assists in career development. In addition,the Contact Center Team Lead assists with
complex claim issue resolution and quality assurance.
Products Handled:
• Collateral Protection Insurance
Time Allocation:
50%-Leadership and Career Developmen4 20%Performance Management,20%-Issue Resolution,l0%-Admin
Responsibilities Primary Responsibilities:
Leadership/Coaching
• Provides day-today leadership and supervision to Contact Center Generalists and Specialists
• Assists in coaching team to be able to identify inquiries which are beyond scope of authority and take appropriate
actions
• Fosters a positive work environment
Career Development/Performance&Dialogue
• Provides on-going dialogue to team members about their performance
• Coaches and helps establish individual development and career plans with Contact Center Generalists and
Specialists
• Coordinates with Training Coordinator on career development opportunities for Contact Center Generalists and
Specialists
Performance Management
• Completes quality assurance reviews of claim files for each Contact Center Generalist and Specialist
• Ensures staff compliance with company processes
• Monitors and evaluates Quality Assurance and metrics reports for each team member and identifies required
actions necessary to achieve service level and quality targets
Issue Resolution
• Investigates and resolves complex customer inquiries
Secondary Responsibilities:
Operations Management/Continuous Improvement
• Identifies and makes recommendations for process changes to improve customer experience
• Maintains an awareness of company and Collateral Protection Insurance
Knowledge and • Strong verbal and written communication in English
Skills • Basic computer skills
• Advanced interpersonal and customer service skills
• Application ofgood judgment and decision making
• Ability to communicate effectively,conduct meetings and deliver formal presentations
• Advanced coaching/teamwork/collaboration skills—effective listener,mentors,evaluates andprovides training,
guidance and constructive feedback to staff
• Positive attitude and enthusiasm
Prior Education • Bachelor degree
and Ex erience • Progressively responsible experience in a related environment
Page 20 of 31
ECD092705
• S years work experience in a contact center
Next Potential Contact Center Manager
Positions
(Career Path)
VA9
Page 21 of 31
ECD0927
Job Description for
Product Administration Generalist
EO Category: Fill in when available Job Function: Fill in when available
Union Code: Not Applicable Salary Admin Plan: $24,000 - $32,000
Grade: Fill in when available FLSA Status: Fill in when available
tatus: fill in when available ffective Date: Fill in when available
Reports To: Product Administration Team Lead
Physical requirements: Duties may require the following physical activities:sitting in a chair up to eight hours per day and operating and
communicating by telephone up to eight hours per day. Approximately 80%to 90%of time spent on the job involves the use of a personal computer.
Role Under the direct supervision of the Team Lead,the Product Administration Generalist works as on-site product
administrator at a service center handling all aspects ofproduct administration for one or more assigned credit
union accounts. Working in conjuncdon with on and off-site business departments to resolve client issues and
manage client relationships,the Product Administration Generalist is responsible for developing and
maintaining sound,professional working relationships with assigned Credit Unions. The Product
Administration Generalist will have a lead role in resolving client concerns andproviding assistance to team
members.
Products Handled.•
• Collateral Protection Insurance
Responsibilities Primary Responsibilities:
• Develops and maintains sound,professional working relationships with assigned client staff
• Develops and maintains productive working relationship with sales specialists and other account team
members
• Continually enhances and builds upon relationships with assigned Credit Unions by collaborating with
appropriate collateral protection account team members
• Monitors client satisfaction through use of established guidelines and resources
• Provides guidance and assistance on allfacets of Collateral Protection Insurance program including
explaining program guidelines,interpreting reports,verifying information,responding to client inquires,
conducting research and providing follow-up
• Takes a lead role in addressing/resolving program related problems identified in assigned client accounts
and engages company personnel with the expertise/knowledge required to effectively address problems
identified
• Contacts insurance companies and other entities to obtain/provide information related to administration of
program
• Provides professional,courteous assistance to Credit Union members as needed
• Works in collaboration with field service staff to ensure proper servicing of shared client accounts
• Performs routine clerical duties as necessary in the administration of programs such as typing,filing,
copying,and similar functions
• Promotes and maintains a positive,professional image of CUNA Mutual Group
Secondary Responsibilities:
• Provides assistance to other departments within the Collateral Protection area in resolving problems and
obtaining needed information from clients,members,and others
• Performs similar job activities as assigned
Knowledge and Skills • Ream write,and understand English well
• Ability to accurately interpret information as well as demonstrate problem solving skills
• Ability to work under direct supervision
• Ability to comprehend and apply program policies and procedures in an effective manner
• Basic skills such as use of standard office equipment,Internet navigation,and wordprocessing software
Desire to learn and develop professionally
• Positive attitude and enthusiasm
Prior Education and • High school degree.or equivalent,Associate's Degree preferred
Experience • 1-2 years prior customer service and/or administrative experience is required,insurance servicing
environment is preferred
Next Potential Positions Product Administration Specialist
Career Path Product Administration Team Lead
Page 22 of 31
ECD092705
Job Description for
Product Administration Specialist
EO Category: Fill in when available Job Function: Fill in when available
Union Code: Not Applicable Salary Admin Plan: $30,000- $38,000
Grade: Fill in when available FLSA Status: Fill in when available
Status: Fill in when available Effective Date: Fill in when available
Reports To: Product Administration Team Lead
Physical requirements: Duties may require the following physical activities:sitting in a chair up to eight hours per day and operating and
communicating by telephone up to eight hours per day. Approximately 80%to 90%of time spent on the job involves the use of a personal computer.
Role Under the direct supervision of the Team Lead,the Product Administration Specialist will work as an on-site
program administrator at a service center handling all aspects of product administration for one or more
assigned credit union accounts. The Product Administration Specialist will work in conjunction with on and
off-site business departments to resolve client issues and be responsible for developing and maintaining sound,
professional working relationships with assigned credit unions.
Products Handled:
• Collateral Protection Insurance
Responsibilities Primary Responsibilities:
• Takes a lead role in addressing/resolving program related problems identified in assigned client accounts
and engages company personnel with the expertise/knowledge required to effectively address problems
identified
• Provides guidance and assistance on all facets of Collateral Protection Insurance program including
explainingprogram guidelines,interpreting reports,verifying information,responding to client inquires,
conducting research and providing follow-up
• Works in collaboration with field service staff to ensure proper servicing of shared client accounts
• Develops and maintains sound,professional working relationships with assigned client staff
• Continually enhances and builds upon relationships with assigned credit unions by collaborating with
appropriate collateral protection account team members
• Monitors client satisfaction through use of established guidelines and resources
• Performs routine clerical duties as necessary in the administration of programs such as typing,filing,
copying,and similar functions
• Contacts insurance companies and other entities to obtah4rovide information related to administration of
program
• Provides professional,courteous assistance to clients'membership as needed
• Promotes and maintains a positive,professional image of CUNA Mutual Group
• Develops and maintains productive working relationship with sales specialists and other account team
members
Secondary Responsibilities:
• Provides assistance to other departments within the Collateral Protection area in resolving problems and
obtaining needed information from clients,members,and others
• Performs similar job activities as assigned
Knowledge and Skills • Strong verbal and written communication skills
Ability to quickly and accurately interpret information as well as demonstrate solid analytical and problem
solving skills
• Demonstrated ability to organize and prioritize work to meet deadlines
• Demonstrated ability to work independently under limited supervision
• Able to comprehend and apply program policies and procedures in an effective manner
• Proficient in use of standard office equipment,Internet navigation,and wordprocessing software
• Desire to learn and develop professionally
• Positive attitude and enthusiasm
Prior Education and • Bachelor Degree or equivalent professional experience
Experience . 3-5 years customer service and/or administrative experience in the insurance industry required
Next Potential Positions Product Administration Team Lead
(Career Path)
Page 24 of 31
ECD092705
Job Description for
Product Administration Team Lead
EO Category: Fill in when available Job Function: Fill in when available
Union Code: Not Applicable Salary Admin Plan: $36,000 - $45,000
Grade: Fill in when available FLSA Status: Fill in when available
Status: Fill in when available Effective Date: Fill in when available
Reports To: Product Administration Manager
Physical requirements: Duties may require the following physical activities:bending and kneeling to retrieve and replace files,sitting at a computer for
up to 8 hours per day and operating and communicating by telephone up to 8 hours a day. Approximately 50%to 70%of time spent on the job involves
the use of a personal computer.
Role Under the direction of Product Administration management,the Product Administration Team Lead provides direct
support and leadership to the Product Administration team,manages day-to-day operations,and works to ensure the timely
and effective application of CUNA Mutual Group processes and policies. The Product Administration Lead provides
coaching to team members,conducts claim file reviews and assists in career development. In addition,the Claims Team
Lead assists with complex claim issue resolution and quality assurance.
Products Handled:
• Collateral Protection Insurance
Responsibilities Primary Responsibilities:
Leadership/Coaching
• Provides day-to-day leadership and supervision to Product Administration Generalists and Specialists
• Inspires team to focus on adherence to CUNA Mutual Group policies and processes,as well as state laws and
regulations by developing and coaching team members to provide superior service
• Fosters a positive work environment
Career Development/Performance&Dialogue
• Provides on-going dialogue to team members about their performance
• Coaches and helps establish Individual Development and Career Plans with Product Administration Generalists
and Specialists
• Coordinates with Training on career development opportunities for Product Administration Generalists and
Specialists
Performance Management
• Completes quality assurance reviews for each Product Administration Generalists and Specialists
• Ensures staff compliance with company processes
• Monitors and evaluates Quality Assurance and metrics reports for each team member and identifies required
actions necessary to achieve service level and quality targets
• Assists claims management in preparing employee performance appraisals and reports
Issue Resolution
• Investigates and resolves complex claims questions
Secondary Responsibilities:
Operations Management/Continuous Improvement
• Identifies and makes recommendations for process changes to improve customer experience
• Maintains an awareness of company and legal practices impacting claim investigation and/or settlements by
reading related claim literature and/or by attending workshops,classes
Knowledge and • Clear verbal and written communication in English
Skills • Intermediate to advancedproficiency in computer skills including Word,Excel,Power Point and Internet
navigation
• Ability to follow CUNA Mutual Group claim processes- Strong Strong interpersonal and customer service skills
• Application ofgood judgment and decision making
• Ability to communicate effectively,conduct meetings and deliver formal presentatio
• Possesses coaching/teamwork/collaboration skills—effective listener,mentors,eva uat�s`and provides training,
guidance and constructive feedback to staff
• Positive attitude and enthusiasm --- -
Prior Education Bachelor degree or equivalent professional experience
and Experience • 2-4 ears of supervisory experience in a contact center or Financial Services environment,insurance industry
Page 25 of 31
ECD0927
preferred
• 1-2 years of insurance industry specific erience
Next Potential Product Administration Manager
Positions Product Administration Director
(Career Path)
Page 26 of 31
ECD092705
i) Attach a brief description of the employee benefit package(s) offered (i.e. health
insurance, retirement, public transportation assistance, day care provisions, etc.)
Page 27 of 31
Summary of Benefits and Plan Highlights
2006
Medical - HMO
Employee Cost Sharing Highlights
Employee 50% $15 or$25 office copay No chiropractic
Employee and Spouse 50% 80/20 coinsurance Drug copay$10/$20/$35
Employee and Children 50% $1500/$3000 out of pocket
Full Family 50%
Medical -PPO
Employee Cost Sharing Highlights
Employee 50% $20 office copay
Employee and Spouse 50% Drug copay$10/$20/$35
Employee and Children 50% In Network: Out of Network:
Full Family 50% Deductible$500/$1500 Deductible$1000/$3000
80/20 coinsurance 60/40 coinsurance
$2000/$4000 out of pocket $4000/$8000 out of pocket
Dental
Employee Cost Sharing Highlights
Employee 50% Deductible$50/$150 basic restorative 80%
Employee and Spouse 50% $1500 annual max major 50%
Employee and Children 50% preventive care 100% ortho 50% to $1500 max
Full Family 50%
Vision
Employee Cost Sharing Highlights
Employee 50% $10 exam copay
Employee + 1 50% 100% at network providers
Employee +2 or more 50%
Short Term Disability
This benefit is 100% Employee Paid. Cost is$0.40/$10 of weekly benefit.
60% to max of$800/week
15 day elimination
13 weeks benefit
Page 1 of 2
Dependent Life
This benefit is 100% Employee Paid. Cost is $1.28 per month.
Spouse $5000
Child 14 days-6 mos $100
Child > 6 months-$2000
Group Life/ADD
This benefit is 100% Employer paid. Cost is $.07/$1000 per month for life and
$.02/$1000 per month for ADD
two times annual salary
minimum $20,000
maximum$130,000
Long Term Disability
This benefit is 100% Employer paid. Cost is $.23/$100/month
66.67%to max of$6000/mo
90 day elimination
Requires three years to be eligible
401(k) Plan (do not have pension)
Employer match is 50% on first 5%
Section 125 Plan
Pretax medical premiums
FSA medical max$5000
FSA dep care max$5000
Page 2 of 2
i
k) Attach a listing of the applicant's Board of Directors, if applicable.
Boardaf&rectors.-
Jan
v,
U i
Loretta M.Surd
Board Chairman
President&CEO
Centra Credit Union
Columbus, Indiana
Wdub FL Arnold
Y •
James L.Bryan
Relired President,&CEO
Texans Credit union
Rioardson,Texas
Warp to"Wrt(i
Alowu
Joseph J:Gasper
Retired President&COO
Hatkmwide Insurance
Dublin,Ohio
Bert Hash Jr.
President E CED
Municipal Employees CU
of Ballinwre,Inc.
Bal0more,Maryland
C.Alan poppers
President&CEO
DL='S Credit Union -
Denver.Colorado
Farouk D.G.Wang
Director
kJ
Buildings&Grounds Management
University of Hawaii at Manes, ;
Honolulu,Hewaii
1) Attach a copy of Incorporation Papers noting all principals, partners, and agents and all Fort
Worth properties owned by each.
LPN 0,
m
Page 31 of 31
Loar
FP MAY 1 12001
INSURANCE DEPARTMENT
STATE OF WISCONSIN
CERTIFICATE OF AMENDMENT OF ARTICLES
CUNA Mutual Insurance Society, a Wisconsin mutual insurance company,with its principal
office located in Dane County,Wisconsin, hereby files the attached Restated Articles of
Incorporation with the Wisconsin Insurance Department. The Restated Articles of Incorporation
were adopted by mail vote of the CUNA Mutual Insurance Society policyholders on May 8,
2001. The total number of CUNA Mutual Insurance Society policyholders with voting rights is
135,870. The total number of policyholders voting was 32,644; with 31,600 policyholders
voting FOR the Restated Articles of Incorporation and 1,044 policyholders voting AGAINST
the Restated Articles of Incorporation respectively.
Executed this 10`h day of May, 2001.
(SEAL) C Mutual Insl4rance Society
/Steven R. Suleski, Vice President
and Deputy General Counsel
Attest:
Mark K. Willson, Assistant Secretary
CUNA Mutual Insurance Society
Madison,Wisconsin
Restated
ARTICLES OF INCORPORATION
ARTICLE I
Name and Location
e
Section 1. The name of this Corporation shall be CUNA Mutual Insurance Society. The principal
office of this Corporation shall be 5910 Mineral Point Road, Madison, Dane County, Wisconsin
53705,and its registered agent is Faye A.Patzner at the same address.
ARTICLE II
Plan
Section 1. This Corporation shall be nonstock and no stock shall ever be sold or issued. The plan of
operation of this Corporation shall be that of a mutual insurance company.
Section 2. No insurance policies shall be issued the performance of which are contingent upon
payment of assessments or calls made upon its members and no member shall be liable for the losses
of this Corporation.
ARTICLE III
Business of this Corporation
Section 1. The primary purpose of this Corporation shall be to transact the business of writing life,
health and disability insurance,annuities and endowments.
Section 2. This Corporation was organized for the purpose of providing for the insurance needs of
credit unions, credit union organizations and credit union members and such purpose shall be
maintained as provided in this Section. Accordingly,the primary business of this Corporation shall be
limited to the writing of insurance of the types set forth in Section 1 hereof for credit unions, credit
union organizations, credit union members and corporations, associations or cooperatives with
savings and loan purposes similar to credit unions or institutions organized on the cooperative basis
for meeting financial needs of people. The Board of Directors shall establish the types of institutions,
the members of which may be included within such business and, in its discretion, any exceptions
which are deemed in the best interests of this Corporation in fiutherance of the primary business
purpose stated.
Section 3. The business of this Corporation may be conducted in any part of the world.
Section 4. The Board of Directors may authorize organization of subsidiary corporations to carry on
the business to be undertaken, or to engage in the business of providing types of insurance for which
this Corporation is not authorized, or to provide incidental or related services, or for investment
purposes or for any other purposes allowed by law. This Corporation may participate in any such
subsidiary corporate businesses with others as the Board of Directors deems desirable in the best
interests of this Corporation.
Section 5. The purpose and business of this Corporation as described in these Articles of
Incorporation shall be interpreted liberally to allow the Board of Directors sufficient authority to meet
insurance and financial service needs of those to be served.
CUNA Mutual Insurance Society .A
May 200'
ARTICLE IV
Membership,Voting and Elections
Section 1. Membership in this Corporation shall be limited to bona fide policyholders of this
Corporation whose insurance is, and shall have been, in force at least one year prior thereto.
Members shall have one vote on any matter presented to the members for a vote regardless of the
number of policies or the amount of insurance carried.
Section 2. Voting of members for election of directors and upon such other matters as members shall
be entitled to vote upon, or which may be submitted to members, shall be conducted at a Biennial
General Election held in each even numbered year in lieu of meetings of members. The Bylaws shall
contain rules govemmg voting and voting procedures. Special elections, or special voting of
members, or special meetings of members, or delegates of members, may be allowed as provided in
the Bylaws.
ARTICLE V
Mode of Exercising Corporate Powers
Section 1. The*corporate powers of this Corporation shall be exercised by a Board of Directors
composed of at least nine (9)and not more than twenty (20) persons as provided in the Bylaws.
Directors must be policyholders of this Corporation and shall be chosen by ballot at the Biennial
General Election.
Section 2. The Board of Directors shall have general control of the business and affairs of this
Corporation and shall possess and exercise all powers vested in directors of insurance corporations
which are consistent with the provisions of the charter and with the laws of the State. The Board of
Directors shall adopt, or provide for adoption of, rates, applications, insurance policies, rules and
instructions governing the acceptance of risks and generally provide policy direction of this
Corporation with appropriate delegation of the administration to management. The Board of
Directors shall elect all principal officers,fix the salaries and compensation of such officers and,when
not otherwise provided for, define their duties, and appoint inspectors for the Biennial General
Election.
The Board of Directors shall have power,as provided in the Bylaws,to establish committees to which
authority may be delegated, including powers vested in the Board of Directors within limits
prescribed by Wisconsin law.
The Board of Directors shall determine annually in their sole discretion any equitable distribution of
surplus of this Corporation to policyholders. In declaring any such distribution,consideration shall be
given to the financial strength of this Corporation reasonably required for the business to be
conducted giving recognition of the necessity to provide for sufficient capital through its reserves and
surplus funds in order to build and maintain a sound insurance institution capable of meeting
insurance needs and services to policyholders.
Section 3. The Bylaws of this Corporation may be amended by a two-thirds(213)vote of the Board
of Directors at any meeting of the Board of Directors in any manner not inconsistent with the
insurance laws of the state of Wisconsin and these Articles of Incorporation, subject to the power of
the members to alter or repeal any amendment made by the Board of Directors. Any particular article
or section of the Bylaws may provide for amendment only upon vote of the members. The Bylaws of
this Corporation may also be amended,altered, or repealed in any manner not inconsistent with the
insurance laws of the state of Wisconsin by a vote of two-thirds(2/3) of the members voting at a
Biennial General Election or special vote or meeting of the members of this Corporation.
CUNA Mutual Insurance Society 2.A
May 20 .
Section 4. An amendment to the Bylaws may be initiated by the direct action of the members as
follows:
One percent (1%) or more of this Corporation's members shall sign and file with the Secretary, not
later than ninety(90) days prior to the date of the Biennial General Election of this Corporation, a
copy of the proposed amendment or amendments together with a brief statement of the purpose
thereof and a statement from this Corporation's General Counsel that the proposed amendment is
acceptable under Wisconsin law. Such a copy of the proposed amendment and statement of purpose
shall be on a form to be furnished by the Secretary and shall be signed by the member if a natural
person and by the president, or treasurer, or other authorized officer, if a corporate member, such
officer having been so authorized by resolution duly adopted by the board of directors of such
corporation.
Upon timely receipt of a proposed amendment to the Bylaws accompanied by the two required
statements,properly prepared and signed and arising by action of the members as herein provided, the
Secretary shall send or cause to be sent a copy of such proposed amendment to all members not less
than twenty(20)days prior to the date of the next Biennial General Election. The Board of Directors
may make a recommendation to members as to any such amendment as proposed.
Section 5. Nominations to the Board of Directors may be made in the following manner and not
otherwise: (a) By the Board of Directors; (b) By one percent (1%) or more of this Corporation's
members in the way and manner provided herein and in the Bylaws.
Such one percent (1%) or more of this Corporation's members shall file with the Secretary of this
Corporation,not more than ninety (90)nor less than sixty(60)days prior to the election, a certificate
signed and acknowledged by them giving the names, occupations and addresses of their candidate or
candidates together with a statement signed by said candidates that they will accept office if elected.
Section 6. The Board of Directors shall be divided into classes of Directors as provided for in the
Bylaws of the Corporation.
Section 7. A Director may be removed from office for cause by an affirmative vote of three-fourths
(3/4)of the full Board of Directors at a meeting of the Board called for that purpose.
ARTICLE VI
Principal Officers
Section 1. The principal officers of this Corporation shall be as prescribed in the Bylaws of the
Corporation.
Section 2. The Board of Directors shall elect or appoint or authorize the appointment of such other
officers, agents and employees as are prescribed in the Bylaws, or as may be deemed by them to be
required for the conduct of the business of this Corporation, to perform such duties as are prescribed
in the Bylaws or assigned to them from time to time.
CUNA Mucual Insurance Society S.A
May 20
ARTICLE VII
Amendments
Section 1. Amendments to these Articles may be proposed by the Board of Directors or by direct
action of not less than one percent (1%) of this Corporation's members who shall sign and file a
written copy thereof with the Secretary of this Corporation not later than ninety(90)days prior to the
date of the Biennial General Election of this Corporation together with a brief statement of the
purpose thereof and a statement from this Corporation's General Counsel that the proposed
amendment is acceptable under Wisconsin law. Such copy of the proposed amendment and statement
of purpose shall be on a form to be famished by the Secretary and shall be signed by the member,if a
natural person, and by the president, or treasurer, or other authorized officer, if a corporate member,
such officer having been so authorized by resolution duly adopted by the board of directors of such
corporation.
Section 2. Upon approval of an amendment of the Articles of Incorporation proposed by the Board
of Directors or upon timely receipt of such an amendment proposed by members,accompanied by the
two required statements,properly prepared and signed and arising by action of the members as herein
provided, the proposed amendment shall be mailed by the Secretary or Assistant Secretary of this
Corporation with notice of time and place of the voting on such amendment to each member not less
than twenty(20)days prior to the date when adoption of the amendment shall be voted upon.
Section 3. Amendments shall be adopted by a vote of two-thirds(2/3)of the members voting at any
Biennial General Election or special vote or meeting of the members of this Corporation.
The foregoing shall constitute Restated Articles of Incorporation of this Corporation which. shall
supersede and take the place of the heretofore existing Articles of Incorporation and Amendments
thereto.
CUNA Mutual Insurance Society q.A
May loo,
EXHIBIT E
Depiction& Description of the Required Improvements
The building being contemplated is a single-story 108,000 SF, tilt-wall concrete
building of approximately 108,000 square feet. Parking will be accomplished on surface
lots. There are also anticipated screened enclosure(s) for generator(s) and cooling
tower(s).
The parking and landscape will comply with the Design Review Guidelines issued
by Centreport. The building design has not yet considered finishes, colors or architectural
expression, but the exterior subjective quality level of the building will be similar to other
single-story corporate facilities in the Ft Worth market.
As of the date of this agreement, the estimated construction cost of the building will
likely not exceed $165 per square foot.
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Page 1 of 3
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved As Amended on 6/13/2006
DATE: Tuesday, June 13, 2006
LOG NAME: 17CUNA REFERENCE NO.: C-21507
SUBJECT:
Authorize Execution of Tax Abatement Agreements with CUNA Mutual Insurance Society and with
Centreport Properties, Inc., along with Waiver of Related Development Fees, and Related Findings
of Fact by the City Council
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute the attached Tax Abatement Agreement with CUNA Mutual
Insurance Society;
2. Authorize the City Manager to execute the attached Tax Abatement Agreement with Centreport
Properties, Inc.; and
3. Find that the statements set forth in the recitals of the attached Tax Abatement Agreements are true
and correct.
4. Authorize the City Manager to waive related development fees in excess of$15,000.
DISCUSSION:
The real property subject to abatement in the attached Tax Abatement Agreement with CUNA Mutual
Insurance Society (CUNA) and Centreport Properties, Inc. (Centreport) is located in the Centreport
Business Park in far east Fort Worth. The City Council designated this property as Tax Abatement
Reinvestment Zone Number 54, City of Fort Worth, Texas.
Project:
The CUNA Mutual Group is the leading provider of financial services, including life insurance, investment
advisory, and information technology, to credit unions and their members. CUNA was founded in 1935 and
is owned by its credit union policyholders. Headquartered in Madison, Wisconsin, CUNA which has 5,500
employees world wide, plans to develop a customer care center in the Centreport Business Park.
The proposed project is estimated to have a construction cost of at least $10,000,000. CUNA is also
planning to acquire at least $2,000,000 in new taxable personal property. CUNA will be leasing both the
land and the new facility from Centreport. Centreport will oversee construction of the facility, and will retain
ownership of the building once it is completed. Under the proposed lease agreement between CUNA and
Centreport, CUNA will be responsible for payment of all of Centreport's property taxes on the real
property. Consequently, because state law requires real property tax abatement agreements to be made
with owner of the real property, the City must enter into two tax abatement agreements with both CUNA and
Centreport in order to abate both real and personal property taxes and provide the overall incentive
negotiated on this project.
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Page 2 of 3
Employment:
CUNA will be required to employ a minimum 125 full-time employees (FTEs) on site by December 31, 2008
then 400 FTEs by December 31, 2009. Of the total jobs, CUNA is required to fill a minimum of 25% of the
jobs with Fort Worth residents and a minimum of 10% of the jobs with Central City residents.
Utilization of Fort Worth Businesses:
Regarding utilization of Fort Worth based businesses, Centreport has committed 25% of total construction
spending to Fort Worth construction companies. Additionally, CUNA has committed to spend a minimum of
$75,000 of annual supply and service expenditures with Fort Worth companies.
Utilization of Fort Worth M/WBE Businesses:
Regarding the utilization of Fort Worth Minority Business Enterprises (MBEs) and Fort Worth Women
Business Enterprises (WBEs), Centreport has committed 25% of total construction spending to certified Fort
Worth M/WBE construction companies. Additionally, CUNA has committed to spend a minimum of $45,000
of annual supply and service expenditures with Fort Worth companies.
ABATEMENT TERMS:
CUNA will receive a ten-year tax abatement on real and personal property for a maximum abatement of
75% annually. The projected value of the tax abatement if the maximum abatement amount is reached
every year during the agreement term is approximately $700,000. The abatement incorporates CUNA's and
Centreport's commitments for employment, construction expenditures, and total annual supply and service
spending.
The abatement is structured as follows:
Abatement Component
Real & Personal Property Improvements 30%
Annual Supply & Service Spending 10%
Employment 35%
Failure to meet the minimum real and personal property commitments by December 31, 2007 shall be an
event of default in which case the City will have the right to terminate the Agreement. Up to 30% abatement
can be reached for the term of the agreement in the construction phase with 10% awarded for each of the
following components related to the real & personal property improvements: (1) meeting the minimum
investment requirements, (2) meeting the Fort Worth construction commitment and (3) meeting the FW
M/WBE construction commitment. An additional 10% abatement can be awarded annually for meeting both
Fort Worth and FW M/WBE supply and service commitments, each worth 5%. Additionally, up to an
additional 35% can be awarded for meeting the employment commitments as outlined in the agreement
with the minimum employment commitment worth 5%, Fort Worth resident commitment worth 20% and the
Central City resident commitment worth 10%. Failure to meet the minimum employment commitment in any
year will negate any abatement amount related to the Employment component for that year.
This reinvestment zone is located in COUNCIL DISTRICT 5.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action does not require the expenditure of City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
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Page 3 of 3
Submitted for City Manager's Office by: Dale Fisseler (6266)
Originating Department Head: Tom Higgins (6192)
Additional Information Contact: Jay Chapa (5804)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 11/8/2006