HomeMy WebLinkAboutIR 10233
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10233
February 5,2019
To the Mayor and Members of the City Council
Page 1 of 1
SUBJECT: AMENDMENT NO. 1 TO ECONOMIC DEVELOPMENT PROGRAM
AGREEMENT WITH ROANOKE 35/114 PARTNERS, LP TO
EXTEND THE COMPLETION DEADLINE AND AMEND
CONSTRUCTION REQUIREMENTS
On May 19, 2015 (M&C C-18484) the City Council authorized the execution of an Economic
Development Program Agreement (City Secretary Contract No. 48085) with Roanoke 35/114
Partners, LP (Developer) for the construction of an approximately 1,985,000 square foot multi-use
project consisting of commercial, office and residential space, known as Champion Circle, to be
located at the southwest corner of Interstate 35 and Highway 114.
The Agreement required the Developer to complete all required construction improvements for
Phase I of the development by December 31, 2018 and Phase II of the development by December
31, 2021. The Agreement also featured minimum construction requirements for each phase.
Per the Agreement, the Developer must, as part of its Phase I investments, deliver a minimum of
$60 million in Construction Costs with a minimum of 500,000 sq. ft. of Commercial/Retail space.
As part of its Phase II investments, Developer must deliver a minimum 500,000 sq. ft. of
Commercial/Retail space and 200,000 sq. ft. of Class A Office space with an additional $113 million
in Construction Costs.
In fall of 2018, Developer informed the City that, due to significant changes in market demand
affecting the type and amount of retail space that could be supported at the project site, Developer
was requesting an amendment to the Agreement. The proposed amendment would decrease the
required Phase I Commercial/Retail space to be 300,000 sq. ft., would decrease the required Phase
IICommercial/Retail space to be 250,000 sq. ft., and would extend the Phase I and Phase II
Completion Deadlines to be December 31, 2020 and December 31, 2023 respectively. The
proposed amendment would increase the required Phase I investment in Construction Costs to be
$120 million and would increase the Phase II Class A Office requirement to be a minimum of
300,000 sq. ft. Being based on sales tax only, the Developer will accept the risk of any impact or
reductions to the total value of program grants resulting from the proposed changes in commercial
development to be delivered as part of the project.
All other requirements contained in the Agreement would be unaltered by the proposed
amendment. A separate Economic Development Program Agreement with Tanger Devco, LLC
(City Secretary Contract No. 48084) would be unaffected by the proposed amendment. Staff will
place an M&C for City Council consideration on the March 5, 2019 agenda, recommending
amendment of the Agreement as outlined above.
If you have any questions concerning this information, please contact Robert Sturns, Economic
Development Director at 817-212-2663 or robert.sturns@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS