HomeMy WebLinkAboutIR 10263
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10263
May 7,2019
To the Mayor and Members of the City Council
Page 1 of 1
SUBJECT: AMENDMENT TO M&C C-29029 TO ADD WACHOVIA SERVICE
CORPORATION AS A PARTY OF THE TAX ABATEMENT
AGREEMENT
On February 5, 2019 the City Council approved M&C C-29029 authorizing the execution of a Tax
Abatement Agreement (Agreement) with Stanley Black & Decker USA, Inc. (Company) for the
construction of an approximately 375,000 square foot manufacturing facility on property in the
vicinity of the intersection of North Beach Street and Eagle Parkway, east of I-35W (the
). Under the Agreement, the Company must invest at least $80 million in real and
business personal property improvements (exclusive of land costs) and have at least 500 full-time
jobs filled on the Property by December 31, 2020. In return, as authorized by Chapter 312, Texas
Tax Code , the City will grant a 40 percent tax abatement on the
incremental increase in value of real and business personal property improvements for a period
of five years.
During contracting, the Company disclosed that they will be pursuing an operating lease with
Wachovia Service Corporation (Wachovia), which is affiliated with Wachovia National Bank,
under which Wachovia will take title to the Property and lease it back to Company as part of their
financing arrangements. Under the Tax Abatement Statute, the City can only enter into an
agreement for tax abatement with the owner of the real property in which incentivized
improvements will be constructed. Therefore, because Wachovia will be the record owner of the
Property, Wachovia must also be a party to the Agreement.
Staff will place an M&C for City Council consideration on the May 14, 2019 agenda that requests
the City Council to amend M&C C-29029 to add Wachovia as a party to the Agreement.
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