HomeMy WebLinkAboutIR 9364INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 9364
To the Mayor and Members of the City Council March 1, 2011
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Page 1 of 2
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a SUBJECT: INCENTIVE PROPOSAL FOR OLIVER'S FINE FOODS, INC. FOR
THE CONVERSION OF VACANT SPACE AT 415 THROCKMORTON STREET
INTO A NEIGHBORHOOD GROCERY STORE
Background:
Olive's Fine Foods, Inc. (the Company) is a family -owned and operated neighborhood market
that specializes in prepared appetizers and meals, gourmet cheese, fresh meats and fish, deli
meats, sandwiches, salads, and desserts, as well as premium wines and beer. The Company
currently has one location in Mansfield, Texas.
The Company intends to invest $1.5 million to convert 6,600 square feet of vacant space at 415
Throckmorton Street (the Leased Space) into a neighborhood grocery store with a full- service deli
and restaurant designed to cater the needs of those living and visiting the downtown Fort Worth
area. The Company intends to hire a minimum of twenty (20) full -time employees.
Incentive Proposal:
The proposed incentive proposal for the Company involves a combination of economic
development tools. Because of a gap between the costs to finish out the Leased Space for use as
a grocery store and the achievable market rents at the site, the Fort Worth Local Development
Corporation (the LDC) has agreed to loan the Company up to $450,000 to help the Company
complete the necessary renovations. Provided the Company meets the commitments listed
below, the Company will be eligible to receive annual Economic Development Program Grants for
up to twenty (20) years equal to a maximum of 100 percent of the available $0.01 City sales tax
generated from the store. The Economic Development Program Agreement will expire after 20
years or on the date in which the LDC loan has been repaid in full, whichever occurs first.
Sundance West Partners, LP, the landlord of the space, will serve as a guarantor of the loan.
As a part of the project, it is also proposed that the Company enter into a Development
Agreement with the Downtown TIF Board of Directors to reimburse up to $100,000 in costs
associated with public streetscape improvements.
Company Commitments:
The Company pledges to:
Invest at least $1.5 million to convert 6,600 square feet of vacant space at 415
Throckmorton Street to a neighborhood grocery store by December 31, 2011
O At least $1 million with Fort Worth companies
o At least $500,000 with M/WBE companies
Invest at least $80,000 in annual discretionary service and supply expenditures
,, At least 80% ($64,000) with Fort Worth contractors
At least 5% ($4,000) with M/WBE contractors
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 9364
To the Mayor and Members of the City Council March 1, 2011
G00's-Tito
Page 2 of 2
a SUBJECT: INCENTIVE PROPOSAL FOR OLIVER'S FINE FOODS, INC. FOR
THE CONVERSION OF VACANT SPACE AT 415 THROCKMORTON STREET
INTO A NEIGHBORHOOD GROCERY STORE
• Employ a minimum of 20 full -time employees by December 31, 2011
o At least 90% (18) with Fort Worth residents
o At least 50% (10) with Fort Worth Central City residents
Next Steps:
An M &C for City Council consideration will be placed on the March 8, 2011 agenda. The M &C will
authorize the City Manager to execute an Economic Development Program Agreement with
Oliver's Fine Foods, Incorporated.
City staff intends to recommend that the Downtown TIF Board of Directors approve a
Development Agreement with the Company that would reimburse up to $100,000 for public
streetscape improvements related to the development at the scheduled Downtown TIF Board
meeting on March 31, 2011. Additionally, the Local Development Corporation Board will consider
the approval of the loan agreement at its March 1St meeting.
If you have any questions regarding this Informal Report please contact Jay Chapa, Housing and
Economic Development Director, at 817.392.5804.
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Tom Higgins
Acting City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS