HomeMy WebLinkAboutContract 36593 CITY SECRETARY
CONTRACT NO.
AMENDMENT NO. 1 TO CITY SECRETARY CONTRACT NO.29713
TAX ABATEMENT AGREEMENT BETWEEN
CITY OF FORT WORTH AND STOCKYARDS STATION,L.P.
This AMENDMENT NO. 1 TO TAX ABATEMENT AGREEMENT
("Amendment") is made and entered into by and between the CITY OF FORT
WORTH ("City"), a home rule municipal corporation organized under the laws of the
State of Texas, and STOCKYARDS STATION HOTEL, L.P. ("Owner"), a Texas
limited partner acting by and through its sole general partner, Stockyards Tradition, LLC,
a Texas limited liability company.
The following introductory provisions are true and correct and for the basis of this
Amendment:
A. As of March 26, 2004 the City and Owner entered into that certain Tax
Abatement Agreement on file in the City Secretary's Office as City Secretary Contract
No. 29713 (the "Agreement"). Under the Agreement, Owner agreed, among other
things, to construct on Land owned by Owner a limited service hotel of at least 65,000
square feet and other improvements having a minimum Construction Cost of$5,250,000
(collectively, the"Required Improvements"). In return, the City agreed to abate, for a
period of six (6) years, up to one hundred percent (100%) of the real property taxes
generated from the increase in the taxable value of the Land and of the personal property
taxes generated from tangible new taxable personal property located on the Land, as more
specifically provided in the Agreement.
B. In order to receive the full Abatement under the Agreement, Owner must, among
other things, meet certain annual commitments with regard to Full-time Jobs provided on
the Land and to minimum annual levels of spending on local discretionary supplies and
services directly related to the operation of the Required Improvements, as more
specifically provided in the Agreement. These commitments were made prior to
completion of the Required Improvements. Since completion of the Required
Improvements, Owner has determined that these commitments were not realistic or
feasible and has asked that the City amend the Agreement to reduce the scope of these
commitments. Because of the economic benefits and other public purposes achieved on
account of the Agreement, the City is willing to amend the Agreement solely in
accordance with this Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the City and Owner hereby agree as
follows:
02'05-0 A co
Page 1
Amendment No. 1 to CSC No.29713
Tax Abatement Agreement with Stockyard Stations Hotel,L.P.
01 -30-08A"10 : 42 RCVD
1. The first two sentences of Section 2.1.2 of the Agreement (Abatement Based on
Employment Goals) are hereby deleted in their entirety and replaced with the following
sentence:
Owner shall receive a fifty percent (50%) Abatement if during the
previous calendar year (i) at least twenty-one (21) Full-time Jobs were
provided and filled on the Land and(ii) at least eighty percent (80%) of all
Full-time Jobs provided and filled on the Land, regardless of the number
of such Full-time Jobs, were held by individuals residing within the
Central City.
2. The first sentence of Section 2.1.3 of the Agreement (Abatement Based on
Discretionary Supply and Service Expenditures) is hereby deleted in its entirety and
replaced with the following sentence:
Owner shall receive a twenty-five percent (25%) Abatement if during the
previous calendar year (i) Owner spent at least $275,000 in local
discretionary funds for supplies and services directly in connection with
Owner's operation of the Required Improvements; and(ii) at least seventy
percent (70%) of all such expenditures, regardless of the total amount of
such expenditures, were with Fort Worth Companies; and (iii) at least
thirty percent (30%) of all such expenditures, regardless of the total
amount of such expenditures, were with Fort Worth M(WBE Companies.
3. This Amendment shall take effect as of the date both parties have executed this
Amendment. However, the Abatement for the 2008 tax year shall be calculated in
accordance with the original Agreement and shall not take into account any provisions of
this Amendment. The Abatement for the 2009 tax year and each tax year thereafter for
the remainder of the Term shall be calculated in accordance with the Agreement, as
amended by this Amendment.
4. All terms in this Amendment that are capitalized but not defined shall have the
meanings assigned to them in the Agreement.
5. All terms and conditions of the Agreement that are not expressly amended
pursuant to this Amendment shall remain in full force and effect.
[SIGNATURES IMMEDIATELY FOLLOW ON NEXT PAGE]
Page 2
Amendment No. 1 to CSC No.29713
Tax Abatement Agreement with Stockyard Stations Hotel,L.P. ��� ',?";t; 1,V m j MK I
CITY OF FORT WORTH: STOCKYARDS STATION HOTEL,
L.P., a Texas limited partnership:
By: Stockyards Tradition, LLC, a
Texas limited liability company
and its sole general partner:
By: � B
Dale Fisseler Thomas . Kirkland
Assistant City Manager Member-Manager
Date: Os--.' o T Date: / Z 9 DB
APPROVED AS TO FORM AND LEGALITY:
By:
Peter Vaky
Assistant City Attorney
M&C: C -22085 q-2q-07
Attested By.
City Secret),
Contrac but riaetion
Date
Page
Amendment No. 1 to CSC No.29713
Tax Abatement Agreement with Stockyard Stations Hotel,L.P. YyEK2�/
.
STATE OF TEXAS §
COUNTY OF TARRANT §
RT)ti C>
/6�//v_5BW((0RE ME, the undersigned authority, on this day personally appeared Dirty
Vie. !%%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.
IVEN UNDER MY HAND AND SEAL OF OFFICE this SIX day of
12008.
Notary Public in and forEE" +
NotaryA L.Sr. :: j
ta
the State of Texas y �lrt:s5+i;r�
Notary's Printed Name
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Thomas
E. Kirkland, Member-Manager of Stockyards Tradition, LLC, the General Partner of
STOCKYARDS STATION HOTEL, L.P known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that s/he executed the
same for the purposes and consideration therein expressed, in the capacity therein stated
and as the act and deed of STOCKYARDS STATION HOTEL,L.P.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this
day of ,2008.
`-P AAREN E. HUMPHREYS
Notary Public in and for Notary Public.Si,�ie of texas ;
the �N„a„;��`�My Commission Expues 02.19.10
]�State of Texas
/���-- �� .17U�n�ram✓
Notary's Printed Name
Page4i19��=!�
Amendment No. 1 to CSC No.29713
Tax Abatement Agreement with Stockyard Stations Hotel,L.P.
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/24/2007
DATE: Tuesday, April 24, 2007
LOG NAME: 17TAAMDSSHOTEL REFERENCE NO.: C-22085
SUBJECT:
Authorize Execution of Amendment to City Secretary Contract No. 29713, Tax Abatement
Agreement with Stockyards Station Hotel, L.P.
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute the attached amendment to
the Tax Abatement Agreement with Stockyards Station Hotel, L.P. (City Secretary Contract No. 29713).
DISCUSSION:
On February 10, 2004, the City Council authorized execution of a six-year Tax Abatement Agreement with
Stockyards Station Hotel, L.P. (SS Hotel), for the construction of a 102 room AmeriSuites Hotel in the
Stockyards area. Council's original approval of the abatement was to provide assistance with elevating the
hotel from the floodplain as the project would provide affordable family lodging that had not existed.
Prior to the first compliance auditing term, SS Hotel discovered that the original estimate of total employees
was much higher than the actual number needed to operate the hotel. Likewise, the annual supply and
service spending commitment was much higher than needed to operate the hotel.
The attached amendment will 1) revise the total annual employment commitment from 35 total employees
to 21, with 80 percent of the employees being Central City residents; and 2) revise the annual supply and
service spending commitment from $550,000 to $275,000, with 70 percent of the spending to be with Fort
Worth companies and 30 percent of the spending to be with certified Fort Worth M/WBE companies. SS
Hotel has increased its commitment to utilize Fort Worth companies and certified Fort Worth M/WBE
companies. Otherwise, the structure and terms of the Agreement will remain the same.
This project is in COUNCIL DISTRICT 2.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material impact on City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office by: Dale Fisseler (6140)
Originating Department Head: Tom Higgins (6192)
Additional Information Contact: Ardina Washington (8003)
Logname: 17TAAMDSSHOTEL Page 1 o