HomeMy WebLinkAboutIR 10347 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10347
To the Mayor and Members of the City Council December 10, 2019
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SUBJECT: AMENDMENT NO. 1 TO TAX ABATEMENT AGREEMENT WITH
rrn RAIDER EXPRESS TO EXTEND THE COMPLETION DEADLINE
On February 13, 2018 (M&C C-28580) the City Council authorized the execution of a Tax
Abatement Agreement (City Secretary Contract No. 50800) with Raider Express (Company) for
the construction of a 61 ,000 square foot campus to be located in the vicinity of the intersection of
Highway 287 and Willow Springs Road (Project Site).
Per the Agreement, the Company must invest at least $13 million in real property improvements
by December 31 , 2019. The Company must also locate new taxable business personal property
on the Project Site having a minimum taxable appraised value specified below by the appraisal
dates specified below:
• A total taxable appraised value of at least $56.1 million (2017 base value + $40.1 million)
by 1/1/2021
• A total taxable appraised value of at least $96.0 million (2017 base value + $80 million) by
1/1/2023
• A total taxable appraised value of at least $136.1 million (2017 base value + $120.1
million) by 1/1/2025
The Company has agreed to spend or cause to be expended the greater of 25 percent or
$3,050,000.00 of all hard construction costs for the Development with Fort Worth contractors. The
Company will spend or cause to be expended the greater of 15 percent or $1 ,830,000.00 of all
hard construction costs for the Development with contractors that are Fort Worth Certified
Minority/Women Owned Business Enterprise companies (with the understanding that dollars
spent with Fort Worth Certified M/WBE companies will also count as dollars spent with Fort Worth
companies). Fort Worth Certified M/WBE Company means a minority — or woman owned
business that (i) has received certification as either a minority business enterprise (MBE), a
woman business enterprise (WBE) or a disadvantaged business enterprise (DBE) by the North
Central Texas Regional Certification Agency (NCTRCA); and (ii) has a principal business office
located within the corporate limits of the City.
The Company must provide the following minimum number of full-time jobs on the Project Site in
each of the following years (as measured by Company's employment data as of December 31 of
each such year):
• at least 442 full-time jobs in 2020 and 2021
• at least 532 full-time jobs in 2022 and 2023
• at least 622 full-time jobs in 2024
The Company committed to fill a minimum of 30 percent of all Full Time Jobs (regardless of the
total number of full-time jobs provided on the Project Site) with Fort Worth residents and 15
percent of all Full Time Jobs (regardless of the total number of full-time jobs provided on the
Project Site) with Fort Worth Central City Residents (with the understanding that employment of
Fort Worth Central City Residents will also count as employment of Fort Worth City Residents).
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10347
To the Mayor and Members of the City Council December 10, 2019
Page 2 of 2
i
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SUBJECT: AMENDMENT NO. 1 TO TAX ABATEMENT AGREEMENT WITH
rrn RAIDER EXPRESS TO EXTEND THE COMPLETION DEADLINE
The Company has agreed to spend the greater of 35 percent or $1 ,225,000.00 in annual
discretionary service and supply expenses with Fort Worth companies, and the greater of 15
percent or $525,000.00 in annual discretionary service and supply expenses with companies that
are Fort Worth Certified Minority/Women Owned Business Enterprise companies.
Due to prolonged discussions with TXDOT regarding site access, the need to purchase additional
land to accommodate access concerns, and discussions regarding the location of the water line
extension, the Company has requested a revised completion deadline of December 31 , 2020.
Staff will place an M&C for City Council consideration on the December 17, 2019 agenda,
recommending that the completion deadline under the Agreement be revised to December 31,
2020. All other deadlines will be adjusted by one year.
If you have any questions concerning this information, please contact Robert Sturns, Economic
Development Director at 817-392-2663 or robert.sturns@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS