HomeMy WebLinkAboutIR 9004INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 9004
To the Mayor and Members of the City Council December 16, 2008
a -&*TEA. Page I o f 2
SUBJECT: Amendment to the Tax Abatement and Economic Development Grant
Agreements with Lancaster Avenue, Ltd., for the Redevelopment of the
Oakland Corners Shopping Center
The December 16, 2008, City Council agenda will include two M &Cs for the amendment to a Tax
Abatement agreement and an Economic Development Initiative (EDI) grant agreement (City Secretary
Contract Nos. 34468 & 35603) with Lancaster Avenue, Ltd., for the Oakland Corners Shopping Center.
The City Council authorized 1) a Tax Abatement agreement on August 29, 2006 and 2) an EDI grant
Program Agreement on July 17, 2007, with Lancaster Avenue, Ltd., (Developer) for the redevelopment of
the 42,000 square foot Oakland Corners Shopping Center located at the 4200 block of East Lancaster.
Under the terms of the Agreements, the Developer will invest $1.5 million into the project, which includes
the acquisition of the former Grandy's out - parcel, construction of a building on the out - parcel site, and the
renovation of a 2,500 square foot former Laundromat. In addition, the Agreements provide that the
Developer will complete the required improvements, as evidenced by a temporary Certificate of
Occupancy, no later than December 31, 2008. In return, the City will pay Developer an EDI grant in an
amount equal to $198,000 (M &C C- 21645).
To date, the Developer has invested more than $1.5 million and has met approximately 23% of the Tax
Abatement's Minority /Women Business Enterprise (M/WBE) commitment which is 25 %. The Developer
is on track to fulfill the 25% commitment as stipulated on the Tax Abatement Agreement. The original EDI
agreement included a 25% commitment on M/WBE contracting participation. This hard commitment in the
EDI was done in error since the federal EDI requirements stipulate only best effort goals. The commitment
on the M/WBE contracting participation for the Tax Abatement Agreement will stay at 25 %.
Due to unforeseen delays in obtaining the former Grandy's out - parcel and the downturn of economic
market conditions, the required improvements will not be completed by the Agreement deadline of
December 31, 2008. Therefore, staff recommends the following amendments to the Tax Abatement and
EDI:
Tax Abatement
1. Extend the completion deadline to December 31, 2009; and,
2. Accept the revised scope of work for the improvements required by the Tax Abatement Agreement to
include the demolition, if necessary, of a dilapidated 2,500 square foot building and the size increase of the
aggregate required improvements from 3,500 to 5,500 square feet.
EDI
1. Extend the completion deadline to December 31, 2009;
2. Accept the revised scope of work for the improvements required by the EDI Agreement to include the
demolition, if necessary, of a dilapidated 2,500 square foot building and the size increase of the aggregate
required improvements from 3,500 to 5,500 square feet, and,
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
1 0 ' I 11 ,
To the Mayor and Members of the City Council December 16, 2008
Page 2 of 2
SUBJECT: Amendment to the Tax Abatement and Economic Development Grant
Agreements with Lancaster Avenue, Ltd., for the Redevelopment of the
Oakland Corners Shopping Center
3. Revise Minority Women/Business Enterprise commitments to best effort goals as stipulated the federal
EDI requirements.
If a temporary Certificate of Occupancy is not issued by December 31, 2009, the Developer will not be
entitled to the Tax Abatement or EDI grant and the Agreements will terminate.
The project is located in Council District 8.
Please contact Jay Chapa, at 817- 392 -5804, if you have any questions.
i
Dale A. Fisseler, P.E.
City Manager
Attachment
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS