HomeMy WebLinkAboutIR 9511 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9511
To the Mayor and Members of the City Council August 21, 2012
`�` Page 1 of 2
r
SUBJECT: AMENDMENTS TO ECONOMIC DEVELOPMENT INCENTIVE
rF AGREEMENTS WITH BELL HELICOPTER TEXTRON, INC.
Background
On December 13, 2011, City Council approved execution of a one-year tax abatement agreement
and a nineteen-year Chapter 380 Economic Development Program Agreement (EDPA) with Bell
Helicopter Textron, Inc. ("Company") for the expansion and consolidation of their main
headquarters operations and associated facilities (M&C C-25367).
Since approval by City Council, the Company has revised their schedule for installing new
business personal property, therefore facilitating the need to modify the requirements specified by
each Phase. Although the Company's plans to expend $75 million in real property improvements
and $160 million in non-inventory personal property improvements by December 31, 2015 will
remain the same, the minimum and aggregate investment numbers for the personal property
investment in each Phase must be amended in order to reflect the company's revised purchasing
schedule.
Proposed Amendments
City staff recommends amending the agreements in accordance with the following table:
Originally Approved Proposed Amendment
Phase I $27 million in business Reduction of BPP
December 31, 2012 personal property (BPP) investment from $27 million
improvements to $16 million
Phase II $34 million in BPP Reduction of BPP
December 31, 2014 investment from $34 million
(EDPA only) to $32 million; Aggregate
BPP investment of $48
million
Phase III $32 million in BPP $32 million in BPP
December 31, 2014 investment remains
(EDPA only) unchanged; Aggregate BPP
investment of $80 million
Phase IV $67 million in BPP BPP investment increase
December 31, 2015 from $67 million to $80
(EDPA only) million; Aggregate BPP
investment of $160 million
TOTAL BPP INVESTMENT $160 M $160 M
All other terms and definitions of the agreement will remain the same.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9511
To the Mayor and Members of the City Council August 21, 2012
`�` Page 2 of 2
r
SUBJECT: AMENDMENTS TO ECONOMIC DEVELOPMENT INCENTIVE
rF AGREEMENTS WITH BELL HELICOPTER TEXTRON, INC.
Next Steps
On September 11, 2012, City staff will present an M&C to City Council authorizing execution of
the proposed Amendments to the previously approved (M&C C-25367) tax abatement agreement
and Chapter 380 Economic Development Program Agreement (EDPA) with Bell Helicopter
Textron, Inc.
If you have any questions please contact Jay Chapa, Director of Housing and Economic
Development, at 817-392-5804.
Tom Higgins
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS