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HomeMy WebLinkAbout2002/02/05-Minutes-HEDC City of Fort Worth City Council Economic Development Committee Highlights of the Special Meeting Held Tuesday, February 5,2002 Committee Members Present: Jeff Wentworth, Frank Moss, Becky Haskin City Staff Present: Teresa Carreon, Bette Chapman, Mike Groomer, Tom Higgins, Robert Sturns, Peter Vaky, Ardina Washington. Call to Order: Chairman Wentworth called the meeting to order at 2:15 p.m. Discussion and Consideration of a Tax Abatement Application from AT&T Wireless Services (ATTWS): Business Development Coordinator Ardina Washington presented the components of the Tax Abatement Application. ATTWS currently has a total of 404 employees, including 183 Fort Worth residents, of which 100 live in the Central City. The company now occupies three buildings that generate real property taxes totaling $116,613. Their plan is to build a 1,340,000 square foot national distribution center with an estimated value of $46,500,000. Their estimated employment is as follows: 604 in year 1; 754 in year 5; and 1,104 in year 10. Estimated taxes on the new capital investment total $553,600. ATTWS is requesting abatement of real and personal property for 10 years. The abatement percentage ranges from 25-100%, depending on the company's meeting the conditions of each component. (Presentation attached.) Committee Member Frank Moss expressed concern that under one of the components, the certified MWBE's G'Sed might all be outside of the city, and therefore would not have any impact on Fort Worth's minority business development. He then asked what percentage of the total construction cost was represented by the $2,325,000 which had to be spent with MWBE's. Ms. Washington said that the figure was 5% of the total cost. She then said that an incentive could be added that would provide incentive for the use of certified Fort Worth MWBE's. Mr. Moss said that he would like for this to be done. Tom Higgins, Director of Economic and Community Development, said that staff could talk to the company about some type of structure that would add the Fort Worth MWBE's to the Construction component. Mr. Higgins also pointed out that the company was making the full commitment to certified Fort Worth MWBE's under the Supply and Services component. Chairman Wentworth commended the company for its past employment record as he explained some details of the Employment component. Mr. Moss expressed concern about the weight of the percentages on both retention and future employment. He felt the percentages should be changed to either a 20% abatement for retention and a 30% abatement for future employment or 25% for each part of the Employment component. Committee Member Haskin asked about the current definition of the term Central City and expressed concern that the company itself would not be located within the Central City. She also asked about the number of females employed with the company. Ms. Washington said that about one-half of the employees were women. fter some discussion, it was agreed that for the purposes of tax abatement, the term Central City refers to the definition that was approved by Council in August 2000, which includes low-income and CDBG eligible census Page 1 of 2 tracts within Loop 820. Assistant City Attorney Peter Vaky said that the Committee could use this definition for tax abatement purposes. Is. Haskin then asked about the type of jobs and benefits being offered by ATTWS. Mr. Higgins indicated that N-'-job information was listed on page 3 of the application. Salaries range from $25,000-$35,000 per year for entry level jobs to $75,000-$110,000 per year for directors. Mr. Higgins also pointed out the employee benefits that were listed in Exhibit C of the application. (See attached presentation.) Ms. Haskin also expressed concern about the abatement percentages related to employee retention. Assistant City Manager Mike Groomer said that staff felt the retention part of the Employment component was important, given the fact that ATTWS could build the facility in another location, and the company had been successful in providing Central City jobs with no incentives. Mr. Moss said that since the company could easily hire people from other areas because of the location of the new facility, he felt it was beneficial to provide incentives for the retention of Fort Worth and Central City residents. Ms. Haskin then asked about the total abatement over the ten-year period. She said she wanted to weigh the value of the abatement against the jobs provided and against other tax abatements that had been done. Chairman Wentworth said that the value would depend on the number of jobs. For example, 200 jobs would be worth $2000 of the abatement. Mr. Higgins said that the cost of the abatement would be offset by other items, such as the inventory tax. He added that the city could gain over one million dollars if the company achieved the full abatement. Chairman Wentworth said that he would ask staff to work with the company to set a 25%-25% ratio in the Employment component, to clearly define what is meant by Central City and to review the results with Mr. Moss and Ms. Haskin. The Council will be briefed on February 19, providing the details are completed satisfactorily, and the required public hearing will be held. The Council will vote on February 26. (51, Ms. Haskin asked that the Committee vote on the abatement. Chairman Wentworth called for a vote. Mr. Moss moved to recommend the abatement application to Council. Mr. Wentworth seconded the motion. Mr. Moss voted in favor of the recommendation. Ms. Haskin voted against recommending the abatement. Executive Session: There were no items to be discussed in Executive Session. Adiourn Chairman Wentworth announced the next meeting on February 19. He adjourned the meeting at 3:07 p.m. Approved by: Jeff Wentworth, Chairman Page 2 of 2