The URL can be used to link to this page

Home My WebLink AboutContract 39287-A2 (2)UTY SECRETARY AMENDMENT NO.2 TO CONTRACT NO, 3qJ`(4+5�ff� CITY SECRETARY CONTRACT NO.39287 ECONOMIC DEVELOPMENT PROGRAM AGREEMENT WITH RENAISSANCE SQUARE, LLC This AMENDMENT NO. 2 TO CITY SECRETARY CONTRACT NO. 39287 ("Amendment") is made and entered into by and between the CITY OF FORT WORTH (the "City"), a home rule municipality organized under the laws of the State of Texas, and RENAISSANCE SQUARE, LLC ("Renaissance Square"), a Texas limited liability company. RECITALS The City and Renaissance Square hereby agree that the following statements are true and correct and constitute the basis upon which the City and Renaissance Square have entered into this Amendment. A. The City and FW Mason Heights, L.P. previously entered into that certain Economic Development Program Agreement, a public document on file in the City Secretary's Office as City Secretary Contract No. 39287, as previously amended by City Secretary Contract No. 39287-A1 (collectively, the "Agreement"). The City subsequently approved assignment of the Agreement by FW Mason Heights, L.P. to Renaissance Square pursuant to that certain Consent to Assignment of Economic Development Program Agreement, a public document on file in the City Secretary's Office as City Secretary Contract No. 39287-CAL B. The Agreement provides for the City to pay Renaissance Square certain Economic Development Program Grants in return for Renaissance Square'0 expenditure of at least $46 million in Construction Costs for the redevelopment of certain real property in southeast Fort Worth as a retail shopping center comprising at least 300,000 square feet by not later than December 31, 2012. The amount of the Program Grants payable to Renaissance Square is subject to increase if the size of the Development is larger by certain increments set forth in the Agreement. C. Due to delays in constructing certain highway access improvements necessary for the Development as well as architectural changes to the layout of the Development, Renaissance Square has requested an amendment to the Agreement that extends the Completion Deadline and changes the Development size increments necessary to obtain increased Program Grants under the Agreement. The City is willing to grant such request solely in accordance with this Amendment. OFFICIAL CITY SE�6�ld'ii��iT Ainenument No. 2 to Economic Development Program Agreement between City of Fort Worth and Renaissance Square, LLC NOW, THEREFORE, in consideration of the mutual benefits and promises contained in the Agreement and this Amendment and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City and Renaissance Square agree as follows. AGREEMENT 1. Section 2 (Definons) is hereby amended to change the definitions of the following terms, to wit. Base Program Source Funds means the maximum amount of City funds available for inclusion in all Program Grants payable in accordance with this Agreement, as follows. (a) If the Development comprises between 300,000 and 399,999 square feet of occupiable space as of the Completion Date, as reflected in the certificate or certificates of occupancy issued for the Development by the Completion Date and verified in the Certificate of Completion issued by the City in accordance with Section 5.1, the Base Program Source Funds for each Program Grant payable hereunder shall equal seventy-five percent (75%) of the Development Personal Property Tax Revenues plus seventy-five percent (75%) of the Development Sales Tax Revenues which were received by the City during the Twelve -Month Period ending in the same Program Year in which the Program Grant for that Program Year is payable. (b) If the Development comprises 400,000 or more square feet of occupiable space as of the Completion Date, as reflected in the certificate or certificates of occupancy issued for the Development by the Completion Date and verified in the Certificate of Completion issued by the City in accordance with Section 5.1, the Base Program Source Funds for each Program Grant payable hereunder shall equal one hundred percent (100%) of the Development Personal Property Tax Revenues plus one hundred percent (100%) of the Development Sales Tax Revenues which were received by the City during the Twelve -Month Period ending i a the same Program Year in which the Program Grant for that Program Year is payable. Completion Deadline means December 31, 2013. 2. All capitalized terms used but not defined in this Amendment shall have the meanings ascribed to them in the Agreement. Page 2 Amendment No. 2 to Economic Development Program Agreement between City of Fort Worth and Renaissance Square, LLC 3. This Amendment contains the entire agreement between the parties with respect to the matters set forth herein. All provisions of the Agreement that are not specifically amended by this Amendment shall remain in full force and effect. EXECUTED as of the last date indicated below: ��171l:0C1]:�I:I��i1L1]:G71:Y.: a Alanis City Manager APPROVED AS TO FORM AND LEGALITY: B y: Peter V aky Deputy City Attorney RENAISSANCE SQUARE, LLC, a Texas limited liability company. By: Mariah Real Estate Company, LLC, a Texas limited liability company and its Manager: Page 3 Amendment No.-�'to onomic Development Program Agreement between City of Fort Worth and Renaissance Square, LLC by• 0 u OFFICIAL RECORD CITY SECRETARY �T. WORTH, TX COUNCIL ACTION: Approved on 6/14/2011 DATE: Tuesday, June 14, 2011 REFERENCE NO.: C-24978 LOG NAME: 17RS EDPA AMENDMENT SUB.IECT: quare, LLC, City Secretary Contract No. 39287, to Extend the Completion Deadline and Amend Certain rovisions Related to Program Grants Pertaining to the Renaissance Square Development at United States lighway 287 and East :erry Street (COUNCIL DISTRICT RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute an amendment to an Economic Development Program Agreement with Renaissance Square, LLC, (City Secretary Contract No. 39287) to extend the completion deadline and amend provisions relating to program grants pertaining to the Renaissance Square development at United States Highway 287 and East Berry Street . DISCUSSION: On March 24, 2009, the City Council authorized the execution of an Economic Development Program Agreement (M&C C-23400; City Secretary Contract No. 39287) with FW Mason Heights, L.P., related to the 63—acre development of retail and commercial buildings to be constructed at the southwest corner of US Highway 287 and East Berry Street, generally known as the Renaissance Square project. In M&C C-24394, the City Council authorized the assignment of that Agreement by FW Mason Heights, L.P., to Renaissance Square, LLC. The Agreement calls for a minimum investment of $46,Off) ,000.00 for at least 300,000 square feet of occupiable retail/commercial space. Staff recommends two amendments to the Agreement: 1. The Agreement states that the developer is eligible for economic development grants in an amount equal to between 50 percent and 100 percent of incremental business personal property taxes and incremental sales tax received by the City from the development site, as follows: DEVELOPMENT SIZE MAXIMUM GRANT CALCULATION: 300,000 to 399,999 Occupiable Square Feet 50 percent of Tax Increment 400,000 to 499,999 Occupiable Square Feet 75 percent of Tax Increment 500,000 or More Occupiable Square Feet 100 percent of Tax Increment Due to parking and other open space requirements of the anchor tenant, staff recommends adjusting the development requirements and corresponding grant calculations, as follows: DEVELOPMENT SIZE MAXIMUM GRANT CALCULATION 300,000 to 399,999 Occupiable Square Feet 75 percent of Tax Increment 4005000 or More Occupiable Square Feet 100 percent of Tax Increment 2. The completion deadline for the development currently is December 31, 2012. Due to delays caused by the design of a turnaround improvement on 287, staff recommends extending this deadline to December 31, 2013. The project is located in COUNCIL DISTRICT 8. FISCAL INFORMATION: The Financial Management Services Director certifies that this action will have no material effect on City funds. FUND CENTERS: TO Fund/Account/Centers CERTIFICATIONS: Submitted for City Manager's Office by_ Originating Department Head: Additional Information Contact: ATTACHMENTS No attachments found. FROM Fund/Account/Centers Tom Higgins (6140) Jay Chapa (5804) Cynthia Garcia (8187) Robin Bentley (7315)