HomeMy WebLinkAboutContract 43920-A1CITY SECRET
AMENDMENT NO. 1 TO
ECONOMIC DEVELOPMENT PROGRAM AGREEMENT
(CITY SECRETARY CONTRACT NO. 43920)
This AMENDMENT NO. 1 TO CITY SECRETARY CONTRACT NO. 43920
("Amendment") is made and entered into by and between the CITY OF FORT WORTH,
TEXAS ("City"), a home rule municipality organized under the laws of the State of Texas, and
WAL-MART STORES TEXAS, LLC ("Wal-Mart"), a Delaware limited liability company.
The City and Wal-Mart hereby agree that the following statements are true and correct
and constitute the basis upon which the City and Wal-Mart have entered into this Amendment:
A. Wal-Mart owns approximately 23.5 acres of land fronting Avondale -Haslet Road
to the east of U.S. Highway 287 (the "Land").
B. On or about November 20, 2012 the City and Wal-Mart entered into that certain
Economic Development Program Agreement on file in the City Secretary's Office as City
Secretary Contract No. 43920 (the "Agreement"). Under the Agreement, Wal-Mart agreed to
construct a Wal-Mart store of at least 140,000 square feet on the Land (the "Required
Improvements") and to construct and fund certain improvements associated with the widening
of Avondale -Haslet Road under an Infrastructure Agreement with the City (the "Road
Project"), as more specifically set forth in the Agreement. In return for completing both the
Required Improvements and the Road Project by December 31, 2013 (the "Completion
Deadline"), the City agreed to pay Wal-Mart three (3) annual economic development program
grants, as authorized by Chapter 380, Texas Local Government Code (the "Program Grants").
C. The Completion Date for the Required Improvements occurred on or before
October 31, 2013. In addition, following substantial work on the Road Project, Avondale -Haslet
Road was opened for traffic prior to the Completion Deadline. However, due to higher traffic
volume than anticipated, the asphalt transition on Avondale -Haslet Road failed, and efforts to
patch the road were unsuccessful. As a result, the City and Wal-Mart are currently working to
reconstruct the road, but until that work is completed, the City cannot certify the Road Project as
complete under the Infrastructure Agreement and, by extension, the Agreement.
D. In order to accommodate completion of the additional work on the Road Project,
Wal-Mart has requested that the Agreement be amended by extending the Completion Deadline
to July 31, 2014. The City is willing to consent to this request in accordance with the terms and
conditions of this Amendment.
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the City and Wal-Mart agree as follows:
Page 1 of 2
Amendment No. 1 to CSC No. 43920
Economic Development Program Agreement with Wal-Mart Stores, LLC (Avondale-Hasl
OFFICIAL ECORD
CITY SECRETARY
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1. Section 2 of the Agreement (Definitions) is hereby amended to change the definition of
the following term:
Completion Deadline means July 31, 2014.
2. All terms in this Amendment that are capitalized but not defined shall have the meanings
assigned to them in the Agreement.
3. All terms and conditions of the Agreement that are not expressly amended pursuant to
this Amendment shall remain in full force and effect.
EXECUTED in multiples as of the last date indicated below:
CITY OF FORT WORTH: WAL-MART STORES TEXAS, LLC:
By:CrR9 (A/�
Fernando Costa
Assistant City Manager
Date: 4444s
APPROVED AS TO FORM AND LEGALITY:
By: ta,h-eiLircLA,
Deputy City Attorney
Peter Vaky
M&C: C-26805 05-20-14
Page 2 of 2
Amendment No. 1 to CSC No. 43920 I OFFICIAL RECORD
Economic Development Program Agreement with Wal-MLrtitp r y age. Haslet)
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By:
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Title: t/iek preapae ��----
Date:
M&C Review
Page 1 of 2
COUNCIL ACTION: Approved on 5/20/2014
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C;t' of t uV
FORTWORT II
DATE: 5/20/2014 REFERENCE NO.: **C-26805 LOG NAME: 17WALMARTEXTD
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Execution of Amendment No. 1 to Economic Program Agreement, City Secretary
No 43920 with Wal-Mart Stores Texas, LLC, to Extend the Completion Deadline Related
to Wal-Mart Project at Avondale -Haslet Road East of U.S. Highway 287 to July 31, 2014
(COUNCIL DISTRCT 7)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of Amendment No. 1 to Economic
Development Program Agreement, City Secretary Contract No. 43920 with Wal-Mart Stores Texas,
LLC, to extend the completion deadline related to the Wal-Mart project at Avondale -Haslet Road east
of U.S. Highway 287 to July 31, 2014.
DISCUSSION:
On November 20, 2012 the City of Fort Worth and Wal-Mart Stores Texas, LLC (Wal-Mart), entered
into an Economic Development Program Agreement (City Secretary Contract No. 43920). Under the
Agreement, Wal-Mart committed to invest a minimum of $10 000,000 00 to construct a 140,000
square foot retail store at Avondale -Haslet Road, east of U.S Highway 287. In addition, Wal-Mart
agreed to enter into a separate Community Facilities Agreement with the City to construct, at its own
expense, the City's share of roadway improvements to Avondale -Haslet Road from U.S. Highway 287
to the northeast corner of Wal-Mart's property All project improvements were required to be
completed by December 31 2013. In return the City agreed to pay Wal-Mart three annual Economic
Development Program grants, as authorized by Chapter 380, Texas Local Government Code, equal
to a maximum of 50 percent of the City's incremental real property taxes and 50 percent of the City's
one percent incremental sales tax attributable to sales from the store site, not to exceed
$1,000,000.00.
Wal-Mart completed construction of the retail store in October 2013 and the road was opened for
traffic before the established completion deadline of December 31, 2013. However, due to the
volume of traffic that travels this roadway, the asphalt transition failed, and efforts to patch the road
have been unsuccessful. In January 2014, City staff determined that the asphalt transition should be
reconstructed to accommodate the truck traffic. Since that time the City and Wal-Mart have been
working diligently with the contractor to reconstruct the asphalt section of the road. Until that is
accomplished, the City cannot accept the roadway improvements and technically, the project, as
outlined in the Agreement, remains incomplete.
Due to this delay, Wal-Mart is requesting an extension of the completion deadline under the
Agreement from December 31, 2013 to July 31, 2014.
Staff recommends amending the Economic Development Program Agreement to reflect a new July
31, 2014 completion deadline, thus allowing the City and Wal-Mart to finalize the construction of the
roadway project.
This project is located in COUNCIL DISTRICT 7, Mapsco 4V.
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=19779&councildate=5/20/2014 06/03/2014
M&C Review Page 2 of 2
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that this action will not increase the total
appropriations of City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office bv:
Originating Department Head:
Additional Information Contact:
ATTACHMENTS
Wal-Mart Road Reference Map.pdf
Fernando Costa (6122)
Jesus Chapa (5804)
Robert Sturns (212-2663)
Ana Alvarado (212-2680)
http://apps.cfwnet.org/council_packet/mc review.asp?ID=19779&councildate=5/20/2014 06/03/2014