HomeMy WebLinkAboutIR 10508 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10508
To the Mayor and Members of the City Council November 17, 2020
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SUBJECT: AMENDMENT NO. 1 TO TAX ABATEMENT AGREEMENT WITH NT
rrn WINDOW TO INCREASE THE BUSINESS AND PERSONAL
PROPERTY COMMITMENT AND SPLIT COMMITMENT DEADLINE
INTO PHASES
On January 30, 2018 (M&C C-28565), the City Council authorized the execution of a Tax
Abatement Agreement (City Secretary Contract No. 51838) with NT Window for the renovation
and use of an existing building at 2900 West Seminary Drive as a window manufacturing facility.
Per the Agreement, the Company had to invest at least $5,600,000 in total construction costs by
December 31, 2019. Of this, at least $4,080,000 had to be hard construction costs with at least
15% dedicated to Fort Worth Certified Minority/Women Owned business enterprises. The
company also committed to $3,800,000 in new personal property improvements on the site by
January 1 , 2020 and the creation of 32 Full-Time Jobs.
When the project completion report was finalized for the Personal Property tax accounts, the
values established by TAD came in lower than the required $3,800,000, at a reported value of
$2,473,308. After discussion with the company, it was determined that this lower value was due
to delays in construction and materials, which in turn, impacted the finish-out of the building. This
also affected their timeline for the purchase and installation of floor lines, which were calculated in
the $3,800,000 commitment and had originally been planned to be installed by the January 1 ,
2020 deadline.
This incentive was critical for their decision to move to Fort Worth and renovate a dated
manufacturing facility that had been vacant for the previous 6 years. While the company missed
their Personal Property Commitment by $1 ,326,692, they exceeded their Construction Cost by
$1 ,553,983 and their M/WBE requirement by $1 ,406,849. In order to facilitate the incentive on the
project, NT Windows has agreed to an increase in their Personal Property Commitment from
$3,800,000 to $4,100,000 with the installation of additional Personal Property assets in return for
a phased deadline schedule.
Staff will place an M&C for City Council consideration on the December 1, 2020 agenda,
recommending that the Personal Property Commitment be increased from $3,800,000 to
$4,100,000 and break the Completion Deadlines into the following phases:
• Phase 1: $2,400,000 by January 1 , 2020;
• Phase 2: $500,000 additional by January 1 , 2021 (for a total of$2,900,000);
• Phase 3: $1 ,200,000 additional by January 1 , 2022 (total of$4,100,000).
All other requirements under the agreement will remain the same. If you have any questions
concerning this information, please contact Robert Sturns, Economic Development Director at
817-392-2663 or robert.sturns@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS