HomeMy WebLinkAboutIR 10545 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10545
To the Mayor and Members of the City Council March 2, 2021
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SUBJECT: AMENDMENT TO LINEAR LABS ECONOMIC DEVELOPMENT
rrn PROGRAM AGREEMENT
On June 16, 2020, the City Council approved M&C 20-0421 authorizing the execution of an
Economic Development Program Agreement with Linear Labs (Company) which included as one
part of the Company's base requirements that the Company expend at least $250,000.00 by the
end of its first operational year and $3,750,000.00 by the end of its third operational year in
construction costs for upgrades and modifications to the building and the property at which
project operations will occur. Although the primary purpose of the agreement was to support the
relocation of the firm and the growth of its investment and business activities in research and
development, the anticipated cost of improvements to the building that had been expected to
house those activities was also incorporated into the terms of the Agreement.
Since the date of the approval of the M&C, the Company has chosen to locate at a different
location within the City, a building located at 2600 NE Loop 820. The new location does not
require the same level of improvements during the initial years of the term of the agreement
necessary to house the Company's activities in those years. However, the Company does plan
for the installation of taxable capital equipment at the property which is proposed for inclusion as
part of the base requirement for the agreement.
Therefore, staff recommends that the City Council approve the following changes to the Company
requirements:
Original Requirement I Year 1 1 Year 3
Minimum Real Property Improvements (in aggregate) -F 250,000.00F,000,000.00
Minimum Total Capital Investment (in aggregate) I 250,000.001 4,000,00O.00l
Amended Requirement I Year 1 F Year 5
Minimum Real Property Improvements (in aggregate) I 250,000.00 2,750,000.00
Minimum Capital Equipment Installations (in aggregate) 0.001 1,250,000.00
Minimum Total Capital Investment (in aggregate)' 250,000.00 4,000,000.00
'Year 5 Minimum Total Capital Investment may be reallocated between Real and Capital Equipment provided that the combined value is satisfied.
Staff will place an M&C for City Council consideration on the March 9, 2021 agenda,
recommending that the City amend the Economic Development Program Agreement with Linear
Labs to change the property requirements as described above. No other commitments, including
those relating to employment or investment in research & development, will be amended.
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