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HomeMy WebLinkAboutIR 10590 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10590 To the Mayor and Members of the City Council June 8, 2021 WIVIA Page 1 of 1 SUBJECT: ACCEPT DONATION FROM THE FORT WORTH LOCAL DEVELOPMENT CORPORATION OF A PORTION OF NET PROCEEDS FROM SALE OF BLUE MOUND ROAD COMPLEX, FORT WORTH, TEXAS TO FURTHER FUND THE ECONOMIC DEVELOPMENT FUND AND ADOPT APPROPRIATIONS ORDINANCES The Fort Worth Local Development Corporation (LDC) was the owner of a 50+ acre industrial complex located at the northeast corner of Blue Mound Road and Meacham Boulevard, Fort Worth, Texas (Blue Mound Road Complex). On September 25, 2018, the Board of Trustees of the LDC approved a resolution to authorize the sale of Blue Mound Road Complex to two existing tenants, CHM Industries, Inc, and Anchor Fabrication, LLC, and/or their affiliates. On February 25, 2021 , the sale of 4600 Blue Mound Road and 1401 Meacham Boulevard was closed and the property conveyed to Anchor Fabrication and 1401 Meacham Partners, respectively. On March 5, 2021 , the sale of 4700 Blue Mound Road and 1035 Meacham Boulevard was closed and the property conveyed to CHM industries, Inc. On May 18, 2021 , the LDC adopted a resolution authorizing the transfer of a portion of net proceeds from the Blue Mound Road Complex sale in the amount of$1 ,000,000.00 to the City of Fort Worth to provide additional funding to the Economic Incentives Fund. The Economic Incentives Fund was started with an initial deposit of $4,575,896.00, which was transferred to the City from the LDC following the sale by the LDC of the 250 Lancaster project (Mayor and Council Communication (M&C) G-19419), and a second deposit of $400,000.00 also from the LDC from 250 Lancaster sales proceeds (M&C G-19565, Resolution No. 5039-01-2019). The Economic Incentives Fund is utilized to support projects that meeting eligibility under Section 9, Technology Company Projects, and Section 14, Employment Designated Project Fund, in the Economic Development Program Policy for Grants Authorized by Chapter 380, as approved by City Council on January 26,2021 (M&C 21-0072, Resolution No. 5338-01-2021). A M&C will be placed on the June 15, 2021 for City Council consideration with the recommendation to: 1 . Accept a donation in the amount of $1,000,000.00 of a portion of net proceeds from the sale of the Blue Mound Road Industrial Complex, Fort Worth, Texas for certain economic development activities from the Fort Worth Local Development Corporation for deposit into the Economic Development Fund; and 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the amount of $1 ,000,000.00 in the Economic Incentives Fund from additional net proceeds. For further questions, please contact Robert Sturns, Director of the Economic Development Department, at 817-392-2663. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS