HomeMy WebLinkAboutIR 10591 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10591
To the Mayor and Members of the City Council June 8, 2021
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SUBJECT: AMENDMENT TO ECONOMIC DEVELOPMENT AGREEMENT WITH
rrn WESCO AIRCRAFT HARDWARE CORP.
On September 22, 2020, the City Council approved M&C 20-0696 authorizing the execution of
the Agreement with Wesco Aircraft Hardware Corp. (now operating as Incora) or an affiliate
(Company), which included the requirement that the Company employ a minimum of 239 full-time
jobs in the leased space by December 31 , 2021 and that the Company employ a minimum of 539
full-time jobs (cumulative) by December 31 , 2023. Among other requirements, the Company was
also required to relocate its corporate headquarters to Fort Worth by no later than December 31 ,
2021 , which has been satisfied in accordance with the terms of M&C 20-0696.
Although the Company has successfully relocated its corporate headquarters to Fort Worth, for
reasons largely associated with COVID-19, the Company has encountered certain delays in the
relocation of its employees from the Company's previous headquarters in Valencia, California.
The Company maintains its commitment to the employment of at least 239 full-time jobs in Fort
Worth. However, the experienced delays necessitate a revision to the timing of the
employment commitments.
Therefore, staff is recommending that the City Council amend Company requirements to reflect
the company's current employee relocation schedule. The revised employment schedule matches
that which has been agreed to by Company with the State of Texas as part of its agreement
under the Texas Enterprise Fund program, leading initial employment to rise from 64 in 2021 to a
minimum of 239 in 2025 and 539 by 2026.
Provided that the Company satisfies all non-employment related requirements to be delivered by
December 31 , 2021 as presented in M&C 20-0696, the City will continue to provide a cash grant
out of the Designated Project Fund in Quarter 1 of 2022 based on year one employment and will
provide its second cash grant in Quarter 1 of 2026 based on December 31, 2025 employment
data in association with the year five employment commitment by the Company upon
confirmation of job creation and retention. A third and final cash grant will be based on cumulative
employment as of December 31 , 2026. In all cases, the value of each grant payment will be
directly tied to the number of verified full-time employees pursuant to Section 14 of the Economic
Development Program Policy utilizing the Employment Designated Project Fund.
Staff will place an M&C for City Council consideration on the June 15, 2021 agenda, to amend
M&C 20-0696 to revise the timing and number of employment committed in association with the
corporate headquarters relocation.
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