HomeMy WebLinkAbout(0092) M&C 20-0937City of Fort Worth, Texas
Mayor and Council Communication
DATE: 12/15/20 M&C FILE NUMBER: M&C 20-0937
LOG NAME: 17AMEND2 BLACK&DECKERTA
SUBJECT
(CD 7) Amend M&C C-29029, as Previously Amended, Authorizing Execution of a Tax Abatement Agreement with Stanley Black & Decker USA,
Inc. and Wachovia Service Corporation, to Extend the Completion Deadline for Real Property Improvements from December 31, 2020 to June 30,
2021, Along with the Seperate Extension of All Other Related Deadlines Accordingly
RECOMMENDATION:
It is recommended that the City Council approve an amendment to M&C C-29029, as previously amended, authorizing the execution of a Tax
Abatement Agreement with Stanley Black & Decker USA, Inc. and Wachovia Service Corporation, to extend the Completion Deadline for Real
Property Improvements from December 31, 2020 to June 30, 2021, along with the seperate extension of all other related deadlines as set forth in
the discussion.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to extend the deadline for the real property improvements, and all other
associated deadlines, for the Tax Abatement Agreement (Agreement) with Stanley Black & Decker USA, Inc. (Company) and Wachovia Service
Corproration (Wachovia).
On February 5, 2019, the City Council approved M&C C-29029 authorizing the execution of the Agreement, which included the construction of
approximately 375,000 square foot manufacturing facility on property in the vicinity of the intersection of North Beach Street and Eagle Parkway,
east of Interstate Highway (IH) 35W (Property).
Under the Agreement, the Company is required to invest at least $30 million in real property improvements (exclusive of land costs) by December
31, 2020. Company is also required to locate taxable business personal property (BPP) that is new to the City of Fort Worth on the Property
having a minimum taxable appraised value of $40 million by January 1, 2021 and an additional $10 million of BPP by January 1, 2022. In return, as
authorized by Chapter 312, Texas Tax Code (Tax Abatement Statute), the City will grant a 40 percent tax abatement on the incremental increase in
value of real property and BPP improvements for a period of five years.
Company must also provide a minimum of 199 full-time jobs on the Property as of December 31, 2020 and a minimum total 500 full-time jobs on
the Property as of December 31, 2021. Average annual salary for all full-time jobs will be a minimum of $43,992.
On May 14, 2019, the City Council approved M&C C-29120, amending M&C C-29029 to include Wachovia Service Corporation
(Wachovia), which is affiliated with Wachovia National Bank, as a party to the Agreement with no other revisions, although M&C C-29120
inadvertently listed all obligations due by December 31, 2020.
Due to delays caused by the COVID-19 pandemic, the Company has requested an extension to the following deadlines, all of which originate and
flow from the deadline for the real property improvements. Staff recommends that the City Council approve the following deadline extensions:
Requirements and Deadlines
Commitment Original Deadline Amended
Deadline
$30 Real Property December 31,
Improvements 2020 June 30, 2021
$40 M Business Personal January 1, 2021 January 1, 2022
Property
$10 M Business Personal January 1, 2022 January 1, 2023
Property
Requirements and Deadlines
Commitment
$30 Real Property
Improvements
199 Full -Time Positions
500 Full -Time Positions
Original Deadline Amended
Deadline
December 31, June 30, 2021
2020
December 31, June 30, 2021
2020
December 31, December 31,
2021 2022
The tax abatement amount has been calculated at current rate of 0.7450/100.
The project is located in COUNCIL DISTRICT 7.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon final approval of the extension to the current Tax Abatement Agreement, a loss of an estimated
$1,070,416.00 in property tax revenue may occur over the next five year period. This reduction in revenue will be incorporated into the City's long
term financial forecast.
Submitted for City Manager's Office by. Jay Chapa
Originating Business Unit Head:
Robert Sturns
5804
1►•I:1;:ic3
Additional Information Contact: Brenda Hicks -Sorensen 2606