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HomeMy WebLinkAboutContract 44768 (2)CITY SECRETARY] CONTRACT NO...I � .. . ECONOMIC DEVELOPMENT PROGRAM AGREEMENT This ECONOMIC DEVELOPMENT PROGRAM AGREEMENT ("Agreement") is entered into by and between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipality organized under the laws of the State of Texas, and OUR NATION'S BEST SPORTS, a Texas nonprofit corporation doing business as Nation's Best Sports ("Company"). RECITALS The City and Company hereby agree that the following statements are true and correct and constitute the basis upon which the City and Company have entered into this Agreement: A. Company is a purchasing cooperative composed of over 300 independent sporting goods merchandise retailers in the United States and Canada that, among other things, acts as an agent on behalf of its members in order to consolidate the individual members' purchasing capacities and obtain more favorable unit prices on sporting goods merchandise. Company wishes to expand its corporate headquarters and is considering a site in the Fossil Creek Business Park in the City, as more specifically depicted and described in Exhibit "A". attached hereto and hereby made a part of this Agreement for all purposes (the "Development Property"), for construction of a new, approximately 60,000 square foot facility for that purpose (the "Development"). B. The Development will benefit the City by developing vacant land into a viable commercial operation with opportunities for increased employment and tax base growth. As recommended by the City's 2013 Comprehensive Plan, adopted by the City Council pursuant to Ordinance No. 20644-03-2013 (the "Comprehensive Plan"), and in accordance with Resolution No. 3716-03-2009, the City has established an economic development program pursuant to which the City will, on a case -by -case basis, offer economic incentives authorized by Chapter 380 of the Texas Local Government Code that include monetary loans and grants of public money, as well as the provision of personnel and services of the City, to businesses and entities that the City Council determines will promote state or local economic development and stimulate business and commercial activity in the City in return for verifiable commitments from such businesses or entities to cause specific employment and other public benefits to be made or invested in the City (the "380 Program"). C. The City has determined that the feasibility of the Development is contingent on Company's receipt of the Program Grants, as provided in this Agreement. The City Council has determined that the Development will benefit and stimulate the local economy and that the 380 Program is an appropriate means to achieve the Development. In addition, the City Council has determined that by entering into this Agreement the potential economic benefits that will accrue to the City under the terms Page 1 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports RECEIVED SEP 0 4 20133 SP,Frnmizi • ti,ffrnm; it . and conditions of this Agreement are consistent with the City's economic development objectives, as outlined in the Comprehensive Plan. This Agreement is authorized by Chapter 380 of the Texas Local Government Code. NOW, THEREFORE, in consideration of the mutual benefits and promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: AGREEMENT 1. INCORPORATION OF RECITALS. The City Council has found, and the City and Company hereby agree, that the recitals set forth above are true and correct and form the basis upon which the parties have entered into this Agreement. 2. DEFINITIONS. In addition to other terms defined in the body of this Agreement, the following terms shall have the definitions ascribed to them as follows: 380 Program has the meaning ascribed to it in Recital B. Affiliate means all entities, incorporated or otherwise, under common control with, controlled by or controlling Company. For purposes of this definition, "control" means fifty percent (50%) or more of the ownership determined by either value or vote. Base Grant Percentaee has the meaning ascribed to it in Section 6.1. Central City means the area of the corporate limits of the City within Loop 820 (i) consisting of all Community Development Block Grant ("CDBG")-eligible census block groups; (ii) all enterprise zones, designated as such pursuant to the Texas Enterprise Zone Act, Chapter 2303, Subchapter F of the Texas Government Code; (iii) all census block groups that are contiguous by seventy-five percent (75%) or more of their perimeters to CDBG-eligible block groups or enterprise zones, as well as any CDBG- eligible block in the corporate limits of the City outside Loop 820, as more specifically depicted in the map attached hereto as Exhibit "B", attached hereto and hereby made a part of this Agreement for all purposes. Central City Employment Commitment has the meaning ascribed to it in Section 4.8. Page 2 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports Central City Employment Percentage has the meaning ascribed to it in Section 6.6. Central City Resident means an individual whose principal place of residence is at a location within the Central City. Certificate of Completion has the meaning ascribed to it in Section 5. Completion Date means the date as of which a certificates or certificates of occupancy, whether final or temporary, have been issued by the City for all space in the Development that is intended to be occupied. Completion Deadline means December 31, 2014. Construction Costs means only the following costs directly expended for the Development: actual site development and construction costs; contractor fees; the costs of supplies and materials; engineering fees; and architectural and design fees. Costs of and related to land acquisition are expressly excluded as Construction Costs. Development has the meaning ascribed to it in Recital A. Development Personal Property Tax Revenues means City ad valorem taxes on New Taxable Tangible Personal Property located on the Development Property. The taxable appraised value of New Taxable Tangible Personal Property located on the Development Property for any given year will be established solely by the appraisal district that has jurisdiction over the Development Property at the time. Development Property has the meaning ascribed to it in Recital A. Director means the director of the City's Housing and Economic Development Department or his authorized designee. Effective Date has the meaning ascribed to it in Section 3. Fort Worth Certified M/WBE Company means a minority- or woman -owned business that (i) has received certification as either a minority business enterprise (MBE), a woman business enterprise (WBE) or a disadvantaged business enterprise (DBE) by the North Central Texas Regional Certification Agency (NCTRCA); (ii) has a principal business office located within the corporate limits of the City that performs a commercially useful function; and (iii) has provided from such office the services or sales that Company is seeking to have counted under this Agreement. Fort Worth Company means a business that has a principal office located within the corporate limits of the City that performs a commercially useful function and that provides the services for which Company is seeking credit under this Agreement. Page 3 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports Fort Worth Construction Commitment has the meaning ascribed to it in Section 4.4. Fort Worth Construction Percentage has the meaning ascribed to it in Section 6.2. Fort Worth Emnlovment Commitment has the meaning ascribed to it in Section 4.7. Fort Worth Emnlovment Percentage has the meaning ascribed to it in Section 6.5. Fort Worth Resident means an individual whose principal place of residence is at a location within the corporate limits of the City. Fort Worth Supply and Service Spending Commitment has the meaning ascribed to it in Section 4.9. Fort Worth Supply and Service Spending Percentage has the meaning ascribed to it in Section 6.7. Full-time Job means a job provided to one (1) individual by Company for at least forty (40) hours per week. 4.5. M/WBE Construction Commitment has the meaning ascribed to it in Section M/WBE Construction Percentage has the meaning ascribed to it in Section 6.3. M/WBE Supply and Service Percentage has the meaning ascribed to it in Section 6.8. M/WBE Supply and Service Spending Commitment has the meaning ascribed to it in Section 4.10. New Taxable Tangible Personal Property means any personal property that (i) is subject to ad valorem taxation by the City; (ii) is located on the Development Property; (iii) is owned or leased by Company; and (iv) was not located in the City prior to the Effective Date of this Agreement. 6.4. Overall Employment Commitment has the meaning ascribed to it in Section Overall Employment Percentage has the meaning ascribed to it in Section 6.4. Personal Property Commitment has the meaning ascribed to it in Section 4.3. Page 4 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports Program Grants means the annual economic development grants paid by the City to Company in accordance with this Agreement and as part of the 380 Program. Prosram Source Funds means an amount of City funds available for inclusion in a given Program Grant, which shall equal only the Development Personal Property Tax Revenues received by the City during the Twelve -Month Period ending in the same year in which the Program Grant is payable. Real Property Commitment has the meaning ascribed to it in Section 4.2. Records has the meaning ascribed to it in Section 4.13. Supply and Service Expenditures means all expenditures by Company expended directly for the operation and maintenance of the Development, excluding amounts paid for electric, gas, water and any other utility services as well as any amounts paid for temporary direct labor on the Development Property. Term has the meaning ascribed to it in Section 3. Trade Show Commitment has the meaning ascribed to it in Section 4.11. Twelve -Month Period means the period between February 1 of a given year and January 31 of the following year. 3. TERM. This Agreement shall be effective as of the date of execution by both parties (the "Effective Date") and, unless terminated earlier pursuant to and in accordance with this Agreement, shall expire on the date as of which the City has paid all Program Grants required hereunder (the "Term"). 4. COMPANY OBLIGATIONS AND COMMITMENTS. 4.1. Use of Development Property. Throughout the Term of this Agreement, Company will use the Development Property as its corporate headquarters for the business operations described in Recital A. 4.2. Required Real Property Improvements. In accordance with the terms and conditions of this Agreement, (i) Company must expend or cause to be expended by the Completion Date at least Three Million Two Hundred Fifty Thousand Dollars ($3,250,000.00) in Page 5 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports Construction Costs for the Development, and (ii) the Completion Date must occur on or before the Completion Deadline, as verified in the Certificate of Completion issued pursuant to Section 5 (collectively, the "Real Property Commitment"). 4.3. Required Personal Property Improvements. Company covenants and agrees that New Taxable Tangible Personal Property having a value of at least Three Hundred Thousand Dollars ($300,000.00) must be in place on the Development Property by January 1, 2015, as determined solely by the appraisal district having jurisdiction over the Development Property at that time (the "Personal Property Commitment"). 4.4. Construction Spendini Commitment with Fort Worth Companies. By the Completion Date, Company must have expended or caused to be expended with Fort Worth Companies at least the greater of (i) Nine Hundred Seventy-five Thousand Dollars ($975,000.00) in Construction Costs for the Development or (ii) 30% of all Construction Costs for the Development, regardless of the total amount of such Construction Costs (the "Fort Worth Construction Commitment"). 4.5. Construction Spending Commitment with Fort Worth Certified M/WBE Companies. By the Completion Date, Company must have expended with Fort Worth Certified M/WBE Companies at least the greater of (i) Eight Hundred Twelve Thousand Five Hundred Dollars ($812,500.00) in Construction Costs for the Development or (ii) 25% of all Construction Costs for the Development, regardless of the total amount of such Construction Costs (the "M/WBE Construction Commitment"). 4.6. Overall Employment Commitment. As of December 31, 2015 and in each calendar year thereafter for the remainder of the Term, Company must provide and fill at least thirty-five (35) Full-time Jobs on the Development Property (the "Overall Employment Commitment"). Determination of compliance with the Overall Employment Commitment each year will be based on the employment data provided to the City pursuant to Section 4.12.3 for the year under evaluation. 4.7. Fort Worth Employment Commitment. As of December 31, 2015 and in each calendar year thereafter for the remainder of the Term, Company must provide and fill at least the greater of (i) sixteen (16) Full-time Jobs on the Development Property or (ii) 45% of all Full- time Jobs on the Development Property, regardless of the total number of such Page 6 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports Full-time Jobs, with Fort Worth Residents (the "Fort Worth Employment Commitment"). Determination of compliance with the Fort Worth Employment Commitment each year will be based on the employment data provided to the City pursuant to Section 4.12.3 for the year under evaluation. Full-time Jobs held by Fort Worth Residents will also count as Full-time Jobs for purposes of measuring the applicable Overall Employment Commitment outlined in Section 4.6. 4.8. Central City Employment Commitment. As of December 31, 2015 and in each calendar year thereafter for the remainder of the Term, Company must provide and fill the greater of at least (i) four (4) Full-time Jobs on the Development Property or (ii) 10% of all Full-time Jobs on the Development Property, regardless of the total number of such Full- time Jobs, with Central City Residents (the "Central City Employment Commitment"). Determination of compliance with the Central City Employment Commitment each year will be based on the employment data provided to the City pursuant to Section 4.12.3 for the year under evaluation. Full-time Jobs held by Central City Residents will also count as Full-time Jobs for purposes of measuring the applicable Overall Employment Commitment outlined in Section 4.6 and the Fort Worth Employment Commitment outlined in Section 4.7. 4.9. Supply and Service Spending Commitment for Fort Worth Companies. Beginning in calendar year 2015, and in each year thereafter during the Term of this Agreement, Company annually must expend with Fort Worth Companies at least the greater of (i) Fifty-one Thousand Dollars ($51,000.00) in Supply and Service Expenditures or (ii) 30% of all Supply and Service Expenditures, regardless of the total amount of such Expenditures made in the year under evaluation (the "Fort Worth Supply and Service Spending Commitment"). 4.10. Supply and Service Spending Commitment for Fort Worth Certified M/WBE Companies. Beginning in calendar year 2015, and in each year thereafter during the Term of this Agreement, Company annually must expend with Fort Worth Certified M/WBE Companies at least the greater of (i) Forty-two Thousand Five Hundred Dollars ($42,500.00) in Supply and Service Expenditures or (ii) 25% of all Supply and Service Expenditures, regardless of the total amount of such Expenditures made in the year under evaluation (the "M/WBE Supply and Service Spending Commitment"). Dollars spent with Fort Worth Certified M/WBE Companies will also count as dollars spent with Fort Worth Companies for purposes of measuring the Fort Worth Supply and Service Spending Commitment outlined in Section 4.9. Page 7 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports 4.11. Trade Shows. Beginning in calendar year 2015, and in each thereafter during the Term of this Agreement, Company annually must conduct at least two markets or trade shows lasting approximately five (5) days each at the Fort Worth Convention Center or another location in the City mutually acceptable to Company and the City, which markets or trade shows will generally feature outdoor recreational products sold by Company's members, such as products geared towards fishing; hunting and shooting; archery; camping and cooking; hunting clothing and footwear; ski and snowboard apparel; alpine, snowboard and Nordic hard goods; and winter accessories (the "Trade Show Commitment"). 4.12. Reports and Filings. 4.12.1. Construction Spending Reports. 4.12.1.1. Monthly Reports. From the Effective Date until the Completion Date, in order to enable the City to assist Company in meeting the Fort Worth Construction Commitment and the M/WBE Construction Commitment, Company will provide the Director with a monthly report in a form reasonably acceptable to the City that specifically outlines the then -current aggregate Construction Costs expended by and on behalf of Company for the Development as well as the then -current aggregate Construction Costs expended by and on behalf of Company for the Development with Fort Worth Companies and Fort Worth Certified M/WBE Companies. Company agrees to meet with the City's M/WBE Office and Minority and Women Business Enterprise Advisory Committee as reasonably necessary for assistance in meeting or exceeding the M/WBE Construction Commitment and to address any related concerns that the City may have. 4.12.1.2. Final Construction Report. Within thirty (30) calendar days following the Completion Date, in order for the City to assess whether Company met the Real Property Commitment and the extent to which Company met the Fort Worth Construction Commitment and the M/WBE Construction Commitment, Company will provide the Director with a report in a form reasonably acceptable to the City that specifically outlines the total Construction Costs expended by and on behalf of Company for the Development, together with supporting invoices and other documents necessary to demonstrate Page 8 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports that such amounts were actually paid by Company, including, without limitation, final lien waivers signed by Company's general contractor. This report shall also include actual total Construction Costs expended for construction of the Development with Fort Worth Companies and Fort Worth Certified M/WBE Companies, together with supporting invoices and other documents necessary to demonstrate that such amounts were actually paid by Company to such contractors. 4.12.2. Personal Property Report. In order for the City to track its obligations under this Agreement, Company will notify the City in writing once it believes that the Personal Property Commitment has been attained. 4.12.3. Annual Employment Report. On or before February 1, 2016 and of each year thereafter, in order for the City to assess the degree to which the Overall Employment Commitment, the Fort Worth Employment Commitment, and the Central City Employment Commitment for the previous calendar year were met, Company will provide the Director with a report in a form reasonably acceptable to the City that sets forth the total number of individuals, Fort Worth Residents, and Central City Residents who held Full-time Jobs on the Development Property, all as of December 31 (or such other date requested by Company and reasonably acceptable to the City) of the previous year, together with reasonable supporting documentation. 4.12.4. Annual Supply and Service Spending Report. On or before February 1, 2016 and of each year thereafter, in order for the City to assess the degree to which the Fort Worth Supply and Service Spending Commitment and the M/WBE Supply and Service Spending Commitment were met in the previous calendar year, Company will provide the Director with a report in a form reasonably acceptable to the City that sets forth the aggregate Supply and Service Expenditures made during such calendar year with Fort Worth Companies and with Fort Worth Certified M/WBE Companies. 4.13. Audits. The City will have the right throughout the Term to audit the financial and business records of Company that relate to the Development and the Development Property as well as any other documents necessary to evaluate Company's compliance with this Agreement or with the commitments set forth in this Agreement (collectively "Records"). Company shall make all Records available Page 9 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports to the City on the Development Property or at another location in the City acceptable to both parties following reasonable advance notice by the City and shall otherwise cooperate fully with the City during any audit. 4.14. Inspections. At any time during Company's normal business hours throughout the Term and following reasonable notice to Company, the City shall have the right to inspect and evaluate the Development and Development Property, and Company will provide full access to the same, in order for the City to monitor compliance with the terms and conditions of this Agreement. Company will cooperate fully with the City during any such inspection and evaluation. Notwithstanding the foregoing, Company shall have the right to require that any representative of the City be escorted by a Company representative or security personnel during any such inspection or evaluation. 5. CERTIFICATE OF COMPLETION. Within ninety (90) calendar days following receipt by the City of the final construction spending report for the Development submitted in accordance with Section 4.12.1.2 and assessment by the City of the information contained therein pursuant to Sections 4.13 and 4.14, if the City is able to verify that the Real Property Commitment set forth in Section 4.2 was met, the Director will issue Company a certificate stating the aggregate amount of Construction Costs expended by the Completion Date for the Development and the amount of such Construction Costs expended with Fort Worth Companies and Fort Worth Certified M/WBE Companies (the "Certificate of Completion"). The Certificate of Completion will serve as the basis for determining the extent to which the Fort Worth Construction Commitment and the M/WBE Construction Commitment were met. 6. PROGRAM GRANTS. As more specifically set forth herein, if both the Real Property Commitment set forth in Section 4.2 and the Personal Property Commitment set forth in Section 4.3 are met, Company will be entitled to receive ten (10) annual Program Grants, payment of which will begin in 2016 and end in 2025. The amount of each Program Grant shall equal a percentage of the Program Source Funds available for that Program Grant, which percentage will be based, in part, on the extent to which the various commitments set forth in Section 4 were met in the previous calendar year and, specifically, will equal the sum of the Base Grant Percentage, the Fort Worth Construction Percentage, the M/WBE Construction Percentage, the Overall Employment Percentage, the Fort Worth Employment Percentage, the Central City Employment Percentage, the Fort Worth Supply and Service Percentage and the M/WBE Supply and Service Percentage, as defined in Section 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7 and 6.8. In no event shall any Program Page 10 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports Grant exceed 50% of the Program Source Funds available for that year's Program Grant. 6.1. Attainment of Both Real Property Commitment and Personal Property Commitment (25%). Provided that the Real Property Commitment set forth in Section 4.1 and the Personal Property Commitment set forth in Section 4.2 were both met, each annual Program Grant will include twenty-five percent (25%) of the Program Source Funds available for that year's Program Grant (the "Base Grant Percentage"). 6.2. Fort Worth Construction Commitment (Un to 2.5%). Each annual Program Grant will include a percentage of the Program Source Funds available for that year's Program Grant that is based on the extent to which Company met the Fort Worth Construction Commitment, as outlined in Section 4.4 (the "Fort Worth Construction Percentage"). The Fort Worth Construction Percentage will equal the product of 2.5% multiplied by the percentage by which the Fort Worth Construction Commitment was met, which will be calculated by dividing the actual Construction Costs expended or caused to be expended for the Development by the Completion Date with Fort Worth Companies by the number of dollars comprising the Fort Worth Construction Commitment, as determined in accordance with Section 4.4. For example, if the Fort Worth Construction Commitment is $975,000.00 and only $780,000.00 in Construction Costs were expended or caused to be expended for the Development with Fort Worth Companies by the Completion Date, the Fort Worth Construction Percentage for each Program Grant payable hereunder would be 2% instead of 2.5% (or .025 x [$780,000/$975,000], or .025 x .80, or .02). If the Fort Worth Construction Commitment is met or exceeded, the Fort Worth Construction Percentage for each Program Grant payable hereunder will be 2.5%. 6.3. M/WBE Construction Percentage (Un to 2.5%). Each annual Program Grant will include a percentage of the Program Source Funds available for that year's Program Grant that is based on the extent to which Company met the M/WBE Construction Commitment, as outlined in Section 4.5 (the "M/WBE Construction Percentage"). The M/WBE Construction Percentage will equal the product of 2.5% multiplied by the percentage by which the M/WBE Construction Commitment was met, which will be calculated by dividing the actual Construction Costs expended or caused to be expended for the Development by the Completion Date with Fort Worth Certified M/WBE Companies by the number of dollars comprising the M/WBE Construction Commitment, as determined in accordance with Section 4.5. If the M/WBE Construction Commitment is met or exceeded, the M/WBE Construction Percentage for each Program Grant payable hereunder will be 2.5%. Page 11 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports 6.4. Overall Employment Commitment (Up to 10%). Each annual Program Grant will include a percentage of the Program Source Funds available for that year's Program Grant that is based on the extent to which Company met the Overall Employment Commitment in the previous calendar year, as outlined in Section 4.6 (the "Overall Employment Percentage"). The Overall Employment Percentage for each Program Grant will equal the product of 10% multiplied by the percentage by which the Overall Employment Commitment was met in the previous calendar year, which will be calculated by dividing the actual number of Full-time Jobs provided and filled on the Development Property in the previous calendar year by the applicable number of Full-time Jobs constituting the Overall Employment Commitment for the previous calendar year, as outlined in Section 4.6. For example, the Overall Employment Commitment for each year is 35 Full-time Jobs. If only 27 Full-time Jobs were provided and filled on the Development Property in a given year, the Overall Employment Percentage for the Program Grant payable in the following year would be 9% instead of 10% (or .10 x [27/30]), or .10 x .90, or .09. If the Overall Employment Commitment is met or exceeded in any given year, the Overall Employment Percentage for the Program Grant payable in the following year will equal 10%. 6.5. Fort Worth Employment Commitment (Up to 2.5%). Each annual Program Grant will include a percentage of the Program Source Funds available for that year's Program Grant that is based on the extent to which Company met the Fort Worth Employment Commitment in the previous calendar year, as outlined in Section 4.7 (the "Fort Worth Employment Percentage"). The Fort Worth Employment Percentage for each Program Grant will equal the product of 2.5% multiplied by the percentage by which the Fort Worth Employment Commitment was met in the previous calendar year, which will be calculated by dividing the actual number of Full-time Jobs provided on the Development Property that were filled by Fort Worth Residents in the previous calendar year by the applicable number of Full-time Jobs constituting the Fort Worth Employment Commitment for the previous calendar year, as outlined in Section 4.7. For example, if 40 Full-time Jobs were provided and filled on the Development Property in a given year, pursuant to Section 4.7 the Fort Worth Employment Commitment for that year would be 18 Full-time Jobs (45% of 40 Full-time Jobs). However, if only 16 Full-time Jobs provided on the Development Property in that year were filled with Fort Worth Residents, the Fort Worth Employment Percentage for the Program Grant payable in the following year would be 2.22% instead of 2.5% (or .025 x [16/18]), or .025 x .889, or .0222. If the Fort Worth Employment Commitment is met or exceeded in any given year, the Fort Worth Employment Percentage for the Program Grant payable in the following year will equal 2.5%. Page 12 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports 6.6. Central Citv Employment Commitment (Up to 2.5%). Each annual Program Grant will include a percentage of the Program Source Funds available for that year's Program Grant that is based on the extent to which Company met the Central City Employment Commitment in the previous calendar year, as outlined in Section 4.8 (the "Central Employment Percentage"). The Central City Employment Percentage for each Program Grant will equal the product of 2.5% multiplied by the percentage by which the Central City Employment Commitment was met in the previous calendar year, which will be calculated by dividing the actual number of Full-time Jobs provided on the Development Property that were filled by Central City Residents in the previous calendar year by the applicable number of Full-time Jobs constituting the Central City Employment Commitment for the previous calendar year, as outlined in Section 4.8. If the Central City Employment Commitment is met or exceeded in any given year, the Central City Employment Percentage for the Program Grant payable in the following year will equal 2.5%. 6.7. Fort Worth Supply and Service Spending (UP to 2.5%). Each annual Program Grant will include a percentage of the Program Source Funds available for that year's Program Grant that is based on the extent to which Company met the Fort Worth Supply and Service Spending Commitment in the previous calendar year, as outlined in Section 4.9 (the "Fort Worth Supply and Service Percentage"). The Fort Worth Supply and Service Percentage for each Program Grant will equal the product of 2.5% multiplied by the percentage by which the Fort Worth Supply and Service Commitment was met in the previous calendar year, which will be calculated by dividing the amount of Supply and Service Expenditures made with Fort Worth Companies in the previous calendar year by the applicable dollar amount constituting the Fort Worth Supply and Service Commitment for the previous calendar year, as outlined in Section 4.9. For example, if Company expended $75,000.00 in Supply and Service Expenditures in a given year, pursuant to Section 4.9 the Fort Worth Supply and Service Commitment for that year would be $22,500.00. However, if Company made only $15,750.00 in Supply and Service Expenditures with Fort Worth Companies in that year, the Fort Worth Supply and Service Percentage for the Program Grant payable in the following year would be 1.75% instead of 2.5% (or .025 x [$15,750/$22,500]), or .025 x .70, or .0175. If the Fort Worth Supply and Service Commitment is met or exceeded in any given year, the Fort Worth Supply and Service Percentage for the Program Grant payable in the following year will equal 2.5%. Page 13 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports 6.8. Fort Worth M/WBE Supply and Service Spending (Up to 2.5%). Each annual Program Grant will include a percentage of the Program Source Funds available for that year's Program Grant that is based on the extent to which Company met the M/WBE Supply and Service Spending Commitment in the previous calendar year, as outlined in Section 4.10 (the "M/WBE Supply and Service Percentage"). The M/WBE Supply and Service Percentage for each Program Grant will equal the product of 2.5% multiplied by the percentage by which the M/WBE Supply and Service Commitment was met in the previous calendar year, which will be calculated by dividing the amount of Supply and Service Expenditures made with Fort Worth Certified M/WBE Companies in the previous calendar year by the applicable dollar amount constituting the M/WBE Supply and Service Commitment for the previous calendar year, as outlined in Section 4.10. If the M/WBE Supply and Service Commitment is met or exceeded in any given year, the M/WBE Supply and Service Percentage for the Program Grant payable in the following year will equal 2.5%. 6.9. No Offsets. A deficiency in attainment of one commitment may not be offset by the exceeding attainment of another commitment. For example, if in a given year the Fort Worth Employment Commitment failed to be met by six (6) Full-time Jobs, but the Overall Employment Commitment was exceeded by six (6) Full-time Jobs, the Fort Worth Employment Percentage applicable to the Program Grant payable in the following year would still be reduced in accordance with Section 6.5 on account of the failure to meet the Fort Worth Employment Commitment. 6.10. Deadline for Payments and Source of Funds. The first Program Grant payable hereunder shall be paid by the City on or before June 1, 2016. Each subsequent annual Program Grant payment will be made by the City to Company on or before June 1 of the year in which such payment is due. It is understood and agreed that all Program Grants paid pursuant to this Agreement shall come from currently available general revenues of the City and not directly from ad valorem taxes on New Taxable Tangible Personal Property that are received by the City. Company understands and agrees that any revenues of the City other than those dedicated for payment of a given annual Program Grant pursuant to and in accordance with this Agreement may be used by the City for any lawful purpose that the City deems necessary in the carrying out of its business as a home rule municipality and will not serve as the basis for calculating the amount of any future Program Grant or other obligation to Company. Page 14 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports 7. DEFAULT. TERMINATION AND FAILURE BY COMPANY TO MEET VARIOUS DEADLINES AND COMMITMENTS. 7.1. Failure to Meet Real Property Commitment. Notwithstanding anything to the contrary herein, the City shall have the right to terminate this Agreement by providing written notice to Company without further obligation to Company hereunder if the Real Property Commitment, as outlined in Section 4.2, is not met. 7.2. Failure to Meet Personal Property Commitment. Notwithstanding anything to the contrary herein, the City shall have the right to terminate this Agreement by providing written notice to Company without further obligation to Company hereunder if the Personal Property Commitment, as outlined in Section 4.3, is not met. 7.3. Failure to Use Development Property for Business Purposes. If Company fails to use the Development Property as its corporate headquarters for the business operations described in Recital A for more than thirty (30) consecutive calendar days at any time during the Term of this Agreement for any reason (other than on account of Company's temporary displacement caused by a casualty to the Development Property and resulting ongoing repairs or restoration to the Development Property necessitated by such casualty), Company shall be in default under this Agreement and Section 7.7 shall apply. 7.4. Failure to Meet Trade Show Commitment. If the Trade Show Commitment, as outlined in Section 4.11, is not met in any given year, such failure shall not constitute a default hereunder or provide the City with the right to terminate this Agreement, but shall result in Company's forfeiture of the full Program Grant that would otherwise have been payable in the following year. In this event, the forfeiture nevertheless shall count as a Program Grant payment by the City for all purposes under this Agreement. 7.5. No Default for Failure to Meet Certain Construction Spending, Employment or Supply and Service Spending Commitments. If the Fort Worth Construction Commitment or the M/WBE Construction Commitment are not met, or if the Overall Employment Commitment, the Fort Worth Employment Commitment, the Central City Employment Commitment, the Fort Worth Supply and Service Spending Commitment, or the M/WBE Supply and Service Spending Commitment are not met in any given year, such failure shall not constitute a default hereunder or provide the City with the right to Page 15 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports terminate this Agreement, but, rather, shall only cause the amount of the Program Grant that the City is required to pay in the following year to be reduced in accordance with this Agreement. 7.6. Failure to Submit Renorts. If Company fails to submit any report required by and in accordance with Section 4.12, the City's obligation to pay any Program Grants at the time, if any, shall be suspended until Company has provided all required reports; provided, however, that if any report required hereunder is delinquent by more than one (1) year, Section 7.7 shall apply. 7.7. General Breach. Unless stated elsewhere in this Agreement, Company shall be in default under this Agreement if Company breaches any term or condition of this Agreement. In the event that such breach remains uncured after thirty (30) calendar days following receipt of written notice from the City referencing such default (or, if Company has diligently and continuously attempted to cure such default following receipt of such written notice but reasonably requires more than thirty (30) calendar days to cure such default, then such additional amount of time as is reasonably necessary to effect cure, as determined by both parties mutually and in good faith), the City shall have the right to terminate this Agreement immediately by providing written notice to Company. 7.8. Knowing Emnlovment of Undocumented Workers. Company acknowledges that the City is required to comply with Chapter 2264 of the Texas Government Code, enacted by House Bill 1196 (80th Texas Legislature), which relates to restrictions on the use of certain public subsidies. Company hereby certifies that Company, and any branches, divisions, or departments of Company, does not and will not knowingly employ an undocumented worker, as that term is defined by Section 2264.001(4) of the Texas Government Code. In the event that Company, or any branch, division, or department of Company, is convicted of a violation under 8 U.S.C. Section 1324aO (relating to federal criminal penalties and injunctions for a pattern or practice of employing unauthorized aliens): • if such conviction occurs during the Term of this Agreement, this Agreement shall terminate contemporaneously upon such conviction (subject to any appellate rights that may lawfully be available to and exercised by Company) and Company shall repay, within one hundred twenty (120) calendar days following receipt of written demand from the City, the aggregate amount of the Program Grants received by Company hereunder, if any, plus Simple Interest at a rate of four percent (4%) per annum; or Page 16 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports • if such conviction occurs after expiration or termination of this Agreement, subject to any appellate rights that may lawfully be available to and exercised by Company, Company shall repay, within one hundred twenty (120) calendar days following receipt of written demand from the City, the aggregate amount of the Program Grants received by Company hereunder, if any, plus Simple Interest at a rate of four percent (4%) per annum. For the purposes of this Section 7.8, "Simple Interest" is defined as a rate of interest applied only to an original value, in this case the aggregate amount of Program Grants paid hereunder. This rate of interest can be applied each year, but will only apply to the aggregate amount of Program Grants paid hereunder and is not applied to interest calculated. For example, if the aggregate amount of the Program Grants paid hereunder is $10,000 and such amount is required to be paid back with four percent (4%) interest five years later, the total amount would be $10,000 + [5 x ($10,000 x 0.04)], which is $12,000. This Section 7.8 does not apply to convictions of any subsidiary or affiliate entity of Company, by any franchisees of Company, or by a person or entity with whom Company contracts. Notwithstanding anything to the contrary herein, this Section 7.8 shall survive the expiration or termination of this Agreement. 8. INDEPENDENT CONTRACTOR. It is expressly understood and agreed that Company shall operate as an independent contractor in each and every respect hereunder and not as an agent, representative or employee of the City. Company shall have the exclusive right to control all details and day-to-day operations relative to the Development and the Development Property and any improvements thereon and shall be solely responsible for the acts and omissions of its officers, agents, servants, employees, contractors, subcontractors, licensees and invitees. Company acknowledges that the doctrine of respondeat superior will not apply as between the City and Company, its officers, agents, servants, employees, contractors, subcontractors, licensees, and invitees. Company further agrees that nothing in this Agreement will be construed as the creation of a partnership or joint enterprise between the City and Company. 9. INDEMNIFICATION. COMPANY, AT NO COST TO THE CITY, AGREES TO DEFEND, INDEMNIFY AND HOLD THE CITY, ITS OFFICERS, AGENTS SERVANTS AND EMPLOYEES, HARMLESS AGAINST ANY AND ALL CLAIMS, LAWSUITS, ACTIONS, COSTS AND EXPENSES OF ANY KIND, INCLUDING, BUT NOT LIMITED TO, THOSE FOR PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO COMPANY'S BUSINESS AND ANY Page 17 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports RESULTING LOST PROFITS) AND/OR PERSONAL INJURY, INCLUDING DEATH, THAT MAY RELATE TO, ARISE OUT OF OR BE OCCASIONED BY (i) COMPANY'S BREACH OF ANY OF THE TERMS OR PROVISIONS OF THIS AGREEMENT OR (ii) ANY NEGLIGENT ACT OR OMISSION OR INTENTIONAL MISCONDUCT OF COMPANY, ITS OFFICERS, AGENTS, ASSOCIATES, EMPLOYEES, CONTRACTORS (OTHER THAN THE CITY) OR SUBCONTRACTORS, RELATED TO THE DEVELOPMENT AND ANY OPERATIONS AND ACTIVITIES ON THE DEVELOPMENT PROPERTY OR OTHERWISE TO THE PERFORMANCE OF THIS AGREEMENT. 10. NOTICES. All written notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designates in writing, by certified mail, postage prepaid, or by hand delivery: City: City of Fort Worth Attn: City Manager 1000 Throckmorton Fort Worth, TX 76102 with copies to: the City Attorney and Economic/Community Development Director at the same address 11. ASSIGNMENT AND SUCCESSORS. Company: Nation's Best Sports Attn: President 4216 Hahn Blvd. Fort Worth, TX 76117 Company may at any time assign, transfer or otherwise convey any of its rights or obligations under this Agreement to an Affiliate without the approval of the City so long as Company, the Affiliate and the City first execute an agreement under which the Affiliate agrees to assume and be bound by all covenants and obligations of Company under this Agreement. Otherwise, Company may not assign, transfer or otherwise convey any of its rights or obligations under this Agreement to any other person or entity without the prior consent of the City Council, which consent shall not be unreasonably withheld, conditioned on (i) the prior approval of the assignee or successor and a finding by the City Council that the proposed assignee or successor is financially capable of meeting the terms and conditions of this Agreement and (ii) prior execution by the proposed assignee or successor of a written agreement with the City under which the proposed assignee or successor agrees to assume and be bound by all covenants and obligations of Company under this Agreement. Any attempted assignment without the City Council's prior consent shall constitute grounds for termination of this Agreement following ten (10) calendar days Page 18 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports of receipt of written notice from the City to Company. Any lawful assignee or successor in interest of Company of all rights under this Agreement shall be deemed "Company" for all purposes under this Agreement. 12. COMPLIANCE WITH LAWS. ORDINANCES. RULES AND REGULATIONS. This Agreement will be subject to all applicable federal, state and local laws, ordinances, rules and regulations, including, but not limited to, all provisions of the City's Charter and ordinances, as amended. 13. GOVERNMENTAL POWERS. It is understood that by execution of this Agreement, the City does not waive or surrender any of it governmental powers or immunities. 14. NO WAIVER. The failure of either party to insist upon the performance of any term or provision of this Agreement or to exercise any right granted hereunder shall not constitute a waiver of that party's right to insist upon appropriate performance or to assert any such right on any future occasion. 15. VENUE AND JURISDICTION. If any action, whether real or asserted, at law or in equity, arises on the basis of any provision of this Agreement, venue for such action shall lie in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas — Fort Worth Division. This Agreement shall be construed in accordance with the laws of the State of Texas. 16. NO THIRD PARTY RIGHTS. The provisions and conditions of this Agreement are solely for the benefit of the City and Company, and any lawful assign or successor of Company, and are not intended to create any rights, contractual or otherwise, to any other person or entity. Page 19 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports 17. INTERPRETATION. In the event of any dispute over the meaning or application of any provision of this Agreement, this Agreement shall be interpreted fairly and reasonably, and neither more strongly for or against any party, regardless of the actual drafter of this Agreement. 18. CAPTIONS. Captions and headings used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 19. SEVERABILITY. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 20. ENTIRETY OF AGREEMENT. This Agreement, including any exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement between the City and Company, and any lawful assign and successor of Company, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. Notwithstanding anything to the contrary herein, this Agreement shall not be amended unless executed in writing by both parties and approved by the City Council of the City in an open meeting held in accordance with Chapter 551 of the Texas Government Code. 21. COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. EXECUTED as of the last date indicated below: Page 20 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports CITY OF FORT WORTH: By. Fernando Costa Assistant City Manager Date: %/* Ji'3 APPROVED AS TO FORM AND LEGALITY: By: /� Peter Vaky Deputy City Attorney M&C: C-26269 5-21-13 OUR NATION'S BEST SPnORTS, a Texas nonprofit corpora doing business a . • , ; est Sports: By: Nam A in �s G IiRd °e-e7 f Titl /iee's//J oe-47Figo - Date: Page 21 Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports OFFICIAL RECORD CITY SECRETARY p1y Y YY V :JORT v TX EXHIBITS "A" — Description and Map Depicting the Development Property "B" — Map of Central City Economic Development Program Agreement between City of Fort Worth and Nation's Best Sports -1\G lY \ $' \ Zi \ , ° fry j " eY -.--- .E__ \ --,, '� 19251' •_ ,-;mom �M1 Sty t 11 00'5025 E \:' \\ .w'" O\ e a ......................... t u L-T `�➢E rrnn, va.1s• EXHIBIT "A" �. rb bF?rnF J;%1\rs0 i 9 ..,- - 011 fr 0 it ty 4 X' '%-T+' OL wP '\ ` -\ ` N � `�JG 6 !'\\ n \ \ 5 00'52'42' E 432.70 AEI➢ 93YID YlogAA C 1040 RAR��€N NORTH BEACH STREET WZ N \ f !se`ts k� M, 1 el I g @ :,;r4P ki f 1f iaayla i�1'ii 1�11i�i�t l�a1; qa 9 •q0 le 1 �yg i 42 �� � in �, $j N .@ §S4 �Fy'4 �9 i SR''5'a�i_,i[ . E Sled ill" i qq lti tag it q li it, 1/ i i er ite! 0/-111,11 'Nip . 4 i `` 4i IN •T 114� 0 d1.1, i9i 3�` !f 5 Irt ! it111040 i' i '� 41i18 �bta� FiE �� lt�i 1 yi; �ta sZy ski e�� 6;ilF� ! � roe, 9 i iii19 ist4 ita i ill {fii°i tali 5:5 1.;�r iiigS lip ii� t i s tail !I�i,�� 9St' % E igl$a1 i4 11 Ai ' }1-2'.1 oa ,t 011 1, !' „ e l ,:el pp i¢i� 1, i91� 7 9;syv. ;,, .1 i.. 6 .all ! i ill rt ! l 1! -P9! 1 F1 3 - qe ill �,. �1, �i�t lk °°d s a!t' i ei� r t; ill ' list£ s„ 51 H in '; i'�i, , l g 9°5� VI, ° l 9 5! �, � Ti � ,� 9y! ° i !° SD q ;'tall- �a=iP tail A"ta� li�.i9 . = is"444 eta 1, s Ford, s .d °i a e!e a pig 14P- v -. i s yi i1 ""et 50 i 5 sill �► Q; yr i ,•y1�I OR of tali°'' Zii` e ffi 9sy i1J? Ili; 0 i � a plat 1q `,4•5 % 9 P'•°i �}q Ply 4 .ii1 glii. g4 !S i�ii € 5ei S il�`Y� 9i i` at i•• d`�y 8k S g9� �i lti9l l l S' S1r / % t i 9 1 1 ii titer 1 11 rilll a ail F o lilt i r � ,ill 1 i 9k1 q 19ii le al9 8 0,g 1 a 1 1111'1151'111,11114v: } ' i11 9;15 i *i r ei1 aj III fj l ��� O-li11 t1''���'i rgl1it7q�1'930'iLl'�igi 1 5e99 i' iii fR hii 11 19 1 e iml, AI 11 ;1$ . ,IL gi, to. i;i, itill I. ,., p i ow vt i; i.„ ,„,* f°g a; t i%g iIlzll! i9 s iYt9 it ,„;stall 1 9 ' v 11111 ail, Mil DESCRIPTION OF THE DEVELOPMENT PROPERTY EXHIBIT "A" WHEREAS OUR NATION'S BEST SPORTS, a Texas nonprofit corporation, is the owner of a tract of land situated in the James M. Robinson Survey. Abstract No. 1345, City of Fort Worth, Tarrant County, Texas, being a portion of Lot 1, Block A and a portion of Lot 2. Block A of the final plat of Blocks 1, 2, and 3, Fossil Creek Addition. Phase 1 Section 1, an addition to the City of Fort Worth, Tarrant County, Texas as recorded in Volume 388-140, Page 40, Plat Records, Tarrant County, Texas (PRTCT), being that same tract of land as described in deed to Our Nation's Best Sports, recorded in D213135219, Deed Records. Tarrant County, Texas (DRTCT), and being more particularly described as follows: COMMENCING at a 1/2" rebar capped Halff Assoc. Inc. found in the west line of North Beach Street (R.O.W. varies) at the southeast corner of Lot 1, Block 1 of said Fossil Creek Addition, Phase 1. Section 1, the southeast corner of Tract 32 as described in deed to The Ruth Ray and H.L. Hunt Foundation (now known as The Nancy Ann and Ray L. Hunt Foundation per affidavit recorded in 201300086287, DRTCT), recorded in Volume 9498 Page 1906, DRTCT, and corrected in Volume 9490, Page 700, DRTCT, and as described in deed to The Ruth Foundation. recorded in Volume 9490, Page 751. DRTCT, being the most easterly northeast corner of Lot 1A, Block 1 of the plat of Lots 1A, 2 & 3, Block 1, Motorola Addition, an addition to the City of Fort Worth, Tarrant County, Texas as recorded in Cabinet A, Slide 8389. PRTCT: THENCE N 89'45'40" W (Reference Bearing per Volume 388-140, Page 40, PRTCT. departing the west line of said North Beach Street, along the south line of said Lot 1, Block 1 and the north line of said Lot 1A, Block 1, a distance of 380.66 feet (Deed 380.61 feet) to a 1/2" rebar capped Halff Assoc. Inc. found at the southwest corner of said Tract 32 and the southeast corner of said Our Nation's Best Sports tract, being the POINT OF BEGINNING of the herein described tract of land; THENCE N 89 '45 '40" W, continuing along the south line of said Lot 1 and said Lot 2, Block 1 and the north line of said Lot 1A. Block 1, a distance of 829.35 feet (Deed 829.39 feet) to a 1/2" rebar capped Halff Assoc. Inc. found at the southwest corner of said Our Nation's Best Sports tract and a reentrant corner of said Lot 1A. Block 1, from which a cut x in concrete found at the most westerly northwest corner of said Lot 1A, Block 1 bears N 89 '45'40" W, 928.29 feet; THENCE along the east line of said Lot IA, Block A and the west line of said Our Nation's Best Sports tract, as follows: N 00 '18'25" E, a distance of 192.51 feet (plat & Deed 192.43 feet) to a 1/2" rebar capped Halff Assoc. Inc. found at the beginning of a non -tangent curve to the left, having a radius point that bears N 89 '48'09" W, 480.00 feet; Northwesterly, along said curve, having a central angle of 23 '11'35", an arc distance of 194.30 feet (Plat & Deed 194.48 feet), and a chord that bears N 11'23'58" W, 192.98 feet to a 1/2" rebar found at the end of said curve: N 22 '59 '44" W, tangent to said curve, a distance of 47.80 feet (Plat & Deed 47.77 feet) to a 1/2" rebar capped Halff Assoc. Inc. found at the beginning of a tangent curve to the right, having a radius of 30.00 feet: Northeasterly, along said curve, having a central angle of 88 '40'02", an arc distance of 46.43 feet (Plat & Deed 46.41 feet), and a chord that bears N 21'20'17" E, 41.93 feet to a 1/2" rebar capped Halff Assoc. Inc. found in the south line of Fossil Creek Boulevard (called 120' R.O.W. per Volume 388-140, Page 40, PRTCT, being the most northerly northeast corner of said Lot 1A, Block 1 and the northwest corner of said Our Nation's Best Sports tract, and the beginning of reverse curve to the left having a radius of 2508.10 feet: THENCE along the south line of said Fossil Creek Boulevard, the north line of said Lot 2 and Lot 1, Block 1, as follows: Northeasterly, along said curve, having a central angle of 11'38 '45", an arc distance of 509.79 feet (Deed 509.82 feet), and a chord that bears N 59'50'55" E. 508.91 feet to a 1/2" rebar capped Goodwin & Marshall set at the end of said curve, from which a 3/8" rebar found bent bears S 11'07' W, 0.2 feet: N 54 '01'33" E, tangent to said curve, a distance of 100.00 feet to a 1/2" rebar found at the beginning of a tangent curve to the right, having a radius of 894.99 feet; Northeasterly, along said curve, having a central angle of 23 '38'31 ", an arc distance of 369.30 feet (Deed 369.45 feet), and a chord that bears N 65 '50'48" E. 366.69 feet to the northeast corner of said Our Nation's Best Sports tract and the northwest corner of said Tract 32, from which a 1/2" rebar found bears N 00 '52 '42" W, 0.2 feet, and a 1/2" rebar capped Halff Assoc. Inc. found bears a chord of N 83'50 '33" E. 192.53 feet (Deed chord 192.48 feet); THENCE S 00 '52 '42" E, departing the south line of said Fossil Creek Boulevard, along the east line of said Our Nation's Best Sports tract and the west line of said Tract 32, non tangent to said curve, a distance of 932.70 feet (Deeds 932.82 feet & 932.85 feet) to the POINT OF BEGINNING and containing 602.891 square feet or 13.840 acres of land. EXHIBIT "A" LOT u s..nc ACOITIM SRC.. VANIAPirt afro oot ro Oxaveuu E /SURVEYOR GOOD! __MARSHALL Y au�ammo—n AMIII-au«txaa Mara (e+7)man W*-E Goa., C scut oeo :so x.a LOCATION MAP SITE PLAN POI( NATIONS BEST SPORTS S ATM Di THE LOTS 1 and 2 in BLACK 1 FOSSIL CREEK PHASE I, an addition LAMES M. ROBINSON SURVEY ABSTRACT No. 1345 CITY OF FORT WORTH, TARRANT COUNTY, TEXAS APRII.2Al3 Legend Zip Codes Central City Boundary CDBG Eligible Area City Limit Exhibit "B" FORT WORTH Housing and Economic Development CDBG Eligible Areas & Central City Updated 08/09/2011 M&C Review Page 1 of 3 CITY DATE: CODE: OUNCILGENDA COUNCIL ACTION: Approved on 5/21/2013 5/21/2013 REFERENCE NO.: C TYPE: Official site of the City of Fort Worth, Texas FORT WORTH C-26269 LOG NAME: 17NATIONSBESTEDPA NON- PUBLIC CONSENT HEARING: NO SUBJECT: Authorize Execution of an Economic Development Program Agreement with Our Nation's Best Sports for the Construction of a New Corporate Headquarters Facility to be Located in the Fossil Creek Business Park Near the Intersection of Fossil Creek Boulevard and North Beach Street (COUNCIL DISTRICT 4) RECOMMENDATION: It is recommended that the City Council authorize the execution of an Economic Development Program Agreement with Our Nation's Best Sports for the construction of a new, approximately 60,000 square foot, corporate headquarters to be located in the Fossil Creek Business Park near the intersection of Fossil Creek Boulevard and North Beach Street. DISCUSSION: The Housing and Economic Development Department is proposing a 10-year Economic Development Program Agreement with Our Nation's Best Sports (Company). The Company is a purchasing cooperative composed of over 300 independent sporting goods merchandise retailers in the United States and Canada. Its primary activity is to act as an agent on behalf of its membership in order to consolidate the individual member's purchasing capacities and obtain more favorable unit prices on sporting goods merchandise. The Company currently is looking to expand its corporate headquarters and is considering a site in the Fossil Creek Business Park for construction of a new, approximately 60,000 square foot facility. In return for completing this project, the City will provide 10 annual economic development program grants to Company in amounts equal to 50 percent of the City's taxes on the incremental value of the real and business personal property investment at the site. The Company hosts two semi-annual shows at the Fort Worth Convention Center that generate approximately $9,200,000.00 in economic benefit to the City of Fort Worth on an annual basis. As a result of the proposed relocation, the Company is considering hosting an additional show in Fort Worth that could generate an additional $1,500,000.00 in local economic impact to the City. Project: Company must expend at least $3,250,000.00 in real property improvements at the site by December 31, 2014 and install at least $300,000.00 in non -inventory, non -supply, taxable personal property on the site as of January 1, 2015 (as determined by the Tarrant Appraisal District's official tax rolls). Failure to meet the minimum real property and personal property investment is a condition of default and will result in immediate termination of the Agreement. Utilization of Fort Worth Companies and Fort Worth Certified Minority/Women-Owned Businesses (M/WBE) (Real Property Improvements): The Company will be required to spend a minimum in the amount of $975,000.00 or 30 percent, whichever is greater, of real property improvements with contractors that are Fort Worth companies. The Company will also be required to spend a minimum in the amount of $812,500.00 or http://apps.cfwnet.org/council packet/mc_review.asp?ID=18361 &councildate=5/21 /2013 05/22/2013 M&C Review Page 2 of 3 25 percent, whichever is greater, of real property improvements with contractors that are Fort Worth certified M/WBE companies (with the understanding that dollars spent with Fort Worth Certified M/WBE companies will also count as dollars spent with Fort Worth companies). Employment Commitments: The Company will be required to employ a minimum of 35 full-time employees on the property by December 31, 2015. The Company has committed to fill the greater of 45 percent or 16 of these jobs with Fort Worth residents and the greater of 10 percent or four of these jobs with Central City residents, with an understanding that employment of Central City residents also counts as employment with Fort Worth residents. Utilization of Fort Worth Companies and Fort Worth Certified Minoritv /Women -Owned Businesses, (M/WBE) (Supply & Services): The Company will be required to spend the greater of 30 percent or $51,000.00 of annual discretionary service and supply expenditures with Fort Worth companies. The Company will also be required to spend the greater of 25 percent or $42,500.00 of annual discretionary service and supply expenditures with Fort Worth certified M/WBE companies (with the understanding that dollars spent with Fort Worth certified M/WBE companies will also count as dollars spent with Fort Worth companies). Discretionary Supply and Service Expenditures means all expenditures by the Company expended directly for the operation and maintenance of the Development, excluding amounts paid for electric, gas, water and any other utility services. Trade Shows: The Company will be required to conduct at least two annual markets at the Fort Worth Convention Center or another location mutually acceptable to the Company and the City. If Company fails to meet this commitment in any given year, the City will not be required to make an economic development grant payment in the following year. Citv Commitments: All grant payments will be based on up to 50 percent of the taxes received by the City that are attributable to the incremental increase in value of improvements on the real property and non - inventory business personal property located on the site during the 10-year term of the Agreement. Except for cases of default, failure to meet a commitment will result in a reduction of the corresponding component of the grant for that year proportional to the amount the commitment was not met as more specifically depicted in the following chart: Company Commitment (Real and Personal Property Investment Fort Worth Contractors for Real Property Improvements Fort Worth Certified M/WBE Contractors for Real Property Improvements 'Overall Employment 'Employment of Fort Worth Residents (Employment of Central City Residents Utilization of Fort Worth Companies for Services and Supplies Utilization of Fort Worth MWBE Companies for Services and Supplies (Total The project is located in COUNCIL DISTRICT 4. Potential Grant 25 percent 2.5 percent 2.5 percent 10 percent 2.5 percent 2.5 percent 2.5 percent 2.5 percent 50 percent http://apps.cfwnet.org/council_packet/mc_review.asp?ID=18361 &councildate=5/21/2013 05/22/2013 M&C Review Page 3 of 3 FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that this action will not increase the total appropriations on City funds. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for Citv Manager's Office bv: Originating Department Head: Additional Information Contact: ATTACHMENTS NBS Reference Map.pdf Fernando Costa (6122) Cynthia B. Garcia (8187) Ana Alvarado (2661) Robert Sturns (8003) http://apps.cfwnet.org/council_packet/mc_review.asp?ID=18361 &councildate=5/21 /2013 05/22/2013