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STATE OF TEXAS § CITY SECRETAlly
COUNTY OF TARRANT § CONTRACT No.
TAX ABATEMENT AGREEMENT
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and
between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal
corporation organized under the laws of the State of Texas and acting by and through Reid Rector,
its duly authorized Assistant City Manager, and STOCKYARDS STATION HOTEL, L.P.
("Company"), a Texas limited partnership acting by and through Thomas E. Kirkland, the duly
authorized member-manager of Stockyards Tradition, LLC, Company's General Partner.
The City Council of the City of Fort worth ("City Council")hereby finds and the City and
Owner hereby agree that the following statements are true and correct and constitute the basis upon
which the City and owner have entered into this Agreement:
A. On February 26, 2002, the City Council adopted Resolution No. 2811, stating that
the City elects to be eligible to participate in tax abatement and including guidelines and criteria
governing tax abatement agreements entered into between the City and various third parties,
entitled "Tax Abatement Policy Statement for Qualifying Development Projects" (the "Policy
Statement"), which is attached hereto as Exhibit "A" and hereby made a part of this Agreement
for all purposes.
B. The Policy Statement contains appropriate guidelines and criteria governing tax
abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas
Tax Code, as amended(the "Code").
C, On February 3, 2004, the City Council adopted Ordinance No. 15855 (the
"Ordinance") establishing Tax Abatement Reinvestment Zone No. 46, City of Fort worth, Texas
(the "Zone").
D. owner owns certain real property located entirely within the Zone and that is more
particularly described in Exhibit "B", attached hereto and hereby made a part of this Agreement
for all purposes (the "Land").
E, owner plans to construct certain improvements on the Land, as more specifically
set forth in Section 1.1 of this Agreement, for the use as and operation of a limited service hotel
(the "Project").
F. On December 5, 2003 owner submitted an application for tax abatement to the City
concerning the contemplated use of the Land (the "Application"), attached hereto as Exhibit"C"
and hereby made a part of this Agreement for all purposes.
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Tax.Abatement Agreement between 091H,�
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O. The contemplated use of the Land and the Required Improvements, as defined in
Section 1.1 of this Agreement, and the terms of this Agreement are consistent with encouraging
development of the Zone and generating economic development and increased employment
opportunities in the City, in accordance with the purposes for creation of the Zone, and are in
compliance with the Policy Statement, the Ordinance and other applicable laws, ordinances, rules
and regulations.
H. The terms of this Agreement, and the plans for development and use of the Land
and the Required Improvements, satisfy the eligibility criteria of the Policy Statement.
I. Written notice that the City intends to enter into this Agreement, along with a copy
of this Agreement, has been furnished in the manner prescribed by the Code to the presiding
officers of the governing bodies of each of the taxing units in which the Land is located.
NOW, THEREFORE, the City and Owner, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
1. OWNER'S COVENANTS.
1.1. Real Property Improvements.
Owner shall construct, or cause to be constructed, a limited service hotel and certain
other improvements to the Land that are described in Exhibit "C" (the `Required
Improvements"), which shall (i) be comprised of at least 55,000 square feet of building
space; (ii) have a minimum Construction Cost (as defined in the paragraph below) upon
completion of$5,250,000; and (iii) be substantially completed by March 31, 2005, unless
delayed because of Force Maj eure (as defined in the paragraph below), in which case this
deadline shall be extended by the number of days comprising the specific Force Maj eure.
Minor variations in the Required Improvements from the description provided in Exhibit
"D" shall not constitute an Event of Default, as defined in Section 4.1, provided that all of
the conditions in the immediately preceding sentence are met.
For purposes of this Agreement, "Construction Costs" shall mean site
development costs, actual construction costs, including contractor fees,the costs of supplies
and materials, engineering fees, architectural fees and other professional, development and
permitting fees expended directly in connection with the Required Improvements. The
City recognizes that Owner may request bids from various contractors in order to obtain the
lowest reasonable price for the Required Improvements. In the event that bids for the
Required Improvements are below $5,250,000 for work substantially the same as that
provided in Exhibit"C"and otherwise described in this Agreement, the City will meet with
Owner to negotiate in good faith an amendment to this Agreement so that Owner is not in
default under this Agreement for its failure to expend at least $5,250,000 in Construction
Costs for the Required Improvements, with the understanding that the City's staff will
recommend, but cannot guarantee, approval of such amendment by the City Council. For
purposes of this Agreement, "Force Ma j eu re" shall mean an event beyond O
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reasonable control, including, without limitation, acts of Clod, fires, strikes, national
disasters, wars, riots, material or labor restrictions, and unreasonable delays by the City in
issuing any permits with respect to or in inspecting any of the Required Improvements, but
shall not include construction delays caused due to purely financial matters involving
Owner, such as, without limitation,delays in the obtaining of adequate financing.
1.2. Personal Property Improvements.
Owner shall cause taxable new tangible personal property with a purchase price to
Owner of at least $1,100,000 to be in place on the Land by April 1, 2005, unless delayed
because of Force Maj eure, in which case this deadline shall be extended by the number of
days comprising the specific Force Maj eure, and to remain on the Land throughout the
Term, as defined in Section 2.5.
1.3. Use of Land.
Owner covenants that the Required Improvements shall be constructed, operated
and maintained, and that the Land shall be used, in accordance with the description of the
Project set forth in Exhibit "C" and in a manner that is consistent with the general
purposes of encouraging development or redevelopment of the Zone.
2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS,
The City will grant to owner annual property tax abatements on the Land and on taxable
tangible personal property located on the Land for a period of six(6)years, as specifically provided
in this Section 2 and subject to and in accordance with this Agreement (collectively, the
"Abatement"). The actual amount of the Abatement granted under this Agreement shall be based
upon the increase in value of the Land and the increase in value of taxable new tangible personal
property located on the Land over their respective values for the 2004 tax year, which is the year
in which this Agreement was entered into, and upon attainment by owner of certain
employment, contracting and spending benchmarks set forth in this Section 2.
2.1. Amount of Abatement Maximum of loo%}.
Subject to Section 2.3 and Section 4 of this Agreement, during each year of the
Term, the Abatement granted hereunder may range up to a maximum of one hundred
percent (100%) of the increased value of the Land and up to a maximum of one hundred
percent (100%) of the increased value of taxable tangible personal property located on
the Land, and shall be calculated as follows:
2.1.1. Abatement Rased on Construction Expenditures (25% Component).
Owner shall receive a twenty-five percent (25%) Abatement if Owner
spends (i) at least thirty-five percent (35%) of the total actual Construction Costs
for the Required Improvements with contractors that are Fort `]North Companies.
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as defined in Exhibit "A", and(ii) at least twenty-five percent (25%) of the total
Construction Costs for the Required Improvements with MIWBE certified
contractors whose principal business office is located in the City ("Fort worth
IVMBE Companies"). Terms and requirements relating to the location and
certification of a given contractor are defined and explained in Exhibit"A".
Determination of compliance With the spending requirements of this
Section 2.1.1 shall be based on spending during the period of time between the
execution date of this Agreement and the earlier of April 1, 2005 or the date of
issuance of a final certificate of occupancy for the Required Improvements. The
maximum percentage of Abatement available to owner under this Section 2.1.1 is
twenty-five percent (25%). owner shall not be eligible for any of the twenty-five
percent (25%) Abatement under this Section 2.1.1 unless owner meets the
minimum requirements set forth in both subsections (i) and (ii) of the first
sentence of the paragraph above. In other words, owner may not offset a
deficiency in one subsection by exceeding its commitment in the other subsection.
In addition, if the total Construction Costs of the Required Improvements are less
than the minimum required in Section 1.1 of this Agreement, not only Will owner
be ineligible to receive the twenty-five percent (25%) Abatement under this
Section 2.1.1, but an Event of Default, as defined and addressed in Section 4,
shall also occur.
2.1.2. Abatement Based on Employment Goals (50% Component).
-II.■ N I■ P■ ■ Imo■
For the first five (5) years of the Term, owner shall receive a fifty percent
(50%) Abatement if during the previous calendar year (i) at least thirty-two (32)
Full-time Jobs were provided and filled on the Land and (ii) at least eighty
percent (80%) of all Full-time Jobs provided and filled on the Land, regardless of
the number of such Full-time Jobs, were held by individuals residing within the
Central City. For the sixth year of the Term, owner shall receive a fifty percent
(50%) Abatement if during the previous calendar year (i) at least thirty-five (35)
Full-time Jobs were provided and filled on the Land and (ii) at least eighty
percent (80%) of all Full-time Jobs provided and filled on the Land, regardless of
the number of such Full-time Jobs, were held by individuals residing within the
Central City. For purposes of this Agreement, "Central City" shall be defined as
those areas depicted in the map of Exhibit "D", attached hereto and hereby made
a part of this Agreement for all purposes, as either the central city or a CDBG
area, and "Full-time Job" shall mean jobs filled for a period of not less than forty
(40) hours per week. Determination of compliance with the employment
requirements of this Section 2.1.2 shall be based on owner's employment data as
of August 1 of each year during the Compliance Auditing Term, as defined in
Section 2.5. The maximum percentage of Abatement available to owner under
this Section 2.1.2 is fifty percent (50%). owner shall not be eligible for any of
the fifty percent (50%) Abatement under this Section 2.1.2 unless owner meets
the minimum requirements set forth in both subsections (i) and (ii) of the first or
second sentence of this Section 2.1.2. as the case may be. In other words, Owner
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may not offset a deficiency in one subsection by exceeding its commitment in the
other subsection.
2.1.3. Abatement Based on Discretionary Supply and Service
Expenditures (25% Component).
Owner shall receive a twenty-five percent (25%) Abatement if during the
previous calendar year (i) Owner spent at least $550,000 in local discretionary
funds for supplies and services directly in connection with Owner's operation of
the Required Improvements; and (ii) at least sixty percent (50%) of all such
expenditures, regardless of the total amount of such expenditures, were with Fort
Worth Companies; and (iii) at least twenty-five percent (25%) of all such
expenditures, regardless of the total amount of such expenditures, were with Fort
Worth MIWBE Companies. Determination of compliance with the requirements
of this Section 2.1.3 for local discretionary spending for supply and service
contracts shall be based on spending for an entire calendar year. The maximum
percentage of Abatement available to Owner under this Section 2.1.3 is twenty-
five percent (25%). Owner shall not be eligible for any of the twenty-five percent
(25%) Abatement under this Section 2.1.3 unless Owner meets the minimum
requirements set forth in each of subsections (i), (ii) and (iii) of the first sentence
of this Section 2.1.3. In other words, Owner may not offset a deficiency in one
subsection by exceeding its commitment in another subsection.
2.2. Effect of Failure to Meet Section 2.1 Goals.
Unless specifically identified as an Event of Default, the failure to meet any or all
of the numerical commitments, percentages or goals, as the case may be, for Construction
Cost spending, employment and supply and service vendor contract spending, as set forth
in Sections 2.1.1, 2.1.2 and 2.1.3, shall result only in the reduction of the percentage of
Abatement available to Owner for a given year or a failure to earn an additional percentage
of Abatement, and shall not constitute an Event of Default as defined in Section 4.1 of this
Agreement or trigger the cure periods and remedies set forth in that Section 4.
2.3. Abatement Limitation.
Notwithstanding anything that may be interpreted to the contrary in this Agreement,
Owner's Abatement in any given year shall be based (i) on the increase in the real property
value of the Land, including the Required Improvements, since the 2004 tax year, up to a
maximum increase of$7,875,000 and (ii) on the increase in the value of taxable tangible
personal property located on the Land since the 2004 tax year, up to a maximum increase
Of$1,650,000. In other words, with regard to the real property tax Abatement on the Land,
in any year in which the value of the Land, including the Required Improvements, exceeds
(i) the value of the Land in the 2004 tax year plus (ii) $7,875,000, Owner's real property
tax Abatement for that tax year shall be capped and calculated as if the increase in the value
of the Land since the 2004 tax year had only been $7,875,000. For example, and as an
example only. if the value of the Land in the fourth year of the Compliance Auditing Term
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is $10,000,000 over the value of the Land in the 2004 tax year, owner would receive a
maximum real property tax Abatement of one hundred percent (100%) of$7,575,000 in the
fourth year of the Term. Along the same lines, if the value of the taxable tangible personal
property located on the Land in the fourth year of the Term is $2,000,000 over the value of
that property, if any, in the 2004 tax year, owner would receive a maximum personal
property tax Abatement of one hundred percent (100%) of$1,650,000 in the fourth year of
the Term.
2.4. Protests Over Appraisals,or Assessments.
Owner shall have the right to protest and contest any or all appraisals or
assessments of the Land and/or improvements or taxable tangible personal property
thereon.
2.5. Terms.
The City will begin auditing owner for compliance with this Agreement and the
commitments set forth herein during the first full calendar year following issuance of a
final certificate of occupancy for the Required Improvements ("Compliance Auditing
Term"). Taxes will not be abated during the first year of the Compliance Auditing Term.
The term of the Abatement benefit (the "Term") shall begin on January 1 of the year
following the first year of the Compliance Auditing Term. Unless sooner terminated as
herein provided, the Term and the Compliance Auditing Term shall end on the December
31 st immediately preceding their respective sixth (6th) anniversaries. Information for the
last Compliance Auditing Term shall be submitted as indicated in Section 3.3.
Z.S. Abatement Application Fee.
The City acknowledges receipt from owner of the required Application fee of one
percent( of Project's estimated cost, not to exceed$15,000. If owner diligently begins
or causes to begin construction of the Required Improvements on the Land within one (1)
year from the date of the Application (whether or not owner actually receives any
Abatement), this Application fee shall be creditable in full to the benefit of owner against
any permit, impact, inspection or other lawful fee required by the City in connection with
the Project, and any remaining amounts shall be refunded to owner.
3. RECORDS-,-AUDITS AND EVALUATION OF PROJECT.
3.1. Inspection of Property.
Between the execution date of this Agreement and the last day of the Term, at any
time during normal office hours throughout the Term and the year following the Term and
following reasonable notice to owner, the City shall have and owner shall provide access
to the Land and any improvements thereon in order for the City to inspect the Land and
evaluate the Required Improvements to ensure compliance with the terms and conditions of
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this Agreement. owner shall cooperate fully with the City during any such inspection
and/or evaluation. Notwithstanding the foregoing, any representative of the City must be
escorted by owner's security personnel and no such inspection shall unreasonably interfere
with Owner's operations.
3.2. Audits.
The City shall have the right to audit the financial and business records of Owner
that relate to the Project and Abatement terms and conditions (collectively, the
"Records") at any time during the Compliance Auditing Term in order to determine
compliance with this Agreement and to calculate the correct percentage of Abatement
available to Owner. The City shall provide owner with notice of any such audit at least
forty-eight(48) hours in advance of the audit. owner shall make all Records available to
the City on the Land or at another location in the City following reasonable advance
notice by the City and shall otherwise cooperate fully with the City during any audit.
3.3. Provision of Information.
On or before February 1 following the end every year during the Compliance
Auditing Term, Owner shall provide information and documentation for the previous year
that addresses owner's compliance with each of the terms and conditions of this
Agreement for that calendar year. This information shall include, but not be limited to, the
following:
3.3.1. The total number of employees holding Full-time Jobs and who worked on
the Land, the number of such employees who resided within the corporate limits of
the City and the number of such employees who resided in Central City areas, all as
of August 1 of the preceding calendar year, together with reasonable documentation
regarding the residency of such employees; and
3.3.2. The number and dollar amounts of all construction contracts and
subcontracts awarded on the Project, specifying the number and dollar amounts
spent with contractors that are Fort worth Companies, as defined in Exhibit "A",
and with contractors that are Fort worth E Companies, as defined in Section
2.1.1; and
3.3.3. The gross dollars and supporting details showing the amounts spent by
Owner on local discretionary supply and service contracts, specifying the number
and dollar amounts spent with vendors that are Fort worth Companies, as defined
in Exhibit "A", and with vendors that are Fort Worth MIWBE Companies, as
defined in Section 2.1.1.
Owner shall supply any additional information requested by the City that is
pertinent to the City's evaluation of owner's compliance with each of the terms and
conditions of this Agreement. Failure to provide all information required by this Section
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3.3 shall constitute an Event of Default, as defined in Section 4.1. All of the foregoing
shall be subject to applicable federal and state privacy laws and regulations.
3.4. Determination of Compliance.
On or before August I of each year during the Compliance Auditing Term, the City
shall make a decision and rule on the actual annual percentage of Abatement available to
Owner for the following year of the Term based on reports filed by owner pursuant to
Section 3.3 hereof and/or the City's audit of the Records and any inspections of the Land
and/or the Required Improvements and shall notify owner in writing of such decision and
ruling. If owner reasonably disagrees with the City's decision and ruling, owner shall
notify the City in writing within fourteen (14) calendar days of receipt. In this event,
Owner, at owner's sole cost and expense, may request an independent third party who is
reasonably acceptable to the City to verify the findings of the City within not more than
thirty (30) calendar days following receipt of owner's notice to the City, and if any
discrepancies are found, the City, owner and the independent third party shall cooperate
with one another to resolve the discrepancy. If resolution cannot be achieved, the matter
may be taken to the City Council for consideration in an open public meeting at which both
City staff and owner's representatives will be given an opportunity to comment. The
ruling and determination by the City Council shall be final. The actual percentage of the
Abatement granted for a given year of the Term is therefore based upon owner's
compliance with the terms and conditions of this Agreement during the previous year of the
Compliance Auditing Term.
4. EVENTS OF DEFAULT.,
4.1. Defined.
Owner shall be in default of this Agreement if(i) any of the covenants set forth in
any portion or all of Sections 1.1, 1.2 and 1.3 of this Agreement are not met; or (ii) ad
valorem real property taxes with respect to the Land or the Project, or its ad valorem taxes
with respect to the tangible personal property located on the Land, become delinquent and
Owner does not timely and properly follow the legal procedures for protest and/or contest
of any such ad valorem real property or tangible personal property taxes; or (iii) subject to
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Section 2.2 of this Agreement, owner breaches any of the other terms or conditions of this
Agreement(collectively, each an`Event of Default").
4.2. Notice to Cure.
Subject to Section 6, if the City determines that an Event of Default has occurred,
the City shall provide a written notice to owner that describes the nature of the Event of
Default. owner shall have ninety (90) calendar days from the date of receipt of this written
notice to fully cure or have cured the Event of Default. If owner reasonably believes that
Owner will require additional time to cure the Event of Default, owner shall promptly
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notify the City in writing, in which case (i) after advising the City Council in an open
meeting of Ow-ner's efforts and intent to cure. Owner shall have one hundred el t
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calendar days from the original date of receipt of the written notice, or (ii) if owner
reasonably believes that owner will require more than one hundred eighty (180) days to
cure the Event of Default, after advising the City Council in an open meeting of Owner's
efforts and intent to cure, such additional time, if any, as may be offered by the City
Council in its sole discretion.
4.3. Termination for Event of Default and Pa went of Li uidated Dama es.
If an Event of Default has not been cured within the time frame specifically allowed
under Section 4.2, the City shall have the right to terminate this Agreement immediately.
Owner acknowledges and agrees that an uncured Event of Default will (1) harm the City's
economic development and redevelopment efforts on the Land and in the vicinity of the
Land; (ii) require unplanned and expensive additional administrative oversight and
involvement by the City; and (iii) otherwise harm the City, and owner agrees that the
amounts of actual damages therefrom are speculative in nature and will be difficult or
impossible to ascertain. Therefore, upon termination of this Agreement for any Event of
Default, owner shall pay the City, as liquidated damages, all taxes that were abated in
accordance with this Agreement for each year when an Event of Default existed and which
otherwise would have been paid to the City in the absence of this Agreement. The City and
Owner agree that this amount is a reasonable approximation of actual damages that the City
will incur as a result of an uncured Event of Default and that this Section 4.3 is intended to
provide the City with compensation for actual damages and is not a penalty. This amount
may be recovered by the City through adjustments made to owner's ad valorem property
tax appraisal by the appraisal district that has jurisdiction over the Land and over any
taxable tangible personal property located thereon. otherwise, this amount shall be due,
owing and paid to the City within sixty (60) days following the effective date of
termination of this Agreement. In the event that all or any portion of this amount is not
paid to the City within sixty (60) days following the effective date of termination of this
Agreement, owner shall also be liable for all penalties and interest on any outstanding
amount at the statutory rate for delinquent taxes, as determined by the Code at the time of
the payment of such penalties and interest (currently, Section 33.01 of the Code).
4.4. Termination at Will.
If the City and owner mutually determine that the development or use of the Land
or construction of the Required Improvements are no longer appropriate or feasible, or that
a higher or better use is preferable, the City and Owner may terminate this Agreement in a
written format that is signed by both parties. In this event, (i) if the Term has commenced,
the Term shall expire as of the effective date of the termination of this Agreement; (ii)there
shall be no recapture of any taxes previously abated; and (iii) neither party shall have any
further rights or obligations hereunder.
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5. INDEMNIFICATION.
Owner understands and agrees that the City is not sponsoring the Project or creating any
kind of partnership or joint venture with owner with regard to the Project, including, but not
limited to, the construction of the Required Improvements. It is expressly understood and agreed
that owner shall operate as an independent contractor as to all aspects of the Project, and not as
an agent or representative the City. OWNER, AT OWNER'S OWN EXPENSE, SHALL
INDEMNIFY, DEFEND (WITH COUNSEL REASONABLY ACCEPTABLE TO THE
INDEMNIFIED PARTIES HEREIN) AND HOLD HARMLESS THE CITY, ITS
OFFICERS, AGENTS, SERVANTS EMPLOYEES AND CONTRACTORS, FROM AND
AGAINST ANY CLAIM, LA WS UI T OR OTHER ACTION FOR DAMAGES OF ANY KIND,
INCLUDING, BUT NOT LIMITED TO, PROPERTY LOSS, PROPERTY DAMAGE
AND/OR PERSONAL INJURY OF ANY KIND, INCLUDING DEA TH, TO ANY AND ALL
PERSONS, OFANY KIND OR CIIARACTER, WHETHER REAL OR ASSERTED, TO THE
EXTENT(i) CA USED B Y THE NEGLIGENT OR WILLFUL A CT(S) OR OMISSION(S) OF
D WNER, ITS OFFICERS, AGENTS, SER PANTS, EMPLOYEES, CONTRACTORS
AND/OR SUBCONTRACTORS, AND (ii) ARISING OUT OF OCCASIONED BY OR
RELATED TO THE PROJECT OR THE CONSTRUCTION OF THE REQUIRED
IMPROVEMENTS OR ANY OTHER PERFORMANCE OF THIS AGREEMENT.
G. EFFECT OF SALE OF LAND AND/OR RE UIRED IMPROVEMENTS.
The Abatement granted hereunder shall vest only in owner and cannot be assigned to a
new owner of all or any portion of the Land and/or Required Improvements and/or tangible
personal property on the Land without the prior consent of the City Council, which consent shall
not be unreasonably withheld provided that (i) the City Council folds that the proposed assignee is
financially capable of meeting the terms and conditions of this Agreement and (ii) the proposed
assignee agrees in writing to assume all terms and conditions of owner under this Agreement.
Owner may not otherwise assign, lease or convey any of its rights under this Agreement. Any
attempted assignment without the City Council's prior consent shall constitute grounds for
termination of this Agreement and the Abatement granted hereunder following ten (10) calendar
days of receipt of written notice from the City to owner.
7. 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:
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city: owner:
City of Fort Worth Stockyards Station Hotel, LP
Attn: City Manager Attn: Thomas Kirkland, President
1000 Throckmorton 7502 Greenville Avenue, Suite 500
Fort Worth, TX 76102 Dallas, TX 75231
with copies to:
the City Attorney and
Economic/Community Development
Director at the same address
8. MISCELLANEOUS.
8.1. Bonds.
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to rights of holders of outstanding bonds of the City.
8.2. Conflicts of Interest.
Neither the Land nor any of the Required Improvements covered by this Agreement
are owned or leased by any member of the City Council, any member of the City Plan or
Zoning Commission or any member of the governing body of any taxing units in the Zone.
8.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinances, or other City
ordinances or regulations, and this Agreement, such ordinances or regulations shall control.
In the event of any conflict between the body of this Agreement and Exhibit"C", the body
of this Agreement shall control.
8.4. Estoppel Certificate.
Any party hereto may request an estoppel certificate from another party hereto so
long as the certificate is requested in connection with a bona fide business purpose. The
certificate, which if requested will be addressed to the Owner, shall include, but not
necessarily be limited to, statements that this Agreement is in full force and effect without
default (or if an Event of Default exists, the nature of the Event of Default and curative
action taken and/or necessary to effect a cure), the remaining term of this Agreement, the
levels and remaining term of the Abatement in effect, and such other matters reasonably
requested by the party or parties to receive the certificates.
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8.5. Owner Standing.
Owner shall be deemed a proper and necessary party in any litigation questioning or
challenging the validity of this Agreement or any of the underlying laws, ordinances,
resolutions or City Council actions authorizing this Agreement, and Owner shall be entitled
to intervene in any such litigation.
8.6. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of
Texas and applicable ordinances, rules, regulations or policies of the City. Venue for any
action under this Agreement shall lie in the State District Court of Tarrant County, Texas.
This Agreement is performable in Tarrant County, Texas.
8.7. Recordation.
Owner shall cause a certified copy of this Agreement in recordable form to be
recorded in the Deed Records of Tarrant County, Texas and shall be responsible for all
costs of such recordation.
8.8. 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.
8.9. Headings Not ControBin .
Headings and titles used in this Agreement are for reference purposes only and
shall not be deemed a part of this Agreement.
8.10. Entiret
Y 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 owner, their assigns and successors in interest, 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.
This Agreement shall not be amended unless executed in writing by both parties and
approved by the City Council. This Agreement may be executed in multiple
counterparts, each of which shall be considered an original, but all of which shall
constitute one instrument.
ki
Page 12
Tax Abatement Agreement between
City of Fort Worth and Stockyards Station Hotel.L.P.
8.11. Amendment.
This Agreement may be amended only by the written agreement of the City and
Owner.
IN WITNESS WHEREOF,the undersigned have caused this Agreement to be executed
as of the later date below:
CITY of FORT WORTH: APPROVED AS TO FORM AND LEGALITY:
By: By:
Reid Rector Peter Vaky
Assistant City Manager Assistant City Attorney
Date: 516;pZ4 M & C: C r 2-I0-0
ATTEST:
r n
By:
F
City#ecretary
Page 13 {
Tax Abatement Agreement between .�.
C'it\ of Fart worth and Stockyards Station Hotel.L.P.
STOCKYARDS STATION HOTEL,LP:
By: Stockyards Tradition, LLC
its General Partner
B
omas FArkland
Member-Manager
Dater 2 y'ell
ATTEST:
By:
cc_
Page 14 '�' �'ra ►�;o;`�'
Tax Abatement Agreement between
CAN,of Fart Worth and Stockyards Station Hotel,L.P.
STATE OF TEXAS §
COUNTY OF TARR.ANT §
BEFORE ME, the undersigned authority, on this day personally appeared Reid Rector,
Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation organized
under the laws of the State of Texas, known to me to be the person and officer whose name is
subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the
CITY OF FORT WORTH, that he was duly authorized to perform the same by appropriate
resolution of the City Council of the City of Fort `]North and that he executed the same as the act of
the CITY OF FORT WORTH for the purposes and consideration therein expressed and in the
capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this a2�fd'ay of
2004.
•�.RYP"J`
ROSELLA BARNES
Notary Public in and for s2 0�''` ins NOTARY PUBLIC
the State of Texas *` co state of Texas
/L��,&a Aq-��t/e _..._... ....--- '� of N 'f Comm. Exp.03-31-2005
Notary's Printed Name
1.4AM L 1CT"i.L(�s�w
I
� I
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Thomas E.
Kirkland Member-Manager of Stockyards Tradition, LLC, the General Partner of
STOCKYARDS STATION HOTEL, LP known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that s/he executed the same for the purposes oses and consideration therein expressed, n the capacity therein stated and as the act and
deed of STOCKYARDS STATION HOTEL,LP.
IVEN UNDER MY HAND AND SEAL OF OFFICE this day
of 92004.
or
Vv �
Nota Public in and for = � rf
ry a
the State of Texas = �_
14-0
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Notary's Panted Name -06-2()3N...
V
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EXHIBIT A
CITY OF FORT WORTH
TAX ABATEMENT POLICY
Effective March 1,2002 through February 29,2004
I. GENERAL PURPOSE AND OBJECTIVES
Certain types of investment result in the creation of new jobs, new income and provide for positive
economic growth and Central City economic stabilization which is beneficial to the City as a whole. The
City of Fort Worth is committed to the promotion of high quality development in all parts of the City and
improvement in the quality of life for its citizens.
The City of Fort Worth will, on a case-by-case basis, give consideration to the granting of property tax
incentives to eligible residential, commercial, and industrial development projects. It is the policy of the
City of Fort Worth that consideration of eligible projects will be provided in accordance with the
guidelines and criteria outlined in this document. Texas law authorizes the City of Fort Worth to grant tax
abatement on the value added to a particular property by a specific development project which meets the
economic goals and objectives of the City, and the requirements of the statute (Vernon's Tax Code Ann.
Section 312.001, et. seq.).
As mandated by state law, this policy applies to the owners of real property. It is not the policy of
the City of Fort Worth to grant property tax abatement to any development project for which a
building permit has been previously issued by the City's Department of Development. Nothing in
the policy shall be construed as an obligation by the City of Fort Worth to approve any tax
abatement application.
Although all applications which meet the eligibility criteria(Section III.) of this policy statement will be
reviewed, it is the objective of the City of Fort Worth to encourage applications from projects that:
(a) are located in enterprise zones or other designated target areas; or
(b) result in a development with little or no additional cost to the City; or
(c) result in 1,000 or more new jobs, with a commitment to hire Fort Worth and Central City
residents.
II. DEFINITIONS
"Abatement" means the full or partial exemption from ad valorem taxes on eligible properties for a period
of up to ten years and an amount of up to 100% of the increase in appraised value (as reflected on the
certified tax roll of the appropriate county appraisal district) resulting from improvements begun after the
execution of the tax abatement agreement. Eligible properties must be located in a reinvestment zone.
"Reinvestment Zone" is an area designated as such by the City of Fort Worth or St
accordance with the Texas Property Redevelopment and Tax Abatement Act, Sections 1 2.061_ thr-o0-g
312.209 of the Tax Code.
Pagel of 8
"Residential Development Project" is a development project which proposes to construct or renovate
multi-family residential living units on property that is (or meets the requirements to be) zoned multi-
family as defined by the City of Fort Worth Zoning ordinance.
"Fort Worth Company" is a business which has a principal office located within the city limits of Fort
Worth.
"Minority or Woman-owned Business Enterprise (MWBE)" is a minority or woman-owned business that
has received certification as either a Minority Business Enterprise (MBE) or Woman-owned Business
Enterprise (WBE) by either the North Central Texas Regional Certification Agency (NCTRCA) or the
Texas Department of Transportation (TxDOT), Highway Division.
"Capital Investment" includes only real property improvements such as new facilities and structures, site
improvements, facility expansion, and facility modernization. Capital investment does NOT include land
acquisition costs and/or any existing improvements, or personal property (such as machinery, equipment,
and/or supplies and inventory).
"Facility Expansion" is a new permanent real property improvement such as a building or buildings
constructed to provide additional square footage to accommodate increased space requirements of a Fort
Worth company.
"Facility Modernization" is a new permanent real property improvement under taken to provide increased
productivity for a new or existing Fort Worth company.
"Supply and Service Expenses" are discretionary expenses incurred during the normal maintenance and
operation activities of a business.
"Central City" is the area in Fort Worth that is within Interstate Loop 820 consisting of: all Community
Development Block Grant (CDBG) eligible census block groups, and all State-designated enterprise
zones, and all census block groups that are contiguous by 75 percent or more of their perimeter to CDBG-
eligible block groups or enterprise zones. (see Map "A")
111, ELIGIBILITY CRITERIA
A. RESIDENTIAL PROJECT ELIGIBILITY
A residential development project is eligible for property tax abatement if:
1. The project is located in any of the following census tracts: 1 002.02, 1010, 10115
1015, 1017, 1018, 1019 (partial), 1025, 1028 (partial), 1029, 10301 10315 10335
10-355 10-36-011) 10-37.013 1038.) 1040, 1041 (partial) (see Map "B"); AND
2. a. The project will construct or renovate no less than 50 residential living units of
which no less than 20% shall be affordable (as defined by the U.S. Department
of Housing and Urban Development) to persons with incomes at or below
80%of median family income; OR
b. The project has a minimum capital investment of $5 million (excluding
acquisition costs for land and any existing improvements).
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Page 2 of 8
B. COMMERCIALIINDUS TRIAL ELIGIBILITY
1. New Projects
In order to be eligible for property tax abatement, a new commercial/industrial
development project must satisfy one of the fallowing three criteria:
a. Upon completion will have a minimum capital investment of $10 million
and commits to hire an agreed upon percentage of residents from the Central
City and any CDBG-eligible census tract outside the Central City (as
identified on Map "A") for full time employment.; OR
b. Is located in the Central City (as identified on Map "A") or property
immediately adjacent to the major thoroughfares which serve as boundaries
to any of the Central City and any C DB G-eligible census tract outside the
Central City and commits to hire an agreed upon percentage of residents
from the Central City and any CDBG-eligible census tract outside the Central
City(as identified on Map "A") for full time employment; OR
C. Is located outside of the Central City, has a minimum capital investment of
less than $10 million, and commits to hire an agreed upon percentage of
residents from the Central City and any CDBG-eligible census tract outside
the Central City(as identified on Map "A") for full time employment.
2. Existing Business Expansion and/or Modernization
In order to be eligible for property tax abatement, a facility expansion and/or
modernization by an existing commercial/industrial business must:
a. Upon completion have a minimum capital investment of$1 0 million; OR
b. Result in increased employment for which the business commits to hire and
retain an agreed upon percentage of residents from the Central City and any
CDBG-eligible census tract outside the Central City (as identified on Map
"A") for new, full time positions; AND
C. Have a minimum capital investment of (1) $500,000, OR (2) an amount
equal to or greater -than 25% of the appraised value, as certified by the
appropriate appraisal district, of real property improvements on the property
for the year in which the abatement is requested.
C. PROOF TESTS
1. Building Permits
No tax abatement will be granted to any development project which has applied for
or received a building permit from the City's Department of Development.
2. Evidence of Need for Tax Abatement
The applicant must provide evidence to substantiate and justify the tax abatement
request including (but not limited to) an analysis demonstrating the tax abatement is
necessary for the financial viability of the project.
1V. ABATEMENT GUIDELINES � w
The tax abatement agreement must provide that the applicant:
- -
Page 3 of 8
(1) Hire Fort Worth residents for an agreed upon percentage (at least 25%) of new full time jobs to
be created and make a good faith effort to hire 100% Fort Worth residents for all new jobs
created as a result of the abatement,
(2) Commit to hire an agreed upon percentage of Fort Worth residents from the Central City and
any CDBG-eligible census tract outside the Central City (as identified on Map "A") for all new
jobs created as a result of the project. The agreed upon percentage shall be determined by
negotiation.
(3') Utilize Fort Worth companies for an agreed upon percentage of the total costs for construction
and Supply and Service Contracts, and
(4) Utilize Minority and Woman-owned Business Enterprises (MWBEs) for an agreed upon
percentage of the total costs for construction and supply and service contracts in the manner
provided in the City of Fort Worth's Minority and Women Business Enterprise ordinance.
In addition to the above,the abatement must comply with the following guidelines:
A. State law prohibits abatement of taxes levied on inventory, supplies or the existing tax
base. City policy is not to abate taxes on personal property located within Fort Worth prior
to the date of the tax abatement agreement.
B. Unless otherwise specified in the agreement, the amount of the taxes to be abated shall in
no event exceed the amount of the capital investment (as specified in the application)
multiplied by the City's tax rate in effect for the year in which the calculation is made.
C. In certain cases, the City may consider a tax abatement application from the owner of real
property who serves as a landlord or lessor for a development project which meets the
eligibility criteria of this section.
D. The City may consider an application from the owner or lessee of real property requesting
abatement of real and or personal property owned or leased by a certificated air carrier on
the condition that the certificated air carrier make specific real property improvements or
lease real property improvements for a term of 10 years or more.
E. For an eligible development project to be considered for tax abatement, the "Application
for Tax Abatement" form must be completed and submitted to the Economic and
Community Development Department.
F. An application fee must accompany the application. The fee is calculated at the lesser of:
(i) 1% of the project capital investment, or(ii) $15,000.
If construction on the project is begun on the site specified in the application within a one
(1) year period from the application submittal date (with or without a tax abatement), this
fee shall be credited to any permit, impact, inspection or any other lawful fee required by
the City of Fort Worth. If the project is not constructed on the site specified in the
application or if construction takes place at the specified site more than one (1) year after
the application submittal date, the application fee shall not be refunded or otherwise
credited.
G. If requested, the applicant must provide evidence that there are no delinquent property
taxes due on the property on which the development project is to occur.
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H. The tax abatement agreement shall limit the uses of property consistent with the general
purpose of encouraging development or redevelopment of the zone during the period that
property tax abatements are in effect.
I. Tax abatement may only be granted for projects located in a reinvestment or enterprise
zone. For eligible projects not currently located in such a_ zone, the City Council may
choose to so designate the applicant's property in order to allow for a tax abatement.
J. The owners of all projects receiving tax abatement shall properly maintain the property to
assure the long term economic viability of the project.
V. PROCEDURAL STEPS
Each request for property tax abatement shall be processed according to the following procedural
guidelines.
A. Application Submission:
Provided that the project meets the criteria detailed in Section III of this policy, the
Applicant must complete and submit a City of Fort Worth "Application For Tax
Abatement" form (with required attachments) and pay the appropriate application fee.
B. Application Review and Evaluation:
The Economic and Community Development Department will review the application for
accuracy and completeness. Once complete, the application will be evaluated based on:
1. Types of new jobs created, including respective wage rates, and employee benefits
packages such as health insurance, day care provisions, retirement package(s),
transportation assistance, and any other.
2. Percent of new jobs committed to Fort Worth residents.
3. Percent of new jobs committed to Fort Worth "Central City" residents.
4. Percent of construction contracts committed to:
a. Fort Worth based firms, and
b. Minority and Woman-owned Business Enterprises (MVvrBEs.).
5. Percent of supply and service contract expenses committed to:
a. Fort Worth based firms, and
b. Minority and Woman-owned Business Enterprises (MVvIBEs).
6. The project's increase in the value of the tax base.
7. Costs to the City (such as infrastructure participation, etc.).
S. Other items which may be negotiated by the City and the applicant.
Based upon the outcome of the evaluation, the Economic and Community Development
Department may present the application to the City Council's Economic Development
Committee.
C. Consideration by Council Committee
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Page 5 of 8 ' �a
Should the Economic and Community Development Department present the application to
the City Council's Economic Development Committee, the Committee will consider the
application at an open meeting. The Committee may:
(1) Approve the application. Staff will then incorporate the application into a tax
abatement agreement which will be sent to the City Council with the Committee's
recommendation to approve the agreement; or
(2) Request modifications to the application. Economic Development staff will discuss
the suggested modifications with the applicant and then, if the requested
modifications are made, resubmit the modified application to the Committee for
consideration; or
(3) Deny the application. The applicant may appeal the Committee's finding by
requesting the City Council: (a) disregard the Committee's finding and (b) instruct
city staff to incorporate the application into a tax abatement agreement for future
consideration by the City Council.
D. Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement agreement
and is under no obligation to approve any tax abatement application or tax abatement
agreement. The City of Fort Worth is under no obligation to provide tax abatement in any
amount or value to any applicant.
E. Effective Date for Approved Agreements
All tax abatements approved by the City Council will become effective on January 1 of the
year following the year in which a Certificate of occupancy (CO) is issued for the
qualifying development project (unless otherwise specified in the tax abatement
agreement). Unless otherwise specified in the agreement, taxes levied during the
construction of the project shall be due and payable.
VI. RECAPTURE
If the terms of the tax abatement agreement are not met, the City Council has the right to cancel or
amend the abatement agreement. In the event of cancellation, the recapture of abated taxes shall
be limited to the year(s) in which the default occurred or continued.
VII. INSPECTION AND FINANCIAL VERIFICATION
The terms of the agreement shall include the City of Fort Worth's right to: (1) review and verify
the applicant's financial statements in each year during the life of the agreement prior to granting a
tax abatement in any given year, (2) conduct an on site inspection of the project in each year during
the life of the abatement to verify compliance with the terms of the tax abatement agreement.
VIII. EVALUATION
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Page 6 of 8
1
Upon completion of construction of the facilities, the City shall no less than annually evaluate each
project receiving abatement to insure compliance with the terms of the agreement. Any incidents
of non-compliance will be reported to all affected taxing units.
On or before February 1" of every year during the life of the agreement, any individual or
entity receiving a tax abatement from the City of Fort Worth shall provide information and
documentation which details the property owner's compliance with the terms of the
respective agreement and shall certify that the owner is in compliance with each applicable
term of the agreement. Failure to report this information and to provide the required
certification by the above deadline shall result in any taxes abated in the prior year being
due and payable.
IX. EFFECT OF SALE, ASSIGNMENT OR LEASE OF PROPERTY
No tax abatement rights may be sold, assigned or leased unless otherwise specified in the tax
abatement agreement. Any sale, assignment or lease of the property which is not permitted in the
tax abatement agreement results in cancellation of the agreement and recapture of any taxes abated
after the date on which an unspecified assignment occurred.
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Page 7 of 8
For additional information about this Tax Abatement Policy, contact the City of Fort Worth's Economic
Development Office using the information below:
City of Fort Worth
Economic & Community Development Department
1000 Throckmorton Street
Fort Worth, Texas 76102
(817) 871-5103
http,-//fortworthgov.org/ecodev/
.]FORT 1VV0 RT H
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Page 8 of 8
4 �
LEGAL DESCRIPTION
Isaac 4.0555 ACRD
ac Whornas survey,urvey, Abstract N
RT V1IQRTN °. 1 525
CITY OF Ro
Warrant County, Texas
BEING a
tract of land situ
orth, Warrant County, in the Isaac
STo��.q unty, Texas Thomas Surve
R�� A��ITlQ : and being a Y: Abstract No.
according to the N, an addition Part of Lot 3 1526 ►n the City Count plat thereof rec to the Ci Block ��q o f of port
Y, Texas, and being orded in Ca - ty of Fort Worth FOR T rn9 more panic brnet A, Page � rth, Tarrant Co WORTH
BEGINNING particularly described 9 136 of the Plat untyl Texas!
+ NING at a "PKII as follows; Records of Tar
nail for in the sou rant
781} for the north th
of Lot 2 west corner of bef right-of--way of Exchange Block �A of bef oremention Ave
orementioned FORT ed Lot 3, Bloc 10A, nue variable Width
TN�N�� along RT d Lo STOCKYARDS and for then Rev
�� gRDS A� ortheast corner
cut set in ng said south ri ht _ ADDITION,
concrete for a corner, -af way line Sou �N�
Diner; South 89°54'49:: Bas
THENCE leaving t� a distance of
25.00 feet to PoXII
said south right_of-
waY: the following c
South p�°1�,5� g °arses and distance
:� Bast, a distan S to wit:
corner; ce of �X3.5
7 feet to a 51811
KHq capped it
North 99047'0,8" on rod Set
Bast: a distance for
of�7 8.50 feet to
South �p°1��5�:� a :0 x:�cut set i
Basta n concrete for co
beginning of a non distance of 401 rner-
on tan �68 feet to a 518
gent curve to the left- �� KNA ca
Southeast ft, peed iron rod s
S 6
Southeasterly along said cu et for the
95.59 feet: and roe to the left t
arc distance a chord bearing hrough a Centro
Of 1 nd a feet t g and distance o f l angle of pg°3
o a 518��BHA� South 17,02 3'�s'! �39", a radius
South 0001215211 piled iron rod set East, 103.23 feet, an
corner; � a distance of 236,69 feet to a 518"
KNA capped iron vn rod
7p°p�'45�� set
North West, a distance or
beginning of a tan � of�76.7s feet to
gent curve to the le a 5181: KH
Northwesterly A capped iron rod od set for the
radius of YbO along said curve
71 Q. feet and to the left, throe
feet, an arc distance a chord bean gh a central an a
nCe of 15 ring and distance gle of p8 p 1'30::
THENCE feet to a 518' of North 74002'30 , Navin a
�NC� with the KHA capped iro :, vest 9
common n rod set for corner,- : 15.39
distance of 748.5 line of said r
�feet to the Po d Lot � and 3 '
POINT of BEGINNING of Block 10q, N
Bearing NG and con tai � North 00012'5211
Avenue system based upon Wing 4.06 vilest, a
enue variable width the monumen 5 acres of land.
dth ROW 1 78, is found aloe th
� per reference bearing e south right-of-
earrng North 89°54'4 waY line of Bxchan
�"vves t. ge
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EXHIBIT "C"
cenfi � .
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GENERAL INFOUM TION
Y A ti"Applicant Information: '' t} =� d
Company Name
Company Address 75'0a.p Y �? o
City, State,zip Code ba,1 ,-I&5- .a �3
Contact Person(include.title/position):
Telephone .2 19 9 0-, q 'S ext.
Fax I 510 1 575- ext.
Mobile Telephone 2 "
E-mail addresses: �-- a
�L����► ,fir�'. ���
2. Project Site Information:
Address/Location: S& 4,.,P .
Current zoning: Will the property Y need to be rezoned? Yes
No
If the property needs rezoning, please specify,the zonin you will be seeking:
gY
Will the project require any site or boil ding variances (Y/N): I a
If yes, what variances will you seek?:
3. Incentives)Requested:
ReducedlWaived Development Fees Reducedlwaived Pen-nit Fees
U(. Community Facilities Agreement ❑ Land Bank ro
P �am'
LJ i ax ivu 4v�11L1�4 ��.� 4rsy �J11�GLJ4r U.11,�J VY 1.r1 .J Ll�i1[J W U YY W AAL) l:e LG 1�elt�pll�en�
❑ Transit Provisions ❑ Enterprise zone Qualified Busi rp Hess
0 Industrial Revenue Bond ❑ Enterprise zone Project
❑ Bridge financing/below market-loan financing
❑ other
4. Do you intend to pursue abatement of:
County axes? i( Yes ❑
tY No
5. what level of abatement will you request: Years? �p P ercentage.
Page 2 of 7
y.�. N,E6
IAL x
C� ONFID
PROJECT INFORMATION
For real estate Proi ects , lease include below the project-conce t, targeted tenant mix,project benefits
and how the project relates to ,existing community plans. Please attach a
tY P site plan. For business
ex ansion ro•ects� Tease Include below '
_. ,. J P ow services provided or products manufactured, major
customers and locations, etc. For business expansion ro•ect involving the purchase. P J g p hale andlor .
construction of real estate, please answer all that apply.
PP .y
6. Please provide a brief description of the project.
J ez, !'ter r.. Z� J. /a.,
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7. Project Description
S ize of J ro•ect: 7Y,,2 &9 s uare feet ac P / q acres
Check all that apply:
E3 Office: square feet L� ����� s uare feet ��
q units
Q Retail:, square feet 0 Industrial: square feet
Will any portion of the project consist of vertical mixed-use: o.
Anticipated date when construction will start? MA
Anticipated date of occupancy? Zja)ivo go o
I A real estate project is one that involves the construction or renovation of real property Y that will be either for le as e
or for sale.
Any incentives given by the City should be considered only"gap"financing and should not be considered a substitute for debt
and equity.
2 A business development project involves assistance to a business entity that seeks to expand its existing operations from a
location within the Fort Worth or to Fort Worth. The business is in a growth mode seeking working capital,per rml
or fixed asset financing. The City will refer start-up businesses to more appropriate organizations.
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Pa e
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Flov F- - NT AL
--A;-R-eI-��-o �erty z
Current Assessed Valuation of: Land i
$ �r��Im rovements. $
• -New- Construction:
Size 12A 10690 _ s q. ft. Cost of Construction'$ Q Q�
■
Renovation:
Size s . ft. Cost of Construction $ �
Site Development(parking, fencing, landscaping, etc.):
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Type of work to be done ;
G Ain r �o:l,/
Cost of Site Development$ fJ'�
B. Personal Property(complete all_applicable)
• Current value of personal property exclusive'-of invento ry and supplies in Fort Worth:
pp
■ Value of personal property, exclusive of inventory and supplies, for which your are seeking.a
tax abatement: $ L/& Q ► �
■ Current value in Fort Worth:
Inventory Supplies$
� $
■ Value for inventory and supplies after development/relocation and/or expansion:
Inventory$500g, Su l'C5
PP �
■ Percent of inventory eligible for freeport exemption(fhventory, e oiled from Teas wi p p thin
175 days) %
■ Are you seeking working capital financing? 1IG . If so, lease state the value of workin
p g
capital financing being sought: $
S. Employment and Job Creation:
Temporary
1. Hove many construction J jobs will be created?
2. what is the estimated payroll for these J'obs? ` D. Q O Q
Permanent
1. How many persons are currently employed?
o
to P Y
?. What percent of current employees above are Fort Worth residents? D %
3. what percent of current employees above are Central City residents?
Page 4 of 7
PIPS
4.' Please complete the-following table.
Est.--First Year Est.Fifth--Year Est. Tenth Year
New Jobs to be Created - '
. 35
Less Transfers*
Net J-b s 3, ol°ro _ 35"
of Net Jobs to be filled by '/0 1/-V
Fort Worth
Residents
% of Net Jobs to be Bled by {
Central City Residents
b 0 go %
*If an ern to ees will be transferring,please describe from where they will be transferring.
Y P y
/yo .
P P jobs Iease attach a descri tion of the to be created., tasks to be performed for each, and wage rate for
each classification, and a brief description of the employee benefit package(s) offered-including
portion ,aid.-b employee and employer respectively...See question#1 I for more information.
p P y
9. Local Commitments:
What percent of the construction costs (7A above).will you cormnit to spend with:
P .
• Fort Worth businesses? °yo _
Certified Minority and Woman--owned Business Enterprises? �� %
Regarding ardin discretion supply and service e� en.ses3 (i.e. landscaping, office or manufacturing
.
c�innl a Pe i nn;tnri n l ePrxri r P.0 €qtr► 1•
L-....,.aa.l ar. '....ria rV alti.+l Vvl 7 iV V+..►7 V.V■!■
supply and service expenses? $ �
• What is the annual amount of discretionary pp Y P
WO.
tted to Fort Worth businesses? Q %
• What percentage will be commi
• What percentage will be committed to certified Minority and Woman-owned
businesses? % .
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Discretioriary expenses incurred durincy the normal maintenance and operation of business activities •
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10. Is any person or firm.receiving any form of compensation, comu-nlssion or other monetary benefit
based on the level of incentive obtained by the applicant from the City of Fort.Worth? If-yes,
please explain and/or attach details.
Ala
II:Please P rovide the following information as attachments: .
.
Explain why the incentive s)' requested is(are) necessary for the success of this project.
a) p y
Include a development and/or business operating pro-forma or other documentation to
substantiate your request.
b Describe any environmental impacts associated with this project. .
c Describe any direct benefits to the City of.Fort worth as a result of thus project .
d Attach a legal description or surveyors metes & bounds descriptions
e) Attached a site plan for any real estate development.project.
Attach a co of the most recent real and personal property tax statement from the Tarrant
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Appraisal 1
District.
�1 Attach a description of the jobs to be created (technician, engineer, manager, etc.), tasks to be
g)
performed for each, and wage rate for each classification. -
h Attach a brief-description of the employee benefit package(s) offered (i.e. health insurance,
�p ublic transportation ortation assistance, day:care provisions, etc.),including portion paid by
. P
employee and employer respectively.
On behalf of the applicant, I certi fy the information contained ' in this application (including all
and correct. I further certify that- on behalf of the applicant, I have read the
attachments) to be tru e
applicable "Land Bank Policy," "Tax Abatement Policy," and/or "Fort Worth Enterprise done"
current app I Y
Information
ion Packet,and agree to comply with the guidelines and criteria stated therein.
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Printed Name Title
;ignnature D ate
For Internal Use Only .
Project Location check all that apply):
:urban village :neighborhood empowerment zone .TTF district
:targeted area
. CDBC el : Model Blo
: state enterprise zone i
..
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eligible : Commerci
: Central City le area
: Foreign trade zone ' y' ��: 't' a;',►;
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Page 6 of 7 i
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--D 6finiti6ns-
Abatement--the full or partial exemption from ad valorem taxes on eligible properties fora eriod of u
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m
to ten years and.-amount of up-to 100% of the increase in appraised value (as reflected on the certified tax
roll of the appropriate county appraisal district) resulting from improvements begun after the execution of
the tax abatement agreement. Eligible properties must be located in a reinvestment zone.
Ca ital Investment--includes only real property improvements Such as new facilities and structures site
improvements, facility expansion, and facility modernization. Capital investment does NOT include land
acquisition costs and/or any existing improvements, or personal prop erty (such as machine rY equipment,
�
and/or supplies and inventory).
Central --the area m Fort Worth that is within Interstate Loop 820 consisting of: all Community
Development Block Grant (CDBG) eligible census block groups, and all State-designated enterprise
zones, and-all census block groups that are contiguous by 75 percent or more of their perimeter to CDB G-
eligible block groups or enterprise zones.
Enterpni e�roi ect--a business that is nominated by an.enterprise zone governin body and approved b
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TDED for State and local benefits. The business must commit to create or retain permanent jobs, make
capital investment in the enterprise zone, fill at least 25 percent of its new jobs with individuals who are
either economically disadvantaged or residents of an enterprise zone within the overnin body 5S
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jurisdiction, and maintain the level of employment from the date jobs are certified by the TDED for at
least three years.
Facili Ex ansion--anew permanent real property improvement Such as a building or buildings
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constructed to provide additional square footage to accommodate increased space requirements of a Fort
Worth company.
Facility Modernization--a new permanent real property improvement undertaken to p provide increased
• p
productivity for a new or existing.Fort Worth company.
Fort Worth Company--a business that has a principal office located Within the city,limits of Fort Worth.
Minority or Woman-owned Business EntelLnse a minority or woman--owned'business that
has received certification as either a Minority Business Enterprise or Woman-owned Bus'
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LLlLL1p11�4 t r 1�1a vy Vs,r'iLl �t%.��Vl e.1t L,%, [.I.1 1�• uJ 1tL►� 1�11�a� V�1�L111L►aL1V11 1'1�e1�It;y �f1V�.1 itl.1`�►) or the
Texas Department of Transportation(TxDOT), Highway Division.
Reinvestment Zone--an area designated as such by the City of Fort Worth or State of Texan in
accordance with the Texas Property Redevelopment and Tax Abatement Act, Sections 312.001 through
g
312.209 of the Tax Code.
Residential Develop went Pro'ect--a development project which proposes to construct or renovate multi-
family residential living units on property that is (pr meets the requirements to be ) zoned multi-family as
defined by the City of Fort Worth Zoning Ordinance.
Supply and Service Expenses—discretionary expenses incurred during the normal maintenance and
operation activities of a business.
h'
Page 7 of 7 L
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City of F Worth, Texas
Mayor a
Communication
COUNCIL ACTION: Approved on 2/10/2004
DATE: Tuesday, February 10, 2004
LOG NAME: 17ABATEMENT REFERENCE NO.: C-19967
SUBJECT:
Authorize Execution of a Tax Abatement Agreement with Stockyards Station Hotel, L. P. and
Related Findings of Fact by the City Council
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute the attached Tax Abatement Agreement with Stockyards Station
Hotel, L. P. (Stockyards Station Hotel); and
2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with
Stockyards Station Hotel, L. P. (Stockyards Station Hotel) are true and correct.
DISCUSSION:
The real property subject to abatement in the attached Tax Abatement Agreement with Stockyards Station
Hotel is located in the Historic Stockyards area of north Fort Worth. The City Council designated this
property as Tax Abatement Reinvestment Zone Number 46. This reinvestment zone is located in
COUNCIL DISTRICT 2.
Project
Stockyards Station Hotel is considering the construction a 102 room AmeriSuites Hotel. The proposed
project is estimated to triple the number of available hotel rooms in the Stockyards. The 71,220 square foot
facility is estimated to.have a construction cost of $5,250,000. Stockyards Station Hotel is also planning to
acquire $1,100,000 in new taxable personal.property:
Employment
Stockyards Station Hotel will be creating at least 30 full-time jobs in the first year of operation, of which at
least 80% will be committed to Central City residents. By the sixth year of operation, Stockyards Station
Hotel will have at least 35 full-time jobs in the facility, and at least 80% of those positions will be committed
to Central City residents.
Utilization of Fort Worth Businesses
Regarding utilization of Fort Worth based businesses, Stockyards Station Hotel has committed 35% of total
construction spending to Fort Worth construction contractors and/or subcontractors. Additionally, the
company has committed 60% of total annual supply and service expenditures to Fort Worth companies.
Utilization of Fort Worth M/WBE Businesses
Regarding the utilization of Fort Worth Minority Business Enterprises (MBEs) and Fort Worth Women
Business Enterprises (WBEs), Stockyards Station Hotel has committed 25% of total construction spending
to Fort Worth M/WBE construction contractors and/or subcontractors. Additionally, the company has
committed 25% of total annual supply and Service expenditures to Fort Worth M/WBE companies.
T .�.�.� .•...r.. 1'-7 A D A'-MC IL A 1C A T T YN
ABATEMENT TERMS
Stockyards Station Hotel will receive a six-year tax abatement on real and personal property for a maximum
abatement of 100%. The abatement incorporates Stockyards Station Hotel construction/personal property
expenditures, employment, and total annual supply and service spending. Not withstanding an event of
default, if any portion of these three components is missed, the entire component is reduced to zero.
The abatement is structured as follows:
Employment - Years 1-6 -- 50%
32 minimum positions (years 1-5)
80% filled by Central City residents
35 minimum positions (year 6)
80% filled by Central City residents
Real and Personal Property Improvements - Years 1-6 - 25%
Minimum construction investment $5,250,000.
Minimum personal property investment $1,100,000
Fort Worth companies to receive the greater of 35% or
$1,837,500 total construction cost
Fort Worth MIWBEs to receive greater of 25% or
$1,31 2,500 of total construction cost
Annual Supply and Service Spending --Years 1-6 - 25%
Minimum annual spending $550,000
Fort Worth companies to receive the greater of 60% or
$330,000 of total spending
Fort Worth MIWBEs to receive the greater of 25% or
$137,500 of total spending
Total Possible Abatement -- 100%
The six-year tax abatement has a cap of 100%. The maximum abatement over the term equates to
approximately $54,928 annually if the maximum abatement is reached each year.
FISCAL INFORMATIONXERTIFICATION:
The Finance Director certifies that this action does not require the expenditure of City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City.Manager's Office bv: Reid Rector (6140)
Originating Department_Head: Tom Higgins (6192)
Ardina Washington X8003}
Additional information Contact: Peter Vak (7601)v
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