HomeMy WebLinkAboutIR 175 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-175
D'ATE4 To the Mayor and Members of the City Council December 6, 2022
r fflk}�4
Page 1 of 1
a
o s
* r rn SUBJECT: AMENDMENT TO TAX ABATEMENT AGREEMENT WITH RAIDER
EXPRESS
The City and Raider Express("Company")are currently parties to Tax Abatement Agreement(City Secretary
Contract No. 50800) ("Agreement"), which was executed on or about May 23, 2018. Per the terms of the
Agreement, Company is required to construct a facility consisting of at least 61,000 square feet with a
corporate office, training, and maintenance space directly in connection with its logistics and transportation
business. After the execution of the Agreement, the Company informed City staff that it only constructed a
52,634 square-foot-facility, located at 12544 Northwest Highway 287,because of increased storm water and
gas well allowances required by the City and TxDOT planners.
Due to those allowances, Company had to remove several truck bays on the north and south portions of the
facility. These changes brought the square footage on the planned facility down under the required square
footage. The Company met the capital investment requirements of the Agreement that would qualify them to
receive the tax abatements aside from the required square footage. The capital investment requirements were
to expend at least$13,000,000 in construction costs and have a taxable appraised value of at least$56,100,000
in personal property. The Company expended$13,430,388 in construction costs and has a taxable appraised
value of$56,721,360.
In 2021 and 2022, the Company is required to provide and fill 442 full-time jobs with at least 133 full-time
jobs being Fort Worth residents, as well as, at least 67 full-time jobs being Fort Worth central city residents.
Economic Development staff is currently reviewing reported 2021 employment performance.
In 2023 and 2024, the Company is required to provide and fill 532 full-time jobs with at least 160 full-time
jobs being Fort Worth residents, as well as, at least 80 full-time jobs being Fort Worth central city residents.
In 2025, the Company is required to provide and fill 622 full-time jobs with at least 187 full-time jobs being
Fort Worth residents, as well as, at least 94 full-time jobs being Fort Worth central city residents.
Therefore,City staff recommends that the City Council amend the Agreement to change the minimum square
footage requirements to the actual,verified constructed square footage of 52,634 sq. ft.
City staff will place an M&C for City Council consideration on the December 13, 2022 agenda to amend the
Agreement to reduce the square footage requirements.
If you have any questions concerning this information,please contact Robert Sturns,Economic Development
Director at 817-392-2663 or robert.sturns@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS