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HomeMy WebLinkAboutContract 50800-A2STATE OF TEXAS § COUNTYOFTARRANT § CITY SECR ETARY ~"~ ~ t:0;·1~RACTNO . .....Ju 00-- SECOND AMENDMENT TO CITY SECRETARY CONTRACT NO. 50800, A TAX ABATEMENT AGREEMENT BETWEEN THE CITY OF FORT WORTH AND RAIDER EXPRESS, INC. This Second Amendment to City Secretary Contract Number 50800 ("Second Amendment") is entered into by and between the CITY OF FORT WORTH ("City"), a home-rule municipal corporation organized under the laws of the State of Texas, and RAIDER EXPRESS , INC . ("Company"), a Texas corporation. The City and Company agree that the following statements are true and correct and constitute the basis upon which the City and Company have entered into this Second Amendment: A. The City and Company are currently parties to that certain Tax Abatement Agreement on file with the City Secretary's Office as City Secretary Contract No. 50800 . B. The City has agreed to abate certain ad valorem real property taxes on improvements proposed to be constructed on property owned by Company on the Land and certain ad valorem taxes on improvements located on the Land in return for the commitment by Company to construct a new office, training, and manufacturing facility on the Land of at least 61,000 square feet . C. On or about July 7, 2020, the City and Company amended the CSC 50800 to extend the deadline for completion from December 31, 2019 to December 31, 2020, the same being CSC No . 50800-Al (CSC Nos. 50800 and 50800-Al are referred to herein as the "Agreement"). D. Company desires to reduce the square footage of the Required hnprovements from 61,000 to at least 52,634 because of increased storm water and gas well allowances by the City and the Texas Department of Transportation that resulted in the removal of several planned truck bays from the overall plans. E . Because the reduction in square footage was beyond the control of the Company , the City is willing to amend the Agreement to reduce the square footage requirements for the Required hnprovements. F. This Second Amendment is authorized under Section 312 .208 of the Texas Tax Code because (i) the provisions of this Second Amendment could have been included in the original Agreement and (ii) this Second Amendment has been entered !111 9-fo_llowing..th e procedures in which the Agreement was approved and executed. Second Amendment to CSC 50800, Tax Abatement Agreement w ith Ra ider Express, Inc. OFFICIAl RECORD CITY SECRETARY FT. WORTH, TX 1 of 4 CSO '!EG'O DEC 30 '22 AH11:04 NOW, THEREFORE, the City and Company, for and in consideration of the terms and conditions set forth herein, do contract, covenant, and agree as follows: 1. Recital D of CSC 50800 and Recital A of CSCS 50800-Al are amended to revise the square footage requirement for the Required Improvements from a minimum of 61,000 to at least 52,634. 2. The definition of "Required Improvements" in Section 2, "Definitions", of the Agreement is revised as follows : "Required Improvements" means a facility constructed on the Land consisting of at least 52,634 square feet that includes corporate office, training, and maintenance space, as verified in the Certificate of Completion issued by the Director in accordance with Section 5.1 of the Agreement and is used directly in connection with Company's logistics and transportation business . 3. Capitalized terms used but not identified in this Second Amendment have the same meanings assigned to them in the Agreement. 4. Except as otherwise specifically amended in this Second Amendment, the Agreement remains in full force and effect. 5. This Second Amendment contains the final written expression of the City and Company with respect to the subject matter hereof. 6. This Second Amendment · may be executed electronically in multiple counterparts, each of which will be considered an original, but all of which constitutes one instrument. EXECUTED to be effecrive as of the last date indicated below: [SIGNATURES FOLLOW ON NEXT TWO (2) PAGES] Second A mendment to CSC S0800, Tax Abatement Agreement with Raider Express, Inc. 2 of 4 CITY: By: William Johnson Assistant City Manager Date: 12/30 /22 RAIDER EXPRESS, INC. A Texas corporation By:~ anMohis Co er FOR CITY OF FORT WORTH INTERNAL PROCESSES: Approval ~--- By : ~ Robert Sturns Director, Economic Development Approved as to Form and Legality: ~~.,~ Title: Assistant City Attorney Contract Compliance Manager: By signing l ac,knowledge that I am the person responsitile 'for the moni~oring and administration of this contract, including ensuring all performance and reporting requirements. Name: ~hler By: ~/4/!J c ~ Title: E anomic Development Speci · .....-.;:S;S1i:i~~ .... Contract Authorization: M&C: 22-1032 City Secretary: Form 1295: 2022-949988 Second Amendment to CSC 50800, Tax Abatement Agreement with Raider Express, Inc. OFFICiAl RECORD CITY SECRETARY FT. WORTH, TX : of.:: -------- / *' ,~;/ STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared William Johnson, Interim 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 Worth 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 i._j l) day of -1>et:e.mk r: , 2022. ~ill ~~,£ 1111 ,,,, EVONIA DANIELS , RAIDER EXPRESS, INC. a Texas corporation: STATE OF _____ § COUNTY OF ____ § BEFORE ME, the undersigned authority, on this day personally appeared f y fl" fhQ.-'("r-,:S C.O.Y'.'1:Yo l le..v-of RAIDER EXPRESS, INC., a Texas corporation, 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 and consideration therein expressed, in the capacity therein stated and as the act and deed of RAIDER EXPRESS, INC. GIVEN UNDER MY HAND AND SEAL OF OFFICE this __ """'1 _____ day of b.u:.t.--rc I:).., 0 = , 2022. ~ ~ Notary Public in and for the State of/ ye.~ 1, v\CL £u l le.J: Notary's Printed Name Second Amendment to CSC 50800, Ta x Abatement Agreement with Raider Express, Inc. TINA FULLER Notary ID #12210733 My Commission Expires J-.nu-.ry 11, 2025 4 of 4 City of Fort Worth, Texas Mayor and Council Communication DATE: 12/13/22 LOG NAME: 17RAIDEREXPRESSAMEND2 SUBJECT M&C FILE NUMBER: M&C 22-1032 (CD 7) Authorize Execution of a Second Amendment to City Secretary Contract Number 50800, a Tax Abatement Agreement with Raider Express , Inc., to Revise the Square Footage Requirement for an Office , Training, and Maintenance Facility Located on Property at 12544 Northwest Highway 287 From 61 ,000 Square Feet to at least 52,634 Square Feet RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute a Second Amendment to City Scretary 50800 , a Tax Abatement Agreement with Raider Express , Inc ., to revise the squa re footage requ irement of the office , training , and maintenance facility located on property at 12544 Northwest Highway 287 from 61 ,000 square feet to at least 52,634 square feet. DISCUSSION: The City and Raider Express , Inc. (Company) are currently parties to a Tax Abatement Agreement .as amended (CSC 50800). Per the terms of the Agreement, the Company is required to construct a faci lity consisti ng of at least 61,000 square feet with a corporate office , tra i ning, 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, as verifi ed by certificates of occupancy, because of increased stormwater and gas well allowances required by the City and Texas Department of Transportation (TxDOT) planners . As a result of those allowances , the Company had to remove several truck bays on the north and sout h portions of the facility . These changes brought the square footage on the planned facil ity down under the required square footage . The Company met the capital investment requirements of the Agreement that would qualify it to receive the ta x abatements except for 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 business personal property. The Company expended $13 ,430 ,388 in construction costs and has a taxable appraised value of $56 ,721,360. Due to the additiona l storrnwater and gas well requ irements by the City and TxDOT planners during the perm itting process but after execution of the Agreement, the Company has requested to lower the square footage requirement from 61,000 square feet to 52,634 square feet. All other commitments will remain unchanged. This project is located in COUNCIL DISTRICT 7. FISCAL INFORMATION/ CERTIFICATION: The Director of Finance certifies that upon final approval of the amendment to the Tax Abatement Agreement, a loss of an estimated $1 ,100,722.00 in property tax revenue may occur over the next five year period . This reduction in revenue will be incorporated into the long-term financial forecast of the City. Submitted for City Manager's Office by: William Johnson 5806 Originating Business Unit Head: Robert Stums 2663 Additional Information Contact: Ryan Pohler 2627