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HomeMy WebLinkAboutContract 18200 TRACT #2 STATE OF TEXAS § TAX ABATEMENT AGREEMENT COUNTY OF DENTON § BETWEEN THE COUNTY OF TARRANT § CITY OF FORT WORTH AND CITY OF FORT WORTH § AMERICAN AIRLINES, INC. CITY SECRETA1R�Y�� This Tax Abatement Agreement (the "Agreements"9NTMCT'n14 ep�= into by and between the City of Fort Worth, Texas (the "City" ), a home rule city and municipal corporation, duly acting herein by and through its City Manager, and American Airlines, Inc. ("AA" ), a Delaware corporation authorized to do business in the State of Texas, duly acting by and through its authorized officers. W I T N E S S E T H: WHEREAS, on the 22nd day of August, 1989, the City Council of the City of Fort Worth, Texas (the "City Council" ), passed Ordinance No. 10365 (the "Ordinance" ) establishing Tax Abatement Reinvestment Zone No. 2, City of Fort Worth, Texas (the "Zone"), for commercial/industrial tax abatement, as authorized by the Property Redevelopment and Tax Abatement Act, V.T.C.A. , Tax Code §§312.001 et seq. , as amended (the "Code"); and WHEREAS, on the lst day of August, 1989, the City adopted a Policy Statement on Tax Abatement to Qualified Commercial/ Industrial Projects (Guidelines and Criteria) (the "Policy Statement" ), attached hereto as Exhibit "A" and made a part hereof for all purposes; and WHEREAS, the Policy Statement constitutes appropriate guidelines and criteria governing tax abatement agreements to be entered into by the City as contemplated by the Code; and WHEREAS, the City has adopted a resolution stating that it elects to be eligible to participate in tax abatement; and WHEREAS, in order to maintain and enhance the commercial and industrial economic and employment base of the Fort Worth area, it is in the best interests of the taxpayers for the City to enter into this Agreement in accordance with said Ordinance, Policy Statement and Code; and WHEREAS, the City Council finds that the contemplated use of the Premises (hereinafter defined), the contemplated Improvements (hereinafter defined) to the Premises in the amount as set forth in this Agreement and the other terms hereof are consistent with encouraging development of the Zone in accordance with the purposes for its creation and are in compliance with the Ordinance, the Policy Statement and the guidelines and criteria included therein, the Code and all other applicable laws; and WHEREAS, 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 Premises to be subject to the Agreement is located; NOW, THEREFORE, the City for good and valuable consideration, the adequacy and receipt of which is hereby acknowledged, which consideration includes the expansion of primary employment and the attraction of major investment in the Zone, which contributes to the economic development of Fort Worth and the enhancement of the tax base in the City, and AA for good and valuable consideration, the adequacy and receipt of which is hereby acknowledged, which consideration includes the tax abatement set forth herein below, as authorized by the Code, as amended, do hereby contract, covenant and agree as follows: OFFICIAL RECORD 3 CITY, SECRETARY fT. WORTH, TEX. I. GENERAL PROVISIONS A. AA is the owner of that parcel of land described on Exhibit "B" attached hereto and made a part hereof for all purposes (the "Premises"). The Premises are located within the Zone, and, with the exception of approximately 9.9277 acres (the "Annexation Tract" ) described on Exhibit "C" attached hereto and made a part hereof for all purposes, the Premises are located within the City limits. Pursuant to 5312.204(c) of the Code, the Annexation Tract shall be subject to all of the terms and conditions hereof with respect to taxation by the City immediately upon annexation. The Annexation Tract shall, for purposes of all other taxing jurisdictions, be subject to the terms and conditions hereof upon the execution of this Agreement by the City and AA, except as otherwise provided by law. B. The Premises are not in an improvement project financed by tax increment bonds. C. This Agreement is entered into subject to the rights of the holders of outstanding bonds of the City. D. None of the property subject to abatement of taxes under this Agreement is owned or leased by (i) any member of the Fort Worth City Council, (ii) any member of the Fort Worth Plan Commission, (iii) any member of the Fort Worth Zoning Commission, or (iv) any member of the governing body of any taxing units joining in or adopting this Agreement. II. IMPROVEMENTS AND JOBS AA agrees to construct or cause to be constructed on and within the Premises improvements (the "Improvements" ) consisting of (i) a new commercial building or buildings for aircraft maintenance and support uses containing a minimum of 250,000 square feet of floor space, (ii) paving, and (iii) facilities and other improvements related to aviation uses. The cost of the Improvements shall be, at a minimum, Fifty Million Dollars ($50,000,000). The approximate location of such Improvements is reflected on a preliminary site plan attached hereto as Exhibit "D" and made a part hereof for all purposes. AA further agrees that there shall be created 1, 500 cumulative new jobs in connection with the operations of AA on, or within the immediate vicinity of, the Premises. III. PROPERTY SUBJECT TO TAX ABATEMENT, RATE OF TAX ABATEMENT, TERM OF TAX ABATEMENT AND RELATED PROVISIONS A. A tax abatement, as described herein, shall be granted in each year of the abatement period on (i) the Premises, (ii) all Improvements constructed on the Premises, and (iii) all tangible personal property located on the Premises, excluding inventory and supplies (except as otherwise provided in Paragraph D below), as follows: (1) The Premises and all Improvements constructed thereon shall be subject to abatement to the extent the market value thereof, as reflected on the tax rolls of the Denton and Tarrant Appraisal Districts (the "Tax Rolls" ) in each such year, exceeds the market value thereof, as -2- reflected on the Tax Rolls, for the year in which this Agreement is executed. (2) All tangible personal property located on the Premises, excluding inventory and supplies (except as provided for in Paragraph D below), shall be subject to abatement as provided herein other than tangible personal property located on the Premises before the execution of this Agreement. AA represents and warrants that there is no such tangible personal property on the Premises as of the date of execution of this Agreement, and the City acknowledges this representation as true and correct. B. The tax abatement rate under this Agreement shall be one hundred percent (100%) of the market value of the property described herein as said market value is reflected on the Tax Rolls. C. The full fifteen (15) year tax abatement period provided by law is hereby granted (except as otherwise provided in Paragraph D below). This period of abatement shall commence on January 1, 1993, unless such commencement date is deferred at the sole election of AA or its assigns by notice in writing to the City, such notice to be given on or before December 1, 1992. AA may in such manner annually defer the commencement date, but in no event beyond the earlier to occur of the following dates: (i) January 1 of the year following the year in which a certificate of occupancy is issued by the City for AA's principal facility on the Premises, i.e., an aircraft hanger building, or an extension thereof, or (ii) January 1, 1998. Notice of each deferral shall be given in writing on or before December 1 of the year preceding the year in which the abatement is otherwise to commence. D. Effective September 1, 1989, all inventory and supplies located on the Premises shall be subject to tax abatement pursuant to the provisions of S.B. No. 1312 as passed by the Legislature of the State of Texas (the "Legislature" ), Acts of the 71st Legislature, Regular Session, 1989, wherein the Code was amended to add Subsection (e) to Section 312.204 thereof. As a consequence of such amendment, all inventory and supplies located on the Premises and owned or leased by AA, as a certificated air carrier, shall be subject to an abatement of one hundred percent (1000 of the value thereof, as shown on the Tax Rolls, for a period of ten (10) years. The commencement of such abatement period shall be determined as set forth in Paragraph C above. E. The parties hereto acknowledge that the Legislature has passed S.J.R. No. 11 proposing that Article VIII of the Texas Constitution be amended by adding thereto a new Section 1-j, providing for the exemption from ad valorem taxation of certain tangible personal property described in said proposed amendment (the "Amendment" ). The Amendment is to be submitted to the voters of the State of Texas at an election to be held November 7, 1989. The parties hereto further recognize that the Legislature has passed H.B. 2959 amending Chapter 11 of the Code for the purpose, in part, of serving as enabling legislation for the Amendment if it is approved by said voters, i.e., Sections 1, 2, 3 and 4 of H.B. 2959 are to be effective January 1, 1990, in the event of such approval. It is the intent of the parties hereto that the tax abatement provisions of this Agreement shall be applicable to the inventory, supplies and other tangible personal property located on the Premises only to the extent that ad valorem taxes on such inventory, supplies and other tangible personal property located on the Premises are not, for the entire period of tax abatement hereunder, totally exempted as a consequence of the passage of the Amendment, the implementation of H.B. 2959, and the concurrence in such exemption by all affected taxing jurisdictions. -3- F. AA shall have the right to protest and contest any or all appraisals or assessments of the Premises, or of the Improvements thereon, or on tangible personal property, and the tax abatement provided for herein for such property shall be applied to the amount of taxes finally determined, as a result of such protest or contest, to be due for such property. G. The City specifically acknowledges that, if the Premises are otherwise qualified under applicable state law, the execution of this Agreement shall not prevent the Premises from qualifying as open-space land under Article VIII, Section 1-d-1 of the Texas constitution, Section 23.52 of the Code, or other exemptions or special valuations available under the Code and that, if the Premises are otherwise so qualified, the execution of this Agreement will not result in any rollback taxes under Section 23.55 of the Code. IV. FILING OF PLANS, CERTIFICATION OF COSTS AND JOBS, CITY ACCESS TO PREMISES AND USE OF PREMISES AND IMPROVEMENTS A. Construction plans for the Improvements constructed on the Premises will be filed with the City. The plans as filed shall be deemed to be incorporated herein by reference and made a part hereof for all purposes. B. AA shall, from time to time prior to the commencement of the tax abatement period, as described in Section III above, certify in writing to the City the costs of construction of the Improvements. AA shall further certify to the City the creation of the cumulative new jobs specified in Section II herein. Such certifications shall be in a form reasonably satisfactory to the City and shall be deemed to be incorporated herein by reference and made a part hereof for all purposes. C. At all times throughout the term of this Agreement, the City shall, upon giving reasonable notice to AA, have access to the Premises by City employees for the purpose of inspecting same to ensure that the Improvements are constructed in accordance with the conditions of this Agreement; provided, however, that such inspection shall not interfere with the normal business operations of AA on the Premises. D. The Premises and Improvements constructed thereon at all times shall be used in a manner (i) that is consistent with the City's Comprehensive Zoning Ordinance, as amended, and (ii) that during the period taxes are abated hereunder, is consistent with the general purpose of encouraging development or redevelopment within the Zone. V. BREACH In the event that the Improvements are not constructed by December 31, 1999, then, and only then, this Agreement shall terminate and all taxes which otherwise would have been paid to the City without the benefit of abatement under this Agreement will become due to the City, subject to any and all lawful off- sets, settlements, deductions, or credits to which AA may be entitled. The recovery of such taxes shall be the sole remedy of the City in the event of a default hereunder by AA. -4- VI. SALE, ASSIGNMENT OR LEASE OF PROPERTY The tax abatement provided herein shall vest in AA and shall be assignable, as provided below, to each new owner or lessee of all or a portion of the Premises and the Improvements and tangible personal property located thereon, for the balance of the term of this Agreement. AA may make such assignment or lease without City approval to (i) Alliance Airport Authority, Inc., a Texas non-profit corporation, or (ii) any parent, subsidiary or other affiliate of AA, or any successor by operation of law of AA or of any such parent, subsidiary or other affiliate, including, but not limited to, any successor as a result of any merger, consolidation, or other reorganization thereof (whether such successor is a corporation, business trust, or any other type of entity). Any assignment or lease to any party other than to one of the foregoing entities shall require the prior written consent of the City, which consent shall not be unreasonably withheld. VII. NOTICE All 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: AMERICAN AIRLINES, INC. 4200 American Boulevard, MD 1C06 Fort Worth, Texas 76155 Attention: Managing Director of Taxes with a copy to: Johnson & Gibbs, a Professional Corporation 100 Founders Square 900 Jackson Street Dallas, Texas 75202-4499 Attention: William M. Blackburn CITY OF FORT WORTH, TEXAS City Manager 1000 Throckmorton Fort Worth, Texas 76102 VIII. CITY COUNCIL AUTHORIZATION This Agreement was authorized by Resolution of the City Council approved at its Council meeting on the 22nd day of August, 1989, authorizing the City Manager to execute this Agreement on behalf of the City. IX. BOARD OF DIRECTORS AUTHORIZATION This Agreement was entered into by AA pursuant to authority granted by its Board of Directors on the 19th day of July, 1989, whereby one or more officers of AA were authorized to execute this Agreement on behalf of AA. -5- X. SEVERABILITY In the event any section, subsection, paragraph, subparagraph, sentence, phrase or word herein is held invalid, illegal, or unenforceable, the balance of this Agreement shall stand, shall be enforceable and shall be read as if the parties intended at all times to delete said invalid section, subsection, paragraph, subparagraph, sentence, phrase or word. In such event there shall be substituted for such deleted provision a provision as similar in terms and in effect to such deleted provision as may be valid, legal and enforceable. XI. 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 a subsequent purchaser or assignee of AA, shall include, but not necessarily be limited to, statements that this Agreement is in full force and effect without default, if such is the case, the remaining term of this Agreement, the levels of tax abatement in effect, and such other matters reasonably requested by the party(ies) to receive the certificate. XII. AA STANDING AA, as a party to this Agreement, shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying ordinances, resolutions, or City Council actions authorizing same, and AA shall be entitled to intervene in said litigation. XIII. APPLICABLE LAW This Agreement shall be construed under the laws of the State of Texas. XIV. COUNTY BOUNDARY DISPUTE The parties hereto acknowledge the existence of a dispute (the "Dispute" ) between Tarrant and Denton Counties over the precise location of a portion of their common jurisdictional boundary. It is not certain, as of the date of this Agreement, whether or not the Premises, or a portion thereof, lie within the area subject to the Dispute. In order to adequately provide for the abatement of ad valorem taxes as provided herein, all appropriate Tarrant County and Denton County taxing jurisdictions have entered into this Agreement. Provided, however, that the execution by such parties of this Agreement is without prejudice to any such party with respect to the ultimate resolution of the Dispute or their relative positions in such Dispute. -6- XV. RECORDATION OF AGREEMENT A certified copy of this Agreement in recordable form shall be recorded in the Deed Records of Denton and Tarrant Counties, Texas. EXECUTED this day of August, 1989, by the City. EXECUTED this oZ 7 day of August, 1989, by AA. CITY OF FORT WORTH, TEXAS ATTEST: Zu Cit Secretary You la Ha -City manager 1 7 man AP'P OVED AS T FORP�}: ) Wade Adkins, City Attorney AMERICAN AIRLINES, INC. , a Delaware corporation ATTEST: By: Name: I Aim 'i e N Title: CORPORAIL REAL ESTATE Contraact LA/uthoricz�atiou hate -7- CITY MANAGER'S ACKNOWLEDGMENT THE STATE OF TEXAS § § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Douglas Harman, City Manager of the City of Fort Worth, Texas, a municipal corporation, 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 said City of Fort Worth, Texas, a municipal corporation, 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 said City for the purpose and consideration therein expressed and in the capacity therein stated. r L & GIVEN UNDER MY HAND AND SEAL OF OFFICE this oCJ/ day of UG usT 1989. Notary Public in and for a State of Texas My Commission Expires: 02_a 7_ q_3 CAROL ANN RAY,Notary Public in and for the State of Texas v� My Commission Expires 2 —9-/—c73 CORPORATE ACKNOWLEDGMENT THE STATE OF TEXAS § § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for said State and County, on this day ersonally appeared ,I -OE being theMANp61N6 I r.CT69-CoRP RCALr15rNr4Of American Airlines, Inc., a Delaware corporation, 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 said American Airlines, Inc., a Delaware corporation, and that he executed the same as the act of said corporation for the purpose and consideration therein expressed and in the capacity therein stated. Thy GIVEN UNDER MY HAND AND SEAL OF OFFICE this C,?141 day of /yyGUST 1989. Notary Public in and for the ate of —rEJ'.95 My Commission Expires: _a 7_93 *,a. P`a CAROL ANN RAY,Notary Public in and for the State of Texas G r�c My Commission Expires o2—A 7— /3 �rF 0I tE4'9 -8- SIGNATORY PAGE County of Denton, Texas STATE OF TEXAS § § COUNTY OF DENTON § DENTON COUNTY, the undersigned taxing unit, to the extent of its jurisdiction over the Premises, joins in the execution of the Tax Abatement Agreement between the City of Fort Worth and American Airlines, Inc., for the purpose of granting abatement of ad valorem taxes in the manner and in accordance with the terms set forth herein and authorizes this page to be affixed to this Agreement. This Agreement was authorized by the minutes of the Commissioners Court f Dento County, Texas, at its meeting on the � day of 1989, whereupon it was duly determined by appropr' to order that the County Judge would execute the Agreement n behalf of Denton County, Texas. COUNT :OF DENTON, TEXAS �A�test: c Burgess, Co y Judge � n m Ginty'�,,Cierk c y� Approved as t Form: 1�7z� ^ %- District Attorney ACKNOWLEDGMENT STATE OF TEXAS § § COUNTY OF DENTON § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Vic Burgess, County Judge of the County of Denton, Texas, a subdivision 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 said County of Denton, Texas, a subdivision of the State of Texas, that he was duly authorized to perform the same by appropriate order of the Commissioners Court of the County of Denton, Texas, and that he executed the same as the act of the said County for the purpose and consideration therein expressed and in the capacity therein stated. G VEN UNDER MY HAND AND SEAL OF OFFI E this day of 1989. 4 �% Notary Public in and f he— State of Texas My Commission Expires: ,nLINDA SUE BAGGETT o NOTARY PUBLIC STATE OF TEXAS .� My Comm.Exp.5-12-90 -9- SIGNATORY PAGE Northwest Independent School District STATE OF TEXAS § § COUNTY OF TARRANT § NORTHWEST INDEPENDENT SCHOOL DISTRICT, the undersigned taxing unit, having jurisdiction over the Premises, joins in the execution of the Tax Abatement Agreement between the City of Fort Worth and American Airlines, Inc. , for the purpose of granting abatement of ad valorem taxes in the manner and in accordance with the terms set forth herein and authorizes this page to be affixed to this Agreement. This Agreement was authorized by appropriate resolution of the Northwest Independ, nt Schoo District Board of Trustees at its meeting on the y=-day of k-6" 1989, whereupon it was duly determined that the Board President would execute the Agreement on behalf of the Northwest Independent School District. NORTHWEST INDEPENDENT SCHOOL DISTRICT Phoebe Dill, President, Attes Board of Trustees Sec etary,~Nor -west Independent School District Approved s to rm: Attorney for Nbrthwest Independent School District ACKNOWLEDGMENT STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Phoebe Dill, President of the Northwest Independent School District Board of Trustees, 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 said Northwest Independent School District, a corporate body politic, that she was duly authorized to perform the same by appropriate resolution of the Northwest Independent School District, and that she executed the same as the act of the said Northwest Independent School District for the purpose and consideration therein expressed and in the capacity therein stated. GIVE UNDER MY HAND AND SEAL OF OFFICE this day of 442 1989. Notaty Public in and for the State of Texas MY Commission Expires: r -10- SIGNATORY PAGE Tarrant County Water Control and Improvement District Number One STATE OF TEXAS § § COUNTY OF TARRANT § TARRANT COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NUMBER ONE, the undersigned taxing unit, to the extent of its jurisdic- tion over the Premises, joins in the execution of the Tax Abatement Agreement between the City of Fort Worth and American Airlines, Inc. , for the purpose of granting abatement of ad valorem taxes in the manner and in accordance with the terms set forth herein and authorizes this page to be affixed to this Agreement. This Agreement was authorized by appropriate resolution of the Tarrant County Water Control and Improvement District Number One Board of Directors at its meeting on the 211 may of , ,��.s15 , 1989, whereupon it was duly determined that the Board President would execute the Agreement on behalf of the Tarrant County Water Control and Improvement District Number One. TARRANT COUNTY WATER CONTROL AND IMPRO ENT DISTRICT NUMBER ONE Burford I. King, Board President Attest: Secretary, Tarrant County ---_ Water Contfcxl and Improvement District Number One Appro1,% as to Form: i _)"'/,r / Legal Counsel r ACKNOWLEDGMENT STATE OF TEXAS § § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Burford I. King, President of the Tarrant County Water Control and Improvement District Number One Board of Directors, 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 said Tarrant County Water Control and Improvement District Number One, that he was duly authorized to perform the same by appropriate resolution of the said District, and that he executed the same as the act of the said Tarrant County Water Control and Improvement District Number One for the purpose and consideration therein expressed and in the capacity therein stated. qq GIVEN UNDER MY HAND AND SEAL OF OFFICE this 2 C day of ,4UGV s fi 1989. Notary Public in and for the State of Texas M issi BRIAN GORDOr,( � �' k�tary PubftC S:a;e of Te Y C emmfyon r'0"dry 21..1182 -11- SIGNATORY PAGE Tarrant County Junior College District STATE OF TEXAS § § COUNTY OF TARRANT § TARRANT COUNTY JUNIOR COLLEGE DISTRICT, the undersigned taxing unit, to the extent of its jurisdiction over the Premises, joins in the execution of the Tax Abatement Agreement between the City of Fort Worth and American Airlines, Inc. , for the purpose of granting abatement of ad valorem taxes in the manner and in accordance with the terms set forth herein and authorizes this page to be affixed to this Agreement. This Agreement was authorized by Board Minutes of the Board of Trustees of Tarrant County Junior College District at its Board meeting on the 14th day of September, 1989, whereupon it was duly determined that the President would execute the Agreement on behalf of the Tarrant County Junior College District. TARRANT COUNTY JUNIOR COLLEGE DISTRICT J".",/Ardis Bell, M.D. , Pr ident, i8ard of Trustees Attest: f Secretary, Tarrant County Junior College District Board of Trustees ACKNOWLEDGMENT STATE OF TEXAS § § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared J. Ardis Bell, M.D., President of the Board of Trustees of Tarrant County Junior College District, 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 said Tarrant County Junior College District, that he was duly authorized to perform the same by appropriate resolution of the Tarrant County Junior College District, and that he executed the same as the act of the said Tarrant County Junior College District for the purpose and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this / day of September, 1989. Notary blic in and'f e State of Texas My Commission Expires: JEAN " PP •-�' COMMISSION EXPIRES MARCH 31,1993 -12- SIGNATORY PAGE Tarrant County Hospital District STATE OF TEXAS § § COUNTY OF TARRANT § TARRANT COUNTY HOSPITAL DISTRICT, the undersigned taxing unit, to the extent of its jurisdiction over the Premises, joins in the execution of the Tax Abatement Agreement between the City of Fort Worth and American Airlines, Inc., for the purpose of granting abatement of ad valorem taxes in the manner and in accordance with the terms set forth herein and authorizes this page to be affixed to this Agreement. This Agreement was authorized by the resolution of the Board of Managers of the Tarrant County Hospital District, at its meeting on the '/—l"ay of 1989, whereupon the Chairman was duly authorized to execute the Agreement on behalf of the Tarrant County Hospital District. TARRA OUNTY HOSP ISTRICT Chairman, Attest: Board of Managers Secretary, T3 ra t County Hospital D' rict Approvgd as t9''kF m: General Counsel ACKNOWLEDGMENT STATE OF TEXAS § § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared 8aoR(bE 4oiaet,, -D,0, , Chairman of the Board of Managers of the Tarrant County Hospital District, a political subdivision 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 said Tarrant County Hospital District, that he was duly authorized to perform the same by appropriate resolution of the Board of Managers of the District, and that he executed the same as the act of the said Tarrant County Hospital District for the purpose and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this 30��6- day of A vG SST 1989. Notary Public in and for e State of Texas My Commission Expires: CAROL ANN RAY,Notary Pubne -' r, and for the State of Texas My Commission s Expire a -93 F or sE4 "�—�--�.. -13- SIGNATORY PAGE County of Tarrant, Texas STATE OF TEXAS § COUNTY OF TARRANT § TARRANT COUNTY, the undersigned taxing unit, to the extent of its jurisdiction over the Premises, joins in the execution of the Tax Abatement Agreement between the City of Fort Worth and American Airlines, Inc. , for the purpose of granting abatement of ad valorem taxes in the manner and in accordance with the terms set forth herein and authorizes this page to be affixed to this Agreement. This Agreement was authorized by the minutes of the Commissioners Court of County, Texas, at its meeting on the ng l"-'day of /A"4'5C-- 1989, whereupon it was duly determined by appropriate order that the County Judge would execute the Agreement on behalf of Tarrant County, Texas. COUNTY TARR T, T XAS J_ Roy En4Aisfh, Coun Judge Attest: �GLa�sr►r�J 7ll��1- �vl Cou Clerk Approved;as t rm: j Di ri Attorney ACKNOWLEDGMENT STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Roy English, County Judge of the County of Tarrant, Texas, a subdivision 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 said County of Tarrant, Texas, a subdivision of the State of Texas, that he was duly authorized to perform the same by appropriate order of the Commissioners Court of the County of Tarrant, Texas, and that he executed the same as the act of the said County for the purpose and consideration therein expressed and in the capacity therein stated. IVEN UNDER MY HAND AND SEAL OF OFFICE this day of 1989. Notary Public in and for the State of Texas My Commission Expires: F:\WMBlackb\06349\0009\Abet-Tc2.9 —14— EXHIBIT "A" TO TAX ABATEMENT AGREEMENT POLICY STATEMENT c hkOpTXD BY THE FORT WORTH CITY COUNCIL 0 AUGU$T 1- 1989 CITY OF FORT WORTH POLICY STATEMENT ON TAX ABATEMENT TO QUALIFIED COMMERCIAL/INDUSTRIAL PROJECTS (GUIDELINES AND CRITERIA) I . GENERAL PURPOSE AND OBJECTIVES The City of Fort Worth is committed to the promotion of high quality development in all parts of the City, and to an ongoing improvement in the quality of life for its citizens. Insofar as these objectives are generally served by the enhancement of the tax base and expansion and diversification of the local economy, the City of Fort Worth will , on a case-by-case basis, give consideration to providing tax abatement, pursuant to the Property Redevelopment and Tax Abatement Act , V.T.C.A. , Tax Code, Sections 312.001 through 312.209, as from time to time amended, as a stimulation for economic growth and diversification in Fort Worth, Priority consideration will be given to those projects which result in little or no additional cost to the city and/or projects which create greater than 1,000 new jobs. It is the policy of the City of Fort Worth that said consideration will be provided in accordance with the guidelines, criteria and procedures outlined in this document. Nothing herein shall imply or suggest that the City of Fort Worth is under any obligation to provide tax abatement to any applicant. All applicants shall be considered on a case-by-case basis. According to Texas law, Property Redevelopment and Tax Abatement Act, V.T.C.A. , Tax Code, Chapter 312, the City of Fort Worth may grant tax abatement on the incremental value of a particular property that is improved pursuant to a specific development proposal which meets the economic goals and objectives of the City. The abatement will apply only to the incremental increase in valuation. The abatement will also apply to tangible personal property located in the reinvestment zone after the execution of an abatement agreement, including inventory and supplies of certificated air carriers (Note: Senate Bill 1312 and House Bill 2043, Acts of the 71st Legislature, Regular Session, 1989) . Tax abatement will not be ordinarily considered for projects which would be developed without such incentives unless it can be demonstrated that higher development standards or other development and community goals will be achieved through the use of the abatement. Based on the general purpose and objectives and in compliance with the intent and tenets of the Texas Property Redevelopment and Tax Abatement Act, the City of Fort Worth will establish reinvestment zones for economic development purposes. Within the reinvestment zones -1- there will be permitted tax abatement of the increase in value of real and tangible personal property, including inventory and supplies for certificated air carriers. Tax abatement will be offered only within designated reinvestment zones and only to those industries identified in Section III, Definitions, "Eligible Industries". II. CRITERIA Any request for tax abatement shall be reviewed by the City staff for recommendations to the City Council. Its determination shall be based upon an evaluation of the following criteria and any other relevant information and material , which each applicant will be requested to address in narrative format. Any proposed project must conform to the general guidelines specified below: • Any request for tax abatement must involve a development project, excluding land, with either (i) a minimum incremental increase in value of 25 million dollars or (ii) a minimum cost of 25 million dollars. • The project must make a substantial contribution to development efforts in the City by enhancing either additional development activity or furthering redevelopment and preservation activities within special planning areas or be located in a special development zone of the City such as an Enterprise Zone. • The project must have high visibility, image impact or be of a significantly higher level of development quality than that which currently exists in the City. • The project must serve as a catalyst and prototype for additional development of a higher standard or development of an additional industry which has been identified to be an asset to the community. • The project must generate a higher concentration of employment potential than would otherwise be achieved. • The project must enhance property value and complement other land uses in the project vicinity. Applications for tax abatement incentives should provide a written narrative detailing how the proposed project relates to the criteria established above and the issues listed below. In addressing the following issues, the applicant should indicate the appropriate time frames in which the proposed events and/or resulting impacts will occur, where applicable. Additionally, it is understood the information provided will be, out of necessity, estimates only. The applicant should endeavor to provide the most accurate estimates possible based upon available information. The applicant may be requested by the City to describe the logics/methodologies utilized to supply supporting documentation. -2- EMPLOYMENT IMPACT Number of new jobs created in Fort Worth. Percentage of new employees which will (a) come from outside the City of Fort Worth and (b) from outside the state of Texas Types of jobs created. Total projected annual payroll of the newly created jobs. PROPOSED IHPRQVEMENTS Identify and describe the kind, number and location of all proposed improvements to the property, as well as the land area and cost, and discuss the development schedule of the proposed improvements. In addition, City staff may request the square footage of the proposed project. Identify the infrastructure construction which will be required to serve the proposed project and the estimated cost of said construction. FISCAL IMPACT Amount of real and tangible personal property value added to the tax rolls. Amount of direct sales tax generated. Proposed project's effect on existing businesses and/or office facilities. Cost to the City of Fort Worth to provide municipal services to the proposed project. COHN,UNITY, IMPACT Effect of the proposed project on the local housing market. Environmental impact, if any, created by the project. compatibility of the proposed project with the City's comprehensive plan. Rezoning and platting/replatting required. Impact on local school districts. Impact on the County government. -3- Impact on all other taxing entities. Impact on the City of Fort Worth. The criteria outlined in this section will be used by the City staff to determine whether or not to recommend to the City Council that it is in the best interest of the City of Fort Worth and other affected taxing entities that tax abatement be offered to a particular appli- cant. Specific considerations will include the degree to which the individual project furthers the goals and objectives of the community, as well as the relative impact of the project on the community. III. DEFINITIONS "Eligible Industries": Certain types of business investment show high promise of creating new jobs, new income and positive economic spill-over effects beneficial to the City. As a result, tax abatements will be eligible only to certificated air carriers and industries in Major Group 45, "Transportation by Air", as described in the � 5 �.��rlustr al Classifigation Manual , U.S. Office of Management and Budget, 1987. A copy of Major Group 45 of the AIC Manual is attached hereto and made a part hereto by reference. IV. GUIDELINES After following and complying with all statutory and other require- ments and after a determination is made that a tax abatement agreement should be entered into with the applicant, the value and term of the abatement will be determined by the following guidelines: MINIMUM ELIGIBILITY REQUIREMENTS 1. The project must be an eligible industry as defined in Section III. Definitions. 2. The investment in new facility (structural improvements to land) must result in a structure or structures having either a minimum added value of twenty-five million dollars (excluding land) or a minimum cost of twenty-five million dollars (excluding land) . 3. The project must comply with all criteria defined in Section I1 . above. TAX ABATEMENT LIMITATIONS 1. The rate of tax abatement for any tax year shall be l00% of the incremental increase in value of real property and tangible personal property, including inventory and supplies of the certificated air carriers. -4- 1 2. In order to qualify for the (100%) tax abatement, the owner of the subject property must meet the following minimum threshold eligibility requirements: a. Construct and equip within the reinvestment zone a structure or structures having either a minimum added value of twenty-five million dollars (excluding land) or a minimum cost of twenty-five million dollars (excluding land) . 3. To determine if the project meets the minimum eligibility requirement, the applicant will certify to the City Manager's office the cost of the new improvements for which the abatement is requested. 4. The tax abatement period shall not exceed fifteen (15) years. 5. Any tax abatement granted a project will become effective oc, January 1 of the year following the issuance of a Certificate of Occupancy (CO) for the new facilities unless otherwise specified in the tax abatement agreement. The total acreage of the project shall be assessed at 100 percent market valuation upon execution of the abatement agreement, unless otherwise addressed in the tax abatement agreement. 6. If a project is not completed as specified in the tax abatement agreement, the City has the right to cancel the abatement agroomont and abated taxes shall become duo to the City and otho.: affected taxing units as provided by law. V. PRBCEDUltAf. MIDE'LINES Any person, partnership, organization, corporation or other enti• , desiring that the City of Fort Worth consider providing tax abatement to encourage location of operations within the city limits of Fort Worth shall be required to comply with the following proccdurs: guidelines. Nothing within these guidelines shall imply or suggest that Fort Worth is under any obligation to provide tax abatement :c any amount or value to any applicant. preliminary Application S MA A. Applicant shall submit an "application for tax abatement". B. Applicant shall address all criteria questions outlines in Sect: _ . II above in letter format, C. Applicant shall prepare a survey map showing the precise locat: -. of the property, all roadways within five hundred (500) feet ;: the site, all existing land uses and zoning within five hundzp' (500) feet of the site and the kind, number and location of a. : proposed improvements. -5- D. City may request applicant to provide substantiation of the • economic feasibility of the overall project to assist in determining the long term benefit to the City. E, A aamplete' legal daxcriptian of the peaperty shall he provided. F. Applicant shall complete all forms and information detailed in items A through E above and submit them to the City Manager, City of Fort Worth, 1000 Throckmorton, Fort Worth, Texas 76102. ARRUcation Review Steps 0. All information in the application package detailed above will be reviewed for completeness and accuracy. Additional information may be requested as needed. H. The application may be distributed to the appropriate City departments for internal review and comments. Additional information may be requested as needed. I. Copies of the complete application package and staff comments will be provided to the City Council . Consideration of the ARR U cation J. The City Council will consider the application at meetings conducted pursuant to the Open Meetings Act and the Property Redevelopment and Tax Abatement Act. Additional information may be requested as needed. R. The City Council may consider a resolution calling a public hearing to consider establishment of a reinvestment zone. L. The City Council may hold the public hearing and determine whether the creation of the reinvestment zone would contribute to the retention or expansion of primary employment or would attract major investment in the zone and would contribute to the economic development of the City. M. The City Council may consider adoption of an ordinance designating the area described in the legal description of the proposed project as a commercial/industrial reinvestment zone for tax abatement. N. The City Council may consider adoption of a resolution which approves the terms and conditions of an agreement between the City and the applicant, and governs the provision of the tax abatement. At minimum, the agreement shall include the following: -6- 1. General description of the project; 2. Amount of the tax abatement 3. Duration of the abatement; 4. Type, number, location and time table of planned improvements; and 5. Any specific terms and conditions to be met by the applicant. O. The governing bodies of any affected independent school district, Tarrant County or Denton County, and all other applicable taxing units may consider ratification of and participation in the tax abatement agreement between the City of Fort Worth and the applicant. P. Should the terms of the agreement not be satisfied, the tax abatement shall be subject to cancellation as provided in the tax abatement agreement, and all abated taxes shall be paid to the City of Fort Worth and all other taxing jurisdictions participating in the tax abatement agreement as provided by law. If a project granted a tax abatement ceases to operate or is no longer in conformance with this policy statement, the tax abatement agreement shall not be in effect for the period of time during which the project is not operating or is not in conformance. The City of Fort Worth may negotiate with the recipient of a tax abatement to waive the recapture provisions or to terminate the agreement. Q. The City of Fort Worth reserves the right to verify the applicant's credit worthiness prior to granting a tax abatement and to review the financial condition of the project during the term of the abatement. The City of Fort Worth also reserves the right for a representative to inspect the facilities of the applicant during the term of the abatement and to verify the information provided in the tax abatement agreement. Provisions to this effect shall be incorporated into the agreement. VI. EFFECT OF SALE, ASSIGNMENT OF LEASE OF PROPERTY No tax abatement rights may be sold, assigned, or leased unless otherwise specified in the tax abatement agreement. Any sale, assign- ment or lease of the property which is not permitted in the tax abatement agreement results in a forfeiture of all tax abatement rights as to the property sold, assigned or leased, unless the City agrees to ratify the transfer. -7- 277 Ma¢or Group 45.—TRANSPOR.TATION BY AIR The Major Group w a Whole Thm M&*grouP IzWudn artablislments engaged in furniwhsg domastk and foreign transportation by air and aLo those operating airport,and flying fields and huaiahing tarsi. nal services.Establishments primarily engaged in performing arviow wbich may incidenw ly use airplaoa(64.,crop dusting and *w pbotcgrapby)are classified m000rding to the sssv. performed. o> is NNs Obi AIR TRANSPORTATION,8C8EDULED,AND AM COURIER SERVICES 4612 Air Trwportatioe,Sobeduled Fitablishmeats primarily MEaged in fVrrniwing air transportation over rag, ular routes and an regular mwedules.This industry Wduda Alaskan omrries operr►tiag over regular or irregular routs. All OW untrq ab*Ma Air pane aaarl�a rbeuNi 4612 Air Courier Servioss primarily"Mad in%mnbmg air"hwy of addressed letters Pala and undo loo p mnde pt addressed by the U.B.Postal Service.While these aablisbmena deliver Tatars,Parcel., and Packages by air,the initial pick-up mod the float dellveey are*Ran made by other modes of trwporeatfoe,,such w by Mick,bbycle,or matorgo1w Bap &rate astablimhments of air courier companies ngagsd in providing pk k V and delivery odT"drop-off points oar distribution ante"&re all clanified in this industry.$atablishments of the U8.Postal 8entoa era classified in Indus. try 4811:and establishments furnishing delivery of individually ad&,,nd let. ters'Me"&or P ck&M(geoerallY under 100 Pounds)other than by air an classified in Industry 4216.Establiahmena primarily engaged in undertaking the transportation of goods from drlPPM to raceiven for charges oavering the entire traaspoet ttion,but making un of other transportation establishments to effect the entire delivery,are classified in Industry 4721. end w..q.wia.t«safe 462 AIR TRANSPORTATION,NONSCHEDULED 4622 Air Tit mpoeatto 4 NoawkWuM Fstsblis M=t@ primarily swinged in AWWAbing nonscheduled air traaspor. tation.Also included in this industry an establishments primarily engaged in &M"hg Wrplw idgbtsadng smrviau,air tat servioss and heliooptw pea•not MOMW �UWASPorlatiom sarvim 1%from,or between loud airports,whether or Air now aarirYW Air Ld ym.rA.o.�ae.+Y�e A.bWwwartun k Iwt iyWli.....lw. 278 NTANDARD INDUUMIAL CLAMMCATWNi >�v o� a r 446 AIRPORTS,FLYING FMM&AND AIRPORT TERKMAL SERVICi8 4461 Airports,Flyhrg Adds,and Airport TwwAs l gwrices Tiatablishments primarily engaged in operating and ins mts miog airports and flying fields;in mmc mg,repairing(esoapt am a hetory bawl,maintm +tiff.and staring aircraft:and in furniehing coordinated baadling on ioes fa sirfielght or passengers at airpa:a.This industry clan includes private atsb belsments primarily engaged in air tra93o wntrw operadon,fiovesament air trsflle coiled operations ere classified in Public Administration, Imdwtry 9621.Aircraft modification antes and estabWhmena primarily engaged in factory type overbaul of avorafi are classified in Maayfl ewAig,Major Group 87,and flying fields maintained by avlati n clubs an elaniflad in San,iow Industry 7987. Air tai er+r,art . A4wea dneir W fW�sense Ab�,t�Irin�amt _ AIaaR nnNrte 1a1 awerrli�� Arad �Misfiv" A11wwle ■�ePraa�aYr ��aeYrral Arad1 epyel,� AraaleYt W�war M M1MY TRACT 2 EXHI BIT "B" TO TAX ABATEMENT AGREEMENT PROPERTY DESCRIPTION (Entire Tract) TRACT 2 BEING a tract of land out of the G. Overton Survey, Abstract No. 972, and the A. McDonald Survey, Abstract No. 786, located in the City of Fort Worth, Denton County, Texas, and being part of a tract of land conveyed to Alliance Airport, Ltd. as recorded in Volume 2451, Page 412 of the Deed Records of Denton County, Texas, and being part of a tract of land conveyed to Hillwood/1358, Ltd. , as recorded in Volume 2512, Page 460 of said deed records, and being part of a tract of land conveyed to Hillwood/1358, Ltd. as recorded in Volume 2512, Page 471 of said deed records, and being more particularly described as follows: COMMENCING at the northerly northwest corner of said Alliance Airport, Ltd. tract, said corner being on the east right-of-way line of the A.T. & S.F. Railroad (100 feet wide); THENCE South 24 degrees 16 minutes 15 seconds West, along said east line, a distance of 228.70 feet to a point for a corner, said corner being the intersection of said east line with the south right-of-way line of proposed Eagle Parkway (120 feet wide); THENCE South 65 degrees 43 minutes 45 seconds East, departing said east line, and along said south line, a distance of 12.33 feet to the point of curvature of a circular curve to the left having a radius of 1210.00 feet; THENCE Easterly, continuing along said south line, and along said curve through a central angle of 34 degrees 09 minutes 27 seconds, an arc distance of 721.36 feet to the point of tangency; THENCE North 80 degrees 06 minutes 47 seconds East, continuing along said sourtherly line, a distance of 1836.01 feet to the POINT OF BEGINNING: THENCE North 80 degrees 06 minutes 47 seconds East, continuing along said south line, a distance of 548.53 feet to a point for a corner; THENCE South 9 degrees 53 minutes 13 seconds East, departing said south line, a distance of 1579.40 feet to a point for a corner; THENCE South 60 degrees 02 minutes 26 seconds East, a distance of 1146.43 feet to a point for a corner, said corner being on the northerly right-of-way line of proposed Taxiway 'H' extension (300 feet wide), said corner also being on a circular curve to the right having a radius of 1050.00 feet and whose back tangent bears South 35 degrees 47 minutes 47 seconds West; THENCE Southwesterly, along said north line, and along said curve through a central angle of 43 degrees 19 minutes 00 seconds, an are distance of 793.82 feet to the point of tangency; THENCE South 80 degrees 06 minutes 47 seconds West, continuing along said north line, a distance of 708.39 feet to a point for a corner; THENCE North 9 degrees 53 minutes 13 seconds West, departing said north line, a distance of 2600.00 feet to the POINT OF BEGINNING AND CONTAINING 1,936,787 square feet or 44.4625 acres of land more or less. Page 1 of 1 , TRACT 2 EXHIBIT "C', TO TAX ABATEMENT AGREEMENT PROPERTY DESCRIPTION (Annexation Tract) BEING a tract of land out of the G. Overton Survey, Abstract No. 972, located in the City of Fort Worth, Denton County, Texas, and being part of a tract of land conveyed to Hillrood/1358, Ltd., known as 'Parcel 6' as recorded in Volume 2512, Page 471 of the Deed Records of Denton County, Texas, and being more particularly described as follows: COMMENCING at the northerly northwest corner of an Alliance Airport, Ltd. tract as recorded in Volume 2451, Page 412 of the Deed Records of Denton County, Texas, said corner also being on the east rigbt-of-ray line of the A.T.S.F. Railroad (100 feet wide), said point also being the southwest corner of said Parcel 6; THENCE South 89 degrees 25 minutes 20 seconds East, along the common line between said Alliance Airport, Ltd. tract and said Parcel 6. a distance of 2229.29 feet to a point for a corner, said point being on the south right-of-ray line of proposed Eagle Parkway (120 feet vide); THENCE North 80 degrees 06 minutes 47 East, departing said common line, and along said southerly line. a distance of 204.97 feet to the POINT OF BEGINNING: THENCE North 80 degrees 06 minutes 47 seconds East, continuing along said southerly line, a distance of 548.53 feet to a point for a corner; THENCE South 9 degrees 53 minutes 13 seconds East, departing said southerly line, a distance of 139.17 feet to a point for a corner, said corner being on said common line; THENCE North 89 degrees 25 minutes 20 seconds West, along said common line, a distance of 557.81 feet to the a point for a corner; THENCE North 9 degrees 53 minutes 13 seconds West, departing said common line, a distance of 37.86 feet to the POINT OF BEGINNING AND CONTAINING 48,552 square feet or 1.1146 acres of land more or less. BEING a tract of land out of the A. McDonald Survey, Abstract No. 786, located in the City of Fort Worth. Denton County, Texas, and being part of a tract of land conveyed to Hillwcod/1358 Ltd.. known as 'Parcel 7' as recorded in Volume 2512, Page 460 of the Deed Records of Denton County, Texas. and being more particularly described as follows: COMMENCING at the northerly northwest corner of an Alliance Airport, Ltd. tract as recorded in Volume 2451, Page 412 of said dead records, said corner also being on the east rigbt-of-way line of the A.T.S.F. Railroad (100 feet vide), said point also being the southwest corner of a tract of land conveyed to Hi11rood/1358, Ltd., known as 'Parcel 6' as recorded in Volume 2512, Page 471 of said deed records; THENCE South 89 degrees 25 minutes 20 seconds East, along the common line between said Alliance Airport, Ltd. tract and said Parcel 6. a distance of 3006.01 feet to a Point for a corner. said corner being the most northerly northeast corner of said Alliance Airport. Ltd. tract; THENCE South 0 degrees 40 minutes 48 seconds East, along the common line between said Parcel 7 and said Alliance Airport, Ltd. tract, a distance of 64.37 feet to the POINT OF BEGIUMS THENCE South 9 degrees 53 minutes 13 seconds East, departing said common line, a distance of 1374.79 feet to a point for a corner; THENCE South 60 degrees 02 minutes 26 seconds East, a distance of 828.86 feet to a point for a corner, said corner being on the common line between said Parcel 7 and said Alliance Airport, Ltd. tract; THENCE North 89 degrees 28 minutes 58 seconds West, along said common line, a distance of 934.83 feet to a point for a corner, said corner being the southwest corner of said Parcel 7; THENCE North 0 degrees 21 minutes 47 seconds West, along said common line, a distance of 274.34 feet to a point for a corner; THENCE North 0 degrees 40 minutes 48 seconds West, along said common line, a distance of 1485.62 feet to the POINT OF BEGINNING AND CONTAINING 383,898 square feet or 8.8131 acres of land more or less. Page 1 of 1 EXHIBIT "D" TO TAX ABATEMENT AGREEMENT PRELIMINARY SITE PLAN � 1 M I , > I 1 a Z wi m n � I I iii ♦ � z D I „ m � z N -, Z Cl) oo , IIII �I�III I x �� IIIII 1 44 m III T C r -c z �, i 0®