HomeMy WebLinkAboutContract 25617 CITY SECRETARY
STATE OF TEXAS § TA's ABAT;i ME71-F ACRVEIMENT
COUNTY OFTARRANT § TAX ABATEMENT R2R{.;TNVES"R'MENT d(�NV NO. 4
CITY OF FORT WORTH § MATTEL, INC. D1ST€IMUTION FACILITY
T his Tax Abatement Agreement(this "Agreement") is r ntered into by and bet"\een the City
of Fort 'Afortli, Texas (t_he "C_`ity"} duly actin, herein by and t;rongh its City Rlanager, and
Meacham Rail 191 Limited Partnership ("Ownc,"), a Texas limited partnership, duly :Acting by and
through its authorized officers, and Mattel, Inc. ("Lessee") a California corporati—., duly actin; by
and through its authorized officers.
WHEREAS, the City has adopted a resoiutiorh sG�tin�l that it elects to be eiigible to
participate in tax abatciihent; and
WHEREAS, on the 17th day of February, 11998, the City Council of tyre City of Fort
Wortn, Texas ("City Counc.ii") adopted Resolution too. 2379, entitled a Pol. Statemert: 'Tax
Abatement for Qualifying Development Projects (the "Poil"ey Statement-- hereto and
incorporated herein as Exhibit "A"-,and
t WHERi:AS, the Policy Statement constitutes appropriate "guide;,—i and criteria"
tr governing tax abatement agreements to be entered li:'oily the City as contemplated by Chapter 312
of tl,c Texas Tax C=ode, as arriendcd (the"C'odc"); and
WHEREAS, on the i Sth day of January, 2000, the Fora Worih City Council Adopted
Ordinance No. ? -� e� -� - (''the Ordinance") establishing Tax Abatement Reinvestment Zone
No. 34("the Zone"), and
VVHERE. ,Owner owns certain real propetly, more paiticralarly described in Exthi it "i3"
attached hereto and incorporated herein by refer, -it (th, "Premises"), locatcd totally within the
7.onc, and
WHEREAS,Ovvrrer or its assigns piar to construct file Required improvements, as defined
in Section l(A) of this .���rer merit, on the Premises and lease them to Lessee for the operation of a
products disti-ihution faciiity (the "Project");
WHEREAS, on the i lth day of Januai-v, 2000, Omer submitted an application for tax
abatement to the City concerning the conteth;plated use of the Premises (tree "Application for Tax
A;•iatcrric nt"i, attached thereto and incorporated here.ith as exhibit"C', and
NN MI-A{. ", % e�l i :t' ��l lnlCt' !ilhd� itta' ,. t�; Cl�'7t:ii?CIl3t i 11 ter
CU .I C C,. the erh'nSC i. .l"
t,r}`r�i, �t31j11"CIV'Crhh':'I'ar (a6 lr(rl'irie3f`.C's' d tined) iml 01c 'i"'M-1ti O ±nla A` -,Vcc.?71t_ri :111'e 0V11Slsteill
With /o,].. !ih :ICi'OS(t%3f1CC U;!1l th:: pui—pil c,; f,-)r its creation and.. arc'
i;� CC}ijl f1i13ihCC`' ;tlh illc l ohc,' �i tCit�:S?hCll!. 1`',h Urdin"Inco and l)il,c r -rr?rl t',cabic 1i.1«.; 'And
tlhc Cm Coillncif Finds that th< A,:�cavrctrt. IhV Prcw;:us and
Ally
�VHEE FAS. wri;tii notice that the City intends to enter irno this A grec°ment, alone ,,kh ;i
cony of this A,,rr.e-mnt, has hccn furnished in (lie manner prescriber] )7,,r dle (,ode to ttae s icsidiiiU
officers of the governing bodies of each of the taa°cirag 1.uiits in which the t'reftaises is loczated_
NOVV, THEREF'OkE, the City. Owner, and I_,essce, fbr and in consideration of the
premises and the promises contained herein, do hereby contract,covtmant and agree as follows:
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ONVNER'S COVENANTS
A. Owne,- shall construct, or cause to be constructed,. on and within the Promises certain
improvements (the "Required improvements")0) consisting of tan approximately 1,000,000 square.
foot pros=a.icts distribution facility, and (ii) (laving an estimated cost upon completion of.
approximately $111,750,000, including site development costs. The kind, number and location of
the Required lmprovetrici is are more particulaity described in the Application for Tax Abatement.
Minor variations in the Required lmprovementf frorn the description provided in the Application
for Tax Abatement shall not he an Event of Default, provided that the conditions in tlae first
sentence of this Paragraph A are met and the Requi-ed Improvenr nts are used for the purposes and
in the Manner describc;d in the Applicat cn for Tax Abatement.
F. Owner covenants to substantially complete constniction of all of the required
lnaproveme.nts oil or before (March i 2001.
C. Owner covenants that during the Term (as defined in Paragraph lll.D. hereof) that Lessee
Shall cause to be locatce, on the Premises new tan gible personal pro-arty having an estimated
onglinal cost of ipproxim ately`x2,0(0,000, excludnig inventory and supplies.
D. Owner covenants that the Required improvements shall ')e constructed and the Premises
sl;ail be used in accordance with the description ofthe project set, ibrth in the Application for Tax
Abaten-tent, The Owner covenants to con,#y with and satisfy all of the provisions and
requirements for the project as set forth in the Application tor'Tax Abatetnont.
E. Owner covenants that throu,hout the Term,. the Required improvements shall be operated
and m aintainc:l for the set foitli he-eiaa so :;aat true uses of the Premises shall be consistent
;with talc Hera] p aip,a� . 0 'encouraginL' or seeing in development or Of the Zone,
ex,.-opt as or modif?ed la alms Aare(-meat.
GENERAL PROVISIONS
� 'idchf,c aild CT-W "rlPr ';ax abi"Wi-?e YCr tile
Pre—t`IISC„ '„1'C"10i ;1'll]i!?\E:)1 1�', Lai � �i—: �i11�11C .,f t??: t1?. .. ,., .:Il1C{at S'•';�Itli.{S.
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C. Neither the Premises nor anv of the lmprovern,�rjvs covered by this Agreement arc ott,nze-1 or
leased by any irember of the Ciiy Coun4ii, any member of the City Thin er Zoning Commission or
any member of the governing body of any taxing units joining in or adopting this Agreement.
Q. This Agreement is subject to rights of holders of outstanding ,ponds of the City.
F. in the event of any conflict between the Cily zoning ordinances,or other City ordinances or
regulations, and this Agreement, such ordinances or regulations shall control.
F. A portion or all of the Premises and/or improvements thereon may be eligible for complete
or partial exemption from ad valorem taxes, as a result of existing law or future legislation. This
Agreement is not to be constnred as evidence that such -,xeniptions do not apply to the Premise;
and/or Required;Improvements thereon.
III.
ABATEMENT TERMS AND CONDITIONS
A. Subject to compliance with the terms and conditions of this Agreement, City heresby grants
to Owner a real and personal property tax abatement ("Abatement") on the. Premiss, the Required
Improvements, and the business personal property located thereon, excluding inventory and
suppli 0s.
8. T'ae amount of the Abatement shall be based upon a percentage of the increase in value of
the Premises, the Required Improvements, and the business personal property located thereon
(excluding inventory and supplies) over their values on January 1, 2000, the year in which this
Agree'iaent is executed, and certain employment and contracting guidelines. The Abatement
may range up to 100% of the increased value annually; and shall be calculated as set forth in
Exhibit "C" summarized as follows:
1. Base Abatement. Up to seventy percentage points(70%)of the Abatement
will be based upon the followiag:
(a) Lessee currently employs 22 Fort Worth residents, of which G are
residents of Fort Worth "inner city" areas. Retention by the Lessee of the
current number of Fort Worth resident employees (22) and "inner city"
resident employees (6), as such terms are defined in the Policy Statement,
will result in a 50 percentage point abatement for each year of the term of
the abatement that such positrons are retained. The abatement will be
reduced by 1.2 percentage point for each Fort Worth resident below the
mininuir;1 >f 22, ar..d 1/2 peree.ntaue point Tor each "inner city" resident
ho:ov, the minimurn
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(b) Spending at ieast 25°6, of the total iinilial construction costs,
inci►r<:air,ky 'WithOLIt liniitation site devei0poie.nt costs, of' Ole Required
linprovenne,its with Fort Worth contractors (as defined i>> the Pollcv
Statcrnenf) vvill resell in an additional 10 percentage point abatfewcnt. An
additionai 10 perccni_1 e abatement will be granted if at least O°rah of the total
construction cos± c.;:,cnding is with certified Fort Worth based M/WB
contractors (as defined in the Policy Statement), �
(c) The base abatement under this subsection fit (B) (1) is capped at
7V/o,
(d) Detern-iination of- compliance with the employment goals of this
subsection shall be based on Lessee's employment data on August 1 of-each
calendar year. Detennination of compliance 'with the construction spending
coals shall be based on spending for the entire calendar year.
2. ,additional Employment Abatement, Up to an additional twe-Arty
percentage points(20%)cl the Abatement will be based upon the following:
(a) For employment by Lessee of each additional Foil Worth resident
above the base commitment of 22 Foil Worth employees, an additional 1/2
percentage point of abatement will be granted.
(b) For employment by Lessee of each additional "inner city" resident
above the base commitment cif() "inner city" employees, an additionai 112
percer,?age point c'.abatement will be granted.
(c) The additional abatement under this subsection Ill (B) (2) is capped
at 20°,,0,
(d) Determination of compliance with the employment goals of this
subsection shall be based on Lessee's ernpiayment data on August l of each
calendar year. Deternniination of compliance with the constriction spending
goals shall be based on spending for the entire calendar year.
:Wditinraal Supply and Service Abatementi i p to ten percentage points
(10°%)of the Abatement will be based upon the foll(Mng:
(a) For annual shcs-idin '^v Lessee of' apt lest !)0°10 of local
Jiscrnoliary iUnds for supply and service conti;ll for the facility with port
W'orilt �eniloi:s, an, lid, ! ltRl S percentage po-,nts 0 abatement wiii be
�i-antc.l.
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(h) For annual spcndin� by Lessee of at learnt 25"%; �-xf local disc.n-tionaay
Funds «ith certified M/WBE vendc,rs, an additional 5 percentage points of
abatement will be granted. T101ars spent with certified Fort Wonh M/V BE
vendors ill be calculated at 1.5 times.
(c) The additional abatement under this subsection III (B) (3) is capped
at 1 t)`%,.
4. : haiernent timitafirm. Provided, that the Increase in 6alue subject to
abarernent in any one year shall be linnited to no more than the arnount estimated as
the cost of' construction of the Required improvements, inclusive of siie
development costs ($19,750,000) and the amount of estimated increase in tangible
personai property, excluding i:nveritory and suppli s, +.o be located on the Premises
($2,000,000).
C. Owner shall have the right to protest and contest any or all appraisals or assessincrits of the
Pre:ttises and/or improvements thereon.
D. The term of the Abatement (the "Term") shell begin January 1 of the year following the
year in which the Certificate of Occupancy is issued (the "Beginning Date") and, unless sooner
terminated as herein provided, shall end on the December :31st immediately preceding the tenth
IOth) anniversary of the Beginning Date. Provided, however, that this Agreement shall terminate
on the dzte that the lease agreement, or any renewals or extensions thereof, between the Owner(or
successor {.owner) of the Premises and Lessee expires or is terminated for any reason, or the
Premises ceases to be used for the purposes set forth in the Apphcation.
E. The City acknowledges receipt from Owner of the rewired application fee of one percent
(1`-%) of project cost, not to exceed $15,000, If construction on the rc::quired Improvements is
begun within one year from the date of she Application (rvith or without a tax abatement), such fee
shall be creditable in full to the bene,it of owner against any permit, impact, inspection or other
lawful fee required by the City in connection with the project, and any remaining arnouats shall be
refunded to Owner.
FI'Llre to achieve the numerical goals for ;niplo%`nient, construction spending and supply
and s-rvice contract spending__ as set forth in this Section ill shall not constitute an "Event of
Def,-.dt" as defn:--d in Section V of this Agreement_ The cure periods and remedies sct fot-th in
Articie 4' related to Events cf Default shall thcr.:fore not apply, and it is understood ind agYreed that
the result of `,.'allure to refit the nurnYerical goals shall be t"e percentage reductions in the
Abatcnnciv as Std ")r1h w, `o:'ction 111.
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IV.
RECORDS, AUDITS AND EVALUATION OF P?tOJEC-T �
A. City snail have the tight to audit the financial and nusineSS records of the 0"'ner arld
Lessee which relate to the Ak,at,lnent terns and conditions itl order to determine corlplianc-: «with
this Agreement and the correct percentage of ahatonhent. ThC C'it.y shall annually (or such otl-�er
times eerncd appropmue E,v the City) evaluatc : ' oroject to in_ Compliance with this
Agreement. On or before the 11ollowing February Ist after every year of the Term, Oxvner shall
provide irhfornh,atior. and documentation whl,,ih details Owner's compliance v;ith each applicable
term of the agreement R)r the preceding calendar year. Failure to provide this inforn-,ation shall be
} considered all event of default. The infannation shall inchide, but not be limited to,the l'ollowing:
(i) On August i of the preceding caler;d«~ year, the total number of Lessee's
employees who worked on the Premises, the numilber of employees who were Fort
Worth residents,and the number of employees who reside in designated Fort Worth
"inner city" areas. These jobs shall be reported in job classifications appropriate to
the employees;
iii) the number and dollar amounts of all constiuction contracts and
subcontracts awarded on. the Project, and specifying the number and dollar amounts
to businesses which are Fort Worth companies and Fart Worth M/WBE companies;
(iii) the gross dollars and supporting details showing the amounts spent by
Lessee on supply and service contracts, specifying the number and dollar amounts
spent with Fort Worth companies and Fort Worth cettified M/WBE companies;
B. On or before August 1 of ,ne taxable year, the City shall make a decision and rule on the
actual annual percentage of tax abatement for the Project, Erased on the information furni!,hed each
year, and shall so notif y the Owner. Th-- actual percentage of the abatement for a taxable year is
thei-cfore }used Upon the Owner's or Lessee's performance, as applicable, for the preceding taxable
year with regard to the commitment categories as sc' forth in this Section Ill avid the Application
fcsr Tax Abatement (Attachment "C"). Compliance with the employment goals are to be
detennined based on the Lessee's ornployment data for August l of the preceding calendar year.
Compliance with the spending goals are to be based on spending for the entire preceding calendar
veal'.
C. During nonual office: hours throughout the Term and the year following the Term,
providin -casona plc notice is .riven to Owner (w- successor Owner) and to Lessee, the City shall
li�lvc [iCCusS t,C, the Premises iOi trhC 11L'rr)OS;C of inspcciA,- EIhe Prenilises and tlhe Required
lint;t�)t'L''iih�'nt5 to ellSUrC that the Re.quircd flnpro\c-ilienls C11 i-Cpalis ;are. made In acco-dan u vblffi
the; specificallons and Conditions of this Agreelmcnl �.nd that the conditions of this
AgreF--rnent AFC bc1112 comhhcd with.
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�y V.
BREACH
A. In the event that (i) the Required Improvements for which an abatement has been granted
are riot completed in accordance with this Agreement; or (ii) the schedule for completion of the.
Reyuir--Cd Improvements listed in Paragraph E1 ofAr1icle I of this Agreement is not satisfied, o.(iii)
0”:yet- allow:; its ad valorem real property taxes with respect to the Prenises or the project, or its
ad valorem taxcs with rC":,)Cct to the tangible personal properly to become delinquent and fails to
timely and properly follow the legal procedures for protest and/or contcst of any such ad valorem
real property or tangible personal property taxes; or(iv) Owner breaches arty of the other- terms or
conditions of this Agreement, then 01.vncr shall be in default of' t s Agreement (an "Event of
Default"). Should an Event of Default occur, the City shall give Owner written notice of su^h
F.,vent of Default and if O«rner has not cured such Elvent of Default within ninety (90) days of said
written notice, this .A-re-ement may be terminated by the City; provided, however, that if' srtch
Event of Default J'. iol. -,_asonably susceptible of cure within such ninety (90) day period and
Owner has commenced and is pursuing the cure of same, thQn after first ad .ising City Council of
the efforts to cure same, Owner may utilize an additional ninety(90) days. Time in addition to the
foregoinrv> 180 days may be «rrthorized by the City Council. As liquidated damages for an Event of
Default after the expiration of the applicable notice and cure periods, all taxes which otherwise
would have been paid to the City for each year when an Event of Default existed, without the
benefit of Abatement (aPer taking into account any applicable exemptions), will become P debt to
the City. Such amount may be recovered by the City through adjustments made to Owner's ad
v�Joren-. property tax appraisal by the Appraisal District, or if not so recovered shall be dui. owing
wld paid to the City within sixty(60) days of the expiration of the above-mentioned applicable cure
period(s) as the sole and exclusive remedy of the City. subject to any and all lawfiul offsets,
settlements, deductions, or credits to which owner may be entitled. In the event that such amount
is not paid witivn sixty (60) days of the expiration of the applicable cure period, Owner shall in
addition be liable for all penalties and interest on said amount charged at the statutory rate for
delinquent taxes as deteninned by Sect;:), 01- c'- the Code. as in effect at the time of the
payment of such penalties and interest. Tl;e acknowled-e that actual damages in the event
Of default and termination would be specu :a ;'e • -d Difficult to deterrine.
B_ Notwi'hstanding the foregoing paragraph, if the City, Owner and Lessee mutually
determine that the development or use of the Premises or Required Improvements as contemplated
herein r; no )nn;,er apprunnate or feasible or that a higher or better use is preferable, tie parties
nrL'v terr-ninate this Agreement by a writing signed by both parties, the period of Abatement shall
expire as of the cffective date of the termination, there shall be no rccaptur(: of amounts previously
abatcu, a.nd neither party shall have any further rights or chit gations hereunder.
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V1.
EFFECT OF SALE, ASSUS'NMENT OR I..E:AS>r Off' pR1,C)PER71 't<'
A. 1:xcep' as provided herein, the :;batentent shall vest in Chvner and cannot 1,e assigned to a
new owner of all or a portion of thc; Premises and/or improvements, without the prior consent of
the City Council, which consent shall not be unreasonably withheld provided that the Council
determines that the proposed assignee is f nanci;)lly capable [meeting the terms and conditions of-
this Agreement and that the proposed Assignee agrees t:. assume all terms and conditions of this
Agreement. Any attempted assignment without such prior consent shall he .gnouilds im-
terminatia<< of th:s Agreenic- t and the tax abate nient hereunder upon ten (10) days written notice
from the City to 0%vner. Notwithstandinty the above, it is understood and .-Teed that Owner or its
permitte'.i (assignee may assign ,he rights and obligations of this Agreement to Majestic Realty
Corr—my or an afTiiate thereof, the proposed successor owner and deveioper of the distrib,ition
facility, without prior written consent, previded the Assignee is the owner of the Premises, and
Owner gives written notice to the City of the date of the assignment.
B. All ri-,hts and obligations of Owner, its permitted assigns, or Lessee shall he blindiff-111 upon
and inure to their respective successors and permitted assigns.
VII,
NOTICE
Ail notices called for or rcquirtu by this Agreement shall be addressed to the following, or
such other F arty or address as either party designates in writing, by certified mail postage prepaid
or by hand c'elivety:
OWNER. CITY:
MeacbatT: Rail 1 d l Ltd. ?artnership City of Fort Worth
100 east '.5`" .Street, Suite 640 1000 Throcktmorton Street
ForE Wor!h, Texas 7(102 Fort Worth,Texas 76102
1.ESSFIL:
Gary Horvitz
14'l tel. Inc.
333 Continental Blvd.
El Segundo, CA 90245-5012
With at copy to:
Willia:n D- Hayward
iiersche_ Martens, Harxard
Prakelcy &. Urbach. P.C.
17303 Dallas Parkway
51,111-. 70,1, LB 17
Addison. Texas 75001
f'u„c 8 of, 1.
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Y II➢.
CITY COUNCIL AUTII011Z,.UON
This Agreei ent «-as authorizer', by th1, City Council at its inet Ring on the 1 St!) of Januaty,
2000, by Council approving, Mayor and Co, mc.il Corimun°catlou No. C -J_'..'�q`0_ $_illmi-iZIPIV t
the Cit,., M-naoer to w(c cute this Agreement on behalf of tiv� Cite.
IN.
ESI'OPPEL CE"TIFICATE
Any pasty hereto may request an estoppel certificate from another party hereto so long as
the cernfic.ate is requested in connection with a both fide 1-isi4,ess pu.pose. The certificate, which
if -equested xii) he addressed to the Owner, shall include, but not necessarily be limited to, E
statements that this Agreement is i.n full force and effect without defta!lt (or if default exists the
tlatize of default and curative action, which should be unclertalcen to cure same), the remaining
term of this Agreement, the levels and remaining term of the Aboternwit in effect, and such other
matters reasonably requested by the party(i,;s)to receivo the certificates.
X.
OWNER STANDING
Owner, its permitted assignees, and Lessecs :..s parties to this Agreement, shall be deemed a
proper and necessary party in any litigation questioning or .;challenging the vzlidity of this
Agreement or any of the underlying ordinances, resolutions, or City Council actions authorizing
same and Owner shall be entitled to intervene in said litigation.
X1.
APPLICABLE LAW
This Agreement ,Ihall be consirued under tlh_e laws of the State of Texas. Venue for any
action under this Agrecnnent shall be the State District Court of Tarrant County, Texas. This
Agreement is performable in Tarrant County. Texas.
XII.
RECORDATION OF AGREEMENT
A ceilifii,-d copy of this Agreenncrit in recordable form shall be recorded in the Deed
Records of Firs'anit County, Texas.
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XIll.
AMENDMENT
This Agreerntot may be modified by the parties hereto to include other provisions which
could have originally been included in this Agreement or to delete provisions that were not
originally necessary to this Agreement pursuant to the procedures set forth in Title 3, Chapter 312
of the Code.
EXECUTED this jt�7day of W 2000, by the City of Fort
Worth,Texas.
EXECUTED this day of , 2000, by Meacham Rail
191 Limited Partnership(Owner).
EXECUTED this Y day of 2000, by Mattel, inc.
(Lessee). Y
A ST: ZCITY JOFOR ORTH,TEXAS
l Secretary Mike Groomer,Assistant City Manager
APPROVED AS TO FORM AND LEGALitTY:
Sfiti tat Authorization
Aooiaiavi t City Attorney,/ f
Bate: I1` �'� _ Dante
�1dII, !'
Page 10 of 13
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ATTEST: MEA,CHAM RAIL 191
LIMITED PARTNERSHIP(OWNER)
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A MICff lei
?a ie L. Fader,
Title: Manager
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ATTEST: MATTEL, INC. (LESSEE)
BY'r �.
Namjej
Title:
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STATE OF TEXAS
COUNTY OiF TARRANT
BEFORE ME, the undersigned authority, on this day personally appearcil Mike Groomer,
Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to
be the person and officer whose name is Subscribed to (lie tifregoing instrument, and acknowledged
to me that the same was the act of the said CITY 01" 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 lie executed (lie same as (lie act of the said City for the
purposes and consideration therein expressed and in the capacity therein stated. 1
VT UNDER MY HAND AND SEAL OF OFFICE this lj-Ldily of
+. N 2000.
i
Notary Public in a4 for
th tate of Texas t ,�
SARAN JANE ODLE
NOTARY PUBLIC
Notary's Printed Name Stste of Tons
COMM. Eery.01-29.2
STATE OF TEXAS §
COUNTY OF TARRANT
�uCne��1 �a.Jtr�i
BEFORE ME,_ the Undersigned , authority, on this day personally appeared
an ot k—,iii- of a
�EXAS ��M,r �9�rNE;2s�rttsam known to me to be the person whose name is subscribed to
the foregoin4 instrument, and acknowledged to me that he/she executed the same for the purposes
and consideration therein expressed, in the capacity therein stated and as the act and deed of said
corporation.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this t� day
of 2 2000.
Notary Public iii rand for ,;..�,., KIMBERLY SAL
the State of Texas t Notary Put+c,.Sca[e of'lax;,,
7 My Commission Expnc,
l� ttiv'E(z l 4q 4 _. - — w`. `�'•.F August 31,200
Notan,'s Printed Name
11110 111
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wpm
STATE OF TEXAS
COUNTY OF TARRANT § A,,e c
j
BEFORE ME, the undersigned �author0y, on this da personally appeared
1�>�t,�- , � y t
corporation, known to me to be the person whose name is subscribed to
the foregoing instnlment, and acknowledged to ine that he/she executed the same for the purposes
and consideration therein expressed, in the capacity therein stated and as the act and deed of said
corporation.
GIVEN UNDER MY HAND A,0 SEAL OF OFFICE this �� y
2000.
L W
DENISE A.WRENCH!
ry Public an and for � wtr cona�,�sStav EXPIRES
the State of Tex s �' JUNE 22 200,3
�
Notary's Printed Name
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CITY OF FORT WORTH
POLICY STATEMENT'
TAX ABATEMENT FOR QUALIFYING
(DEVELOPMENT PROJECTS 2J` 17/98;
1, OEPE -IJNL PURPOSE AND OBJECTIVES
Certain types of Mvcstment result in the creation of new jobs, new income and provide for
positive eoonomic growth and inner-city economic stabilization which is beneficial to the City as
a whole. Tne Cit , of Fort Worth is committed to the promotion of high quality development in
all parts of&,e City an,. improvement in the quality of life for its citizens.
The City of Fort Wor :x- or. a case-by-case basis,. give consideration to the granting of
property tax incentives eligi'�!e residential, commercial, and industeal development projects.
It is the policy of the Cit, of Fort Worth that consideration of eligible projects Nvill be provided
in accordance with the guidelines and criteria outlined in this document. Texas law authorizes
the Cite of Fort WorLZ to grant tz. . abatcment 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 Coda Ann. Section 312.001,et. seq.).
As
mandated by state law, this policy applies to the owners of real property. It is not the
policv of the City of Fort Worth tc grz.1t property tax abatement to any development
project for which a building permit has been previously issued by the City's Department of
Development. Nothiug 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 rreet the eligibi;y criteria(Section III.) of this policy statement
will be reviewed, - is the obje�:tive of the City of Fort Worth to encourage applications from
projects t':at:
(a) ;:;re located P'n enterprise zones or other designated target areas; or
(b) result in a development with little or no additions: cost to the City; or
(c) result in 1,000 or more new jobs, with a commitment to hire Fort Worth and inner city
residents.
ii. DEFINITIONS
"Abatement" means the full or partial exemption from :3d v31orem taxes on eligible properties for
a period of up to ten years and an amcunt of up to 1.00% of&,e increase in appraised value (as
reflected on the certifled tax roll of the appropriate ct unty appraisal district) resulting from
improvements begun after the execution of the tax abatement agreement. Eligible properties
must be located in a reinvestment zone.
! =` EXHIBIT
A
7
"Reinvestment Zone" is an area designated as such by the City of Fort Worth or State of Texas in
accordance with the Texas Property Redevelopment and Tax Abatement Act, Sections 312.001
through 312.209 of the Ta*c Code.
"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 def ed by 'he 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 Business Enterprise (MBE) and Women Business Enterprise (WBE)" is a minority or
women owned business that has received certification as either a MBE or WBE 'jy either the
".orth Texas Regional a:ertification Agency (1'TI'RCA) or the Texas Department of
Transportation(TxDOT),H4`sway 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.
Ill. ELIGIBILITY CRITERIA
A. RESIDENTIAL PROJECT ELIGIBILITY
A residential development project is eligible for property tax abatement if:
I. Tae project is located in any of the following census tracts: 1002.02, 1010,
1011, 1016, 1017, 1018, 1019 (partial), 1025, 1028 (partial), 1029, 1030,
1031, 1033, 1035, 1036.015 1037.01, 1038, 1040, 1041 (partial) (see Map-
Exhibit"A."); AtiiD
2. a. The pro;:°ct will construct or renovate no less than 50 residential
living units of which no less than 20% shall be affordable(as defined
by the 1.'.S. Department d)f Housing and Urban Development) to
persons ,mth income-,at or belo%v 80% of median family income;OR
b. The project has a:minimum capital investment of$5 million
(exciudina acquisi--°on costs for land and any existing
r..
a..., � :r,;. . . ., „.. c- xa tx, rkla tE"`!';S Rt,y z { �' ei^.y f' tt
3 z kH s 3 H¢I
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z; r �E .�1P ,.... k Win w' � �' .{��Lr�iS?:.'-�.,sia;'t f4.47r a 'r}� tK.r .RrG i;�1�lt�.,a°
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EUGIMM"Y CRITERIA
.,
New FrojeciF
y lzl. order to be ei`gible for rroperty tax e
- rs
t` o:tr a c'cia iit�d� striai ierlrrlopr ent pmjj��':t raust tit;! one of the
following hree cratteria",
;d. k,�ppi� ,C)Mple&.-)rt Will hgVe a �Til^!IT'_t�I`_uu.�i?t.�, iyrvt�slxlent of iQ
million and corrtn�.ias tct } rF ;� rjgje-d upon.percentage of residerlLs
fiarn an eligible izrszer xij, ,Eas,as t:r.a (r�s iciea-I6 ec' on E t'nibit
"A.") for full 7.i.Ire er'nploymen.t_; OR
n „}
D. is loca_edt In the iv,r3c' c.kty (;as identified on k{It �,. or. y
nropmy irnmediately ac} :{::erit �.() the major thoroughfare's which
ser- e rs boundaries to any -A-the,sc' inner c.i.ut census tracts and
corznlits to hire are agaeed 11-an percentage of resirl.ents from an
eligible mailer city census tract (as identified on Exhibit"A") for full
time ernployment.; OR.
a
Is loc.Led c)uisici c{f the "ir me'r city" has a r7inimun capital
;rlvestrr; t of lcss than S m:ilion, and. commits to hire an agreed
u};on percentage o residents ftom an eligible inner cite ;,cnsus tract
(a.5 1denti e on i?xl�dbi.t"A"j for fall rir errtployment.
2. Exit inn Business 7F.xpansiou annr3ior Modernization
In arder to be cligiote ft>r property tax abatement, a facility exparlsron
andlor .rrjoclerm ion by an e.fisting commercia?indf.Lstria business
a,
Upon cornplrtian well hay e a ninimurrz capital irz�✓c `rnent of Sic
Million..; O??.
resu"t Ira. ;izcrea icd— employ-<n-le,t foy GvlttC�I L11L' business g
r
"'ornmits to Lire and Terain an. amtcd upon percentage of residents
l iT-om an eiig"bie inner city t ersti traci (as identified on 1 xlubit
A i for ne-VI,
ft], ! tune positi;�rs; .kr�D
u. �'Y1115t ha.,,%s r3 n*:st!,1-- �1 � � � ,J003 OR (2)
+.� {�c t ? ���;;� o he a��nr used value, as
?t�ert;
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ukhm Fos 1 amp m O- an agmen 11 o -
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cossysukin and App, and m y I )'-% tares in �s
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1 „ i+ r. :Sr>;af ti ,� �f� Cl' A r�r-.a i``T �`AY located
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ul IJ, fi_ t C Sl. :.t r'! ap !"'cat""un �"(" th�� rj
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4. Percent of construction contracts committed to:
a. Fort Worth based firms, and
b. Minority and Women owned Business Enterprises (MBEs and WBEs).
5. Percent of supply and service contract expenses committed to:
a. Fort Worth based firms, and
b. Minority and Women owned Business Enterprises (MBEs and WBEs).
6. The project's increase in the value of the tax base.
7. Costs to the City(such as infrastructure participation,etc.).
8. Other items which may be negotiated by the City and the applicant.
Based upon the outcome of the evaluation, the Economic Development Office
may present the application to the City Council's Expanding Economic
Opportunities Committee.
C. Consideration by Council Committee
Should the Economic Development Office present the application to the City
Council's Expanding Economic Opportunities 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 De,,�-_,-ment 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 to: (a) disregard the Committee's finding
and (b) instruct city staff to incorporate the application into a tax
abatement agreement for Mere 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 ta-x abatement application or
tax abatement agreement. The City of Fort Worth is under no obligation to
proviLle 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 yea., following the year in which a Certificate of Occupancy (CO)
is issued for the qualifying development project (unless otherwise specified in the
ta-x .abatement agreement). Unless otherwise specified in the agreement, taxes
levied during the constriction of the project shall be due and payable.
r ,
F%
X
V6. RECAPTURE
P�
If the terms of the tax abatement agreement are not met, the city Council has the rig, to
cancel or amend the abatement agreement. Ln the event of ricellation, the rccapture of
abated taxes shall be limited to the year(s) in which the default occurred or continued.
VI1. 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 dwing &,e fife 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 cf the tax abatement agreement.
VI11. EVALI.IATIO
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 March 31" of every year during the life of the agreement, aray
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 agrr:ement and shall certify that the
owner is in compliance with e'.bch applicable terns of the agreement. Failure to
report this information and. to provide the required certification by the above
deadline shall result in any takes abated in the prior year being due and payable.
y' IX. EFFECT OF SALE, ASSIGNMENT OR LEASE OF PROPERTY
No tai. abatement rights may be sold, assigned or le.Lsed unless otherwise specified in the
tax abatement agreement. Any sale, assignment or lease of the property which is not
perm,tted iT1 the tax abatement agreement results in cancellation of rl.e agreement and
recapturc of arty taxes abated after the date on which an unspecified assignment occurred.
�, .__.-_.__._�.�.-_.._..—�-_._...�--..-...._.................,-+.m....-n�.nnnravaarua•:rawAr, mtua�Aanmmmutamwwrm n
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DOCUMENTS ARE
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BY
THE BEST COPY
AVAILABLE AND
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QUALITY
MICROFILM SYSTEMS
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PROPERTY DESCRIPTION
STATE OF TEXAS:
COUNTY OF TARRANT:
t BEING a tract of land situated in the San Antonio & Mexi"n Gulf Railroad Company
Survey, Abstract No. 1464, City of Fort Worth, Tarrant Cour,,,.:y, Texas, being a portion
of a tract of land (Tract 1) as described in deed to Meacham Rail 191 Limited
Partnership, recorded in Volume 12819, Page 563 of the Geed Records of Tarrant
Couniy, Texas (DRTCT) and being more particularly described as foilows:
BEGINNING at a cut"x' in concrete set at the location of a 'A" iron rod previously set
at the southwest cr,mer of Lot 1, Block 1, Railhead Fort Worth, Phase IV, an addition
tc t6e City of Fort Worth, Tarrant County, Texas as recorded in Cabinet.A, Slide 4561
of the Plat Records of Tarrant County, Texas (PRTC"r), said paint lying in the east line
of proposed Gold Spike Drive (proposed 68' R.O.W.);
THENCE S 89" 29'13" E, along the south line of said Lot 1, Block 1, a distance of
2004.62 feet to a %" iron rod previously set in the east line of said Meacham Rail 191
Limited Partnership Tract t and the west line of Tract A-R, Block 5 (Railroad Spur)
Drainage & Utility Easement of Meacham 3 Way Center, an addition,to the City of Fort
Worth,'Tarrant County, Texas as recorded in!/clume 388-121, Page 31, PRTCT, said
point being thu southeast comer of said Lot 1, Block 1;
THENCE S 00° 20'46"W, along the west line of said Tract A-R, Bloci:5 and the east
line of said Meacharn Rail 191 Limited Partnership Tract I, a distance of 1763.60 feet to
a W iron rod previously set at the southwest comer of said Tract A-R, Block 5, said
point lying in the north line of proposed Meacham Boulevard (proposed variable width
R.O.W.), from, which a '/7" iron rod previously set at the location of a 318" iron rod
previously found ;now-obliterated) at the northwest corner of the existing platted
terminus of Meacham Boulevard as dedicated by plat recorded in Volume 388-109,
Page 75, PRTCT, bears S 89°39'14 E, 0.38 feet;
THENCIE traversing said Meacham Rail 191 Limited Partnership Tract I, along the
northerly and northeasterly lines of said proposed Meacham Boulevard the following:
N 890 39'14"W, a distance of 27£1.14 feet to a Yz!' iron: rod with a plastic cap set
at the paint of curvature of a non-tangent circular curve to the right, having a
radius that bears N 08° 30'08' E, 1482.93 feet;
Northwesterly, along said circular curve to the right, through a central angle of
21° 22'52", an arc distance of 553.38 feet and having a chord that bears
N 700 48`26n W, 550.18 feet to a Mt" iron rod with a plastic cap set at the point
of tangency-I
N 60"07'00'W, a distance of 550.61 feet to a W iron rod with a plastic cap set
at the point of curvature cat a circular curve to the left, having a radius of
1583.91 feet:
{ EXh'i,31T
z
Northwesterly, along said circular curve to the left; through a central angle of
27° 34'46", an arc distance of 762.42 feet and having a 6iord that bears
N 73" 54'23"W, 755.08 feet to a W iron rod previously V-A.at VIP intersection of
the northerly line of said proposed Meacham Boulevard, with the east line of
said proposed Gold Spike Drive;
THENCE N 000 20'x+6° E, along the east line of said proposed Gold Spike Drive,
traversing said Meacham Dail 191 Limited�Partnership
n 2,930 21 distance of 1115.3
feet or 67 2705
feat to the POINT OF BEGINNING and co f3
acres of land.
k
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I
1
FOLLOWING
DOCUMENTS ARE
R-EPREOCENTED
BY
THE BEST COPY
AVAILABLE AND
ARE OF POOR
QUALITY
niicaorIcM sysTems
L
City of Fort Worth
COMMERCIALANDUSTRIAL
Tax Abatement Application
February 1999
0��THC
Fi IVJLWI
i
Office of Economic Development
City Manager's Office
Fort Worth, Texas 76102
(817) 871-6103
EXHIBIT
Y ,�.
a
k. applicant Information: a
Name Meacham Rail 191 Limited Partnership
p Address 100 East 15th Street, Suite 640 _
Code Fort Worts, Texas 76102
City, State, li.p C _ ..�...
Telephony:( 817
8I.7 332 _ 9050 ext.
Fax -
Internet E-mail addresses(if available):
Contact Person (include title/position). _Michael E. Racier----- _ --
a
2. Propert) Description
Attach 1--gal description or surveyor' metes& bounds description,
3. Current,appraised 'value of]Property
Attach latest copy of property tax statement from the County Appraisal District.
4. Attach a brief description of the project including: services provided or products
manufactured,major customers and locations,etc.
5. Project Description
A. New Facilities
1. Size 1,007,500 T sq. ft.
2. Cast of Construction $
B. Site Development (fariCing, fenc;ng, le.,dscaping, etc.):
n
I. Type of work to be done xcayation, site ga
rdi Iighti
ng, parking, .
perimeter fencing, landscaping
2. Projected costs $ 5,975,_000 _
C. I erso��al Propert�r:
I. Value of:
't. . . . 7ptirn rentory, exported from Texas kii
within 11: d tfsf _ —_.:�o ��i�, �
OC
mac}_azn , Di
CCRO
ery, fungetc. U
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7
PROPERTY DESCRIPTION
l STATE OF TEXAS!
COUNTY OF TARR,ANT:
BEING a tract of land situated in the San Antonio & Mexican Gulf Railroad ad Co portion
Survey, Abstract No. 1464, city of Fort Worth, Tarrant County, Texas,
of r tract of(and riled in)Volume 1281119, Page 583 f the Deed'Reco Records of Tarrant described in deed to Meacharn
partnership, recorded
County, Texas (QRTCT) and being more particularly described as follows.
BEGINNING at a cut"x" in concrete set at the lead Fort Wog/rth,t Phase IV, an addition
at t„Ie southwest corner of Lot 1, Block 1, Railhead
to the City of Fort Worth, Tarrant County, Texas as recorded in Cabinet n the Slide 4561
line
of the Plat Records of Tarrant County,Texas (PRTCT), said point lying
of proposed Gold Spike Drive (proposed 68' R.O.W.);
THENCE S 890 20'13” E, along the south line of said Lot 1,
Block 1 a distance of
2004.62 feet to a '/a" iron rod previously set���of TractsA`R�BI Block Meacham Rail I Iroad pur) �1
Limited Partnership Tract I and the we
Fort
Drainage &Utility Easement of Meacham 3 addition Page 31,to City T�said
Worth, Tarrant County,Texas as recorded i
point being the southeast comer of said Lot 1, Block 1;
THENCE S 000 20'46"W, along the west line of said Tract A-R,
Block 5 and the east
line of said Meacham Rail 191 Limited Partnership Tract id Tract A-R, Block 5, said t to 1, a distance of 1763.60
' a '/z" iron rod previously set at the so (proposed variable width
point lying in the north line of proposed Meacham Boulevard
R.OW,), from which a '/Z' iron rod previously set at the location of a t!8" iron atted
previously found (now-obliterated) at the northwest comer recorded of then volume platted
9,
terminus of Meacham Boulevard as dedicated by P
r Page 75, PFTCT, bears S 89° 39'14 E,
47.38 feet along the THENCE traversing said Meac
h Raill 191 Limited Partnership Traot 1,
northerly and northeasterly lin eof said proposed Meacham Boulevard the followiing-
N
890 39`14"',1J,a distance of 276.14 feet to a 'O2" iron rod with a plastic cap set
at the point of curvature of a non-tangent circular curve to the right, having a
radius that bears N O8 30'08' E, 1482.93 feet;
,} idcr+,l-tive�terl�f,
along said circular curve to the rigl�t�th�through
that of
an a,c distance of 55�..,6 feet any having 0 Set at the point
N 70' 4H'26" W, 550.16 feet tO a '/=" iron rod vv;th a plastic crap
of tangency;
P� tan 07'00"W a distance of��50.61 feet to a '�" iron roll with a plastic cap set
at the point of curvature of a circular curve tU the left, having a radius of
'r 553.91 feet-,
y fr.
I
77rr l
7i
Northwesterly, -ilong said circular curve to and having a ugh a that bears angle
eagle of
270 34'46', an ac distance of 762.42 f ee
N 73° 54'23"W,755.08 feet to edj"tteacharn�o levalyd with the ed$rse ut of
r
the northerly line of said p pod
said proposed Gold Spike Drive;
THENCE N 00° 20'46" E, along the east line of said proposed Gold Spike (give,
traversing said Nlea�;,+am Rail 191 Limited Partnership 2 Tract 1, a disc net or 1 1 .36
feet to the POINT OF BEGINNING and containing ,
acres of land.
iL. .
gills ffli�
EMMONS-
I. Sr
A r t;plJ�-TY A4)M;N!S i HA 1()hi BUILD,''G
:.�`�ix;;To-T 1C0E.'NE�THI�f;FC?f1O.rC yf3TVa'•7WTf-I,T' Y.AS'151�r5-C'3C'S I°
STATE OF TEXAS, COUNTY OF TAtTtRANT s17/s84,1 00
DUNS GARRI SON,ASSF--OR-COLLECTOR
1C i i
376 i9 qS
TAX STATEMENT 1999 x
LEGAL S A & M G RI' cc) SUIVE:'
iTATEUIENT DATE; 0/0911999 A 1464 TR 2 & 3
ACCOUNT: 0000469 8436
FQN.A1464-�_-f' l
OWNER MEACHAM RA L 191 LTD PR�NSHP, AC.�FS:63 .232
PARCELADDRESS. 0000600 MEACHAM BLVD FID:5550000285 EXEMPTION CODES"
"'
LAND VALUE APPRf+t SED Vt L ----
4 1 ,602 , 1 12 �_.__-------___ I Pr�lA�TY 8
IISo2, 112 —--
LAN ---.l CASE TAX IN TE�ES1 _
EXEMPTION� TAXABLE TAX RATE
ENTITIES AMOUNT VALUE_ PEP. 6100 0.00
! 159k8.69' 0,00
_._. __ 0 1 ,802, 1 12 0.865000 4772.64
CITY• 0 1 ,802, 112 0.264A36 357 .23 0.00
COUNTY 0 1 ,802, 112 0.019823 4218.20 0.00
R DIST 0 1 ,802, 112 0.234070 1917.63 0.00
ITAL 0 1 ,802, 112 0, 106410 87302.00 0.00
EGE 0 1 ,802., 112 1 .515000'I SD
_ - -- --
__-- SUBTOTA �4--5-t 6.39 0.00
TOTAL AMOUNT DUE
54,516.39
w
t "CALL 8171884-1100 FOR PRIOR YEAR TAXES DUE WHICH ARE NOT INCLUDED IN TOTAL AMOUNT DUE.
please see rewrss side for v-ePortarst information.
---- _
"Itit rap ponun ctf d)%ra•'canceled cltzcl:><rli r re its your recetp T�TI��.. `MOUNT DUE
_ ^Buach nnrrr_ rasa Irr and rerun thrs p F�JRT'/W{1f*TIIcTX 1'6151 0018 '����.
JUNE GARRI�-IN,PO BOX 901019,
NOTE: PRIOR YEARS TAXES I7IJE 4ir�T !P�CI.UDED I N TOTAL, CALL
IS17�9Ad 1'IOQ. R W5' N ON R_ -
;,vvN1ER MFACHA A!L 19 t LTD PRTNS
A1464-2-A1
E5E00002P,5
aG-O•.r�l. 4F9 436 '39c
IF PAID IN ki,,JUN
f:l Ii F;rT 5 P, FE3 581332.54 i
tii 1• ;Ai+' 1 � `
MAR 59,422.84
"Y
F��.7 t:�;1F71i �„ ?, .� ' P,Pi? 60,513,2 1 k�
603.54
61 ,
n MAY r
if
J.,N 62,693-83
I 73,978.74
i
i9-.:100000'
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STATE t� TEXAS C°OL1IJTYOFSARI�A��T .tc�tirr., i3�E \'JC:P."' �:t?FI� iC FgRrb'JC`i tic eXS7�i14i �.'.O1
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TAX STATE'A€:NT 1999
LEGAL: S A .M G RR CO SuP.VeKY
LESS:STATEMENT DATE: 12i16l1999 L LESS AL'3 1
ACCOUNT: 0000727 7432
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OWNER: MEACHAM RAIL 191 LTD PRTfNSHP, 1'I>1N. A1464 1 P
ACRES: 30.'031
PARCEI.ADDRESS: 000 A
0800 MEACHAM BLVD _ R
EXEMPTION CODA M r------ -- — --m!
"LAN V
861 584 APPRAISE 84 TALC RATE PENAL '°Y&
EXEMPTION TAXABLE VAt_LIE PI-R3w�?_CQ TAX ____ ___.__1 T�J,:'"
TAXING EPtTfTfIES AMAl1T a 7625.02 0.00
FT WORTH CITY 0 86'1,584 0.866'0 2281.79 0.00
p 864.584 Q 26$83' 170.79 0.00
TARRAN'1'COUNTY 861,584 11.019823 0.00
REG WATER DIST + 0 0,234070 2016.71
(a 861,Si-34 916 81 0.00
T C HOSPITAL p 861,584 0.106410 13053.00 0.00
T C COLLEGE p ._ 861.584 �1.51!iMCL �G pO
FT WORTH iSf3 .y.... __ _ ______ _---• �SUSTOTAL 26,064.11
TOTAL AMOUNT DUE
ottrreeaiotr•__..____-._-___._._._
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A Detach of-, cffOrGtior and return e,,Ls portion with your check Pa}ladle to: TOT{��{�}��tj�{Y��E V�
JUNE OARR1SOINI,PO B(-)X" X10/8,FORT'01OR:TH TX 76161-0018 �26,t ouN
,inn MAO UNT IAA 1114
Oy"JNr It PrIEA.CHAM RAIL 191 LTD RR'TNSHP,
pCCi�i;t7�t';i': UOt}()?,2`7712?.. `1949
p� IF P, ID IN IiMO__ UNT pV
}} FE6 27,888.61
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APR 28,931.14
LSO 130 : J-.12869 MAY 29,452.43
` JUN 29,973.73
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Tax Abatement Application
Mattel, Inc. Distribution Facility
Item P. 4 Project Description
Mattel, Inc. is proposing to occupy a 1 million square foot distribution facility to
be constricted in Railhead/Fort Worth that is to be used as a Regional Distribution
Center. This facility will be receiving products from international manufactL.ng
facilities and distributing them to regional Mattel customers. Mattel will also have
a retail store located within this facility for sale of some products to the immediate
local consumer.
This project will include the development of 67 acres at the northwest corner of
Meacham Boulevard and Gold Spike Drive. Located within the project will be a
one rraillion square foot tilt wall building housing distribution and retail operations.
The property development also includes parking for employees, dl&(ribution,and
retail operations. The perimeter of the property and areas around the building will
be landscaped, perimeter fencing and lighting; of operation areas will provide
security of the site.
Tax Abatement Application
Mattel,Inc. Distribution Facility
Item ## 7C Job Description
Wage Structure frr Non-Exempt Employees at Mattel's
South Nest Distribution Center]Fort Worth'FX
Office Clerical-employees who perform various office and clerical functions such
as accounting, human resources, inventory control, traffic functions. These
employees use various PCs, keeping track filling data, lllin ut 33 per hour.filing,
and other normal clerical functions. Wag e rate-
Warehouse positions-
Claxrip Truck Operator-these employees use clamp and lift trucks to,,cove boxed
material around warehouse. May be involved in unloading, storage, staging and
loading of cartons of product. bust pass clamp truck drivers test.
Checker-these employees are involved in verifying product is accurate on
incoming shipments,verifying product to icad lists for shipping, labeling product
per shipping documents and libeling individual cartons for shipment.
utility Operator-these employees a_xe involved in the Promotional Assembly
area
where product may be reworked or repackaged. These employees may fold new
boxes, pack toys in boxes, seal boxes, etc.
The above employees may perform other duties as required during their workday.
Wage rate-$13.30 per hour.
Material handler-these employees are assigned duties such as physically loading
and unloading trailers,sorting of boxes under supervision, cleanup and other
general labor duties. This is the initial job position available to new hired
employees. Wage rate-$9.55 per hour.
FWAN 1111 1111 MIN No=—.
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Tax Abatement Application
1@!Tattel, Inc. Distribution Facility
item # 71) Empaoyee R lits
SljM MARY OF MATTEL EMPLOYEE BENEFITS
Medical Coverage
MA-I-TEL employees are cohered medical coverage under two plans:
CIGNA medical plan
This medical plan is a coanbinati®n of FFC)Itraditional indemnity insurance said is
daxaiaristere cl by Ci gna healthcare. Additionally, under this plan, prescription
drugs
are provided thrc u&%the TDI/Eckerd Health. Services.
Health,Maintenance orgwiixation(ffG)
An alternative to the rase hical plan,is the FLAG provided through Aetna insurance.
With this plan, an employee chooses a primary care physician and all services are
performed through the PCP. Coverage casts are dependent:upon the employees
coverage(individual, individual plus 1, farnily). Doctor visits and prescriptions
are a$10 co-pay.
Dental Coverage
Mattel employees are covered by one of two plans or they may waive .dental
coverage.
Traditional Dental plan: may be used with any dentist and is a traditional
indemnity plan
administered by C IGI�IA he dthcare.
T entail Maintenance Organization. (DM-O) is ar, alternative plan using a primary
care;dentist it initial service must be performed by the PCD or referred by that
ind.kidual for special trcatnwnts.
Vision Coverage
t
Mattel employees are provided with comprehensive vision benefits provided bf
Vision Service Plan (VSP). Under the plan, Mattel employees use participating
doctors or may use roan-participating doctors. In plan doctors have set costs.
Examinations $10 co-pay, lens materials $20 co-pay, contact lenses plan pays 100
percent.
i
Survivors Benefit
Life Insurance
Mattel provides its employees with life insurance in the amount of two times their
annual base salary. Additionally, an employee may choose to purchase
i
supplemental life insurance in amounts of 1-5 times their annual salary. Life
insurance for their dependents may be purchased at group rates in amounts of l;
$5,000 or$25,000.
Accidental Death and Dismemberment Insurance ;
Mattel employees are provided with basic coverage in the amount of two times
their base salary. Additionally supplemental Accidental Death &Dismemberment
insurance is available at 1-5 times their annual base salary. t
Disability Benefit
Short Term Disability (STD)
After 90 continuous days of active employment Mattel employees are eligible for
STD benefits which provide 180 days of income protection if they are unable to
work due to illness or injury. Benefits are provided after five continuous days of
absence. Benefits vary in amounts depending upon employee classification and
length of service.
Basic Long Tenn Disability (LTD)
Mattel employees who have been disabled for 180 days and have received STD 1
benefits receive salary replacement equal to 60�percent oft��pre-disability ebase
salary. These benefits are eligible until age
Additionally, supplemental long-term disability insurance may be purchased to
incre °e the total salary replacement to a 65% level.
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Additional BeDCrIts
Among other henefits provided «rr:
Life balance resource Service
Adoption assistance-may receive; a pay expense T ei'T"-IUrs�-ment of$5000 per
adoption.
i j f z�tlrne ma inium. of$15,0001,
Employee Assistance t'x�agaasn_'assists �wi#ii Welly fc9'asuxrier us family a%icl medical
problems.
Costs
Generally, Mattel employees pay approximately 5`l�ail:d1c: overall benefit costs.
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Tax Abatement Application
Mattel, Inc.Distribution Facility
Item # 12 Benefits to the City of Fort Worth
Mattel,Inc. is proposing to relocate their Regional Distribution Center from
Centerport to Railhea&Fort Worth. The existing CenterportiFort Worth facility
will remain on the tax roles available for another company to use. Mattel will be
retained as a Fort Worth company and will additionally be located in an inner city
and enterprise zone area. Mattel,Inc. is a U.S.based multi-national c p €amity
recognized as the world leader in design,manufacturing, g
products. The North Fort Worth distribution center will enhance the Meacham
Airport/North Fort Worth area offering job opportunities for inner city Fort Worth
residents.
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Tax :abatement application
Mattel,Inc. Distribution Facility
Itern # Ib Success of Project
Mattel, Inc. distributes toys in a highly competitive industrY and must contain
roosts in order to stay competitive. Mattel's t onal expenses,u pantitreal and personal package
includes personnel, shipping, other opera
property taxes. Control and containment Of these costs are all important in
maintaining competitiveness.
If the icornpany is unable to succeed in it,s cost containment efforts, it will be
forced to entertain other optians offering Inventory Freeport Exemption
ubstant alinvestment in
Property Tax Abatements. Mattel is proposing to mace a s
the North Fort Worth Enterprise 7-one and
in the inner city area. Abatement
property tax of the project will assist in meeting cos l objectives and assure
ure contro
that the Fort Worth Mattel operations stay in Fort orth
6. Project Construction:
A. What percent of the construction costs(5A.&B. above) will you commit to spend with:
1. Fort Worth businesses? . 25
2. Minority and Women owned Business Enterprises? 6
B. When will cons ruction start? February 25, 2000
C. How many construction jabs will be created? Soo
D. What is the estimated payroll for these jobs? $7,680,000
7. Employment:
A. If this project is an expansion or modernization of an existing facility:
I. How many persons are currently employed? 166
2. What percent of TA. above are Fort Worth residents? 13 %
3. What percent of 7.A above are Inner City residents? 3.6 %
B. Please complete the following table.
First Audit Year Fifth Year Tenth Year
New Jobs to be Created
Less Transfers*
Net Jobs -o- -o- -o-
%of Net Jobs to be
filled by Fort Worth See Attached Description Abatement Structure
Residents
%of Net Jobs to be
filled by Inner City see Attached Desc iption Abatement St ucture
Residents
If any employees will be transferring,please describe where they will be transferring from.
* Must be at least 25%
C. Attach a description of the jobs to be created(technician, engineer, manager, etc.),tasks
to be performed for each, and wage rate for each classification.
D. Attach a brief description of the employee benefit package(s)offered (i.e. health
insurance, retirement, public transportation assistance, day care provisions, etc.)
including portion paid by employee and employer respectively.
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$. Regarding supply and service expenses (i.e. landscaping, office or manufacturing s
pipplies,janitorial services, etc.):
A. What is the amount of non-sole source: supply and service:expenses? '19
B. What percentage will be committed to Fort Worth businesses? 50 %
C. What percentage will be committed to Minority and Women Owned Businesses?_2.5.2/6
9. Is the property appropriately zoned for the project? Yes
10. Is the property platted?If yes,will replatting be necessary? Final Plat Required
11. Attach a description of any environmental impacts associated with this project. None
12. Attach a description of any direct benefits to the City of Fort Worth as a result of this
project(i.e.sales tax,inientery tax, development fees,etc.)
13. Do you intend to pursue abatement of.
County Taxes? 0 Yes 0 No
School'faxes? G Yes 0 No
14.What level of abatement do you request: Years? zo Percentage? 100%
15. Is any person or firm receiving any forma of compensation,commission or other
monetary benefit based on the level of incentive obtained by the applicant from the City
of]fort Worth? If yes,please attach details. NQ
16. On an attachment,explain why tax abatement is necessary for the success of this
project. Include a business pro-forma or other documentation to substantiate your
request.
On behalf of the applicant, I certify the information contained in this application(including all
attachments) to be true and correct. I further certify that, on behalf of the applicant,I have read
the policy Statement: Tax Abatement For Qualified Development Projects" and agree to comply
with the guidelines and criteria stated therein.
Manager General Partner
Name Title
Date
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City of FoH Worth, Texas
emayor and communieneforo
DTF. y —� REFERENCE;NUMBER Ir L_OG�IAME FACE
1/18/00 G2FINC►ii a:a:� 1 of 4
SUBJECT— MAKE FINDINGS CONCERNING A PROPOSED TAX ABATEMENT AGREEMENT
WITH MEACHAM RAIL_ 191 LIMITED PARTNE.RS!-fiP AND AUTHORIZE EXECUTION
OF THE AGREEMENT
It is recommended that the City Council:
R,.
1. Find that the improvements con.ained within the attached Tax Abatement Agreement are feasible
and practical and would be a benefit to the land and to the ,;ity after the expiration of the Tax
Abatement Agreement; and
2. Find that written notice of the City's intent to enter into the attached Tax Abatement Agreement
("Agreement") and copies of the Agreement were delivered to all affected taxing units in accordance
with state law; and
3. Find that the terms and conditions of the Agreement and the property subject to the Agreement
meet the criteria of the City's Policy Statement: Tax Abatement for Qualifying Development Projects
(the "Tax Abatement Policy") as approved by M&C G-12143 (Resolution No. 237:); and
4. Authorize the City Manager to enter into the attached Tax Abatement Agreement with Meacham
Rail 191 Limited Partnership and Mattel, Inc. in accordance with the Tax Abatement Policy.
i
The property subject to abatement is located in North Fort Worth inside Loop 820 in the North
Enterprise Zone at the Railhead development. In a separate item on today's agenda, the City Council
has been asked to designate this property as Tax Abatement Reinvestment 'Lone Number 34.
r,.., r owned b Meacham Rail 191 Limited Partnership. It is expected to be
� The pro,��rty is currently Y
conveyed to Majestic Realty, Inc., a development company, and leased to Mattel, Inc.
The proposed rK,jrjvestment.Pone is located in COUNCIL. DISTRICT 2.
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Irtat;ei, inc. is a distributor of toys. The company is in i.he proce.ss of expanding its operations. The
c:ompariv intcands to build a 1,007,50'1 square foot distribution center with an estimated cost of
construction of $19.75 r ili;on. Total investment, including personal property and inventory will exceed
$100 million.
n BASE AE3l"aTEl'Vit;.N TERMS:
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CYf 9 of Fort Worth, Texas
a r 1%
qVinlyart an %Ww"n *1 Communication
UATE —_ REFERENCE NUMBER LOG NAME F1 AGE ^_
1/18/00 G-12790 I 02FINDINGS C 2 of 4
siTB_icT MAKE FINDINGS CONCERNING A PROPOSED TAX ABATEMEN"f AGREEMENT
WITH MEACHAM RAIL. 191 LIMITED PARTNERSHIP AND AUTHORIZE EXECUTION
OF THE AGREEMENT
1. Employment (50%)
It is estimated that the project could ultimately employ over 250 people. Mattel, Inc. plans to begin
operations with 166 employees, of which a minimum of 16 will be Fort Worth residents and 6 will be
"inner city" residents for an abatement of 50%. it Maftel, Inc. is unable 20 maintain these goals, the
i base abatement will be reduced by 112 percentage point for each Fort Worth resident below the
minimum 16, and reduced by 1/2 percentage point for each "inner city" resident below the minimum 6.
2. Construction (20%)
Regardino utilization of Fort Worth based businesses, the company has committed 25% of total
construction cost ($13,750,000) to Fort Worth construction contractors and/or subcontractors. If this
commitment is missed, the base abatement will be reduced by 10 percentage points.
Regarding Minority Business Enterprises (MBEs) and Women Business Enterprises (WBEs), Mattel,
Inc. has committed 6% of total construction cost ($19,750,000) to M/WBE construction contractors
and/or subcontractors. If this commitment is missed, the base abatement will be reduced by 10
percentage points..
ADDITIONAL ABATEMENT TERMS:
Additional tax abatement increment can be achieved in any given year through the Increased
employment of Fort Worth and "inner city' residents and through the company's supply and service
expenditures with Fort Worth and M/WBE vendors. The ability to increase the abatement above the
base will be as follows:
Employment 20% maximum additional abatement
i
a For each additional Fort Worth resident above the 16 base commitment of Fort Worth employees,
Mattel, Inc. will obtain an additional 112 percentage point of tax abatement.
a For each inner city resident above the 6 base commitment of inner city employees, Mattel, Inc. will
receive an additional 1!2 percentage point of tax abatement.
Si,lap.ly nd Serzire = '10% maximum additional abatirlment
a For spending 50% of local discretionary funds with port Worth vendors, Mattel, Inc. will receive 5
percentage points of tax abatement with a 5% cap.
w i ors 1Pnd'n �_'��e 7021 O!SGTr:tionary' fl:. S with cer(if;e �ti.i�1njrs� venoiors, Matted, Inc.- will receive
5 perr;e ,lage �o �t .�` tax a,-,at=�rriew '_erWpeo �oft Vvortn !III! `vBF will be counted at 1.5
1 nes 'va aa.
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City of Fort Wot1h, Texas
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1,��L.��MS EF:F LOG�Al 1�
DATE 1/18/00 EFF-FiEW fat-1279Q 02FINDINGS 3 of 4
SU—BJ-E--C—T "—-`MAK—E -FINDINGS CONCERNING A PROPOSED TAX ABATEMENT AGREEMENT
WITH MEACHAM RAIL 191 LIMITED PARTNERSHIP AND AUTHORIZE EXECUTION
OF THE AGREEMENT
The total tax abatement has a cap of 100% per annum.
SUMMARY OF ABA'7EMENT TERMS:
Base Abatement= 70%-
Retaining current employees 166 total (16 Fort\North/6 inner city) 50 percentage points
Employing FortJVorth contractors 25% of construction costs 10 perr entage points
Employing MJWBE contractors 6% of construction costs 10 percentage points
Additional Abatement= 30%
Employment = Um
0 For each additional Fort Worth resident above the 16 base commitment of Fort Worth
employees, Mattel, Inc.will obtain an additional 1/2 percentage point of tax abatement.
0 For each inner city resident above the 6 base commitment of inner cibj employees, Mattel, Inc.
will receive an additional 1/2 percentage point of tax abatement.
au pl2j I and Service:-7_1_00/4 iiil
_ma;� um
_
• For spending 50% of local discretionary funds with Fort Worth vendors, Mattel., Inc. will receive 5
percentage points of tax abatement with a 5% cap.
• For spending 25% of local discredonary funds with certified MANBE vendors, Mattel, Inc. will
receive 5 percentage points of tax abatement. Certified Fort Worth M/WBE companies will be
counted at 1.5 times value.
If the maximum abatement (1000/0) is reached, the abated taxes are projected to be $183,637.50
annually. At the l$88/500 tax abatement level, tently. jeetteinventory will be , .00 annuallyCur Mattel, Inc. pays property taxes of $158,326.50
annually to the City of Fort Worth, which wiil continue.
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City of Fort Worth, Texas
"affor anti Council communicatiol-11
DATE E REFERE�JCE NUMBER �1 LOG NAME —
PA
1/18/00 1 G-127'90 02FINDiNGS 4 of 4
SUBJECT MAKE FINDINGS CONCERNING A PROPOSED TAX ABATEMENT AGRE::MENT
WITH MEACHAM RAIL 191 LIMITED PARTNERSHIP AND AUTHORIZE EXE( UTION
OF THE AGREEMENT _
FISCAL INFORMATION/CERTiFI CATION:
The Finance Director certifies that this action will have no material effect on City funds.
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�ruh nifr¢i!for C'it} rRdn.^y,nc's f U\Q �4f Ciiti VT CENTER AM4T.!NT f CITY S:CRS"ARY
Office hy: fto`--- -- — — — — -- --
Mik.,Groomer
I C>ripinacingepzr naent glcad: i-----.— —
CITY MACIL
Forri Higgins .)AN 18 1000
i �u.ditio�a21 inforcttatint: � ` �'y.,,.�,fia,<.."
City Secretary t Ne
:;�ina 14a,,h Fl�j�r city of Fort Mors Texas�