HomeMy WebLinkAboutContract 29095-A2 CITY SECRETARY
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AMENDMENT NO. 2 TO
CITY SECRETARY CONTRACT NO. 29095
ECONOMIC DEVELOPMENT PROGRAM AGREEMENT
WITH PIER 1 SERVICES COMPANY
This AMENDMENT NO. 2 TO CITY SECRETARY CONTRACT NO.
29095 ("Amendment") is made and entered into by and between the CITY OF FORT
WORTH (the "City"), a home rule municipality organized under the laws of the State of
Texas, and PIER 1 SERVICES COMPANY ("Pier 1"), a Delaware statutory trust and
the successor to Pier—FTW, Inc.
RECITALS
The City and Pier 1 hereby agree that the following statements are true and
correct and constitute the basis upon which the City and Pier 1 have entered into this
Amendment:
A. The City and Pier 1 previously entered into that certain Economic
Development Program Agreement, a public document on file in the City Secretary's
Office as City Secretary Contract No. 29095, as amended by that certain Amendment No.
1 to City Secretary Contract No. 29095, a public document on file in the City Secretary's
Office as City Secretary Contract No. 31728 (collectively, the "Agreement").
B. The City and Pier 1 wish to amend the Agreement to change the definition
of"Pier 1 Property"to reflect the intent of the parties.
NOW, THEREFORE, in consideration of the mutual benefits and promises
contained in the Agreement and this Amendment and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
agree as follows:
AGREEMENT
1. Section 3 (Definitions) is hereby amended so that the definition of "Pier 1
Property"reads as follows:
Pier 1 Property means (i) the Pier 1 Site and all improvements
located thereon so long as the Pier 1 Site is owned or leased by Pier 1 or
another entity that uses the Pier 1 Site for its Corporate Offices
Page 1 OFFICIAL RECORD
Amendment No.2 to Economic Development Program Agreement CITY SECRETARY
between City of Fort Worth and Pier 1 Services Company �.WORTN,TX
1
taxable business personal property owned or leased by Pier 1 and located
on the Pier 1 Site.
2. All capitalized terms used but not defined in this Amendment shall have the
meanings ascribed to them in the Agreement.
3. This Amendment contains the entire agreement between the parties with respect
to the matters set forth herein. All provisions of the Agreement that are not specifically
amended by this Amendment shall remain in full force and effect.
EXECUTED as of the last date indicated below:
CITY OF FORT WORTH: PIER 1 SERVICES COMPANY:
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(Susan Alanis Name:C AHD tes N• i r
Assistant City Manager Title: Exe.�4 v e V,c e Pie5%fie^f
a d r- r0
Date: Date:
APPROVED AS TO FORM AND LEGALITY:
By: Attested by:
Peter Vaky
Deputy City Attorney
Marty Hendrix, dby Secretary
M&C: C-24924 5-24-11
OFFICIAL RECORD p0� �O 096 r 40
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CITY SECRETARY 4 ��
FT. WORTH, TX
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Page 2 aa�
Amendment No.2 to Economic Development Program Agreement T11]Qyp�
between City of Fort Worth and Pier 1 Services Company
City of Fort Worth, Texas
Mayor and Council Communication
DATE: Tuesday, May 24, 2011 REFERENCE NO.: C-24924
LOG NAME: 17PIERlAMEND
SUBJECT:
Authorize Execution of Amendment No. 2 to City Secretary Contract No. 29095, Economic Development
Program Agreement with Pier 1 Services Company to Change the Definition of Pier 1 Property as
Described in the Agreement (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute Amendment No. 2 to City
Secretary Contract No. 29095, an Economic Development Program Agreement with Pier 1 Services
Company to change the definition of"Pier 1 Property" as described in the Agreement.
DISCUSSION:
In 2002 the City and Pier 1 Services Company (Pier 1) entered into an Economic Development Program
Agreement (the Agreement), in which the City agreed to pay Pier 1 certain Program Grants in return for
the construction by Pier 1 of the building now located at 100 Pier 1 Place (a/k/a 100 Energy Way) and the
use of that building as corporate offices.
C In March 2008, Pier 1 and Chesapeake Plaza, L.L.C. (Chesapeake) announced plans that Chesapeake
would be purchasing the land and improvements located at 100 Pier 1 Place. As acknowledged by all
parties at that time, Pier 1 had the right to assign all or part of its rights and obligations (including an
undivided interest in Pier 1's obligations) under the Agreement to Chesapeake without the City's consent.
If the Agreement were assigned to Chesapeake, the City would be obligated to pay Program Grants
required by the Agreement to Chesapeake.
Because the original purpose of the Agreement was to provide Pier 1 with an incentive to maintain its
corporate offices in the City, the parties agreed in 2008 that the City would continue to look to Pier 1 for
performance under the Agreement rather than to Chesapeake, as an assignee. The parties' intention was
that (a) Pier 1 could assign an undivided interest in the obligations under the Agreement and (b) the
Program Grants payable under the Agreement would continue to be based on property taxes received by
the City attributable to the site and to business personal property owned or leased by Pier 1.
In order to fulfill the representations made by the City in 2008, the Agreement needs to be amended to
change the definition of"Pier 1 Property". The amended language would read as follows:
"Pier 1 Property means (i) the Pier 1 Site and all improvements located thereon so long as the Pier 1 Site
is owned or leased by Pier 1 or another entity that uses the Pier 1 Site for its corporate offices, and (ii)
taxable business personal property owned or leased by Pier 1 and located on the Pier 1 Site."
All other terms and conditions of the Agreement would remain the same.
The project is located in COUNCIL DISTRICT 9.
Logname: 17PIERIAMEND Page 1 of 2
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on City
funds.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
CERTIFICATIONS:
Submitted for City Manager's Office by_ Susan Alanis (8180)
Originating Department Head: Jay Chapa (5804)
Additional Information Contact: Robert Sturns (8003)
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i,nename: 17PIER I AMEND .,_