HomeMy WebLinkAboutContract 28283 (2)�f`�Y ��G��'1�Al�li
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AMENDMENT NO. 1 TO CITY SECRETARY C�NTRACT NO. �6341
TAX ABATEMENT AGREEMENT BETWEEN
CZTY OF FORT WORTH AND COTTON DEPOT, L�,C '
Tl�is AMENDMENT NO. 1 TO CITY SECRETARY C�NTRACT NO.
�6341 (G6Amendment"} is entered intp by and between the CITY OF FORT WORTH
{"City"), a home rule municipal corporation organized under the laws of the State of
Texas, az�d COTTON DEPOT, LLC ("Owner"), a Texas limited lia�ility company.
The following statements are true and correct artd form the basis upon which the
parties have entered into this Amendment:
A. On or about Novernber 1, 2400 the City and Owner enter�d into a Tax
Ab�tezxken.t Agreement ("Agreemeut"), which is a public document on file i� the City
Secretary's Office as City Seczetary Contract No. 26341. Under the Agreement, Owner
agreed to construct at least iwo hundred (200) residentzal urban lofts and livelwork
spaces, as moze specifically provided in the Agrec;ment (the "Required �mprovements",
the construction of whi.ch is defined as the "Project") an property tY�at Owner owzis in
the downtown area of the City (the "Premises"}. Tn return, the City agreed to abate up to
ane hundred percent (1p0°/u} of the real prop�rty ta�es generated froin the i�ncrease in the
taxable value of #he Premises, as mare sgecifically provided 'zn the Agreernent.
B. The Agzeeznent zequi.res that the value of the Required Improvements
upon completion be at least $17,100,004. In addition, the Agreement requires that Owner
5i1�15t3IIt1�i�I� compiete the Project by Decem�er 3I, 2002. Failure to construct the
Required Improvements with a miniznuzr� value of $17,100,000 anc� to camglete
substantially th� Pro�ect by December 31, 2002 constitutes a breach of the Agreement by
Owner ax�d gives tk�e City the right to terminate ihe Agreement.
C. The parties acknowledge that the intended cost of the Project under t�e
Agreement should be $13,780,004, not $17,100;000 as stated in the Agr�ement, which
vaiue also includes Own.er's casts of acquiring the �rernises. In addition, various
unforeseen circumstances ha�e delayed Owner's initiatian of the Project. As a zesult,
Qwner has xequested that the Agreement be amended to reflect the actuai intended costs
o� the Project and tha.t Own�r be given additional tirne to coznglete substantially the
Project. Because the City believes that the City will benefit by h.aving additional
residential units in and around downtown and �herefore supports the Project, tk�e City is
willing ta amend the Agreem�nt as requested by Owner.
NOW, THEREFORE, the City and Owner, for an.d in consideration of the
znutual promises, co�enants and agreernents contained herein, and for other �ood and
valuable considaration, the receipt arid adequacy of vvkuch are hereUy aclrnowled��.
agree as follaws:
� �''. �
1. The firsi sentence af Section I.A of the Agre�rnent is hereby alnended to read as
£ollows:
Owner shall construct, or cause to be constructed, on and within
the Premises certain impro�emenis (i) consisting o� at least two hundred
(200) residential urban apartments and/ar live/work spaces (ii) having a
cost upon camplation af at least Thirteen Million Seven Hund�red Eighty
Thousand Dollars ($13,780,000), including site development CQ5t5 (the
Required Improvements").
2. Section I.B o�the Apreement is hezeby amended to read as fallows:
Owner covenants to compl�te substantially, as detern�ined by the
City in its sale and�reasonable discretion, t�e constnlction of the Required
Tmpro�ements on or before December 31, 2004.
3. AIl teznn�s, conditions and provisions of the Agz'eement not specifically amended
in this Amendment sh.all remain in full force and effect. Any capitalized terms not
defined herein sha11 have the mea�ings assigned to them in the AgreErnent.
EXECUTED as of the last date sef forth below:
+ 4
B�. _r � ' a _
Reid Rector
Asszsta.z�.t City Manager
Date: , _ .
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Date:
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CITY OF FORT WORTH;
COTTON AEPOT, L�.C:
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By: � r ' L' ` �f , )
Name � � - • - � '
7'itle
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APPROVED AS TQ FORM ANn LEGALITY:
By' _ . �--� .
Peter Val�y •
Assistant City Attorney
M&C: . , � � , � �� .
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STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day pez�sanally appeared Reid
Rector, Assistant City Maz�ager of the CITY �F F�RT WORTH, a mu.xzicipal
cozporatian oz'ganized under the laws of the State of Texas, kn.own to me to be the person
and officer whose narn.e is subsc�ibed to the faregoing instrument, and aclrnowledged to me
that the same was the act of the C�TY OF FORT WORTH, that he was duly authorized ta
perfarrz� the same by appropriate resolution of the City Cauncil of th� Cit}+ of Fort Worth
and that he executed fhe sam� as the act af the CITY OF FORT WORTH for the
putpos�;s and consideration therein expressed and in the capacity therein stated.
GNEN UNDER MY HAND AND SEAL OF OFFICE this r�9�day of
��'�'��� , 20�2.
�� �
Notary Public in and far
the State af Texas
�05 � 1IA �/�RNA.S
Notary's Printed Name
STATE �F 1..+� �
CQUNTY �F � �1���-' §
=o� ��� , ROSELLA BARNES
NOTARY PUBLIC
��, � � State af Texas
9k'oF,� Comm. Exp. 03-3�-20Q5
BEFORE ME, �.e under�igned authority, on this day personally appeared
�Q,K "�nt�p.� � , �rp.; c��P.iCi of COTTON DEPOT, LLC, ltnnv5m
to me to be the person whose name is subsczibed to the foregaing insirument, and
acknowledged to me fhat s�ie executed the saFne for the purgoses and consideration therein
expressed, in the capacity therein stated and as the act and deed of COTTON DEFOT,
LLC. •
GNEN UNDER M� HAND AND
� �' day of ��P.('1� �, n �L. �
��.u.�,a..� C�. �c..���. C�re�
Notary Public ir�.,and for
the 5tate of (�
�EAL �F QFFICE this
, 2402.
�( �. �nn �t� �'�, v�-
Notaly's 1'rinted Name
�`ziy o�'�FoYt �o�ih, Texas
Mayor ar�d Cou�ci[ Gorr�r�un�ca��o� __ _
DATE . REFER�NC� NUMBER LOG NAME PAGE
121171Q2 C-'194�0� � __ 17COTTON � 1 of 3
sua��c�r AMENDMENT TO CITY SECRETARY GONTRACT NQ, 26341, TAX ABATEMENT
AGREEMENTWfTH�OTTQh10�,I�QT.LL� ___ . �_.__.. �
RECOMi'JfENDATION: .
lf is recQmm�nde�f that the Gity Councii autharize the Gity Manager ta execute the attached
amendment ta Ciiy Secretary Gantract f�a. 2634�, a tax abatement agreement with Cottan Depat, LLG
(C�tton Depflt), ex�ending the amaunt of time required for camplation af various r�a! properEy
improvements and revising #he minimum cast required for those improvements.
DISCUS�I�N: .
Under City Secretary Contract Na. 26341 (M&C C-182�9 dated �lugust 29, 2000}, the City Councii
granted a tax abatemer�� to Gotton Depot confingent on th� canstruction ot 20D residential lofts with
liuelwark space. Under the terms of tt�� aTigina� tax abatement agreement, Cottan Depoi was io inves#
$17,100,aa0 in improvemenis, remo�e the billboards an the property, ar�d create seven new�obs.
During the past two years, Cotton Depot has experienced unanticipated deiays as a result of the
en�ironmer�tal remediatior� process tt�at began in 2000 to ready the property for cons#ruction of the
lofts. The remediation process was �ecently completed. Hawever, suff�cient time was not avaiEable for
the lofts to be substantially completed � by �ecember 31, 2002, as re�uired by the agreeme�t. ln
addition, the minimum inuestment requiremen� of $17,10�;00� under the agreement erroneously
included land acquisitian costs, which sh�uld not be fig�red int�o this transactEon, The correct value af
the real property improvements is $13,78Q,�00. .
�n No�ember 12, �ao2, �he Economic and Commur�ity Development Commiitee recQmmended tt�at the
City amer�d the tax aioatement agreement to extend the construction deaciline from December 31, 2002,
to December�31, 2004, and to clarifiy that the value of the improv�ments�to be constructec� an the
property shoujd be at least $13,780,000, not $17,100,000. .- .
The structure of the abatement wi�l remain the same:
� Cotton Depot will rec�ive a grad�aated ten-year tax abatemen�-on real property that cauld reach
a maximum of 11J0°/a ann�ally. Personal property will not be abated. The abatement is based
Qn Gatton Depot's commitments with regard fia con�tructic�n expenditures, tatal s��ply and
service spe�ding, and emplrayment. . �
�"ity of Fo�t �o�th, Texas
M�yor and Cou�ci� Comn�u�ic��io�
L�Ai� REF�RENGE NUMB�R LOG NAME PAGE
12/17/02 C�� 9402 � 17C�TT�N � 2 of 3
sus�Ecr AMENDMENT TO CITY S�CRETARY CONTRACT NO. 263�4�, TAX ABATEMENT
AGREEMENT WITH COTTON DEPOT, L.LC
�
j The abatemeni is structured as fallows:
�
' Base abatement of 75% for the fo[lawinq:
� -
'' + 20°/4 of cor�str�ction �expenditures to MlWBE companies; and
�. 30% of constTuction exp�nditures fQ Fort Worth companies; and
� R�mo�al of the twa billboards tF�at are currently on the �raperty; and
o Environmental remediafion of the. property.
If any of th� base abatement cammitm�nts are not met, #he base abatement will be z��o,
Additionaf abatement of 25% for the followin�:
o Annual Emplavment
Total employment
Fort Worth r�sidents
"]nner C�ty" res�dents
_ 7
_ 5
- 2
a Annuai Su�nlv and Serv9ce Exqer�ditures
Total expenditures
Fort Worth companies
MIWBE companies
- $200,000
- $140,000
- $ sa,o�o
in any year that tne annua! cammitments are not rnet in either tt�e ernployment or supply and servic�
expenditures categaries, the additianal abatement percentage will be zero.
The total tax abatement has a cap o� 100°/a per annum. It the maximum abatement is reacned, the
abated taxes are prajected to be $151,335 ar�nually.
�ity of �ort b�arth, Texas
Mayor ��d �a.u�ci� Cor�rr�unicatio�
�AT� REF�RENCE i�UMBER LOG NAME PAGE
12/17/02 �d� ��,Q� ---� 17C�TTON �---.---- _ 3 af 3
suB.��cr AM�NDMENT TO CITY SEGRETARY GONTRACT N�. 26341, TAX ABATEMENT
AGREEMENT W�TH COTT�N ❑EPOT, LLC __ __
, FISCAL fNFORIViATI�NlCERT1FiGATION:
The Finance Director certifies that no expenditure of funds is associated with aPpro�ra� of th�s
amendment.
RR:k
Sa6mitted fur City Manager's
Offcc by:
Reid Rec#or 6140
Originating llepartment �Tead:
Tom Higgins
Additianaf Informaiion Contact:
Ardina WashingWn
I �'�� I ACCOUNT �
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Gi92 � {fram)
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8003 �.
CEHTER I AMOUNT
CITY SECRETARY
1
1 APPRt�VED 12t17/02
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