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AlVIENDMENT N0. � TO CITY SECRETARY CUNTRACT NO. 19790
T.AX ABATEMENT AGREEMENT BETWEEN
CITY OF FORT WORTH AND MOT4ROLA, TNC.
This AMENDMENT NO. 2 TO CITY SECRETARY. COI�TRACT l�l'O.
19794 ("Ame�tdment") is entered into by and between the CITY OF FORT WORTH
("Cr�y"), a home rule municipal eorporation organized unc�er the Iaws of the State of
Texas, and MOTOROLA, INC. ("Owner"), a D�laware carporation.
The following statements are true and correct and form the basis upon which the
parties have ent�red into thzs Amendment:
A. On or about June 25, 1993 fihe City and Owner entered into City Secretary
Contract �CSC) No. 19790, as amended on or about May 22, 1995 pursuant to CSC Na.
21015 (collectively, the ��Agreement"). Under the A�eement, Owner agreed tv
construct, and has constructed, improvements, as more specifically provided in the
Agreement (the "Required Improvements") an praperty that �wner owns in the City
(the "Original Premises"), as specifically described in Exhibit "A" of CSC No. 2101 S,
whieh is being retitled Exhibit `°B- I" pursuant to this Amendmenf. In return, the Citp
agreed #o abate (i} up ta sev�nty percent {70%} of the real property taxes generated from
the increase in the taYable value of Qriginal Premises o�er its value in tlie 1993 tax year
as a result of cflnstruction af the Re�uired Improvemcnts and any o#her irnprovements
completed on the Original Premises after June 2S, 1993, �nd (ii) up to seventy percent
(7�%) of the tangible personal property taxes generated from the increase in the taxable
value of tangible personal praperty located on the Original Premises over their values in
the 1993 tax year. The Agreement is a public document on file in the City Secretary's
Office.
B. Owner wi�hes to sell the Original Premises to a third party and to lease
back a portion of the Original Premises together with a portion of the Required
Itnprovements (the "Revised Prem�ises"), as rnore specifically described in th� map
attached hereto as Exhibit "B-2", which is hereby mad� a part of this Amendment for all
purposes. Because the structure of the Abaternent granted under the Agreement is
predicated on Owner's owning the entire Origmal Premises, Owner requests, and the City
consents to, an amendment to the Agreement that ailows, to the extent le�ally
pern�issible, Owner to continue receiving Abatement in the manner contemplated by the
Agra�rnent as a lessee of the Revised Prernises.
NOW, THEREFORE, the City and Owner, for and
mutua� prorr�ses, covenants and agreements contained her�in,
va�uabie consideration, the recaipt �nd adequacy a� whic� at
agree as follaws:
in consideration of the
and for �oth�r good and
; hereby acknowledged,
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1. Sections III.A, III.B and III.0 of the Agreement are hereby amended to read as
follows:
A. �ubject to the terms asid conditions of this Agreement, the City
hereby grants a taat abatement ("Abatement") to Owner relative to (i) the
ta�cabie leasehold interesC in the Revised Pxemises, as authorized by
Saction 312.204(a} of the Texas Tax Code (as amended by Acts 2001,
77th L�g., eh. 1258, � 1) and as limited and further provided by Section
III.B. below, and (ii) the tangible personal property on the Revised
Premises, excluding in�entory and supplies and excluding tangible
personal property locaied on the Revised Premises before 7une 25, 1993.
B. The value of the Abatement on the ta�cable leasehold iniarast in the
Revised Premis�s shall b� up io seventy percent [70%) of the :increase in
the taxable leasehold value of the Revised Premises caused by
construction of the Required Tmprovemants on the Revised Premises and
any additional irnpro�ements completed thereon by Owner after June 25,
1993. In the event that the appraisal district with jurisdiction o�er the
Revised Premises does not have or cannot calculat� the value of the
taxable leasehold intcrest in the Revised Premises for #he 1993 tax year,
the City and Ovvner will jointly request, and Owner will pay a11 costs of,
the appraisa� dist�ict with jurisdiction over the Re�ised Pr�:mises to
approximate �such value, and the amount af Ahatement on the taxable
leasehoid interest in the Revised Prernises will be based on this
approximation. Natwithstanding the foregaing, in no evez�t will the value
of the Abatement on t�e t�able leasehold interest in the Revised Premises
exceed the value of the Abaternent that Qwn�r would have received under
CSC No. 1979D, as amen�ed by CSC No. 21015 as the awner oi the
R�vised Premises.
C. Tha value of the Abatement on tangible personal property located
an the Revised Premises and taxable to Owner, excluding inventory and
supplies and excluding tangible personal praperty Iocated on the Revised
Premises vn June 25, 1993 or before, shalI �e up ta seventy percent (70%)
of the increase in value of such tangible personal pxoperty on the Revised
Premises since the 1993 tax year.
�. Owner hereby acknowledges and agrees that beginning with the 20Q2 tax year,
Owner shall forf�it any Abatement attributable to that portion of the Original Pr�mises
that is not inciuded as pa:rt of the Revised Premises.
3. Exhibit "B�2" is hereby made a part of the Agreern�nt for aFl purposes. Exhibit
"A" of CSC No. 21015 is hereby retitled Ex�iibit �Bd1 ".
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4. All tez�ms, conditions and provisions of the Agreement not specifically amended
in this Amendment shall remain in fu11 force and e�'ect. Any capitalized tezms n.ot
defined herein shall hav� the rneanings assigned to them in the Agreement.
EXECUTED as of the l�st data set iarth below:
CITY OF FORT WORTH:
By: . � : _ �- ,-. `t
Reid Rector
Assistant City Manager
Date: , _ ' ' � .� _
APPROVED AS TO FORM AND LEGAL�TY:
By: � _ ._ _ _ _. -
Peter Vaky ���
Assistant City Attorney
M&C: . � � . - _ _
MaT�ROLA, INC.:
,
By. � �
Ric ard J: Kriva
Vice President & Director
Real Estate 8� Development
Date:
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STATE OF TEXAS §
COUNTY OF TARRANT § �
BEFQRE ME, the iu�.dersigned authority, on this day personally appeared Reid Rectar,
Assistant Ciiy Manager of the CITY OF FORT WORTH, a municipal carporation arga�ized
under the laws of the State of Texas, known to me to be the person and officer whose name is
subscribed to the foregoxng instrument, and ackza.owledged to me that the same was the act. of the
CITY OF FORT WORTH, that he was duly authorized to perform thc same by appropriate
resalution of the City Council of the City of Fort Worth and that he executed the same as the acf of
the CI"I'Y OF FORT WQRTH for th� putpases and consideration therein expressed and in the
capacity therein stated.
GNEN iJNDER MY HAND AND SEAL OF OFFICE this o�%�day of
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Notary Pu�lic in and for
the State of Texas
�os�� ���.�v�.�
Notary's Printed Name
STATE OF ILL1NOiS
COi]NTY OF COOK
{� �Y p� ROSELLA BARN�S
�� �� A107ARY PUBLIC
�9��p Sta#e 4f Texas
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BEFORE ME, the undersigned authority, an this day personally appear�d Richard J. Kriva,
Vice President and Directar of MOTORULA, INC., known to me t� be tlxe person whose name is
subscribed ta the faregoing instrument, and acknowiedged to me that s�e executed the same �'or
the puxposes and consideration therein exp�essed, in the capacity therein stated and as the act and
deed of MOTOROLA, T1�1C.
Gi�TEN UNDER MY HAND AND SEAL OF OFFYCE this
Of • � . �� _ � : � � , 2��2.
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Notary Public in and far
the State of Illinois
Notary's Printed Name
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C'ity of �ort Wort`h, Texas
Mayor.��d Counci[ Commur�ica�ior�
DAT� REFERENC� N[JMBER LOG NAME PAG� �
12I17102 Cd9 9�03 � 17MOTOROL,A � 1 of 2
sua�ECY AMENDMENT TD CITY SECRETARY CONTRACT NO. 19790, TAX AgATEMENT
AGR�EMENT WiTH [�IOTOi���A, lN�,
RECOMMENDATION:
It is recommen��d
amendment to City
(Matorola).
DlSCU5S10N:
that the City Council authorize the Ciiy Manager ta execute the attached
5ecretary Contract Na. 19790, a Tax Abatement Agreement with Motorola, Inc.
On June 8, 1993 {M&C G-10187), t�e City Council aut�arized execution of a Tax Abatement Agreement
with Motorola far the creation of a Glnbal Paging Infrastruct�re Division �GPID}. LJnder the t�rms of the
original agreement, for a 7�%, ten-year tax abatem�nt, MatoroEa invested $28,000,0�0 in land and
improvements, and committed ta hire 1,500 employees bythe tenth year�af abatement.
With the exceptian af East year, when the Fort Worth emplayee companenf was missed, Ma#orola has
exceed�d al! of its�cammitments for the pas# seve� years. With a significant change in the..economy
relative ia ihe tecf�nology industry, company representafives anticipate the need to se11 a partion af the
property that is currently receiving abatement.
Motarola iias notifie� the City that it wishes ta -sefl the real praperty covered by the abatement and to
lease back a partian ofi that prope�ty from the new awner. Qn December 10, 2002, at a meetir�g of the
Economic and Community .Developmen# Committee, Motorola representati�es requested #t�at the City
amend the Tax Abatement Agreement to allow the �ax abatement to be available ta Motarola as a
lessee for the remaining three years of th� abatement. Under suc� an amendment, Motorola's
abatemen# af real property taxes would be limited ta the �alue of the ieasehold interest. The Cammiitee
recommended #he amendmeni be forwarded #o the City Council for consideration.
The structure of the abatemeni and Maiorola's goals thereunder will remain #he same, as fallows:
Annual Emniovment
Total employment
Fort Warth residents
�,40Q (years 5-9)
840 (years 5-9)
Annual Sunplv and Service Expenditures
Total expenditures
Fort Warth companies
$650,000
$520,OQ0
and 'I,50Q (year � 0)
and 900 �year 'IO)
M/WBE companies $ 32,500
�l �1 O. f �' D �'� �4Y�'�li �'e�[�S
I�l�yor ar�d Cou��i� Cor�r�ur�ic��io� -
�AT� R�FERENC� NUMSER LOG NAME PAGE
121171�2 �-� 94Q3 I 17MOTOROLA I __ 2 of 2
SUBJECT AMENQMENT TO C[7Y SECRETARY CONTRACT NQ. 1979�, TAX AgATEMENT �
AGREEMEh�T WITH M�TORO�A, INC. _ '
Due ta ecanomic conditions, Moforola also req�ested that tE�e City at�end its Tax AbatemEnt Agreement ta
restructure the t�rms ot the abatement and Motorc�Ia's goals thereu�der, as follows:
Annual Emplovment
Total smployment
Fort Worth residents
1,500 minimum
525, or 35%, whichev�r is greater
Ar�nual Supqlv and Service Exoendit�res
Total expenditures $1,000,400 minimum
Fort Worth companies $ 800,a00 minimum
M1WBE companies $ '100,400 mir�9mum
The Committee recomm�nde� that a second amendment to Motorola's Tax Ahatement Agreement or�
this basis be fnrwarded to the City Council for consideration in early 2003 after a propased document
has been negatiated.
�ISCAL iNFORNiATIONICERTIFICATION:
The Finance Dtrector certifies that no expenditure of funds is associated with approval of this
' amendment. �
RR:k
Submitted for City Manflger's I FUH� � ACCDUNT I
Of�ce by: I (to]
�
Raid Ractor 6140 I
Origlnattng Departmeut Head:
_ � �
Tom Higgins • 6192 � (from)
Addittanal Tnformation Cantact: I
Ardina Washtngton, $003
CENTER I AMOUN�
CI'1 Y SECR�TARY
1
APPROVED 121181q2