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INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7450
To the Mayor and Members of the City Council April 3, 1990
Subject: IMPACT OF AMERICAN AIRLINES MAINTENANCE BASE
FORT WORTH AN RT - QUARTERLY REPORT
In June, 1989, American Airlines selected Alliance Airport in Fort
Worth as the location for a new aircraft maintenance facility. To
encourage American Airlines to locate on Alliance Airport, the City
of Fort Worth agreed to provide a number of on-site and off-site
improvements . These improvements were needed to make the site viable
for the development of American' s project .
At the time the City agreed to provide the necessary improvements, it
was anticipated that the American Airlines maintenance facility would
have certain positive impacts on the local economy. Council has
requested that the City Manager provide a periodic report detailing
the actual impact of American Airlines maintenance facility on the
City.
The quarterly report from the City Manager to Council will contain:
1 . Selected measures of American Airlines activities at the
AAMB. (SEE ATTACHED TABLE. )
2 . Evaluation of the City's performance in capturing benefits
deriving from the AAMB.
3 . Analysis and interpretation of the degree of conformance
between the City's benefit capture performance and the
City' s economic development goals . Explanation of the
City's better-than-expected or shortfall performance in
reaching goals along with suggestions on how the City may
improve benefit capture performance .
In agreements between the City and American Airlines , certain
performance goals were identified both for the corporation and the
municipality, but specific benefit capture goals were not included.
City goals with respect to a project of this type usually include:
A. Improved employment opportunities for Fort Worth residents .
B. Improved business opportunities for existing Fort Worth
firms and/or the attraction of new firms to the City.
C. Improved City fiscal condition by providing new public
revenues .
Fort Worth was encouraged to provide incentives to attract the AAMB
by the potential benefits identified by economist Ray Perryman, who
was retained by the Perot Group to develop an economic impact
analysis . The following performance measures are derived from
Perryman' s studies :
-ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
Page 2 of 2
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INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7450
April 3, 1990
To the Mayor and Members of the City Council
Subject: IMPACT OF AMERICAN AIRLINES MAINTENANCE BASE
FORT WORTH ALLIANCE AIRPORT QUARTERLY REPORT
1 . At least 40% of all permanent AAMB jobs should be held by
Fort Worth residents .
2 . At least 50% of all construction contracts (by value)
should be captured by Fort Worth firms .
3 . At least 50% of all supplier contracts (by value) for goods
and services should be captured by Fort Worth firms.
4. By 1992 , the City of Fort Worth should be gaining at least
$2 million annually in "spillover" tax collections (sales
tax and hotel/motel tax) ; by 1995, $4 million.
S . Beginning in 1992, the City of Fort Worth should realize
annual increases in property taxes of at least $1. 5 million
in the area north of Western Center Blvd . This is based on
an annual expected investment of at least $180 million in
industrial , commercial , and residential property and
assumed to be taxed at the 1989 tax rate.
000' The City Manager' s quarterly report to City Council will focus on the
preceding five indicators of benefit capture performance. In addi-
tion to the attached table, the report will include estimates of
performance on all five of the goal performance measures . American
Airlines has agreed to supply the base information for portions of
the table and for developing the other estimates of benefit capture.
David Ivory
City Manager
DAI : ry
Attachment
-ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
QUARTERLY REPORT ON AMERICAN AIRLINES MAINTENANCE BASE
FORT WORTH ALLIANCE AIRPORT
Activity This Quarter Last Quarter Total to Date
Construction Impact
Number of construction Jobs xxxx xxxx xxxx
Value of Construction xxxx
Contracts ($000)
Impact of AAMB Operations
Number of AA Employees at AAMB xxxx
Average Compensation ($ Monthly) xxxx
Number of AA Employees at AAMB xxxx
Who Live in City of Fort Worth
Average Compensation ($ Monthly) xxxx
Selected Indirect Impacts
Total Value of AAMB Supplier xxxx
Contracts ($000)
Total Value of AAMB Supplier Contracts xxxx
With Fort Worth Firms ($000)
Number of Students Enrolled in Local xxxx
Schools in Aircraft Maintenance
and Related Courses
Number of Graduates of Local Schools xxxx
(see preceding) Hired by AAMB or
Other Related Local Firms