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Home My WebLink AboutIR 7537 Page 1 of 2 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7537 ,#Tom, mat top? To the Mayor and Members of the City Council July 23, 1991 0 Subject: WILLIAMSON-DICKIE TAX ABATEMENT APPLICATION BACKGROUND: On July 2 , the Office of Economic Development received a tax abatement application from the Williamson-Dickie Company for its proposed new development in north Fort Worth. The application meets the current policy for City Council consideration and is included as Attachment "A".. Attachment "B" is the current City of Fort Worth Tax Abatement Policy Statement 's purpose and criteria. According to the application, the proposed project is a 352 ,000 square foot warehouse, distribution and truck fleet center on 33 .5 acres of land on Blue Mound Road, north of the Currency Plant . The project costs are as follows : Site Development 725,000 Structures 6, 425,000 Improvements 7 , 470 , 819 $14, 620,819 This amount exceeds the policy's minimum capital investment requirement of $10 million for projects outside the inner-city areas. The Williamson-Dickie Company must move from its existing facilities because of the Vickery realignment of 1-30 . The Williamson-Dickie property to be purchased by the State Highway Department for the 1-30 realignment and the 1990 TAD valuations are as follows : Site ' 90 TAD Valuation A. Owned Tract 4C01 $1 , 629,401 Tract 4C04 481,195 Total $2 , 110,596 B. Leased Property 770,477 1990 TAD Valuation Total $2,881,073 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS Page 2 of 2 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7537 �j,V�op To the Mayor and Members of the City Council July 23 , 1991 ux Subject: WILLIAMSON-DICKIE TAX ABATEMENT APPLICATION Development of the new site on Blue Mound Road will require sewer and water infrastructure improvements . Those costs as follows: City Developer Total Sewer $68,700 $203,000 $271,700 Water 30 ,000 70 ,000 100 ,000 Total $98,700 $273,000 $371 ,700 RECOMMENDATION: As noted in the application, the Williamson-Dickie Company has been a Fort Worth business for 69 years and has a long standing relationship with the community. It is a business which the community wants to retain in Fort Worth. Development of land adjacent to the Currency Plant with a $14 million project as outlined in the application could stimulate further development in the area and help offset the city's investment in the infrastructure in the area. For the above two reasons , the Office of Economic Development is recommending approval of this tax abatement application, but for an amount less than the maximum permitted by law. The 1990 valuation of the Williamson-Dickie sites to be acquired by the State Highway Department is approximately $2 . 9 million. If the City Council wishes to consider an abatement of the value above the current valuation, then an abatement of 75% could be considered. For an investment of $14,620 ,819, a 75% abatement would result in a taxable valuation of $3,655,204. Attachment "C" shows calculations for a 75% abatement . If the City Council grants a 75% abatement of structure and improvements (e.g. , valuation = $3,655,204) for 10 years, the amount of city taxes abated will total approximately $1 million. After the abatement ends , approximately 7 years of taxes on the structure and improvements would generate approximately $1 .1 million. Therefore, in the year 2009 the abated city taxes and city infrastructure costs should be recovered using constant tax dollars . David Ivory City Manager -ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS ATTACHMENT "A" APPLICATION FOR TAX ABATEMENT CITY OF FORT WORTH, TEXAS 1 . Property Owner: Williamson Building Eartn .rship Company or Project Name: Williamson-Dickie Mailing Address : P.O. Box 1779 Ft. Worth. Tx. 76101 Telephone Number: (817)336-7201 Company Representative to be contacted: Name and Title: Paul LozUk Warehouse Distribution Mgt- Mailing Addeess : same Telephone Number: Same 2. Project Description and Location: The project consists of construction of a 352 .000 square fl_ warehouse, distribulion. and truck fleet center on 33.5 acres bounded by Blue Mound Road to the west and U.S, 287 Jo the east . 3 . Brief Description of Activities to be Performed at This Location. Include a brief Description of Products and/or Services : Distribution Center for &Dp&rel and related items . storage and distribution of trim accessories and cloth for manu- facturing facilities . Truck fleet operations center. 4. Date Projected for Occupancy of Project/Initiation of Operations : 12-1-92 5 . Eligibility Criteria: A. Eligilbility is met as op", structure and ipargQaal Prgperly costs will be over 1110,00Q. Q00, B. Attached. 6. Eroject,-Fiseal Impact A. Existing Value (per Tarrant Appraisal District) : 1 . Land 14, 300 per acre 2. Improvements 3. Personal Property B. Estimated Total Cost of Project (i.e. , new value) : 1 . Site Development 1 725. 000 2. Structures $ 6 ,425, 000 a. Improvements- $ 7 , 470 ,819 Conveyor-Permanent Backing and Mezzanine 3. Personal Property $ 915,85E 7 . Local Business/DBE Impact: A. Percentage of Project Development and Construction Dollars to be Spent With Fort Worth Based Contractors or Sub-Contractors : 90 % A*� B. Percentage of Project Development and construction Dollars to DBE (Disadvantaged Business Enterprises) : 8. Employment Impact A. Construction Employment Estimates : Start: Month/Year Oct/91- Completion Date: Aug/92 Number of Construction Jobs: 200 Estimated Construction Payroll: 3,000 ,000 B. Permanent, Full-Time Employment Estimates at Project Location: 1 . Current (if applicable) : a. Annual Payroll: $ 0 b. Number of permanent full-time employees : 10,14 0 2. At Start/Opening Date: f. Annual Payroll: $ 3, 181 ,710 b. Total number of permanent , full-time employees : 183 c. Number of Employees transferred from outside the city of Fort Worth: 0 d. Number of new permanent full-time employees : 0 e. Percentage of new jobs to be filled by Fort Worth residents : 0 3 . 5 Years After Opening: a. Annual Payroll: $ 3 , 938 , 830 b. Total number of permanent, full-time employees: 239 c. Number of employees transferred from outside the city of Fort Worth: - 0 d. Number of new permanent full-time Jobs : 56 e. Percentage of new Jobs to filled by Fort Worth residents: 100% — 4 . 10 Years After Opening: a. Annual Payroll : 4 , 290 , 350 b. Total number of permanent, full-time employees : 265 c. Number of Employees transferred from outside the city of Fort Worth: d. Number of new permanent full-time Jobs : 26 e. Percentage of new Jobs to be filled by Fort Worth residents: 10Q % C. Types of Jobs/Job Titles CRT/Computer- Forklift Operators RIP.ntriCal Mechanical Support Order Fillers QUality TpApaction/Alterational ShiDging Clerks Sewing/Superyisory/Office Staff Truck F30-ut Drivers 9. Describe Any Off-Site Infrastructure Requirements : Water: Domestic water and lawn irrigation requirements are normal . Fire protection water requirements are Eianif scant. . 1 ,500 GPM with 90 minute duration. Sanitary Sewer: Buildina will require a 6" service line to main connection. A"% Streets: Site access via Blue Mound Road will suffice until Highway 287 access road is constructed, Storm Sewer: None exist currently. All drainage now via open swales. City should install enclosed system in future Other: Gaa Service : Building will require approximately 15, 000 CFH @ 5 to 10 PSI * 10. Is Property Zoned Appropriately? Yes - No x Current Zoning G Required Zoning I 11. Is Property Platted? Yes _ No x Will Replatting be Necessary? Yes X No 12. Impact on Local Businese(When .Project is Fully Operational) : A. Annual value of total supplier and services contracts: 1 2! 00. 000 B. Annual value of supplier and services contract for Fort Worth businesses : $ --9Q% C. Annual value of contract dollars to DBE: $ -101 13. Describe any other direct benefits to the City of Ft. Worth as a result of this project(e.g. , sales tax revenue) . This project can anchor continuing develQpment and growth for the northern corridor of Ft . Worth. providing a clean. stable work environment , 14 . Environmental Impacts , If Any, Created by the Project: No nezative environmental iMpacts . 15. Justification for Tax Abatement Request: Allachcd - 16 . Financial Information - Attach a copy of the latest audited financial statements or, in the case of a new project, a business plan. The application for tax abatement is submitted with the acknowledgement that additional certified financial information may be required. It is further understood and acknowledged that the City Council of the City of Fort Worth encourages the use of local consultants, construction firms, and suppliers (with special emphasis given to disadvantaged business enterprises) and that, if approved, the final abatement agreement will require use of local firms when possible in conjunction with this project. Authorized SIgAture May 30. 1991 Date Attachment 5 . Eligibility Requirement B. The Williamson-Vickie Company has long prided itself in its record as an equal opportunity employer and remains committed to that practice. Although a relocation of our operations may require leaving the downtown area, our hiring activity will continue to focus on the inner city of Fort Worth. This effect will allow us to maintain the relative ethnic profile that we currently erdoy. Attachment 15. Justification for Tax Abatement Request: The Williamson-Dickie Manufacturing Company has been a member of the Fort Worth business community for 69 years. The Fort Worth operations employ approximately 600 with employment worldwide numbering 5, 200 . We have international operations in Canada, England, Honduras, Jamaica, Mexico, Puerto Rico, Belgium, and Belize. Recently, we were notified by the State Highway Department that due to the relocation of IH30 through downtown Fort Worth we would be forced to vacate our current warehousing-distribution center by December of 1992 . We are using this occasion to review our present operations and it is our intent to construct a state of the art distribution center. This 352, 000 square foot facility (expandable to 600, 000 square feet) will also include our cloth and trim warehouse and truck fleet operations . It is Williamson-Dick ies 'des ire for these operations to remain in Fort Worth where we enjoy a long standing relationship with the community and our work force. However, as a result of alternatives presented to us by other communities we must use this relocation opportunity to select the most conducive and cost effective site possible. It is in this regard that we request assistance in the form of a full tax abatement for ten years to help justify relocating these operations within the City of Fort Worth. Alternatives , which offer a lower tax base, moving incentives, excellent site locations, and available work force, exist for Williamson- Dickie to relocate outside Fort Worth . The information contained in this application reflects the economic impact the construction of this facility and the rentention. of Jobs associated, would have on this community. We therefore request that every consideration be given in evaluating this request. 0001, 0 Location of Williamson-Dickie Workforce AON This table shows the relative concentration of the workforce by ethnicity. For example, the table shows that over 1 in 5 black workers, or 21% of all black workers, live in just one zip code. Combining the 5 most concentrated resident zip codes for black workers accounts for 2 in 3, or 67% of Williamson-Dickie's entire black labor force. The remaining third of black workers are residing elsewhere in Tarrant County's 72 zip codes . I. Percentage of Workforce (by ethnicity) in 5 most concentrated zip codes Total Total 1 2 4 5 1-5 6-72 Black 21% 18% 13% 11% 6% 67% 33% White 10% 6% 6% 6% 6V 33% 67% Hispanic 32% 23% 13% 9% 6% 83% 17% All 11% 11% 10% 6% 6% 43% 57% Note.- Due to rounding for ease of presentation, columns 1-5 may not add up to the "Total 1-51, column. II . Zip codes used in Table I (Number of employees in parenthesis) Black jdhite Hispanic All 1. 76119 (23) 76108 (11) 76110 (17) 76104 (29) 2 . 76104 (20) 76135 7 ) 76106 (12) 76110 (29) 3. 76105 ( 14) 76110 6 ) 76104 7) 76119 (26) 4. 76112 ( 12) 76114 6 ) 76115 5) 76106 ( 17) 5. 2 at ( 6) 76133 6) 76114 3) 76105 ( 16) III . Overall ethnic profile of workforce Total - 275 employees Black - 112 employees or 41% of total White - 110 employees or 40% of total Hispanic - 53 employees or 19% of total 0 Transportation Method Williamson-Dickie Workforce Drive 192 ( 70%) Carpool 36 ( 13%) Dropped Off 34 (12% ) Public Transportation 12 4%) ZIP Code Map Fort Worth and Vicin ity ZIP Codes 76092 76052 76248 76051 76020 76135 T A R R A N T 76034 76179 76137 76180 761 1 3t 76021 76039 1 820 761*18 76053 76106 76117 0 in 76111 0 76108 N 76127 76114 7601 f °p 761 12 610 76012 130 76107 6103 0 76104 N -760tS 76116 76105 5- 766013 76010 120 76129 76110 76109 76122 76016 76015 76014 0 in 76119 76115 120 76132 120 in 76126 :5 7613 in 0 76134 76017 76140 W Cif 76018 76036 76119 76028 7 063 jj now Denton Coutir• Hispanic Employees 1-4 15-19 1.35W 5-9 20-030 377 10-14 114 GripcNint Like IN isc Councv, -lliance:airport 114 v 287 Eagle Mockmain Lake 3 > 121 81 26 Dallas/F tt NV,,h 199 intemacidnal Airport 1-320 183 Like NVo•th 1.820 Meach 10 A 1.820 193 121 �Ij 1.30 1.30 1-30 • 1.820 287 360 1-20 ') I-35W Lakc.Arlinzon 1-20 1-320 377 287 Benb=k L4kc 5 Mil SpinksAirport Dcutoii Counn- Black Employees 0 1-4 0 15-19 1-35W 5-9 20-30 10-14 1 114 Grjpe%int Lake Muc CountIt'! I-- — ant _. _ ._ — :111iancc airport 114 287 Eagit Moan Eain Lake 1.35W 377 121 IN 81 26 199 Dallas/Rn IVrth4 InEtnu6 nal Airport• lake Worth 1-820 > 1-820 183 McachaA 10 JON 1-17, Airport 1-320 183 CarswtUAS.B. 1.30 1-34 1-30 0 I-S20 1.20 287 y 360 Uke Arlington 1-33%V 1-20 1-820 377 287 Benbrook Lake 5 Mu Spinks Airport . . Denton Count\ �ite Employees 114 Grapevine Uke IUUnce Airport Ejslt:\�Intain Ukc 1-351V 377 IN 81 26 Dallajt rt WortZh Lake Worth 1-820 1.320 183 -\,cactuAm 10 Airport ' 1-820 183 Qrswell A.F.B. 1-30 1-30 1-30 1-20 2S7 360 I-35W Lake Arlington Reabrook Lake Spinia Airport Denton Coumv Total Employees 1-4 0 1:5-19 5-9 20-30 377 10-14 114 �\%',,, �irjpclinl Uk, NN71se Countv� Alliance Airport v 237 FagleMonnuin Lake > 121 6 DaMu;Tc r,N:.\,th 199 • Intcrnati nal Airport 1-820 1.820 193 Lake Worth Beacham 10 Airport J I* 0 1-820 183 Carswell'AS.B. 1-30 1-30 1-30 ........... 46 1-320 1-20 237 3w 1-35W �ualac Arlington 1.20 1-820 377 287 Bcnbrook Lake 5 Miles Spinks Airport ATTACHMENT "B" POLICY STATEMENT TAX ABATEMENT FOR COMMERCIAL/INDUSTRIAL PROJECTS CITY OF FORT WORTH L General Purpose and Objectives Certain types of business investment show high promise of creating new jobs, new income and positive spillover effects beneficial to the City. Therefore, the City of Fort Worth will give consideration, on a case-by-case basis, to providing tax abatement according to state law to the owners of real property for projects which stimulate economic growth and diversification in the City of Fort Worth, Texas. New, as well as expanding and modernizing facilities and structures, will be considered. Evaluation of a tax abatement request will be based on the information provided in the tax abatement application. However, the City of Fort Worth is under no obligation to provide tax abatement to any applicant. Priority consideration will be given to projects located in the enterprise zones and those projects which result in a development with little or no additional cost to the City and/or result in 1,000 or more new jobs. 000` 11. Definitions "Abatement" means the full or partial exemption from ad valorem taxes of eligible properties in a reinvestment zone designated as such by the City of Fort Worth for economic development purposes. "Modernization" means the replacement and upgrading of existing facilities which increases production, updates technology, or substantially lowers the cost of operation and extends the economic life of the facility. "Reinvestment Zone" is an area designated as such by the City of Fort Worth in accordance with the Texas Property Redevelopment and Tax Abatement Act, Sections 312.001 through 312.209, Tax Code. Z Ill. Criteria A. Tax abatement may be granted for a development project, excluding land, which has a minimum capital investment of 1. $10 million, 00,11 OR 2. $500,000 if the business commits to hiring residents from an eligible "inner city" area for full-time, permanent positions. A map of the eligible areas can be obtained from the Office of Economic Development; however, the "inner city" is defined as a census tract having at least two of the following four criteria: (1) Unemployment rate greater than 1.5 times the state rate. (2) 20% or more poverty. (3) Low income (70% or more of the household have income at or below 80% of the city median). (4) Population loss equal to or greater than 207o. A project of less than $500,000, which is located in the inner city areas, may be eligible for consideration if the City Council determines it is in the best interest of the City. B. The state law prohibits tax abatement of existing tax base. Abatement can be considered only for the increase in valuation above the existing valuation of a particular property and for a maximum term of 10 years. The amount and terms of the abatement will be determined by factors such as the costs to the City, the project's increased valuation to the tax base, and the number and types of new jobs and new or expanding local businesses resulting from the project. C. The "Application for Tax Abatement" farm must be completed and submitted to the City Manager outlining the following: 1. project specifications, 1 costs and benefits to the City, 3. employment impact in the City and the region, 4. fiscal impact, 5. community impact, 6. projected construction dollars to be spent on the project with a percentage of such dollars that would be awarded to Fort Worth contractors and subcontactors, and 7. projected total annual supplier and professional service contracts in terms of dollars, and the projected percentages of each such category that will be awarded to Fort Worth companies and entities, during the abatement period. A Fort Worth company is one which has a principal office within the city limits of Fort Worth. 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