HomeMy WebLinkAboutIR 7549 FINFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7549
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To the Mayor and Members of the City Council
X Subject: PRINTPACK, INC. , TAX ABATEMENT APPLICATION
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BACKGROUND:
On May 8, 1991, the office of Economic Development received a tax
abatement application from Printpack, Inc. , for its proposed new
development on a 20 acre site in Carter Industrial Park in' south
Fort Worth. The application meets the current policy for City
Council consideration and i-s included as Attachment "A" .
According to the application, the proposed project is a flexible
packaging manufacturing facility. The company's customers
include such companies as Frito-Lay. The project costs are as
follows:
Site Development $ 200 ,000
Structures 10,000,000
Improvements (3 pieces of 9,500 ,000
machinery weighing 30 tons each)
$19,700,000
)1'P. This amount exceeds the policy's minimum caprital investment
requirement of $10 million for projects outside the inner-city
areas .
The Printpack Company has outgrown its existing facility in Grand
Prairie and wishes to expand to a new site. Its choice for a new
site has been narrowed to either Carter Industrial Park in Fort
Worth or a site in Mansfield.
Development of the new site in Carter Park will not require any
city costs for off-site infrastructure improvements .
The Office of Economic Development is recommending approval of
this tax abatement application at an amount to meet the dollar
amount of Mansfield's tax abatement. To meet Mansfield's offer,
Fort Worth would need to agree to an abatement of approximately
50% of the structure and improvements for 10 years. If such an
agreement can be reached with the City of Fort Worth by the first
part of October, Printpack will select Fort Worth for its new
developme
David Ivory
City Manager
-ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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APPLICATION FOR TAX ABATEMENT
CITY OF FORT WORTH
1. Property Owner. Printpack, Inc.
Company orProject Name: Printpack Converting Plant
Mailing Address: P. 0. Box 534030
Grand Prairie, TX 75053-4030
Telephone Number. 214-641-4421
Company representative to be cc)ntacted:
Name and title: Allen Gastinger - General Manager
Mailing Address: P. 0. Box 534030
Grand Prairie, TX 75053-4030
Telephone Number. 214-641-4421
2. Project Description and Location. Flexible Packaging Manufacturing Facility
in Carter Industrial Park (Lot A3, Block 4 of TAD records)
3. Brief description of activities to be performed at this location, including a description of products to be
produced and/or services to be provided:
Printing and laminating of flexible substrates which will eventually be
used to package food and non-food items.
4. Date Projected for Occupancy of
Pruiect/h-dtiation of Operations: 4/93
S. Eligibility Criteria (Attach statement describing how project meets tax abatement policy criteria):
In excess of $10 million dollars.
6. Project Fiscal Impact
A. Existing Value (per Tan-ant Appraisal District):
2. Improvements $ -0-
3. Personal Property $ -0-
CITY OF FORT WORTH APPLICATION FOR TAX ABATEMENT
B. Estimated Total Cost of Project (Le, new value):
1. Site Development $ 200,000
2. Structures $ 10,000,000
3. Persona, Property (3 pieces of equipment $ 9,5Q0,00c)
Property weighing 30 tons each)
7. Local Business/DBE Impact- TOTAL $ 19,700,000
A. Percentage of Project Development and Construction Dollars to 90% Tarrant County
be Spent With Fort Worth Based Contractors or Sub-Contractors: 50% Fort Worth
B. Percentage of Project Development and Construction
Dollars to DBE (Disadvantaged Business Enterprises): UNKNOWN since they %
will be subcontractors
8. Employment Impact:
A. Construction Employment Estimates:
1. Start: Month/Year 4/1/92
2. Completion Date: 1/1/93
3. Number of Construction jobs: 50-100
4. Estimated Total Construction Payroll: UNKNOWN
B. Permanent Full-Tune Employment Estimates at Project Location*:
1. Current(if applicable):
a. Annual payroll: 5,088,000
b. Number of permanent full-time employees. 150
2. At Start/Opening Date:
a. Annual payroll: - 5,088,000
b. Total number,of permanent, full-time employees: 150
c. Number of employees transferred from
outside the city of Fort Worth. 140
d. Number of new permanent full-time jobs: 10
e. Percentage of new jobs to be filled by
Fort Worth residents: 80% to 100%
3. S Years After Opening:
a. Annual payroll: 8,000,000
b. Total number of permanent, full-time employees: 200
c. Number of employees transferred from
outside the city of Fort Worth. 0
d. Number of new permanent full-time jobs: 50
e. Percentage of new jobs to be filled by
Fort Worth residents: 80% to 100%
Ok*Each application will be reviewed on its merits. However, absent extraordinary circumstances, a minimum of 25% of the
employees should be Fort Worth residents. Company shall report annually and a prorata reduction of the abatement may
occur if the percentage.is not met.
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CITY OF FORT WORTH APPLICATION FOR TAX ABATEMENT
4. 10 Years After Opening.
a. Annual payroll: $10,000,000
b. Total number of permanent, full-time employees: 250
c. Number of employees transferred from
outside the city of Fort Worth: 0
d. Number of new Permanent full-time jobs: 50
e. Percentage of new Jobs to be filled by
Fort Worth residents: 80% to 90%
C. Types of jobs Created (job Titles)
, Skilled and semi-skilled
production labor.
9. Describe Any Off-Site Infrastructure Requirements: NONE
Water
SanitarySewer
Streets:
StormSewer.
Other.
10. Is Property Zoned Appropriately? Yes X No
Current Zoning- "ill Light Industrial
Required Zoning:.
11. Is Property Platted? Yes No No plat on record
Will Replatting be Necessary? Yes x No
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CITY OF FORT WORTH APPLICATION FOR TAX ABATEMENT
2. Impact on Local Business (When Project is Fully Operational):
A. Annual value of total supplier and services contracts:
$ 10,000,000
B. Percentage of total supplier and services contracts to he awarded to Fort Worth businesses.
50% %
C. Percentage of total supplier and services contract dollars to be awarded to DBE.
Unknown %
13. Describe any other direct benefits to the City of Fort Worth as a result of this project(e.g.,sales tax revenue):
— Goods and services are now bought in Dallas and Grand Prairie.
14. Environmental Impacts, if any, created by the project:
15. Justification for Tax Abatement Request(Attach documentation to substantiate and more fully describe the
justification for this request. Include the amount of the abatement requested and show how it will contribute
to the financial viability of the project.)
16. Financial Information-Attach a copy of the latest audited financial statements or,in the case of a new project
a business plan. D & B Not Available.
The application for tax abatement is submitted with the acknowledgment 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.
Printpack is a privately held company and does not urnish financial information.
Contact C&S Bank, Atlanta, GA for ref
'jArence.
*Al) 3 7 Authorized Sigifature
Date
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