HomeMy WebLinkAboutIR 7703 Miv*MAL REPORT To CITY COUNCIL MEMBERS No. 7703
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To the Mayor and members of the City Council
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Subject: Proposed Tax Abatement Agreements with'Conti
Industries, Inc., and American Manufacturing Company
of Texas (AMCOT PARTNERS)
The staff has processed two applications for Tax Abatement Agreements to be
presented for the appropriate public hearings and possible action by the City Council.
The Council's Economic Development Committee has been appropriately briefed on
the applications.
A. Conti Industries
Conti Industries has requested a tax abatement agreement for an expansion
of the existing plant located at 3200 S. Cravens Road in Council District 5.
Conti Industries designs, manufactures and markets plastic labels and
advertising displays. They presently employ 104 persons. The proposed
expansion(a portion of which is presently underway)will result in the creation
of an estimated 6 new jobs. In addition to the expansion, landscaping and
improved access is proposed for the facility.
Conti has committed to continuing and expanding employment opportunities
for Fort Worth residents with emphasis on hiring from the surrounding
community when possible.
This application was considered and a recommendation was made by the
Economic Development Committee for the City Council to consider a 50%
abatement for a 10 year period. Due to the fact that some construction has
begun, it is projected that the "new" value subject to abatement will be
approximately $110,000 rather than the $620,000 originally anticipated.
B. American Manufacturinir Company of Texas (AMCOT Partners)
The application for abatement from AMCOT Partners is an innovative use of
the tax abatement incentive to generate positive economic development while
accomplishing public infrastructure improvements. AMCOT Partners is the
owner and developer of the"Mercantile Center" property. The FAA Southwest
Regional Headquarters is presently under construction in this section of the
industrial park.
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TEX,
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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AMCOT Partners is desirous Of reconstructing a Portion of Sylval-An
(approximately 3400 linear feet) from Long to McMillan which has not been
improved from it's original rural penetration-type narrow width design.
AMCOT Partners owns only a portion of the frontage. Normally the City
would consider the improvements on an assessment basis. However, at
present there are no funds available for funding of the non-developer share
(estimated by staff at $1.2 million).
Representatives of AMCOT Partners have discussed the concept of a
prospective tax abatement arrangement in exchange for their financing the
entire improvements ($1.8 million). The concept under consideration would
designate an-approximate 700 acre area as the reinvestment zone in which
AMCOT Partners could develop properties and receive 100% abatement until
the nondeveloper cost of reconstructing this portion of Sylvania is received.
The FAA facility is included in the area, however, if this is the only
development in the area, the total tax revenue from this facility is estimated
at only $1.0 million. Any tax revenue abated by other taxing entities
approving this agreement would apply to the cost recovery total.
If the agreement is approved, AMCOT Partners is prepared to enter into a
standard CFA and construction can begin in early summer. This application
and concept were received and discussed by the City Council's Economic
Development Committee.
Should you have any questions, please feel free to contact Assistant City Manager
Mike Groomer.
Bob Terre
City Manager
LFOFFICIAL RECOU
C T
ITY SECRUARY
T. Wo T�f Tit
ISSUED BY THE CITY MANAGER FORT WOR