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HomeMy WebLinkAboutIR 8018 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8018 July 30, 1996 To the Mayor and Members of the City Council 0 Subject: 1873 Status Report 1995 Tax Abatement Agreement Each tax abatement agreement requires an annual audit to determine the status of compliance with the respective terms of each agreement. The audit process has been completed and a preliminary presentation of this information was given to the Council's Expanding Economic Opportunities Committee at the July 16, 1996 meeting. A formal presentation to the full City Council will be forthcoming in the near future. A. Summary The various agreements have resulted in the following: Employment Creation Actual 5355 Contractual 4045 Difference 1,310 + 32.4% Fort Worth Residents Actual 1725 Contractual 1325 Difference 400 + 30.1% Construction Fort Worth Actual $62,279,022 Contractual 45,934,750 Difference $16,344,272 + 35,6% M/WF3E Actual $8,744,068 Contractual 7,193,873 $1,550,195 + 21.5% Supplies and Services Fort Worth Actual $29,974,302 Contractual 38,905,617 - $8,931,315 - 22.9% MIWBE Actual $2,049,164 OFFICIAL .REC ORD Contractual 6,682,668 CITY SECRETARY - $4,633,504 - 226.1% try FT. WORTHO Additionally three special abatements which are capped either through a specific dollar amount recovered and/or through a determined time period are included. Of these three, only Dannon was required to report in these categories and their numbers are included. (C`G"IIC:n QV YUC !'1-rV RAAKIAr-.CO........ 1( INFORMAL REPORT TO CITY COUNCIL MEMBERS No. aai 8 �,pRTEp`c� July 30,1996 To the Mayor and Members of the City Council Page 2 of 3 �0 Ian Subject: Status Report 1995 Tax Abatement Agreement B. Specific Discussion Four of the agreements are deemed to be in full compliance with the respective terms: • American Airlines • Williamson - Dickie • Sundance 1 and 2 • Motorola Four of the agreements are deemed to be in substantial compliance; however, each has certain deficiencies as noted in the discussion. • Haggar exceeds its contract requirements in employment, and Fort Worth and M/WBE construction; however, it does not meet either Fort Worth or M/WBE supply and service requirements. (Haggar submitted information based on an actual 7 month period, additionally the May 5, 1995 storm destroyed its existing facility in Dallas which necessitated a major adjustment in its business plan.) Haggar representatives are working o to correct these deficiencies. • Bank One is slightly deficient in the anticipated employment and Fort Worth construction commitment; however, it greatly exceeds the commitment for M/WBE construction, and both categories for supplies and services. • Nokia is deficient in the anticipated employment and slightly deficient in the Fort Worth construction commitment. It greatly exceeds the commitment for both Fort Worth and MIWBE supply and services. The Nokia facility was constructed in anticipation of a more rapid growth in the digital communication industry. The anticipated growth has not come as quickly as was anticipated when the employment estimates were established. Nokia has been very aggressive in its inner city hiring efforts including the sponsoring of van pools and other innovative efforts to attract Fort Worth residents for employment opportunities. Dannon is deficient in both categories of supplies and services as reported; however, it greatly exceeds the requirements for employment opportunities. Dannon representatives are working in an effort to address the deficiencies. It is also important to n T* ° agreement is in the special category of a defined dollar recovery and was n n RECORD order that the plant expansion could be even larger than originally planned. CITY SECRETARY The above referenced firms are in general compliance with the terms of th. 40poiful TU 400 ` agreements. The deficiencies are acknowledged and efforts are being made t -101111 otherwise address these issues. The staff is prepared to recommend that no adjustments to the abatement percentages be made during the 1996-97 fiscal year. However, efforts to correct the deficiencies by the respective firms should continue. — ISSUED BY THE CITY MANAGER- ___ FORT WORTH, TEXAS -- INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8018 July 30, 1996 pATEp wit Page 3 of 3 To the Mayor and Members of the City Council Subject: Status Report 1995 Tax Abatement Agreement 1873 Three of the agreements are deemed to be in substantial non-compliance with the terms of their respective agreements as noted below. • Conti Industries is significantly deficient in the contractual commitment for both categories for supplies and services. It has exceeded significantly its employment commitments. • Menasco is significantly deficient in its contractual commitment in both employment and M/WBE supply and services. It is in compliance with the Fort Worth construction and supply and service commitments. • Star Uniform is deficient in both categories of supplies and services. It has exceeded the employment commitments and the construction commitments. Star Uniform representatives have expressed concern over the lack of M/WBE information and assistance in their attempts to meet their contractual commitments. The staff is prepared to recommend that the respective abatement agreements be reduced for fiscal year 1996-97 as follows: • Conti Industries 15% • Menasco 25% • Star Uniform 15% It is anticipated that each firm will continue to work toward resolving the significant deficiencies as noted. The following agreement is deemed to be in non-compliance with the contractual commitment, Roadway Packaging has exceeded the employment projection; however, it is in complete non- compliance with regard to Fort Worth construction opportunities, and MIWBE supply and service commitments and have only marginally addressed Fort Worth supply and service commitments. The staff is prepared to recommend the termination of this agreement for non-compliance effective for the 1996-97 fiscal year. Each firm will be provided with a copy of this report. Should additional information be desired, please contact Tom Higgins at 871-6103 or Mike CiTcomer at 871-6140. i&Terrel ICIAL "Ccgo UCity Manager CITY. sica''TA'Ry Attachments o EX I'll T ............ ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS : �~ S-UMMARY - -d^ (IIL Won . � }ƒ: \�) . \/C\yT \/ � F. WORTH 1, Tax. Abatement Program: Employment Overview 6,000 5,355 5,000 47045 4)000 - ❑ Contract 31000 - ■ 1995 2)000 - 1 ,725 1 ,325 11000 - 0 Total FW Res. CM, T Tax Abatement Program: Ft. Worth Business Participation N N O t37 70,000,000 N ❑ Contract N LO ■ 1995 60,000,000 r cam , 50,000,000 U') L 0 N 0) O ' 06 M 40,000,000 N 3010001000 - 20,000,000 10,000,000 0 Construct. Supp. & Servcs. Fnn RE roNg .� Tax Abatement Program. MWBE Participation 12,000,000 CO ❑ Contract 0 10,000,000 M ■ 1995 co Co CO CO (D 8)000,000 ' CO er 6,000,000 b- 4,000,000 r O N 2,000,000 - 0 Construct. Supp. & Servcs. FI , RECTO CjjV SECRETARY I; wwmmmmuumuuuwwmioNmimmio�! iooi Tax Abatement Program: Status of Capped Agreements $2,500,000 $2,304,525 $2,000,000 0 Remaining ❑Abated $1,235,537 $1,500,000 $1 ,000,000 $500,000 $113,586 $0 A ,414 $1 264, $195,475 Dannon AMCOT Hillwood Years Remaining: Dannon= 7 Yrs. AMCQT= 8 yrs. CITY El0lEl"l Hillwood= 9 yrs. '" FULL C O .L V -.-PLIAN E Fi ri r".a P° ,w CIR `CIE TY '` � American Airlines 1 ,600 1 ,587 1 ,580 Contract 1 ,560 ■ 1905 1 ,540 1 ,520 1 ,500 1 ,500 - 1 ,480 1 ,460 1 ,440 Employment 4 FFICIAL RECORD fi ", CITY W v -� iWIW�W Williamson-Dickie : Employment r-1 Contract 11 11 i 1 Total Williamson-Dickies Supply Service Contracts $4'00 ❑Contract M $3.50 O ■ 1995 $3.00 _ $2.50 0 G O � rn cy o Q 0 60. $2.00 U $1.50 $1.00 $0.50 N N O O $0.00 Total FW Bus. MWBEs � .. I CITY SECRETARY Ft °' T110 TE Star Uniform: Employment 140 - Contract 129 rim °r i iii 1� /J • • I1 ii •• • i Ii 1 i • . OFFICIAL RE ORD FTII WORK TM, Or"", Star Uniform: Construction $600,000 00 N ❑Contract CO o) N a ■ 1995 $500,000 0 ` o (C) 0 C5 N � � O 6F} $400,000 $300,000 $200,000 $100,000 o LO 0 0 M CO U9, V} $o Total FW Bus. MWBEs �..... 1.10,01 FFI C I 1ou MY SI'TRUARY FT, WORTH, 111 «mrimmermumwmumuwwwli star Uniform: supply & service Contracts $4.50 0 CO $4.00 c� El $3.50 01995 $3.00 o N Ef3 $2.50 $2.00 $1 .50 00 Cq CO QD $1 .00 °cam 0 $0.50 o 0 0 0 0 0 $0.00 Total FW Bus. MWBEs ry I S C ff)R TERMINATION. iCIAL RECOAD CITY SECREl"ARY p) J Roadway: Employment 450 ❑ Contract 400 403 01995 357 350 300 250 199 200 159 150 100 50 0 Total FW Res. ICIAL RECORD CITY SECRETARY Ff. WORTH, � � �". �j Roadway: Construction $6,000,000 ti N ch co $5,000,000 Q9- [I Contract ° ■ 1995 $4,000,000 0 r: cl c� $3,000,000 0 LO 0 ti LO r` $2,000,000 $1 ,000,000 0 $0 � Total FW Bus. Off"ICIAL RECORD CITY S,EC 'Y FE WORTH P! IIO�Illfiil Roadway: Supply & Service Contracts - - $4,000,000 $3,500,000 LO ❑Contract ti LO o ■ 1995 $3,000,000 C° N $2,500,000 rn rn $2,000,000 0 LO c� ti $1 ,500,000 CO $1 ,000,000 M rn CO m $500,000 ()9- CO 0 $0 Total FW Bus. MWBEs OFFICIA1,11, RHINO CWf N 1 11 7"mu WW U IOIYYuuWWWWWIIIOm000MUU J Sundance II-. Employment 18 17 ❑Contract 16 ■ 1995 14 12 12 10 10 8 6 5 4 2 0 Total FW Res. i ICIAL E I. ��. WORM,J� SEC T. CL Haggar: Supply & Service Contracts -months $500,000 0 0 0 $450,000 0 ❑Contract b' o c a $400,000 °cry ■ 1995 M $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 0 0 0 0 $50,000 0 $0 Total FW Bus. MWBEs �,�N� C CITY IT IYU � ' Bank One : Employment 8 ❑ Contract 7 7 ■ 1995 6 6 5 5 4 4 3 2 1 0 Total FW Res. A,�M�aw�warw��,�,..,n��„,,wN,m�mim�������mm�Na�w�wuwwwwuurvrvm�m�uflmuwmwmu '' i' I CITY, SECRETARY a. a . O➢l,M1'Yr , Bank Cane :- Construction $700,000 00 CO 00 C) (6 ❑Contract $600,000 ° LO 69- N ■ 1995 0 $500,000 $400,000 0 $300,000 C N r m rn CO 0 $200,000 cv $100,000 $0 Total FW Bus. MWBEs RIFITICIAL RECORD C �� Ip RY uumwwwuwuumooumwmwiwiouw„wwwixoiaummwomuuuu Bank One : Supply Service Contracts $140,000 a° 0❑ Contract $120,000 N 0 p ■ 1995 $100,000 $80,000 $60,000 N o (D a o 0) �!7 U,) M $40,000 ` $20,000 $0 Total FW Bus. MWBEs 61"FIVAL MAD Ft 73E! 0 1% Nokia: Employment 1 ,200 1 ,200 ❑ Contract ■ 1995 1 ,000 800. 600 600 552 400 254 200 0 Total FW Res. OFFICIA1 RECORD CITY SECREFARY Nokia : Construction $12 CO o o ro � $10 $8 ❑Contract ■ 1995 $5 u7 r. $4 60- 0) rr- N 6q $2 r N r 69- $0 Total FW Bus. MWBEs m�N������mwo mmum�iu�uumomoiouumuuuw ff"I' A mllll FT WOR11,019 11� Nokia: Supply & Service Contracts $600007000 ° ❑Contract b- CO -Ii ■ 1995 $5,000,000 ` $4,000,000 $3,000,000 $2,000,000 c� CD 0 0 o M $1 ,000,000 x°07 0 o CD N 0 $0 Total FW Bus. MWBEs INMIpIWMIGNIONWONINNWM�B�MW00ul0uMIIIIM00111YIM'MMNMYIIMIIIM0000N1 OFRCIAL RECORD " CM SECRIIARV W , r0l , Dannon : Employment 300 ❑Contract 250 251 ■ 1995 200 153 150 119 100 77 50 0 Total FW Res. M FICIAL RECORD CITY SECRETARY fi". ',. �,����oi�wwuuuuouuuououoommi �1 Dannon : Supply Services $90 0 Oi r- $80 o U' $70 611> $60 ❑ Contract 0 $50 ■ 1995 $40 O a 06 $30 00 06 r- $20 $10 a `c' cfl OMCIAL� � $0 � Total FW Bus. M Er SORkDAY WORT111, SIGNIFICANT OFFICIAL RECORD IF MY UTIETARY FT. WORTH, M,. Conti : Employment 1 - 0 90 87 ❑ Contract 80 ■ 1995 70 60 50 40 30 28 20 10 6 6 0 Total FW Res. F"RUAL RECORD CITY SHMARY T , /C Conti : Supply & service Contracts $4.00 N co cli $3.50 cs� Ci $3.00 ❑ Contract �- $2.50 r- 0 N ■ 1995 $2.00 $1 .50 $1 .00 co � o $0.50 ` o c $0.00 Total FW Bus. MWBEs ...........���w OFFICIAL RICORD , Menasco : !Employment 180 175 ❑Contract 160 ■ 1995 140 125 120 100 80 60 53 38 40 20 0 Total FW Res. OFFICIAL RECORD IAN T. rf?1NjjJi tow Qa Menasco : Supply & Service Contracts $50 cU �r $45 $40 $35 O ❑Contract W. M $30 ■ 1995 $25 0 •N $20 $15 $10 $5 � o 0 $0 Total FW Bus. MWBEs "��� �ou�uu��NO� mmw�wo��N�ommuummuuumuuM OFFICIAL ', CRY SECRITAIY Fri. Nqpi TIM MN, Sundance II : Supply & Services Contracts $500,000 to $450,000 rn co LO r- CO $400,000 "e) LO M $350,000 0 0 El Contract $300,000 N N 01995 $250,000 a N ER $200,000 $1 50,000 $100,000 ° o 4 V N $50,000 � �. $0 - M -1 Total FW Bus. MWBEs �� OFFICIAL RECORD CITY SIMARY i Motorola: Employment 1 ,400 1 ,390 ❑ Contract 1 ,200 ■ 1 995 1 ,000 800 600 482 400 200 50 30 0 Total FW Res. CID °� o FT. WORTH, TEX. �ulluiiu �m�J Motorola: (construction $45 rn cn 06 co $4fJ $35 $30 t- ❑Contract N $25 1995 O $20 Lo L6 $15 M C37 $1© LO 00 m t- $5 Ci $a Total FW Bus. MWBEs MY SECRETARY RECORD O umooi �iouuumuuuowrt IkF M Supply Service Contracts 0) $4,000,000 r ❑ contract $3,500,000 ``' ,� N 1995 CO CO ry CD $3,000,000 N $2,500,000 $2,000,000 0) b- $1 ,500,000 0 0 $1 ,000,000 CD LO 69 N LO 0 $500,000 0 N M $0 Total FW Bus. MWBEs ICRL COY TMw �UVNiroiy � Jy9�' 1 '����imorwouoioi CATEGORY. RECORD CITY SECAL""TARY IN w0jrNp mw Haggar: Employment 500 ❑ Contract 450 452 ■ 1995 400 350 300 270 250 225 200 147 150 100 50 0 Total FW Res. `°°` T w FT, WOR Haggar: Construction N $17 O Ic- O $15 `* r- $13 t-- o $11 C0 ❑Contract rn $9 ■ 1995 $7 $5 r C) r" 7 CNi $3 N 69- $1 ($1) Total FW Bus. MWBEs -WON �m wwaw7m ��wu�mm�m im alry f. X u�ummm �m oomi