HomeMy WebLinkAboutIR 9607 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9607
To the Mayor and Members of the City Council December 3, 2013
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SUBJECT: ECONOMIC DEVELOPMENT PROGRAM AGREEMENT WITH WAL-
rF MART.COM USA, LLC
Purpose:
The purpose of this Informal Report is to inform City Council of a proposed restructure of the economic
development program agreement with Wal-Mart.Com USA, LLC that was presented to City Council on
November 19, 2013.
Background:
The City of Fort Worth Housing & Economic Development Department has been negotiating with Wal-
Mart.Com USA, LLC on a proposal to bring a new 850,000 square foot E-Fulfillment Center to be located
at Alliance Crossing, a 51 acre site fronting 1-35W on the east side, north of Westport Parkway and south
of Alliance Blvd. A proposal for a 15 year Economic Development Program Agreement was presented to
City Council on November 19, 2013 that would provide annual grants in amounts equal to a maximum of
75% of the City's taxes on the incremental value of the real and business personal property investment at
the site.
Subsequently, staff has learned that the company has recently begun discussion with Tarrant County
regarding the potential for a tax abatement to facilitate the development at the Fort Worth location. State
law dictates that the municipality where the development will be located provide an abatement in order for
the County to participate in a tax abatement.
Recommendation:
In order to secure Fort Worth as the preferred site and to enable Tarrant County to grant Wal-Mart a tax
abatement, Staff will be recommending that the City Council:
1. Approve the creation of a Tax Abatement Reinvestment Zone in order for the City to grant Wal-
Mart a tax abatement; and
2. Approve the restructuring of the agreement from a 15 year Economic Development Program
Agreement to a 1 year Tax Abatement Agreement and a 14 year Economic Development Program
Agreement.
Restructuring the agreement in this manner will not have an impact on the financial analysis or value of
the proposed incentive agreement. All terms and conditions of the agreement presented to City Council
on November 19, 2013 will remain the same.
Staff recommends proceeding with creating the Tax Abatement Reinvestment Zone and voting on both the
Tax Abatement Agreement and Economic Development Program Agreement on December 10, 2013.
Tom Higgins
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS