Loading...
HomeMy WebLinkAbout065026 - Construction-Related - Contract - Texas Health Huguley, Inc.CSCO No. 65026 TRANSPORTATION IMPACT FEE EXTRAORDINARY INVESTMENT DISCOUNT CREDIT AGREEMENT This TRANSPORTATION IMPACT FEE EXTRAORDINARY INVESTMENT DISCOUNT CREDIT AGREEMENT ("Agreement") is made and entered by and between the CITY OF FORT WORTH, ("City"), a Texas home -rule municipal corporation, and Texas Health Huguley, Inc. (Developer"). City and Developer are referred to herein individually as a "Party", and collectively as the "Parties". OFFICIAL RECORD CITY SECRETARY RECITALS FT. WORTH, TX WHEREAS, the City has adopted a Transportation Impact Fee program pursuant to Texas Local Government Code Chapter 395, codified in City Code Chapter 30, Article VIII, as amended, under which transportation impact fees are imposed on new development for impacts to the City's transportation facilities as a result of said development; and WHEREAS, the Transportation Impact Fee Program grants specific discounts for qualified projects as provided for in City Code Section 30-173(d); and WHEREAS, Developer is developing 12101 South Freeway, located on Lot 1, Block 3 of Huguley Memorial Addition approximately 7.332 acres in Tarrant County, Texas, as shown on Final Plat FS-25-182 and included in Exhibit "A" which is attached hereto and incorporated herein by reference ("Property") within the corporate boundaries of the City; and WHEREAS, the Property is located within service area Z and has been assessed transportation impact fees in the amount of $3,101,231.57, and the amount of $1,860,738.94 is to be collected by the City in accordance with the City Code, as more specifically set forth in Exhibit "B" which is attached hereto and incorporated herein by reference; and WHEREAS, the Developer has presented a plan ("Development Plan") which is attached hereto and incorporated herein as Exhibit "C"; and WHEREAS, City has determined that the Development Plan qualifies for the Extraordinary Investment transportation impact fee discount of 40% of the amount of transportation impact fees to be collected; NOW, THEREFORE, for and in consideration of the mutual agreements, covenants, and conditions contained herein, the City and the Developer hereby agree as follows: 1. Recitals. The recitals contained in this Agreement are true and correct and form the basis upon which the Parties have entered into this Agreement. 2. Discounts. The Developer has qualified for the Extraordinary Investment discount described below to be applied to the transportation impact fees to be collected provided Developer complies with the following qualifications: Transportation Impact Fee Extraordinary Investment Discount Credit Agreement DSC-25-004 Huguley MOB Page 1 of 8 4/8/2026 (a) Initial Discount. The Development Plan satisfies the following criteria in the City Code to receive an Initial Discount on transportation impact fees: i. $25 million in capital investment, excluding land costs; ii. Creation of 75 new jobs with a projected salary of the new jobs of at least twice the current federal minimum wage, plus benefits. The amount of transportation impact fees due under Schedule 2 shall be reduced by 25% for the development. (b) Additional Discount. For each additional $10,000,000.00 in capital investment or additional 75 qualified new jobs, the impact fee amount due under Schedule 2 will be further reduced by an additional 5% up to a maximum total reduction of 25 %. (c) The Developer shall maintain the minimum number of jobs created under subsections (a) and (b), respectively, for a period of ten years from the date the building permit is issued or the date the Developer qualifies for the discount, whichever is later, so long as the qualification is achieved within four years from the date the building permit is issued. For any additional Extraordinary Investment Discount, an amendment to this agreement shall be executed and recorded by the city secretary thereby establishing the dates for compliance Amendment. This Agreement shall not be modified or amended except as follows: (a) Any amendment or modification to this Agreement or any Exhibit hereto shall be in writing and signed by the Parties. 1.01 Any revision, amendment, or modification to this Agreement or any Exhibit or schedule thereto, shall become effective on the date executed by the Parties or, as applicable, upon the date of approval by the City Council or designated city official. 4. Reports. (a) Initial Report. The Developer shall provide within four years from the issuance of a building permit an initial report to the Development Services Department establishing the date on which the Developer has complied with the terms listed above. The initial report will establish the ten-year period for maintenance of the new jobs created. (b) Quarterly Reports. Thereafter until the end of the Term, Developer must provide the Economic Development Department, or designee, with a calendar -year, quarterly report in a form reasonably acceptable to the City that specifically outlines the then -current, and cumulative, capital investment from the prior quarterly report in the Property. (c) Annual Employment and Salary Report. On or before March 31, 2027 and March 31 of each year thereafter, in order for the City to assess the degree to which the job creation commitment is met, or is continued to be met, as well as to verify the average Transportation Impact Fee Extraordinary Investment Discount Credit Agreement DSC-25-004 Huguley MOB Page 2 of 8 4/8/2026 annual salary of the job creation commitment at the Property, Developer must provide the Economic Development Department with a report in a form reasonably acceptable to the City that sets forth the total number of individuals who held jobs at the development, as well as the salary of each of the jobs, all as of December 31 (or such other date requested by Developer and reasonably acceptable to the City) of the previous calendar year, together with reasonable supporting documentation. Reports shall be redacted to remove confidential employee information. (d) Additional Information. Developer agrees to provide any additional information that the Development Services Department or the Economic Development Department may reasonably require to ascertain the Developer's compliance with this Agreement. (e) Inspections of Property. At any time during Developer's normal business hours throughout the Term and following reasonable notice to Developer, the City will have the right to inspect and evaluate the development and any improvements thereon, and Developer must provide full access to the same, in order for the City to monitor compliance with the terms and conditions of this Agreement. Developer will cooperate fully with the City during any such inspection and evaluation. (f) Audits. The City will have the right throughout the Term to audit the financial and business records of Developer or any Affiliate that relate to capital investment, job creation and related salary information, as well as any other documents necessary to evaluate Developer's compliance with this Agreement or with the commitments set forth in this Agreement (collectively "Records"). Developer must make all Records available to the City at the Property or at another location in the City with reasonable advance notice that is acceptable to both parties. Developer will otherwise cooperate fully with the City during any audit assuming that reasonable advance notice acceptable to both parties has been provided. This section will survive the expiration or early termination of this Agreement. 5. Clawback. Failure to comply with the requirements for creating or maintaining the discount will result in a penalty to be paid by the Developer to the City equal to 10% of the discounted fees per annum for each year that the number of jobs is not maintained. If after the four-year period to achieve the goals, Developer fails to expend the minimum amount in capital investment or maintain the job creation commitment pursuant to the benefits received under this Agreement, Developer will be responsible for returning, by payment to the City no later than ninety (90) days following written notice from the City, an amount as calculated in Section 2 (the "Clawback"). In the event of a failure by Developer to make payment to the City for the Clawback, City reserves the right to pursue collection of the amount due by any means allowable under the law. 6. The City may terminate this agreement if it determines the performance required to achieve and maintain the discount is no longer being met. The Clawback provision shall survive a termination of this Agreement. IN WITNESS WHEREOF, the undersigned parties have executed this Agreement to be effective as of the date subscribed by the City's Assistant City Manager. Transportation Impact Fee Extraordinary Investment Discount Credit Agreement DSC-25-004 Huguley MOB Page 3 of 8 4/8/2026 CITY OF FORT WORTH, TEXAS I y Jesica McEachern Assistant City Manager Date: 04/14/2026 Recommended By: Dalton Harrell (Apr 9, 2026 11:29:08 CDT) D.J. Harrell Director, Development Services Recommended By: 01-� — Jes�a Rogers (Apr 9, 2026 11:30:43 CDT) Jessica Rogers Director, Economic Development Approved as to Form and Legality: Douglas Black (Apr 10, 2026 13:43:15 CDT) Douglas Black Assistant City Attorney M&C: None required Form 1295: None required na FORT IIII ATTEST: 4IIap4nEXp5.oa Jannette Goodall Texas Health Huguley, Inc. Tvin L � 0h4solr Penny L JohGnson (Apr 9, 2026 11:28:15 CDT) Penny L. Johnson President City Contract Compliance Manager: By signing, I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. Kamal L. Crues Sr. Capital Projects Officer, Development Services Department City Secretary OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Transportation Impact Fee Extraordinary Investment Discount Credit Agreement DSC-25-004 Huguley MOB Page 4 of 8 4/8/2026 EXHIBIT LIST "A" Map of Property "B" Assessment/Collection Worksheet "C" Development Plan Transportation Impact Fee Extraordinary Investment Discount Credit Agreement DSC-25-004 Huguley MOB Page 5 of 8 4/8/2026 [�i 5 It. b S�fV. S��fe�fl _ Ofc6%fit f�. 0 _xc Ti YATRTT A Map of Property FS-25-182 r •.fL •"�-� '� �,�=_ I -may _,._. ..5 _ .T.'1 ------- Pepe 2 of 2 wa_��= ;✓, e- IAf HUGULEY MEMORIAL ADDITION Transportation Impact Fee Extraordinary Investment Discount Credit Agreement DSC-25-004 Huguley MOB Page 6 of 8 4/8/2026 1V V-"1RT1r R Assessment/Collection Worksheet Huguley Memorial Addition - Case Number PB25-13732 THIS WORKSHEET IS FOR ESTIMATION PURPOSES ONLY ACTUAL FEES WILL BE DETERMINED AT THE TIME OF BUILDING PERMIT Development Name: Huguiey Memorial Addition, Applicant Winston Services INC Legal Description (Lot. Block)_ 12101 South FVVY City of Fort Worth, Texas Gass Number P825-13732 Date: 4IM026 Publah Dale: 9-17-2025 Version 14 Date of Final Plat Approval: 1132028 Study Year. 2022 Date of Building Permit Application Acceptance: 3I7312028 Service Area (select from list): Z (1) Enter dales in %;vYYt Yt t lormaf Now' (21 Impart leer are no! tNtectetl wrhm the mire (8i 'no fee"senze areas (N I, J. K L. P, O, R antl W antl for quaftf d Nc-ghbo hwd Empowennerrt Zone (NEZ) projects Land Use Selection Note: The larW use categories am bases on the de—pocns co —ac wily, Ire TE Trip Geme —, Manual. Ouesuons mgardrg the approprute category for a Particular use may be exerted to Devebpment Services Department staff. IntMnsity veNcle-Miles Tow Land use Oev. Unit par Der. Units) per Dev-unfit VehTotal les 1n M to = I+T' 121 McMcal-Dental Office BuildrV 1 1.000 SF GFA 1 85.81 1 19.37 1.270.70 use. Once a !ale use or selecteduser must delete cell to aefect anotherfaM use. Intensity Vehicle -Miles Total Land Use Dev. Unit (f of 13— Unds) Per Dev. Unit Vehicle-Wk.s III r21 F31=F11'f21 use. Once a brM use 4 sekcfed, user must tlekYe ref b seMU arromer land use. Schedule 1: Maximum Asseuabfe knjasf Fee Schedule 2 Collection Amount Rate Per Vehic"de, 141 Rate Per Dev. Unit 151=M'141 Tow 161=VP 151 Percentage of Maximum m Rate per Dev. Unit 161=171'151 Collected impact Fee 191=181, V) f8.101.00 $118.176.37 S7.753.078.83 40% S47.270.55 S3.101231.57 Sub -Total $7,753,078.93 $3.101,231.57 thedule l: Maximum Assaasable InWast Fee Schedule 2Collection Amoust Rate Per Vehicle -Mae Rate Per Der. Unit 151=1211141 Tow 161=[SP1q Percentage of Maxim m Rate per Dev. Collected Impact Fee Unit[41 roll=IH'151 161=P7'[+1 SJL Total $0.00 f000 MAXIMUM ASSESSABLE TRANSPORTATION IMPACT FEE: $7,753,079.93 TOTAL POTENTIAL TRANSPORTATION IMPACT FEE COLLECTION AMOUNT: 53.101.231.57 M a transportation mpat4 f c str due fo/bwwg the eaknJation of —as, a devebpment may 4w14' for any ofthe Adequate Public Facilities Discount: lour f41 avalable banapodation mpact lee dacotsds (as defined by Section 1-14D of the ortlwumce). Discounts are Mixed- use/ Multi -Modal Development Discount asnuHtive. so meta devebpment!Aat quaff lorfhemavnun Mccamt unds, each Pmvisdn may reduce wnpact Extraordinary Investment Discount: 40% lees omenvix due b 100%- Small Business Discount Tow Transportation Impact Fee Oiscounts (Max /(10%): 4cY TOTAL POTENTIAL TRANSPORTATION IMPACT FEE AFTER DISCOUNTS: $ 1.240.492.63 Credit Agreement Numbef Transportation Impact Fee Credits (for cansweton, comnbut on. or dediptwr beads the Master Thorwgldare Plan): Shell Penha Number Transportation Impact Fee Cmdn (for shell building unit): Transportation Impact Fee Extraordinary Investment Discount Credit Agreement DSC-25-004 Huguley MOB Page 7 of 8 4/8/2026 FYUIRIT C Development Plan 1-- --------- I. SITE PLAN Mnj M C1,03 .1-W SITE PLAN Transportation Impact Fee Extraordinary Investment Discount Credit Agreement DSC-25-004 Huguley MOB Page 8 of 8 4/8/2026 FORT WORTH. City Secretary's Office Contract Routing & Transmittal Slip Contractor's Name: Texas Health Huguley, Inc. Subject of the Agreement: Transportation Impact Fee Extraordinary Investment Discount for Huguley Memorial Addition. M&C Approved by the Council? * Yes ❑ No M If so, the M&C must be attached to the contract. Is this an Amendment to an Existing contract? Yes ❑ No 0 If so, provide the original contract number and the amendment number. Is the Contract "Permanent"? *Yes 0 No ❑ If unsure, see backpage for permanent contract listing. Is this entire contract Confidential? *Yes ❑ No 0 If only specific information is Confidential, please list what information is Confidential and the page it is located. Effective Date: N/A If different from the approval date. Expiration Date: N/A If applicable. Is a 1295 Form required? * Yes ❑ No ED *If so, please ensure it is attached to the approving M&C or attached to the contract. Project Number: If applicable. DSC-25-004 *Did you include a Text field on the contract to add the City Secretary Contract (CSC) number? Yes 0 No ❑ Contracts need to be routed for CSO processing in the followingorder: rder: 1. Katherine Cenicola (Approver) 2. Jannette S. Goodall (Signer) 3. Allison Tidwell (Form Filler) *Indicates the information is required and if the information is not provided, the contract will be returned to the department.