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Home My WebLink About025404 - General - Contract - Coltec Industries, Inc. (Menasco Aerosystems)STATE OF TEXAS CITY SECRETARY /I� COUNTY OF TARRANT CONTRACT NO . � 5 `�D C� AMENDMENT TO TAX ABATEMENT AGREEMENT BETWEEN THE CITY OF FORT WORTH AND COLTEC INDUSTRIES, INC. WHEREAS, on the 27th day of April, 1993, the City of Fort Worth, Texas (the "City"), and Coltec Industries, Inc. ("Owner"), entered into a certain Tax Abatement Agreement (City Secretary Contract No. 19674), to which reference is hereby made for the terms and conditions thereof; and WHEREAS, the Agreement grants to Owner a tax abatement relating to certain Required Improvements to be made on Owner's real property (the "Premises") in Tax Abatement Reinvestment Zone No. 15, said property more particularly described as Exhibit B to said agreement; and WHEREAS, the Agreement requires the Owner to, among other things, do the following: (1) Fort Worth; �2) employ a specified number of employees who are residents of the City of award supplier and service contracts in excess of a specified amount to Fort Worth businesses; and (3) award supplier and service contracts in excess of a specified amount to Disadvantaged Business Enterprises; and WHEREAS, City and the Owner have disagreed over the interpretation of certain language in the existing contract which has made it difficult for the Owner to ensure its compliance with the Agreement and for the City to verify Owner's compliance with the Agreement; and WHEREAS, Owner and City mutually wish to amend the Agreement to clarify the employment and purchasing goals in the Agreement and to clarify the definition of certain terms found in the agreement; and WHEREAS, Texas Tax Code Section 312.208 (Property Redevelopment and Tax Abatement Act) provides that a municipal tax abatement agreement may be modified by the parties to include provisions that could have been included in the original agreement, provided that the original agreement may not be modified to extend beyond 10 years from the date of the original agreement; and NOW, THEREFORE, for and in consideration of the premises and the mutual promises contained herein, the City of Fort Worth (the "City"), duly acting herein by and through its Assistant City Manager, and Coltec Industries, Inc. ("Owner"), duly acting herein by and through its authorized representative, do hereby contract, covenant and agree as follows: 1. That the aforesaid Tax Abatement Agreement (City Secretary Contract # 19674), dated May 13, 1993, be and is hereby amended by adding Section III, Paragraph G-I, thereof to read as follows: AMENDMENT TO TAX ABATEMENT AGREEMENT - Page 1 U�(��aG�� G��U�C� c a� ��a�a� tif ��[7 ��p/f�� '7ry��Ln\��'/\NINO NS\SeMP\PINALI.I.00C U YO YVt/��:�UY' YL7Lu0 � G. Definition of "Disadvanta�ed Business Entemrise". As used in this Agreement, a Disadvantaged Business Enterprise ("DBE") shall mean a Minority Business Enterprise ("MBE") and/or a Women Business Enterprise ("WBE"). A Minority Business Enterprise ("MBE") and Women Business Enterprise ("WBE") is a minority or woman owned business that has received certification as either an MBE or WBE by either the North Central Texas Regional Certification Agency ("NCTRCA") or the Texas Department of Transportation ("TxDOT"), Highway Division. . H. Wei�htin�. The employment, Fort Worth business and MWBE components of owner's obligations under this Agreement are weighted as follows for the purpose determining the annual abatement through the City's audit process: (1) Employment of Fort Worth Residents - 30% (2) Fort Worth Business supplies and services - 35% (3) MWBE supplies and services - 35% Within each of these categories, Owner must meet each of the goals specified in the following section to achieve the full percentage of abatement available for that category. In addition, Owner must meet the minimum threshold in each of the three categories to receive any abatement during a given year. I. Performance Goals and Minimum Thresholds. 1. Emnlovment of Fort Worth Residents Weight: 30% Number of Employees Needed for Full Weight: 65 employees Minimum to Qualify for� any Abatement: 17 CYraduation: Loss of one percentage point of available abatement for each employee less than 65 Inner city Residents: Employment of a Fort Worth resident from an eligible inner city census tract (as identified in Exhibit A to the City of Fort Worth Policy Statement: Tax Abatement for Qualifying Development Projects, as adopted by the City Council on February 17, 1998 (Resolution No. 2379), and as may be amended from time to time during the terr� of this Agreement) shall count as 1.25 employees for purposes of this subsection. If the final computation results in a fractional amount, amounts of less than .5 shall be rounded down to the next lower whole number, and amounts of .5 or more shall be rounded to the next higher whole number. 2. Fort Worth Business Sunnlies and Services Weight: 35% Amount Needed for Full Weight: $3,000,000 Minimum to Qualify for any Abatement: $750,000 AMENDMENT TO TAX ABATEMENT AGREEMENT - Page 2 Ci\NINDONS\T6MP\PINALI.I.DOC Graduation: Sliding Scale - Loss of one percentage point of available abatement for each $100,000 (or part thereo� of spending goal not attained 2. 3. MWBE Sunnlies and Services Weight: 35% . Amount Needed for Full Weight: $2,100,000 Minimum to Qualify for any Abatement: $525,000 Graduation: Sliding Scale - Loss of one percentage point of available abatement for each $100,000 (or part thereo fl of spending goal not attained. Credit: Fort Worth Businesses that are M/WBE - For the purpose of determining owners compliance under Section I(3), each M/WBE supply and service provided by a Fort Worth business shall be given credit of 150% of the amount spent. That except as hereby amended, the provisions of such Tax Abatement Agreement shall remain unchanged. . 3. Owner is the Plaintiff in Cause Number 17-173682-98, Coltec Industries. Inc. v. Tarrant Annraisal District, pending in Tarrant County District Court. This lawsuit concerns the denial by the Tarrant Appraisal District of Owner's 1997 and 1998 abatement application for the Property. Upon the execution of this Agreement, Owner agrees to cause its claims in this pending lawsuit to be dismissed with prejudice. This Agreement is conditioned upon and shall not be effective until the date of such dismissal. EXECUTED this ��ay of �_01�2�!!� , 1999, by the City. EXECUTED this � day of November, 1999, by Coltec Industries, Inc. ATTEST: . � �� City S�,�cretary � � CI Y OF F T W R H, TEXAS By: , . Assistant �ity Manager APPROVED AS TO FORM AND LEGALITY: � . G��Gt.� � Assistant City Attorney/� U (1' -- / '7Co CIQ Contract Authorization ��-a�-��9 Date AMENDMENT TO TAX ABATEMENT AGREEMENT - Page 3 C�\NINOONS\TBMP\PINAL3.I.�OC Date: �� g � �� STATE OF TEXAS COUNTY OF TARRANT COLTEC INDUSTRIES, INC. By: � Print a: JO�`PH F. ANDOLINO Titl : VI PI��IDENT - TAX BEFORE ME, the undersigned authority, on this day personally appeared Mike Groomer, Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to be the person and officer whose name is subscribed of the foregoing instrument, and acknowledged to me that the same was the act of the said CITY OF FORT WORTH, TEXAS, a municipal corporation, that he was duly authorized to perform the same by appropriate resolution of the City Council of the City of Fort Worth and that he executed the same as the act of the said City for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this �-' day oi��«,�7n�, 1999. �,�"r''� SARAH JANE ODLE NOTA�RY PUBLIC �� State of Tex� � �� Comm. Exp. Ot -2�-2002 STATE OF NORTH CAROLINA COUNTY OF MECKLENBURG Q Notary Public in an or the ate of Texas BEFORE ME, the undersigned authority, on this day personally appeared Joseph F. Andolino, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the said Coltec Industries, Inc., that he was duly authorized to perform the same by appropriate authority of Coltec Industries, Inc. and that he executed the same as the act of the said corporation for the purposes and consideration therein expressed and in the capacity therein stated. AMENDMENT TO TAX ABATEMENT AGREEMENT - Page 4 C�\NINDOMs\TBMP\PIN.1L1.1.DOC GIVEN LTNDER MY HAND AND SEAL OF OFFICE this � day of November, 1999. � � otary Public in and for the State of North Carolina �Y ��misgion Er,pires �ebruary 16, 20U2 AMENDMENT TO TAX ABATEMENT AGREEMENT - Page 5 t:\XiN00Nb\TENP\PINALI.I.DOC City of Fort Worth, Texas �1►�Ayar And C,aunc�l C,ammun�cAt�an DATE REFERENCE NUMBER LOG NAME PAGE 10/12/99 C-17690 02COLTEC 1 of 2 SUB.;ECT AMENDMENT TO TAX ABATEMENT AGREEMENT WITH LULTE(; (I�f6lJST�21�S, INC. � (MENASCO AEROSYSTEMS) RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute the attached amendment to the tax abatement agreement with Coltec Industries, Inc. (Menasco Aerosystems) (City Secretary Contract No. 19674). 17�Y�i�b�yL�1�� On April 27, 1993, the City Council authorized the City to enter into a tax abatement agreement with Coltec Industries, Inc. (Menasco Aerosystems) for the expansion of its landing gear manufacturing operations on Hurst Boulevard in east Fort Worth. At the time of the expansion, the company employed 384 people and had an annual payroll of $17.5 million. During the last three years, the company's actual tax abatement varied from year-to-year based on its perFormance in the areas in which commitments were made. The City Council reduced the company's abatement in 1996, 1997 and 1998. In 1999, the company met all of its commitments and the full tax abatement was allowed by the City Council. On September 21, 1999, at a meeting of the City Council's Economic Development Committee, Coltec/Menasco asked the City to amend the tax abatement agreement to allow for the actual tax abatement in the remaining years of the agreement to be based on its annual performance in the various commitment areas. The Economic Development Committee recommended that the amendment be forwarded to the City Council with their support. Under the amended agreement the annual abatement level will be based on the following: 1. Employment of Fort Worth Residents 30% 2. Fort Worth Business Supplies and Services 35% 3. M/VVBE Supplies and Services 35% Within each of these categories, Coltec/Menasco must meet each of the goals specified in the following section to achieve the full percentage of abatement available for that category. In addition, the company must meet the minimum threshold in each of the three categories to receive any abatement ' during a given year. Performance Goals and Minimum Thresholds Emnlovment of Fort Worth Residents Weight: 30% Number of Employees Needed for Full Weight: 65 employees Minimum to Qualify for any Abatement: 17 Graduatian: Loss of one percentage point of available abatement for each employee less than 65 .City of �'o�t �Vor.ih, Texas n✓I�Aya-r And. C¢u.n.��l C.af11f�1ut11cAt1.an DATE REFERENCE NUMBER LOG NAME P,4GE 10/12/99 C-17690 02COLTEC 2 of 2 SUBJECT AMENDMENTSTO`TAX AB�T 1VIENT AGREEII�IENT WITH OLTEC INDUSTRIES, INC. (MENASCO AEROSYSTEMS) Fort Worth Business Suqp�ies and Services Weight: 35% Amount Nee�ed for Full Weight: $3,000,000 Minimum to,Qualify for any Abatement: $750,000 Graduation: Sliding Scale - Loss of one percentage•point of available abatement for each $100,000 (or part thereof) of spending goal not attained M/WBE Sunnlies and Services Weight: 35% Amount Needed for Full Wei�ht: $2,100,000 Minimum to Qualify for any Abatement: $525,000 Graduation: Sliding Scale - Loss of one percentage point of available abatement for each $100,000 (or part thereof) of sper�ding goal not• attained. For the purpose of determining the total M/WBE spending annually; Fort '�IVorth M/WBE businesses shall be giv,en 150% credit toward the actual spending determination. Approval of the attached amendment to the Coltec/Menasco Aerosystems agreement will provide for the remaining years of the original agreement term to be covered by the pertormance based .system ' outlined above. FISCAL INFORMATIQN/C�RTIFICATION: The Finance Director certifies that no expenditure of City funds is associated with approval of this agreement. MG:k Submitted for City-0Manager's Office by: Mike Groomer Originating Department Head: Tom Higgins Additional Information Contact: Ardina Washington I FUND , I ACCOUNT � (to) � 6140 I � � 6192 I (from) I � 8003 I • � CENTER I' AMOUNT I CITY SECRETARY APPROVED CITY �OUNCIL �� -�C�n,�N Qt� OCT 26 19'99 �� Cit�r 6ecrattarY Ot the Cit4 ot Fort �s�loxth, T�xg�