HomeMy WebLinkAboutIR 9658 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9658
To the Mayor and Members of the City Council August 12, 2014
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SUBJECT: AMEND TAX ABATEMENT AGREEMENT WITH NGC RENEWABLES
rF LLC TO EXTEND THE PHASE I COMPLETION DEADLINE
The City of Fort Worth entered into a tax abatement agreement with NGC Renewables, LLC (City
Secretary Contract No. 44728) for the construction of a 120,000 square foot North American
headquarters and manufacturing facility at 5500 Alliance Gateway Freeway. The Agreement
provides for a ten-year tax abatement with NGC that could potentially abate up to 80 percent of
the City's ad valorem taxes on the incremental value of real and business personal property
investment on the site.
The project is to be completed in two phases with an overall investment of $96,000,000 in real
and business personal property. Phase I consists of $8,500,000 in real property improvements
and $7,500,000 in new non-inventory business personal property by June 30, 2014. Phase II
consists of an additional $80,000,000 in new non-inventory business personal property by
December 31, 2018.
Due to delays in the delivery of operational equipment from suppliers, NGC Renewables is
requesting an extension of the Phase I completion deadline to June 30, 2015. NGC Renewables
has finished the construction of the facility and is comfortable it has met the real property
commitment; however, the business personal property has not all been delivered and installed at
the facility. No other changes have been requested.
Staff plans to include an M&C for consideration on the City Council August 19, 2014 meeting
agenda to extend the Phase I completion deadline on the tax abatement agreement with NGC
Renewables, LLC to June 30, 2015.
If you have any questions or concerns concerning this matter, please contact Jay Chapa,
Housing & Economic Development Director at 817-392-5804 or by e-mail at
iesusecaa fortworttexaseov .
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS