HomeMy WebLinkAboutIR 9620 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9620
To the Mayor and Members of the City Council February 11, 2014
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*a SUBJECT: PROPOSED ECONOMIC DEVELOPMENT PROGRAM AGREEMENT
rrn WITH WAL-MART STORES, INC. RELATED TO THE CONSTRUCTION OF A
WAL-MART STORE AND PAD SITES TO BE LOCATED AT THE FUTURE
SOUTHEAST CORNER OF GOLDEN TRIANGLE BOULEVARD AND PARK
VISTA BOULEVARD
Purpose:
The purpose of this informal report is to brief Council on a proposed Economic Development
Program Agreement with Wal-Mart Stores, Inc.
Background:
Wal-Mart Stores, Inc. proposes to construct a 182,000 square foot Wal-Mart SuperCenter and
20,000 square feet of pad site at the future southeast corner of Golden Triangle Boulevard and
Park Vista Boulevard in north Fort Worth.
Recommendation:
In order to accommodate the development, Staff proposes to enter into a 20-year Economic
Development Program Agreement with Wal-Mart pursuant to which Wal-Mart will construct and
open a 182,000 sq. ft. Wal-Mart SuperCenter by June 30, 2016 and 20,000 sq. ft. of pad site by
June 30, 2016. Wal-Mart will make a good faith effort to expend at least twenty-five percent
(25%) of all hard construction costs with Fort Worth M/WBE Companies and commits to employ a
minimum of 50-employees during the term of the Agreement. If Wal-Mart 1) fails to invest a
minimum of $13.0 million by June 30, 2016 plus an additional $3.0 million by June 30, 2019, 2)
does not meet the Completion Deadline or 3) fails to complete the road project, the City will have
the right to terminate the Agreement without further obligation.
In return, as authorized by Chapter 380 of the Texas Local Government Code, the City will make
annual Economic Development Program Grants equal to 75% of the City's $.01 general sales tax
revenues and 75% of the City's incremental real property taxes attributable to the new Wal-Mart
SuperCenter. Aggregate grant payments will not exceed $12.0 million.
In addition, Wal-Mart will enter into an Infrastructure Construction Agreement (ICA) with the City
for Wal-Mart to fund and construct four lanes of Park Vista Boulevard from Ray White Road to
Keller Hicks Road on terms and conditions that are still being negotiated by the parties. Staff will
provide the City Council with additional details concerning the terms and conditions of the
Infrastructure Construction Agreement once agreement on all terms have been reached.
Staff will bring forward an M&C for the Economic Development Program Agreement at the
March 4, 2014 City Council meeting and an M&C for the Infrastructure Construction Agreement
as soon as feasible.
Tom Higgins
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS