HomeMy WebLinkAboutContract 29037 • r i
CITY SECRETARY Q
STATE OF TEXAS § CONTRACT NO.
06-28-03 05 1 N
COUNTY OF TARRANT §
TAX ABATEMENT AGREEMENT
(Phase I)
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and
between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal
corporation organized under the laws of the State of Texas and acting by and through Reid Rector,
its duly authorized Assistant City Manager, and COCA-COLA ENTERPRISES INC.
("Owner"), a Delaware corporation acting by and through E. Liston Bishop III, its duly authorized
Vice President, Secretary and Deputy General Counsel.
The City Council of the City of Fort Worth("City Council')hereby finds and the City and
Owner hereby agree that the following statements are true and correct and constitute the basis upon
which the City and Owner have entered into this Agreement:
A. On February 26, 2002, the City Council adopted Resolution No. 2811, stating that
the City elects to be eligible to participate in tax abatement and including guidelines and criteria
governing tax abatement agreements entered into between the City and various third parties,
entitled "Tax Abatement Policy Statement for Qualifying Development Projects" (the "Policy
Statement"), which is attached hereto as Exhibit "A" and hereby made a part of this Agreement
for all purposes.
B. The Policy Statement contains appropriate guidelines and criteria governing tax
abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas
Tax Code, as amended(the"Code").
C. On August 12, 2003, the City Council adopted Ordinance No. 1 S (the
"Ordinance") establishing Tax Abatement Reinvestment Zone No. 44, City of Fort Worth, Texas
(the"Zone").
D. Owner owns certain real property located entirely within the Zone and that is more
particularly described in Exhibit "B", attached hereto and hereby made a part of this Agreement
for all purposes (the"Land").
E. Owner plans to construct the Required Improvements, as defined in Section 1.1 of
this Agreement, on the Land for the use and operation of its soft drink manufacturing and
distribution facility (the "Project") and to locate personal property on the Land identified in
Exhibit `B" as the "Phase I Property". Subsequent to completion of the Required Improvements
and the location of the Phase I Property on the Land, Owner plans to add more taxable new
tangible property on the Land in Phases II and III of the Project, as defined and described in
Exhibit `B" ("Phase II" and "Phase III", respectively). Exhibit "E" is attached hereto and
hereby made a part of this Agreement for all purposes. The City has entered into
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Tax Abatement Agreement(Phase 1)between
City of Fort Worth and Coca-Cola Enterprises, Inc.
a
Abatement Agreement with respect to Phase II and Phase III. That Agreement is a public
document on file in the City Secretary's Office as City Secretary Contract No.
F. On April 24, 2003 Owner submitted an application for tax abatement to the City
with regard to the Required Improvements and the Phase I Property (the "Application"), attached
hereto as Exhibit"C" and hereby made a part of this Agreement for all purposes. The Application
also requested tax abatement with regard to Phase II and Phase III.
G. The contemplated use of the Land, the Required Improvements, as defined in
Section 1.1, and the terms and conditions of this Agreement are consistent with encouraging
development of the Zone and generating economic development and increased employment
opportunities in the City, in accordance with the purposes for creation of the Zone, and are in
compliance with the Policy Statement, the Ordinance and other applicable laws, ordinances, rules
and regulations.
H. The terms of this Agreement, and the Land and Required Improvements, satisfy the
eligibility criteria of the Policy Statement for commercial/industrial development projects.
I. Written notice that the City intends to enter into this Agreement, along with a copy
of this Agreement, has been furnished in the manner prescribed by the Code to the presiding
officers of the governing bodies of each of the taxing units in which the Land is located.
NOW, THEREFORE, the City and Owner, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
1. OWNER'S COVENANTS.
1.1. Real Property Improvements.
Owner shall construct, or cause to be constructed, certain improvements on the
Land as the first phase of an expansion to an existing soft drink manufacturing and
distribution facility, which new improvements shall (i) be at least 100,000 square feet in
size and (ii) have a minimum Construction Cost upon completion of $6,200,000
(collectively, the "Required Improvements") and shall cause at least $300,000 worth of
Phase I Property to be placed on the Land. The kind, number and location of the Required
Improvements are more particularly described in Exhibit "C". Minor variations in the
Required Improvements from the description provided in the Application for Tax
Abatement shall not constitute an Event of Default, as defined in Section 4.1,provided that
the conditions in the first sentence of this Section 1.1 and the completion deadline set forth
in Section 1.2 are met. For purposes of this Agreement, "Construction Costs" shall mean
site development costs, actual construction costs, including contractor fees, the costs of
supplies and materials, engineering fees, architectural fees and other professional,
development and permitting fees expended directly in connection with the Project. The
City recognizes that Owner will request bids from various contractors in order to obtain the
lowest reasonable price for the cost of the Project. In the event that bids for the Project are
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Tax Abatement Agreement(Phase I)between
City of Fort Worth and Coca-Cola Enterprises,Inc.
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below $6,200,000 for work substantially the same as that provided in Exhibit "C" and
otherwise described in this Agreement, the City will meet with Owner to negotiate in good
faith an amendment to this Agreement so that Owner is not in default for its failure to
expend at least $6,200,000 on the Project, with the understanding that the City's staff will
recommend,but cannot guarantee, approval of such amendment by the City Council.
1.2. Completion Date of Required Improvements and Installation of Tangible
Personal Property.
Owner intends to undertake construction of the Required Improvements in
accordance with the timeline set forth in Exhibit "C". Owner covenants and agrees that
construction of all Required Improvements shall be substantially completed, and that at
least $300,000 worth of the Phase I Property will be placed on the Land, by November 1,
2004,unless delayed because of Force Majeure,in which case the date shall be extended by
the number of days comprising the specific Force Majeure. For purposes of this
Agreement, "Force Majeure" shall mean an event beyond Owner's reasonable control,
including, without limitation, acts of God, fires, strikes, national disasters, wars, riots,
material or labor restrictions, and unreasonable delays by the City in issuing any permits
with respect to the Required Improvements or inspecting any of the Required
Improvements, but shall not include construction delays caused due to purely financial
matters involving Owner, such as, without limitation, delays in the obtaining of adequate
financing.
1.3. Use of Land.
Owner covenants that the Required Improvements shall be constructed and the
Land shall be used in accordance with the description of the Project set forth in Exhibit
"C". In addition, Owner covenants that throughout the Term (as defined in Section 2.7),
the Required Improvements shall be operated and maintained for the purposes set forth in
this Agreement and in a manner that is consistent with the general purposes of
encouraging development or redevelopment of the Zone.
2. ABATEMENT AMOUNTS,TERMS AND CONDITIONS.
The City will grant to Owner annual property tax abatements on the Land and on the Phase
I Property located on the Land for a period of ten (10) years, as specifically provided in this
Section 2 and subject to and in accordance with this Agreement (collectively, the "Abatement").
The actual amount of the Abatement granted under this Agreement shall be based upon the
increase in value of the Land and the increase in value of the Phase I Property located on the Land
over their respective values for the 2003 tax year, which is the year in which this Agreement was
entered into, and upon attainment by Owner of certain employment, contracting and spending
benchmarks set forth in this Section 2.
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Tax Abatement Agreement(Phase I)between
City of Fort Worth and Coca-Cola Enterprises,Inc.
2.1. Amount of Abatement in Years 1-3 of the Term.
Subject to Section 2.5 of this Agreement, during each the first three (3) years of
the Term, the Abatement granted hereunder may range up to a maximum of ninety
percent (90%) of the increased value of the Land and up to a maximum of ninety percent
(90%) of the increased value of the Phase I Property located on the Land, and shall be
calculated as follows:
2.1.1. Abatement Based on Construction Expenditures (20%).
Owner shall receive a twenty percent (20%) Abatement if Owner spends
(i) at least twenty-five percent (25%) of the total actual Construction Costs with
contractors that are Fort Worth Companies, as defined in Exhibit "A", and (ii) at
least fifteen percent (15%) of the total Construction Costs with M/WBE certified
contractors whose principal business office is located in the City ("Fort Worth
M/WBE Companies"). Terms and requirements relating to the location and
certification of a given contractor are defined and explained in Exhibit"A".
Determination of compliance with the spending requirements of this
Section 2.1.1 shall be based on spending during the period of time prior to and
including November 1, 2004. The maximum percentage of Abatement available
to Owner under this Section 2.1.1 is twenty percent (20%). Owner shall not be
eligible for any of the twenty percent (20%) Abatement under this Section 2.1.1
unless Owner meets the minimum requirements set forth in both subsections (i)
and (ii) of the paragraph above. In other words, Owner may not offset a
deficiency in one subsection by exceeding its commitment in another subsection.
In addition, if the total Construction Costs of the Required Improvements are less
than as provided in Section 1.1 of this Agreement, not only will Owner be
ineligible to receive the twenty percent (20%) Abatement under this Section 2.1.1,
but an Event of Default, as defined and addressed in Section 4, shall also occur.
2.1.2. Abatement Based on Employment Goals (Up to 30%).
2.1.2.1. Base Number of Jobs.
Owner shall receive a thirty percent (30%) Abatement if
during the previous calendar year (i) at least 591 Full-time Jobs are
provided and filled on the Land ("Base Number of Jobs"); and (ii) at
least169 Full-time Jobs on the Land were held by individuals residing
within the corporate limits of the City(the "Base Number of Fort Worth
Jobs"), and (iii) at least 81 of all Full-time Jobs on the Land are held by
individuals residing within the Central City (the "Base Number of
Central City Jobs"). For purposes of this Agreement, "Central City"
shall be defined as those areas depicted in the map of Exhibit "D",
attached hereto and hereby made a part of this Agreement for all purposes,
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Tax Abatement Agreement(Phase I)between
City of Fort Worth and Coca-Cola Enterprises,Inc.
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as either the central city or a CDBG area, and "Full-time Job" shall mean
jobs filled for a period of not less than thirty(30) hours per week.
2.1.2.2. Reductions for Failure to Provide Base Number of Jobs.
If Owner failed to provide the Base Number of Jobs in the
previous calendar year, the maximum thirty percent (30%) Abatement
available under this Section 2.1.2 shall be reduced by one percent (1%)
multiplied by the difference between the Base Number of Jobs and the
actual number of Full-time Jobs provided and filled on the Land in such
calendar year. In addition, if Owner failed to provide and fill the Base
Number of Fort Worth Jobs in the previous calendar year, the maximum
thirty percent (30%) Abatement available under this Section 2.1.2 shall be
reduced by one percent (1%) multiplied by the difference between the Base
Number of Fort Worth Jobs and the actual number of Full-time Jobs
provided on the Land and filled by individuals residing within the corporate
limits of the City. In addition, if Owner failed to provide and fill the Base
Number of Central City Jobs in the previous calendar year, the maximum
thirty percent (30%) Abatement available under this Section 2.1.2 shall be
reduced by one percent (1%) multiplied by the difference between the Base
Number of Central City Jobs and the actual number of Full-time Jobs
provided on the Land and filled by individuals residing in the Central City.
Determination of compliance with the employment requirements of this
Section 2.1.2 shall be based on Owner's employment data on August 1 of
each year during the Compliance Auditing Term, as defined in Section 2.7.
Notwithstanding the foregoing, Owner's failure to satisfy the commitments
set forth in Section 2.1.2.1 shall not cause the Abatement available under
this Agreement to be reduced by more than the thirty percent (30%)
Abatement component available under this Section 2.1.2.
2.1.3. Abatement Based on Additional Employment Goals (Up to 30%).
If at least twenty-five percent (25%) of all Full-time Jobs provided and
filled on the Land in excess of the Base Number of Jobs are held by individuals
residing within the corporate limits of the City, regardless of the total number of
Full-time Jobs provided and filled on the Land by Owner, then (i) for every three
(3) Full-time Jobs in excess of the Base Number of Fort Worth Jobs that are held
by individuals residing within the corporate limits of the City, Owner shall
receive an additional one percent (1%) Abatement and (ii) for every one (1) Full-
time Job in excess of the Base Number of Central City Jobs that is held by an
individual residing in the Central City, Owner shall receive an additional one
percent (1%) Abatement, up to an aggregate additional thirty percent (30%)
Abatement; provided, however, that Owner shall not be eligible to receive more
than half of such additional Abatement for providing and filling such additional
Full-time Jobs with individuals residing within the corporate limits of the City but
living outside the Central City (so that if, for example, Owner provided and filled
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Tax Abatement Agreement(Phase I)between
City of Fort Worth and Coca-Cola Enterprises,Inc.
ninety (90) Full-time Jobs in excess of the Base Number of Fort Worth Jobs with
individuals residing within the corporate limits of the City but living outside the
Central City, Owner would only receive an additional fifteen percent (15%)
Abatement). The maximum Abatement available under this Section 2.1.3 is thirty
percent (30%). Notwithstanding the foregoing, if less than twenty-five percent
(25%) of all Full-time Jobs provided and filled on the Land in excess of the Base
Number of Jobs are held by individuals residing within the corporate limits of the
City, regardless of the total number of Full-time Jobs provided and filled on the
Land by Owner, then Owner will not be entitled to any additional Abatement
under this Section 2.1.3. Determination of compliance with the employment
requirements of this Section 2.1.3 shall be based on Owner's employment data on
August 1 of each year during the Compliance Auditing Term, as defined in Section
2.7.
2.1.4. Abatement Based on Supply and Service Expenditures with Fort
Worth Companies(5%).
Owner shall receive a five percent (5%) Abatement if during the previous
calendar year (i) Owner spent at least $734,200 in local discretionary funds for
supplies and services directly in connection with Owner's operation of its soft
drink manufacturing and distribution facility on the Land, as expanded by the
Required Improvements, and (ii) at least twenty-five percent (25%) of all such
expenditures, regardless of the total amount of such expenditures, were provided
by Fort Worth Companies. Determination of compliance with the requirements of
this Section 2.1.4 for local discretionary spending for supply and service contracts
shall be based on spending for an entire calendar year.
2.1.5. Abatement Based on Supply and Service Expenditures with Fort
Worth M/WBE Companies (5%).
Owner shall receive a five percent (5%) Abatement if during the previous
calendar year (i) Owner spent at least $734,200 in local discretionary funds for
supplies and services directly in connection with Owner's operation of its soft
drink manufacturing and distribution facility on the Land, as expanded by the
Required Improvements, and (ii) at least fifteen percent (15%) of all such
expenditures, regardless of the total amount of such expenditures, were provided
by Fort Worth M/WBE Companies. Determination of compliance with the
requirements of this Section 2.1.5 for local discretionary spending for supply and
service contracts shall be based on spending for an entire calendar year.
2.2. Amount of Abatement in Years 4-10 of the Term.
Subject to Sections 2.4 and 2.5 of this Agreement, during each of the latter seven
(7) years of the Term, the Abatement granted hereunder may range up to a maximum of
ninety percent (90%) of the increased value of the Land and up to a maximum of ninety
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Tax Abatement Agreement(Phase I)between
City of Fort Worth and Coca-Cola Enterprises,Inc.
percent (90%) of the increased value of the Phase I Property located on the Land, and
shall be calculated as follows:
2.2.1. Abatement Based on Employment Goals (Up to 30%).
2.2.1.1. Base Number of Jobs.
Owner shall receive a thirty percent (30%) Abatement if
during the previous calendar year (i) Owner provided and filled on the
Land at least the Base Number of Jobs (at least 591 Full-time Jobs, as
previously defined in Section 2.1.2.1); and(ii) Owner provided and filled
on the Land at least the Base Number of Fort Worth Jobs (at least 169
Full-time Jobs held by individuals residing within the corporate limits of
the City, as previously defined in Section 2.1.2.1); and (iii) Owner
provided and filled on the Land at least the Base Number of Central City
Jobs (at least 81 of all Full-time Jobs held by individuals residing within
the Central City, as previously defined in Section 2.1.2.1).
2.2.1.2. Reductions for Failure to Provide Base Number of Jobs.
If Owner failed to provide the Base Number of Jobs in the
previous calendar year, the maximum thirty percent (30%) Abatement
available under this Section 2.2.1 shall be reduced by one percent (1%)
multiplied by the difference between the Base Number of Jobs and the
actual number of Full-time Jobs provided and filled on the Land in such
calendar year. In addition, if Owner failed to provide and fill the Base
Number of Fort Worth Jobs in the previous calendar year, the maximum
thirty percent (30%) Abatement available under this Section 2.2.1 shall be
reduced by one percent (1%) multiplied by the difference between the Base
Number of Fort Worth Jobs and the actual number of Full-time Jobs
provided on the Land and filled by individuals residing within the corporate
limits of the City. In addition, if Owner failed to provide and fill the Base
Number of Central City Jobs in the previous calendar year, the maximum
thirty percent (30%) Abatement available under this Section 2.2.1 shall be
reduced by one percent (1%) multiplied by the difference between the Base
Number of Central City Jobs and the actual number of Full-time Jobs
provided on the Land and filled by individuals residing in the Central City.
Determination of compliance with the employment requirements of this
Section 2.2.1 shall be based on Owner's employment data on August 1 of
each year during the Compliance Auditing Term, as defined in Section 2.7.
Notwithstanding the foregoing, Owner's failure to satisfy the commitments
set forth in Section 2.2.2.1 shall not cause the Abatement available under
this Agreement to be reduced by more than the thirty percent (30%)
Abatement component available under this Section 2.2.1.
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Tax Abatement Agreement(Phase I)between
City of Fort Worth and Coca-Cola Enterprises,Inc.
2.2.2. Abatement Based on Additional Employment Goals (Up to 50%).
If at least twenty-five percent (25%) of all Full-time Jobs provided and
filled on the Land in excess of the Base Number of Jobs are held by individuals
residing within the corporate limits of the City, regardless of the total number of
Full-time Jobs provided and filled on the Land by Owner, then (i) for every three
(3) Full-time Jobs in excess of the Base Number of Fort Worth Jobs that are held
by individuals residing within the corporate limits of the City, Owner shall
receive an additional one percent (1%) Abatement and (ii) for every one (1) Full-
time Job in excess of the Base Number of Central City Jobs that is held by an
individual residing in the Central City, Owner shall receive an additional one
percent (1%) Abatement, up to an aggregate additional fifty percent (50%)
Abatement; provided, however, that Owner shall not be eligible to receive more
than half of such additional Abatement for providing and filling such additional
Full-time Jobs with individuals residing within the corporate limits of the City but
living outside the Central City(so that if, for example, Owner provided and filled
one hundred fifty (150) Full-time Jobs in excess of the Base Number of Fort
Worth Jobs with individuals residing within the corporate limits of the City but
living outside the Central City, Owner would only receive an additional twenty-
five percent (25%) Abatement). The maximum Abatement available under this
Section 2.2.2 is fifty percent (50%). Notwithstanding the foregoing, if less than
twenty-five percent (25%) of all Full-time Jobs provided and filled on the Land in
excess of the Base Number of Jobs are held by individuals residing within the
corporate limits of the City, regardless of the total number of Full-time Jobs
provided and filled on the Land by Owner, then Owner will not be entitled to any
additional Abatement under this Section 2.2.2. Determination of compliance with
the employment requirements of this Section 2.2.2 shall be based on Owner's
employment data on August 1 of each year during the Compliance Auditing Term,
as defined in Section 2.7.
2.2.3. Abatement Based on Supply and Service Expenditures with Fort
Worth Companies (5%).
Owner shall receive a five percent (5%) Abatement if during the previous
calendar year (i) Owner spent at least $734,200 in local discretionary funds for
supplies and services directly in connection with Owner's operation of its soft
drink manufacturing and distribution facility on the Land, as expanded by the
Required Improvements, and (ii) at least twenty-five percent (25%) of all such
expenditures, regardless of the total amount of such expenditures, were provided
by Fort Worth Companies. Determination of compliance with the requirements of
this Section 2.2.3 for local discretionary spending for supply and service contracts
shall be based on spending for an entire calendar year.
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Tax Abatement Agreement(Phase 1)between
City of Fort Worth and Coca-Cola Enterprises,Inc.
. f
2.2.4. Abatement Based on Supply and Service Expenditures with Fort
Worth M/WBE Companies (5%).
Owner shall receive a five percent (5%) Abatement if during the previous
calendar year (i) Owner spent at least $734,200 in local discretionary funds for
supplies and services directly in connection with Owner's operation of its soft
drink manufacturing and distribution facility on the Land, as expanded by the
Required Improvements, and (ii) at least fifteen percent (15%) of all such
expenditures, regardless of the total amount of such expenditures, were provided
by Fort Worth M/WBE Companies. Determination of compliance with the
requirements of this Section 2.2.4 for local discretionary spending for supply and
service contracts shall be based on spending for an entire calendar year
2.3. Effect of Failure to Meet Section 2.1 and Section 2.2 Goals.
Unless specifically identified as an Event of Default, the failure to meet any or all
of the numerical commitments, percentages or goals, as the case may be, for Construction
Costs, employment and supply and service vendor contract spending, as set forth for the
first three(3) years in Sections 2.1.1,2.1.2, 2.1.3, 2.1.4 and 2.1.5 and for the latter seven(7)
years in Sections 2.2.1, 2.2.2, 2.2.3 and 2.2.4, shall result only in the reduction of the
percentage of Abatement available to Owner for a given year or a failure to earn an
additional percentage of Abatement, and shall not constitute an Event of Default as defined
in Section 4.1 of this Agreement or trigger the cure periods and remedies set forth in that
Section 4.
2.4. Reduction for Failure to Complete Phase II or Phase III.
Notwithstanding anything that may be interpreted to the contrary in this Agreement,
if the personal property comprising Phase II or the personal property comprising Phase III
is not located on the Land by November 1, 2007, the maximum Abatement available to
Owner under this Agreement beginning in the 2008 tax year and for the remainder of the
Term will be eighty percent(80%), rather than ninety percent (90%), of the increased value
of the Land over its value for the 2003 tax year and eighty percent (80%), rather than ninety
percent (90%), of the increased value of the Phase I Property located on the Land over its
value for the 2003 tax year. In such an event, the City will calculate the actual annual
percentage of Abatement available to Owner in accordance with the procedures set forth in
Section 3.4 and then subtract ten percent (10%) from that percentage. For example, if in
the sixth year of the Term Owner qualified for a sixty percent (60%) Abatement based on
the calculations provided in Section 2.2, then Owner's actual Abatement in that year would
be fifty percent(50%).
2.5. Abatement Limitation.
Notwithstanding anything that may be interpreted to the contrary in this Agreement,
Owner's Abatement in any given year shall be based (i) on the increase in the real property
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Tax Abatement Agreement(Phase I)between
City of Fort Worth and Coca-Cola Enterprises,Inc.
value of the Land, including the Required Improvements, since the 2003 tax year, up to a
maximum of ninety percent(90%) of$9,300,000 and(ii) on the increase in the value of the
Phase I Property located on the Land since the 2003 tax year, up to a maximum of ninety
percent (90%) of$450,000. In other words, with regard to the real property tax Abatement
on the Land, in any year in which the value of the Land, including the Required
Improvements, exceeds (i) the value of the Land in the 2003 tax year plus (ii) $9,300,000,
Owner's real property tax Abatement for that tax year shall be capped and calculated as if
the increase in the value of the Land since the 2003 tax year had only been $9,300,000.
For example, and as an example only, if the value of the Land in the sixth year of the
Compliance Auditing Term is $12,000,000 over the value of the Land in the 2003 tax year,
Owner would receive a maximum real property tax Abatement of ninety percent (90%) of
$9,300,000 in the sixth year of the Term. Along the same lines, if the value of the Phase I
Property located on the Land in the sixth year of the Term is $1,000,000 over the value of
that property in the 2003 tax year, Owner would receive a maximum personal property tax
Abatement on the Phase I Property of ninety percent (90%) of$450,000 in the sixth year of
the Term.
2.6. Protests Over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or
assessments of the Land and/or improvements or taxable tangible personal property
thereon.
2.7. Terms.
Auditing for compliance of this Agreement shall begin either in (i) calendar year
2004, but only at Owner's written request, which must be received by the City at the
address provided in Section 6 by not later than November 1, 2004 or (ii) if Owner does not
submit the written request set forth in subsection (i) above, the first full calendar year
following the year in which a final certificate of occupancy is issued for the Required
Improvements ("Compliance Auditing Term"). Taxes will not be abated during the first
year of the Compliance Auditing Term. The term of the Abatement benefit (the "Term")
shall begin on January 1 of the year following the year that the Compliance Auditing Term
begins (the"Abatement Beginning Date"). Unless sooner terminated as herein provided,
the Term and the Compliance Auditing Term shall end on the December 31 st immediately
preceding their respective tenth (10th) anniversaries. Information for the last Compliance
Auditing Term shall be submitted as indicated in Section 3.3.
2.8. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Application fee of one
percent (1%) of Project's estimated cost, not to exceed $15,000. If Owner diligently begins
or causes to begin construction of the Required Improvements on the Land within one (1)
year from the date of the Application (whether or not Owner actually receives any
Abatement), this Application fee shall be creditable in full to the benefit of Owner against
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Tax Abatement Agreement(Phase I)between
City of Fort Worth and Coca-Cola Enterprises,Inc.
any permit, impact, inspection or other lawful fee required by the City in connection with
the Project, and any remaining amounts shall be refunded to Owner.
3. RECORDS,AUDITS AND EVALUATION OF PROJECT.
3.1. Inspection of Property.
Between the execution date of this Agreement and the last day of the Term, at any
time during normal office hours throughout the Term and the year following the Term and
following reasonable notice to Owner, the City shall have and Owner shall provide access
to the Land and any improvements thereon in order for the City to inspect the Land and
evaluate the Required Improvements to ensure compliance with the terms and conditions of
this Agreement. Owner shall cooperate fully with the City during any such inspection
and/or evaluation. Notwithstanding the foregoing, any representative of the City must be
escorted by Owner's security personnel and no such inspection shall unreasonably interfere
with Owner's operations.
3.2. Audits.
The City shall have the right to audit the financial and business records of Owner
that relate to the Project and Abatement terms and conditions (collectively, the
"Records") at any time during the Compliance Auditing Term in order to determine
compliance with this Agreement and to calculate the correct percentage of Abatement
available to Owner. Owner shall make all Records available to the City on the Land or at
another location in the City following reasonable advance notice by the City and shall
otherwise cooperate fully with the City during any audit.
3.3. Provision of Information.
On or before February 1 following the end every year during the Compliance
Auditing Term, Owner shall provide information and documentation for the previous year
that addresses Owner's compliance with each of the terms and conditions of this
Agreement for that calendar year. This information shall include, but not be limited to, the
following:
3.3.1. The total number of employees holding Full-time Jobs and who worked on
the Land, the number of such employees who resided within the corporate limits of
the City and the number of such employees who resided in Central City areas, all as
of August 1 of the preceding calendar year, together with reasonable documentation
regarding the residency of such employees; and
3.3.2. The number and dollar amounts of all construction contracts and
subcontracts awarded on the Project, specifying the number and dollar amounts
spent with contractors that are Fort Worth Companies, as defined in Exhibit "A",
Page 1 I
Tax Abatement Agreement(Phase 1)between
City of Fort Worth and Coca-Cola Enterprises,Inc.
and with contractors that are Fort Worth M/WBE Companies, as defined in Section
2.1.1; and
3.3.3. The gross dollars and supporting details showing the amounts spent by
Owner on local discretionary supply and service contracts, specifying the number
and dollar amounts spent with vendors that are Fort Worth Companies, as defined
in Exhibit "A", and with vendors that are Fort Worth M/WBE Companies, as
defined in Section 2.1.1.
Owner shall supply any additional information requested by the City that is
pertinent to the City's evaluation of Owner's compliance with each of the terms and
conditions of this Agreement. Failure to provide all information required by this Section
3.3 shall constitute an Event of Default, as defined in Section 4.1. All of the foregoing
shall be subject to applicable federal and state privacy laws and regulations.
3.4. Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Term, the City
shall make a decision and rule on the actual annual percentage of Abatement available to
Owner for the following year of the Term based on the City's audit of the Records and any
inspections of the Land and/or the Required Improvements and shall notify Owner in
writing of such decision and ruling. If Owner reasonably disagrees with the City's decision
and ruling, Owner shall notify the City in writing within fourteen (14) calendar days of
receipt. In this event, Owner, at Owner's sole cost and expense, may request an
independent third party who is reasonably acceptable to the City to verify the findings of
the City within not more than thirty(30) calendar days following receipt of Owner's notice
to the City, and if any discrepancies are found, the City, Owner and the independent third
party shall cooperate with one another to resolve the discrepancy. If resolution cannot be
achieved, the matter may be taken to the City Council for consideration in an open public
meeting at which both City staff and Owner's representatives will be given an opportunity
to comment. The ruling and determination by the City Council shall be final.
The actual percentage of the Abatement granted for a given year of the Term is
therefore based upon Owner's compliance with the terms and conditions of this Agreement
during the previous year of the Compliance Auditing Term. Notwithstanding the
foregoing, if the City makes a decision and ruling that Owner is entitled to the twenty
percent (20%) Abatement available pursuant to Section 2.1.1, Owner shall be entitled to the
benefits of such twenty percent (20%) Abatement each year of the Term without the
necessity of providing any additional information and documentation or obtaining any
additional decision or ruling from the City.
Page 12
Tax Abatement Agreement(Phase I)between
City of Fort Worth and Coca-Cola Enterprises,Inc.
4. EVENTS OF DEFAULT.
4.1. Defined.
Owner shall be in default of this Agreement if(i) any of the covenants set forth in
any portion or all of Sections 1.1, 1.2 and 1.3 of this Agreement are not met; or (ii) ad
valorem real property taxes with respect to the Land or the Project, or ad valorem taxes
with respect to any and/or all tangible personal property located on the Land, become
delinquent and Owner does not timely and properly follow the legal procedures for protest
and/or contest of any such ad valorem real property or tangible personal property taxes; or
(iii) subject to Section 2.3 of this Agreement, Owner breaches any of the other terms or
conditions of this Agreement(collectively, each an"Event of Default").
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurred,
the City shall provide a written notice to Owner that describes the nature of the Event of
Default. Owner shall have ninety(90) calendar days from the date of receipt of this written
notice to fully cure or have cured the Event of Default. If Owner reasonably believes that
Owner will require additional time to cure the Event of Default, Owner shall promptly
notify the City in writing, in which case (i) after advising the City Council in an open
meeting of Owner's efforts and intent to cure, Owner shall have one hundred eighty (180)
calendar days from the original date of receipt of the written notice, or (ii) if Owner
reasonably believes that Owner will require more than one hundred eighty (180) days to
cure the Event of Default, after advising the City Council in an open meeting of Owner's
efforts and intent to cure, such additional time, if any, as may be offered by the City
Council in its sole discretion.
4.3. Termination for Event of Default and Payment of Liquidated Damages.
If an Event of Default has not been cured within the time frame specifically allowed
under Section 4.2, the City shall have the right to terminate this Agreement immediately.
Owner acknowledges and agrees that an uncured Event of Default will (i) harm the City's
economic development and redevelopment efforts on the Land and in the vicinity of the
Land; (ii) require unplanned and expensive additional administrative oversight and
involvement by the City; and (iii) otherwise harm the City, and Owner agrees that the
amounts of actual damages therefrom are speculative in nature and will be difficult or
impossible to ascertain. Therefore, upon termination of this Agreement for any Event of
Default, Owner shall pay the City, as liquidated damages, all taxes that were abated in
accordance with this Agreement for each year when an Event of Default existed and which
otherwise would have been paid to the City in the absence of this Agreement. The City and
Owner agree that this amount is a reasonable approximation of actual damages that the City
will incur as a result of an uncured Event of Default and that this Section 4.3 is intended to
provide the City with compensation for actual damages and is not a penalty. This amount
may be recovered by the City through adjustments made to Owner's ad valorem property
Page 13
Tax Abatement Agreement(Phase I)between
City of Fort Worth and Coca-Cola Enterprises,Inc.
tax appraisal by the appraisal district that has jurisdiction over the Land and over any
taxable tangible personal property located thereon. Otherwise, this amount shall be due,
owing and paid to the City within sixty (60) days following the effective date of
termination of this Agreement. In the event that all or any portion of this amount is not
paid to the City within sixty (60) days following the effective date of termination of this
Agreement, Owner shall also be liable for all penalties and interest on any outstanding
amount at the statutory rate for delinquent taxes, as determined by the Code at the time of
the payment of such penalties and interest(currently, Section 33.01 of the Code).
4.4. Termination at Will.
If the City and Owner mutually determine that the development or use of the Land
or the anticipated Required Improvements are no longer appropriate or feasible, or that a
higher or better use is preferable, the City and Owner may terminate this Agreement in a
written format that is signed by both parties. In this event, (i) if the Term has commenced,
the Term shall expire as of the effective date of the termination of this Agreement; (ii)there
shall be no recapture of any taxes previously abated; and (iii) neither party shall have any
further rights or obligations hereunder.
5. EFFECT OF SALE OFLAND AND/OR REQUIRED IMPROVEMENTS.
The Abatement granted hereunder shall vest only in Owner and cannot be assigned to a
new owner of all or any portion of the Land and/or Required Improvements and/or Phase I
Property on the Land without the prior consent of the City Council, which consent shall not be
unreasonably withheld provided that (i) the City Council finds that the proposed assignee is
financially capable of meeting the terms and conditions of this Agreement and (ii) the proposed
assignee agrees in writing to assume all terms and conditions of Owner under this Agreement.
Owner may not otherwise assign, lease or convey any of its rights under this Agreement. Any
attempted assignment without the City Council's prior consent shall constitute grounds for
termination of this Agreement and the Abatement granted hereunder following ten (10) calendar
days of receipt of written notice from the City to Owner.
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the
following, or such other party or address as either party designates in writing, by certified mail,
postage prepaid, or by hand delivery:
City: Owner:
City of Fort Worth Coca-Cola Enterprises Inc.
Attn: City Manager 2500 Windy Ridge Parkway
1000 Throckmorton Atlanta, GA 30339
Fort Worth, TX 76102 Attn: Kyle Caruthers
Page 14
Tax Abatement Agreement(Phase 1)between
City of Fort Worth and Coca-Cola Enterprises,Inc.
with copies to: with a copy to:
the City Attorney and Miller&Martin, LLP
Economic/Community Development Suite 700
Director at the same address 1275 Peachtree Street,N.E.
Atlanta, GA 30309-3576
Attn: Thomas J. Harrold, Jr., Esq.
7. MISCELLANEOUS.
7.1. Bonds.
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to rights of holders of outstanding bonds of the City.
7.2. Conflicts of Interest.
Neither the Land nor any of the Required Improvements covered by this Agreement
are owned or leased by any member of the City Council, any member of the City Plan or
Zoning Commission or any member of the governing body of any taxing units in the Zone.
7.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinances, or other City
ordinances or regulations, and this Agreement, such ordinances or regulations shall control.
In the event of any conflict between the body of this Agreement and Exhibit"C", the body
of this Agreement shall control.
7.4. Future Application.
A portion or all of the Land and/or Required Improvements may be eligible for
complete or partial exemption from ad valorem taxes as a result of existing law or future
legislation. This Agreement shall not be construed as evidence that such exemptions do not
apply to the Land and/or Required Improvements.
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval Mayor and
Council Communication No. C-/9 7/0 on August 12, 2003, which, among other things,
authorized the City Manager to execute this Agreement on behalf of the City.
Page 15
Tax Abatement Agreement(Phase I)between
City of Fort Worth and Coca-Cola Enterprises,Inc.
7.6. Estoppel Certificate.
Any party hereto may request an estoppel certificate from another party hereto so
long as the certificate is requested in connection with a bona fide business purpose. The
certificate, which if requested will be addressed to the Owner, shall include, but not
necessarily be limited to, statements that this Agreement is in full force and effect without
default (or if an Event of Default exists, the nature of the Event of Default and curative
action taken and/or necessary to effect a cure), the remaining term of this Agreement, the
levels and remaining term of the Abatement in effect, and such other matters reasonably
requested by the party or parties to receive the certificates.
7.7. Owner Standing.
Owner shall be deemed a proper and necessary party in any litigation questioning or
challenging the validity of this Agreement or any of the underlying laws, ordinances,
resolutions or City Council actions authorizing this Agreement, and Owner shall be entitled
to intervene in any such litigation.
7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of
Texas and applicable ordinances, rules, regulations or policies of the City. Venue for any
action under this Agreement shall lie in the State District Court of Tarrant County, Texas.
This Agreement is performable in Tarrant County, Texas.
7.9. Recordation.
A certified copy of this Agreement in recordable form shall be recorded in the Deed
Records of Tarrant County, Texas.
7.10. Severability.
If any provision of this Agreement is held to be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not in any way
be affected or impaired.
7.11. Headings Not Controlling.
Headings and titles used in this Agreement are for reference purposes only and
shall not be deemed a part of this Agreement.
7.12. Entirety of Agreement.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement
Page 16
Tax Abatement Agreement(Phase 1)between
City of Fort Worth and Coca-Cola Enterprises,Inc.
between the City and Owner, their assigns and successors in interest, as to the matters
contained herein. Any prior or contemporaneous oral or written agreement is hereby
declared null and void to the extent in conflict with any provision of this Agreement.
This Agreement shall not be amended unless executed in writing by both parties and
approved by the City Council. This Agreement may be executed in multiple
counterparts, each of which shall be considered an original, but all of which shall
constitute one instrument.
7.13. Amendment.
This Agreement may be amended only by the written agreement of the City and
Owner.
IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed
as of the later date below:
CITY OF FORT WORTH: APPROVED AS TO FORM AND LEGALITY:
By: idh2+� p` - By: /L
Reid Rector Peter Vaky
Assistant City Manager Assistant City Attorney
Date: B f 7A) M & C: C-/9710 -1y-03
ATTE :
By:
C ty Secretary
COCA-COLA ENTERPRISES INC.:
By:
E. Liston Bishop III
Vice Pre
sident, Secretary and Deputy General Counsel
Date: ZZ, 0.3
ATTEST:
By: C
Page 17
Tax Abatement Agreement(Phase I)between
City of Fort Worth and Coca-Cola Enterprises,Inc. ��
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Reid Rector,
Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation organized
under the laws of the State of Texas, 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
CITY OF FORT WORTH, 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 CITY OF FORT WORTH for the purposes and consideration therein expressed and in the
capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this cVdday of
2003.
Notary Public in and�for Y Pio`•. ROSELLA BARNES
Pa.
;20�. ,,�::
the State of Texas t*` � =:*: NOTARY PUBLIC
tum 4 �i+Q. r State of Texas
RQ5&-11,d 8/99AIeS LTFOF�rJComm.Exp.03-31-2005
Notary's Printed Name
STATE OF GEORGIA §
COUNTY OF COBB §
BEFORE ME, the undersigned authority, on this day personally appeared E. Liston Bishop
III, Vice President, Secretary and Deputy General Counsel of COCA-COLA ENTERPRISES
INC., known to me to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that s/he executed the same for the purposes and consideration therein
expressed, in the capacity therein stated and as the act and deed of COCA-COLA
ENTERPRISES,INC.
```wHlNlw;atdolOp�
IVEN UNDER MY HAN44 SEF OFFICE this 2 2 day
of209.f NOTARY
� 3 J RY
GEORGIA
r' LIC
aryPub ' in and for
te State of Georgia
Innnn��
;a„ L Gn WiW=EON AWW 1,20
Notary's Printed Name
EXHIBIT "A"
CITY OF FORT WORTH
TAX ABATEMENT POLICY
I. GENERAL PURPOSE AND OBJECTIVES
Certain types of investment result in the creation of new jobs, new income and provide for positive
economic growth and inner-city economic stabilization which is beneficial to the City as a whole. The
City of Fort Worth is committed to the promotion of high quality development in all parts of the City and
improvement in the quality of life for its citizens.
The City of Fort Worth will, on a case-by-case basis, give consideration to the granting of property tax
incentives to eligible residential, commercial, and industrial development projects. It is the policy of the
City of Fort Worth that consideration of eligible projects will be provided in accordance with the
guidelines and criteria outlined in this document. Texas law authorizes the City of Fort Worth to grant tax
abatement on the value added to a particular property by a specific development project which meets the
economic goals and objectives of the City, and the requirements of the statute (Vernon's Tax Code Ann.
Section 312.001, et. seq.).
As mandated by state law, this policy applies to the owners of real property. It is not the policy of
the City of Fort Worth to grant property tax abatement to any development project for which a
building permit has been previously issued by the City's Department of Development. Nothing in
the policy shall be construed as an obligation by the City of Fort Worth to approve any tax
abatement application.
Although all applications which meet the eligibility criteria(Section III.) of this policy statement will be
reviewed, it is the objective of the City of Fort Worth to encourage applications from projects that:
(a) are located in enterprise zones or other designated target areas; or
(b) result in a development with little or no additional cost to the City; or
(c) result in 1,000 or more new jobs, with a commitment to hire Fort Worth and inner city residents.
II. DEFINITIONS
"Abatement" means the full or partial exemption from ad valorem taxes on eligible properties for a period
of up to ten years and an amount of up to 100% of the increase in appraised value (as reflected on the
certified tax roll of the appropriate county appraisal district) resulting from improvements begun after the
execution of the tax abatement agreement. Eligible properties must be located in a reinvestment zone.
"Reinvestment Zone" is an area designated as such by the City of Fort Worth or State of Texas in
accordance with the Texas Property Redevelopment and Tax Abatement Act, Sections 312.001 through
312.209 of the Tax Code.
Page 1 of 7
EXHIBIT "A"
"Residential Development Project" is a development project which proposes to construct or renovate
multi-family residential living units on property that is (or meets the requirements to be) zoned multi-
family as defined by the City of Fort Worth Zoning Ordinance.
"Fort Worth Company" is a business which has a principal office located within the city limits of Fort
Worth.
"Minority or Woman-owned Business Enterprise (MWBE)" is a minority or woman-owned business that
has received certification as either a MBE or WBE by either the North Central Texas Regional
Certification Agency (NCTRCA) or the Texas Department of Transportation (TxDOT), Highway
Division.
"Capital Investment" includes only real property improvements such as new facilities and structures, site
improvements, facility expansion, and facility modernization. Capital investment does NOT include land
acquisition costs and/or any existing improvements, or personal property (such as machinery, equipment,
and/or supplies and inventory).
"Facility Expansion" is a new permanent real property improvement such as a building or buildings
constructed to provide additional square footage to accommodate increased space requirements of a Fort
Worth company.
"Facility Modernization" is a new permanent real property improvement under taken to provide increased
productivity for a new or existing Fort Worth company.
"Supply and Service Expenses" are discretionary expenses incurred during the normal maintenance and
operation activities of a business.
III. ELIGIBILITY CRITERIA
A. RESIDENTIAL PROJECT ELIGIBILITY
A residential development project is eligible for property tax abatement if:
1. The project is located in any of the following census tracts: 1002.02, 1010, 1011,
1016, .1017, 1018, 1019 (partial), 1025, 1028 (partial), 1029, 1030, 1031, 1033,
1035, 1036.01, 1037.01, 1038, 1040, 1041 (partial) (see Map "A"); AND
2. a. The project will construct or renovate no less than 50 residential living units of
which no less than 20% shall be affordable (as defined by the U.S. Department
of Housing and Urban Development) to persons with incomes at or below
80% of median family income; OR
b. The project has a minimum capital investment of$5 million (excluding
acquisition costs for land and any existing improvements).
B. COMMERCIAUINDUSTRIAL ELIGIBILITY
1. New Projects
In order to be eligible for property tax abatement, a new commercial/industrial
development project must satisfy one of the following three criteria:
a. Upon completion will have a minimum capital investment of $10 million
and commits to hire an agreed upon percentage of residents from an eligible
inner city census tract (as identified on Map "A") for full time employment.;
OR
Page 2 of 7
a
EXHIBIT "A"
b. Is located in the "inner city" (as identified on Map "A") or property
immediately adjacent to the major thoroughfares which serve as boundaries
to any of these inner city census tracts and commits to hire an agreed upon
percentage of residents from an eligible inner city census tract (as identified
on Map "A") for full time employment; OR
C. Is located outside of the "inner city", has a minimum capital investment of
less than $10 million, and commits to hire an agreed upon percentage of
residents from an eligible inner city census tract (as identified on Map "A")
for full time employment.
2. Existing Business Expansion and/or Modernization
In order to be eligible for property tax abatement, a facility expansion and/or
modernization by an existing commercial/industrial business must:
a. Upon completion have a minimum capital investment of$10 million; OR
b. Result in increased employment for which the business commits to hire and
retain an agreed upon percentage of residents from an eligible inner city
census tract(as identified on Map "A") for new, full time positions; AND
C. Have a minimum capital investment of (1) $500,000, OR (2) an amount
equal to or greater than 25% of the appraised value, as certified by the
appropriate appraisal district, of real property improvements on the property
for the year in which the abatement is requested.
C. PROOF TESTS
1. Building Permits
No tax abatement will be granted to any development project which has applied for
or received a building permit from the City's Department of Development. .
2. Evidence of Need for Tax Abatement
The applicant must provide evidence to substantiate and justify the tax abatement
request including (but not limited to) an analysis demonstrating the tax abatement is
necessary for the financial viability of the project.
IV. ABATEMENT GUIDELINES
The tax abatement agreement must provide that the applicant:
(1) Hire Fort Worth residents for an agreed upon percentage (at least 25%) of new full time jobs to
be created and make a good faith effort to hire 100% Fort Worth residents for all new jobs
created as a result of the abatement,
(2) Commit to hire an agreed upon percentage of Fort Worth residents from an eligible inner city
census tract (as identified on Map "A") for all new jobs created as a result of the project. The
agreed upon percentage shall be determined by negotiation.
(3) Utilize Fort Worth companies for an agreed upon percentage of the total costs for construction
and Supply and Service Contracts, and
Page 3 of 7
. 1
EXHIBIT "A"
(4) Utilize Minority and Woman-owned Business Enterprises (MWBEs) for an agreed upon
percentage of the total costs for construction and supply and service contracts in the manner
provided in the City of Fort Worth's Minority and Women Business Enterprise ordinance.
In addition to the above,the abatement must comply with the following guidelines:
A. State law prohibits abatement of taxes levied on inventory, supplies or the existing tax
base. City policy is not to abate taxes on personal property located within Fort Worth prior
to the date of the tax abatement agreement.
B. Unless otherwise specified in the agreement, the amount of the taxes to be abated shall in
no event exceed the amount of the capital investment (as specified in the application)
multiplied by the City's tax rate in effect for the year in which the calculation is made.
C. In certain cases, the City may consider a tax abatement application from the owner of real
property who serves as a landlord or lessor for a development project which meets the
eligibility criteria of this section.
D. The City may consider an application from the owner or lessee of real property requesting
abatement of real and or personal property owned or leased by a certificated air carrier on
the condition that the certificated air carrier make specific real property improvements or
lease real property improvements for a term of 10 years or more.
E. For an eligible development project to be considered for tax abatement, the "Application
for Tax Abatement" form must be completed and submitted to the Office of Economic
Development.
F. An application fee must accompany the application. The fee is calculated at the lesser of:
(i) 1%of the project capital investment, or(ii) $15,000.
If construction on the project is begun on the site specified in the application within a one
(1) year period from the application submittal date (with or without a tax abatement), this
fee shall be credited to any permit, impact, inspection or any other lawful fee required by
the City of Fort Worth. If the project is not constructed on the site specified in the
application or if construction takes place at the specified site more than one (1) year after
the application submittal date, the application fee shall not be refunded or otherwise
credited.
G. If requested, the applicant must provide evidence that there are no delinquent property
taxes due on the property on which the development project is to occur.
H. The tax abatement agreement shall limit the uses of property consistent with the general
purpose of encouraging development or redevelopment of the zone during the period that
property tax abatements are in effect.
1. Tax abatement may only be granted for projects located in a reinvestment or enterprise
zone. For eligible projects not currently located in such a zone, the City Council may
choose to so designate the applicant's property in order to allow for a tax abatement.
J. The owners of all projects receiving tax abatement shall properly maintain the property to
assure the long term economic viability of the project.
Page 4 of 7
EXHIBIT "A"
V. PROCEDURAL STEPS
Each request for property tax abatement shall be processed according to the following procedural
guidelines.
A. Application Submission:
Provided that the project meets the criteria detailed in Section III of this policy, the
Applicant must complete and submit a City of Fort Worth "Application For Tax
Abatement" form (with required attachments) and pay the appropriate application fee.
B. Application Review and Evaluation:
The Economic Development Office will review the application for accuracy and
completeness. Once complete, the application will be evaluated based on:
1. Types of new jobs created, including respective wage rates, and employee benefits
packages such as health insurance, day care provisions, retirement package(s),
transportation assistance, and any other.
2. Percent of new jobs committed to Fort Worth residents.
3. Percent of new jobs committed to Fort Worth"Inner City"residents.
4. Percent of construction contracts committed to:
a. Fort Worth based firms, and
b. Minority and Woman-owned Business Enterprises (MWBEs).
5. Percent of supply and service contract expenses committed to:
a. Fort Worth based firms, and
b. Minority and Woman-owned Business Enterprises (MWBEs).
6. The project's increase in the value of the tax base.
7. Costs to the City (such as infrastructure participation, etc.).
8. Other items which may be negotiated by the City and the applicant.
Based upon the outcome of the evaluation, the Economic Development Office may present
the application to the City Council's Economic Development Committee.
C. Consideration by Council Committee
Should the Economic Development Office present the application to the City Council's
Economic Development Committee, the Committee will consider the application at an
open meeting. The Committee may:
(1) Approve the application. Staff will then incorporate the application into a tax
abatement agreement which will be sent to the City Council with the Committee's
recommendation to approve the agreement; or
(2) Request modifications to the application. Economic Development staff will discuss
the suggested modifications with the applicant and then, if the requested
modifications are made, resubmit the modified application to the Committee for
consideration; or
Page 5 of 7
EXHIBIT "A"
(3) Deny the application. The applicant may appeal the Committee's finding by
requesting the City Council: (a) disregard the Committee's finding and (b) instruct
city staff to incorporate the application into a tax abatement agreement for future
consideration by the City Council.
D. Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement agreement
and is under no obligation to approve any tax abatement application or tax abatement
agreement. The City of Fort Worth is under no obligation to provide tax abatement in any
amount or value to any applicant.
E. Effective Date for Approved Agreements
All tax abatements approved by the City Council will become effective on January 1 of the
year following the year in which a Certificate of Occupancy (CO) is issued for the
qualifying development project (unless otherwise specified in the tax abatement
agreement). Unless otherwise specified in the agreement, taxes levied during the
construction of the project shall be due and payable.
VI. RECAPTURE
If the terms of the tax abatement agreement are not met, the City Council has the right to cancel or
amend the abatement agreement. In the event of cancellation, the recapture of abated taxes shall
be limited to the year(s) in which the default occurred or continued.
VII. INSPECTION AND FINANCIAL VERIFICATION
The terms of the agreement shall include the City of Fort Worth's right to: (1) review and verify
the applicant's financial statements in each year during the life of the agreement prior to granting a
tax abatement in any given year, (2) conduct an on site inspection of the project in each year
during the life of the abatement to verify compliance with the terms of the tax abatement
agreement.
VIII. EVALUATION
Upon completion of construction of the facilities, the City shall no less than annually evaluate each
project receiving abatement to insure compliance with the terms of the agreement. Any incidents
of non-compliance will be reported to all affected taxing units.
On or before February V of every year during the life of the agreement, any individual or
entity receiving a tax abatement from the City of Fort Worth shall provide information and
documentation which details the property owner's compliance with the terms of the
respective agreement and shall certify that the owner is in compliance with each applicable
term of the agreement. Failure to report this information and to provide the required
certification by the above deadline shall result in any taxes abated in the prior year being
due and payable.
Page 6 of 7
EXHIBIT "A"
IX. EFFECT OF SALE, ASSIGNMENT OR LEASE OF PROPERTY
No tax abatement rights may be sold, assigned or leased unless otherwise specified in the tax
abatement agreement. Any sale, assignment or lease of the property which is not permitted in the
tax abatement agreement results in cancellation of the agreement and recapture of any taxes abated
after the date on which an unspecified assignment occurred.
Paee 7 of 7
A Resolution
�fr F
NO. ��� '
`PROVIDING THAT THE CITY OF FORT WORTH ("CITY") ELECTS TO BE ELIGIBLE TO
PARTICIPATE IN TAX ABATEMENT AUTHORIZED BY CHAPTER 312 OF THE TEXAS
TAX CODE AND ESTABLISHING A TAX ABATEMENT POLICY GOVERNING
SUBSEQUENT TAX ABATEMENT AGREEMENTS
WHEREAS, a municipality may enter into tax abatement agreements authorized by Chapter 312 of the
Texas Tax Code ("Code") only if the governing body of the municipality has previously adopted a
resolution stating that the municipality elects to be eligible to participate in tax abatement and has
established guidelines and criteria governing tax abatement agreements ("Tax Abatement Policy"); and
WHEREAS, pursuant to the Code, a Tax Abatement Policy is effective for two (2) years from the date
of its adoption; and
WHEREAS,the City's current Tax Abatement Policy is due to expire on February 28, 2002;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH,TEXAS:
1. THAT the City hereby elects to be eligible to participate in tax abatement in accordance with
Chapter 312 of the Code.
2. THAT the City hereby adopts the Tax Abatement Policy attached hereto as Exhibit "A", which
constitutes the guidelines, criteria and procedures governing tax abatement agreements entered into by
the City, to be effective from March 1, 2002 through February 29, 2004 unless earlier amended or
repealed by a vote of at least three-fourths (3/4) of the members of the City Council.
3. THAT this Tax Abatement Policy, as it may subsequently be amended, will expressly govern all
tax abatement agreements entered into by the City during the period in which such Tax Abatement
Policy is in effect.
ADOPTED this 26th day of February, 2002.
rT \lr�
ATTEST:, jun
By:
City Secretary ( p '
City Sxye'T?of the
City ax Fort WOita,L 3xaa
CITY or ir0KT WORTH
EXHIBIT "B"
DESCRIPTION OF THE LAND SUBJECT TO ABATEMENT
Being a 40.523 acre tract situated in the David Odum Survey, Abstract No. 1184, W.B.
Dewees Survey, Abstract No. 396, and the J.A. Walker Survey, Abstract No. 1730, in the
City of Fort Worth, Tarrant County, Texas, being Lot 1, Block 3, of the Fossil Creek
Addition, Phase I, an addition to the City of Fort Worth, according to the Plat thereof
recorded in Volume 388-140, Page 40, of the Plat Records of Tarrant County, Texas, said
40.523 acre tract of land being more particularly described by metes and bounds as
follows:
BEGINNING at a 1/2 inch iron rod found in the east right-of-way line of Sandshell Drive
(a 60.00 foot right-of-way), said point being the southwest corner of said Lot 1, Block 3,
said point also being in a curve to the right having a radius of 2014.79 feet a delta angle
of 05 deg. 26 min. 05 sec.;
THENCE along the east right-of-way line of said Sandshell Drive, and the west line of
said Lot 1, Block 3, and along said curve to the right an arc distance of 191.11 feet, a
chord bearing and distance of N 02 deg. 46 min. 58 sec. W, 191.04 feet to an"X"cut in
concrete set for corner;
THENCE N 00 deg. 03 min. 55 sec. W, continuing along the east right-of-way line of
said Sandshell Drive, a distance of 606.27 feet to a 5/8 inch iron rod found for corner,
said point being in a curve to the right having a radius of 90.00 feet and a delta angle of
89 deg. 24 min. 29 sec.;
THENCE along the said curve to the right an arc distance of 140.44 feet, a chord bearing
and distance of N 44 deg. 38 min. 21 sec. E, 126.62 feet to a 5/8 inch iron rod found for
corner, said point being in the south right-of-way line of Fossil Creek Boulevard (a
variable width right-of-way), said point being in a curve to the left having a radius of
6504.10 feet a delta angle of 00 deg. 40 min. 53 sec.;
THENCE continuing along the south right-of-way line of said Fossil Creek Boulevard,
and said curve to the left an arc distance of 77.34 feet, a chord bearing and distance of N
89 deg. 41 min. 05 sec. E, 77.34 feet to a %i inch iron rod set for corner;
THENCE S 89 deg. 58 min. 30 sec. E, continuing along the east right-of-way line of said
Fossil Creek Boulevard a distance of 410.01 feet to a 1/2 inch iron rod set for corner, said
point being in a curve to the right having a radius of 8175.47 feet and a delta angle of 02
deg. 06 min. 01 sec.;
THENCE continuing along the south right-of-way line of said Fossil Creek Boulevard,
and said curve to the right an arc distance of 299.69 feet, a chord bearing and distance of
S 88 deg. 55 min. 29 sec. E, 299.67 feet to a %i inch iron rod set for corner, said point
being in a curve to the left having a radius of 8174.78 feet a delta angle of 02 deg. 06
min. 26 sec.;
THENCE continuing along the south right-of-way line of said Fossil Creek Boulevard
and said curve to the left an arc distance of 300.65 feet, a chord bearing and distance of S
88 deg. 55 min. 42 sec. E, 300.63 feet to a 5/8 inch iron rod found for corner;
THENCE S 89 deg. 58 min. 24 sec. E, continuing along the south right-of-way line of
said Fossil Creek boulevard, a distance of 858.13 feet to a % inch iron rod found for
corner, said point being the northeast corner of said Lot 1, Block 3, same being the
northwest corner of Lot 2, Block 3, of Fossil Creek Phase I, Section I, an addition to the
City of Fort Worth, according to the plat thereof recorded in Volume 388-140, Page 40,
of the Plat Records of Tarrant County, Texas;
THENCE S 03 deg. 47 min. 22 sec. W, along the common line of said Lot 1, Block 3,
and Lot 2, Block 3, and Lot 3, Block 3, of Fossil Creek Phase I, Section 2, an addition to
the City of Fort Worth, according to the plat thereof recorded in Volume 388-145, Page
37, of the Plat Records of Tarrant County, Texas, a distance of 878.56 feet to a %Z inch
iron rod set for corner, said point being the southeast corner of said Lot 1, Block 3, same
being the northeast corner of a tract of land conveyed to Hunt Investment Corporation, by
Deed Recorded in Volume 5698, Page 257, of the Deed Records of Tarrant County,
Texas;
THENCE N 89 deg. 58 min. 30 sec. W, along the common line of said Lot 1, Block 3,
and said Hunt Investment Corporation tract a distance of 1966.62 feet to the POINT OF
BEGINNING and containing 1,765,186 square feet or 40.523 acres of computed land.
Hugh E. Peiser
Registered Professional Land Surveyor No. 3688
June 25, 2003
Ju'n 3 . 2003 107P 4N 2113xAP . 2�A
Exhibit C
FoRTWoRTH
City of Fort North
.Incentive Application
Economic & Community Development Department
1000 Throcl morton Street
Fort Worth, Texas 76102
817-871-6103
Jury - 30 - 2003 1 : 07PM No 2113 P , 3
.Incentive Application
GENERAL INFORMATION'
1. Applicant I1ni'or7mlation:
Company Nacre Coca-Cola Enterprises Inc-
Company
nc_Company Address 3400 Fossil Creek Boulevard
City, State,Zip Code Ft. Worth, T% 76137
Contact Person (include title/pbsition): Bill Green, Regional Property Tag Manager
Telephone( 1�) 253-5661 _ ext.
Fax ( 214 ) 253-5658 ext.
Mobile Telephone 817 ) 247--4789
E-mail addresses: bilgreen@ne,.cokecce.com
2. Project Site Information:
Address/Location: 3400 Fossil Creek Boulevard, Fe. Worth, TX
Current zoning: J Will the property need to be rezoned? 'Yes No X
If the propery needs rezoning,please specify the zoning you will be seeking:
Will the proj ect require any site or building variances(Y/N), p
If yes,what variances will you seek?:
3. Incentive(s)Requested:
Ot Acduced/Waived Development Fees 99 Reduced/Waived Permit Fees
❑ Community Facilities Agreement o band Bank program
ar Tax Abatement(If yes,please answer 5 &5 below) ® Workforce Development
o Transit Provisions a Enterprise Zone Qualified Business
0 Industrial Revenue Bond O Enterprise Zone project
o Bridge financing(below market loan financing
❑ Other
4. Do you intend to pursue abatement of:
County Taxes? M Yes ❑ No
5. What level of abatement will you request: Years? 10 Percentage? 100
Page 2 of 7
ECM 1 onm
Ju,n - 30 . 2003 1 : 07PM No - 2113 P . 4
PAOMCrINFO"ATION
For real estate Miectsl,please include below the project concept, targeted tenant mix,project benefits
and how the project relates to existing Community plans. Please attach a site plan. For business
ea pagion 13roiects2, please include below services provided or products manufactured, major
customers 4nd locations, etc. For business expansion project involving the purchase and/or
construction of real estate,please answer all that appy.
6, please provide a brief description of the project.
-Applicant is engaged in the business of nanufacturin ! and distribu,tiug soft
drink beverages_ The proposal.will involve an expansion of the applicant's
current facility to increase capacity.
7. Project Descriptioti
Size ofproject. 110 750 squaets feet 13.32 acres
Check all that apply:
❑ Office: square feet ❑ 1Vjl,rlti-faruily; square feet units
❑ Retail. square feet 9 Tndustrial:110,750 squares feet
Will any portion of the project consist of vertical mixed-use: No
Anticipated date when construction will start? Summer 2003
Anticipated date of occupancy? Spring/Sumer 2004
A real estate project is one that involves the construction or renovation of real property that will be either for lease or for gale,
Any incentives given by the City should be considered only"gap"fmancing and should not be considered a substitute for debt
and equity.
2 A business development project involves assistance to a business entity that seeks to expand its existing opomtiem&ftom a
location within the Fort Worth or to Part Worth.The business is in a growth mode seeking working oegital,personal property
or Hied asset financing-The city will refer start-up businesses to rnore appropriate organizations.
Page 3 of 7
ECWI06W
Ju•n • 30 . 2003 1 : 07PM No • 2113 P - 5
A heal Properiy
® Current Assessed Valuatiou of: Land$ 2,655,026 Improvements: $3,494,974
New Construction:
Size _ 110,750 sq. ft. Cost Of Construction$ 5 135 000
Renovation:
Size sq. ft. Cost of Construction
* Site Development(paring,fencing, landscaping, etc.);
Type of work to be dont Nuck parkdniz- e3a side gates
Cost of Sitc Development
B. Personal Property(eouiple7to all ap�pliea,ble)
$- 10,000,000 value Of parsbn4l property exclusive of invcntory and supplies in Fort'Worth:
W 10,000,000
b Value+of personal proporty, exchlsive of inventory and supplies,for which your are seeking a
talc abatement: $ 1 000 000
Current value in Fort Worth:
InVaUtory$ 5,794,294 Supplies $ 66 920
9 `value for inventory and supplies after development/relocation andlor exp wsion:
Inventory $ 1 88 Supplies $ 1 .337.840
Parcent of inventory eligible for freeport exemption(inventory, exported from Texaswithin
175 days) 10* %
a Arc you seeking working capital financing? No If so,please slate the value of working
capital financing being sought: $
S. Employment and dab Creation:
Temporary
1. How many construction jobs will be created? 2
2. What is the estimated payroll for thoso jobs? $425,000
Per xn.anent
1. Idow ninny persons are currently employed? 591
2. What percent of current amployees above axe 1~ort porthresidents? 28 0/U
3. What percent of current employees above are Central City residents? 13 %
Page 4 of 7
*Freeport exemption nor claime by CCE ECDQIW3
Ju'n 0 . 2003 1 : 08PM No • 2113 P • 6
4. Please complete the following table.
-Est. irst'Year Test.Fifth Year �4St.Tenth Year
e�,Qbc
te
3 2 2
Less Transfors* 12 0 0
Na 16b4 11. 2 T
6 of Net,fobs to be filled by
.port'Worth Residents 2-5X 100X 1002
%,of Net Jobs to,be tilled by
Central City Residents 10x 502 50%
*Ifaay employees Twill be txansfeniug,please describe from where they will be transferring.
Dallas -- Buckner Producrion Facility
Please attach a description of the jobs to be created, tasks to be perfortncd for each, and wage rate fer
each classification, and a brief description of the employee benefit pukagc(s)offered including
portion paid by employee and employer respectively. Sce question#11 for more information.
9, �acay Co�onrtmontsc
What percent of the con.stimction costs (7A•above)'uA2 you commit to spend with:
• Fort Worth businesses? 25 . % (Y-e- $1,283,750)
• Certified Minority and Woman-owned Business Enterprises? 15 % (i-e. $770,250)
Regarding discretionary suUply and service expenses'(i.e- landscaping,office or maniufactuxing
supplies,janitorial services, eta):
a 'What is the annual amount Of discretionary supply and Service expenses?$734,200 (production
facility)
• Whet percentage Nvill be committed to Port Worth businesses? 25 % (i.e. $183,550)
* What percentage will be committed to certified Minority and Woman-Owned
businesses? 15 % ($110,130)
3 Discretionary expenses.incurred during the normal maintenance and operation orbusiness aerivities
Page 5 of 7
SCDO 10603
Jun - 30 - 2003 1 : 08PM No • 2113 P . 1
MSCLOV(AES
10.Is any person or firm receiving aay form of compensation, eornnlission or other monetary benefit
based on the Ievel of incentives obtained by the applicant from the City of Fort Worth7 If yea,
please explain Oad/or attach details-
NO.
etails_110.
11.Please provide the following information as attachments:
a) Explain why the incentive(s) requested is(are) necossary for the success of this project.
Include a development and/or business operating pro-forma or other documentation to
substantiate your request.
b) Describe any environmentad impacts associated with this project,
c) Describe any direct benefits to the City of Fort Worth as a result of this project.
d) Attach a legal description or surveyor's metes&bauads description_
e) Attached a site plan for any real estate development projeot.
fl Attach a copy of the most recent real and personal property tax statement from the Tarrant
Appraisal District.
g) Attach a description of the jobs to be created(technician, engineer, manager, etc.), taroks to be
performed for each, and wage rate for each classification.
h) Attach a brief description of the employee benefit packages) offered (i.e. health insurance,
retirement,public transportation assistance,day care provisions,eta)including portion paid by
employee and employer respectively.
On behalf of the applicant, I certify the information contained iu this application (ineludilig all
atracbrnents) to be true and correct. I f Other certify that, on behalf of the applicant, 1 have read the
current applicable "Land Bank policy," "Tax Abatement Policy," and/or "Fort Worth Enterprise Zone"
Information Packet and agree to Comply With the guidelines and criteria stated therein.
--J LE WADS 6rpecrok or OPeRA-1=O J
Print Name Title
Datef
For lniernal use Ott y
Project L.00etion(check all that apply):
urban village _:neighborhood empowerment zone __ ;TIF district
rargeted area _; state enterprise zone :Model Bloeka
Central City ,;CDBG eligible area ;Commercial corridor
Foreign trade zone
Page 6 of 7
?CDOIQ )
Ju'n • 30 . 2003 1 : 08PM No . 2113 P - 8
Definitions
Abatement.—the Rill or partial eXemption from ad valorem taxes on eligible properties for a period of up
to ten Fears and amount of up to 100% of the increase in appraised value(as reflected on the certified tax
roll of the appropriate county appraisal district)resulting from improvements begun after the execution of
the tax abatement agreement. Eligible proporties must be located in a reinvestment zone.
Capital Investment—includes only real proporty improvements such as new Facilities and structures,site
improvements,facility expansion,and facility moderpization. Capital investment does NOT include land
acquisition costs and/or any existing improvements, or personal property(such as machinery, equipment,
and/or supplies and inventory).
Central City.—the area in Fort'W'orth that is within Interstate Loop 820 consisting of; all Community
Development Block Grant(CDBG) eligible census block groups, and all State-designated enterprise
zones, and all census block groups that are contiguous by 75 percent or more of their perimeter to CD13G-
eligible block groups or enterprise zones.
Enterprise project—a business that is nominated by an enterprise zone governing body and approved by
TDP-I)for state and local benefits. The business must commit to create or retain permanent jobs, make
capital investment in the enterprise zone,fill at least 25 percent of its new jobs with individuals who are
cither economically disadvantaged or residents of an enterprise zone within the governing body's
jurisdiction, and maintain the level of employment from the date jobs are certified by the TDED for at
least three years.
Facilg Expansion—a new permanent real property improvement such as a building or buildings
constructed to provide additional square footage to accommodate increased space requirements of a Fort
Worth cotnpawy.
Facility Modernization—anew permanent real property improvement undertaken to provide increased
productivity for a nemv or existaing Fort Worth company.
Fort Worth Company--a businos5 that has a principal office located within the City limits of Fort Worth.
Minority or Woman-Owned Business Enterprise (MWBE) a minority or wornan-owned business that
has received certification as either a Minority Business Enterprise(.MBE) or Woman-owned Business
Enterprise(WBE)by either the North Central Texas Regional Certification Agency(NCTRCA)or the
Texas Department of TranspQxiation( xDOT),Highway Division.
Reinvestment zone—an area designated as such by the City of Fort Worth or State of Texan in
accordance with the Texas Property Redevelopment and Tax Abatement Act,geetioro 312.001 through
312.209 of the Tax Code,
Residential Development Project--a development project which proposes to construct or renovate multi-
family residential living units on property that is(pr meets the requirements to be) zoned multi-family as
defined by the City of Fort Worth Zoning Ordinance. .
Supply and Service Expemes.—discretionary expenses incurred during the normal maintenance and
operation activities of a business.
PW 7 of 7
6cool 0607
Jun . 30- 2003 1 : 09PM No .2113 P , 9
City of Fort Worth
Incentive Application
Schedule 1
Ila. The requested abatement will enable CCE to control operating costs associated with the
proposed expansion, thereby facilitating CCE's ability to implement the expansion. With
the additional warehouse space, CCE will have the added capacity to store products
needed for the Ft. Worth area. This increased capacity'will enable CCE to provide Coca-
Cola products to Ft. Worth consumers at a reduced price because increased transportation
costs result in increased prices for the consumer. In the event that the proposed
expansion is not undertaken, CCE will lose a competitive pricing advantage and a
corresponding competitive edge in the market. Ft. Worth consumers, in turn, will lose an
opportunity to acquire Coca-Cola products at a reduced cost.
1lb. None,
11c. Direct benefits to Tarrant County resulting from the Project:
CCE estimates that the proposed expansion will result in the creation of 23 new, full-time
jobs and will require a capital investment in the amount of $7,135,000. CCE will retain
the 591 persons currently employed at the facility. In addition, CCB projects that it will
pay approximately $82,500 in sales tax as a result of the expansion. CCE also plans to
continue its strong commitment to the Ft. Worth community. Last year, CCE donated
over $250,000 to the Ft. Worth area. Some of the charities affected by this investment
include the Ft. 'W'orth Education Association, the North Texas Fair and the Tarrant Area
Food Banks. In addition, CCE donated over $140,000 of Coca-Cola products to local
charities, thereby illustrating its strong commitment to use its resources for the benefit of
the entire community.
11d. Legal description of land:
Being Lot 1, Block 3 of FOSSEL CREEK ADDITION, PHASE ONE, an Addition to the
City of FORT WORTH, TARRANT County, Texas, according to the Plat thereof
recorded in Volume 388140, Page 40, Plat Records, TARRANT County, Texas.
11e. See attached Exhibit A.
1 If. See attached Exhibit B.
11g. New job descriptions and corresponding salary levels:
Estimated
Position Quantit Annual SalaryTotal SalaryStart Date
Supervisors 4 $50,000 $200,000 March 2004
F/S Drivers 5 $35,000 $175,000 March 2004
Bulk Drivers 2 $35,000 $70,000 March 2004
Mini-Bulk Drivers 3 $35,000 $105,000 March 2004
Forklift Drivers 1 $29,000 $29,000 March 2004
Loaders 6 $25,000 $150,000 March 2004
Checkers 2 $30,000 1 $60,000 1 March 2004
C=wte _1411980_1.DOC
30. 2003 1 : 0 9 P M No . 2113 P , 10
1 lh. Non-bargaining Employee Benefit Plans:
A. Health and Welfare Plan, including the following
(i) Self Insured Medical Plan, which includes vision and prescription drug
benefits; United Health Care PPO, Blue Cross/Blue Shield PPO, Advance
PCS and Vision Service Plan are the third-party administrators. Aetna
HMO, CIGNA HMO
B. Retirement Plans
(i) Coca-Cola Enterprises Inc. Matched Employee Savings and Investment
Plan;Putnam Retail Management is third-party administrator
(ii) Coca-Cola Enterprises Inc. Employees Pension Plan
(iii) Coca-Cola Enterprises Supplemental Matched Employee Savings and
Investment Plan; nonqualified top hat plan available to employees with
base salary above$90,000
(iv) Employee Stock Purchase Plan—managed by Computershare
C. Stock Option Plan:
(i) 2001 Coca-Cola Enterprises Inc. Stock Option Plan
D. Additional Benefits:
(i) Sick Pay/Short-Term Disability
(ii) Long-Term Disability
(iii) 'Vacation: Tenure Amount
over 1 yr. 2 weeks
5— 10 yrs. 3 weeks
10 yrs. + 4 weeks
(iv) Holidays (9)
(v) Educational Assistance
(vi) Adoption Assistance
Caaww-1411990-LDOC
Jun , 30 . 2003 1 09P No - 2113 P - 11
1un , 30 , 2003 1 09PM No 2113 P . 12
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Jun . 30 . 2003 1 : IOPM EXHIBIT B No . 2113 P . 13
Apr US 03 03: 44p F. 2
EAQLE MOUNTAIN-$ADINAW I,3.D. 2002 TAX STATEMENTMops.
JANAHAYR,TAXASSUSOR/COLLI;CTOR Ctl"AG RECEIPT X08969698
P.O.90X TX 7 1F MORTQAdi COMPANY IS NOT BLANK
FORT WORTH,TX 713778 INpRTUAaR COMPANY HAS BON NOT10180 QP TAXgS OM
FORWARDINQ AND ADDRESS CORRECTION REQUESTED
TAXING TAX
I UCTt -AMOUNT
Tqn— 251911 - In
08869698 _
08969698 Po8969698
COCA COLA BOTTLING CO
BUSINESS PERSONAL PROPERTY
COCA—COLA BOTTLING CO
13727 NOEL RD STE 900 TAXES DUE
DALLAS TX 75240-1355 AMOUNT DUE IF PATO IN:
FE-9 27g-rrg 47
MAR
APA
TAXES ARE DUE UPON RECEIPT ANo MAY
BECO(M OELINQUENT FEBRUARY IST, JUN296,iGo .97
1 TAXING
TOTAL ttOMlSTt!AD OVER 651 plsAet.se TAXABLE TA?( RATE -
Iav TAX
_LfAWDICTION ASSESSM EXEMPT 'PISASCED VET VALUE PER 0100 AMOUNT
i
TAXES DUE 3
IF PAID IN.
FW2 79 , N50,At
Pr rty taxes in Tem are ae*taaed 4g3 at 4ulwfy tat of as4h year and cover G period of one yeu from flint date. M/
41I pOparcy Is aawa�aed M IAaSL yppla:aed M*IM., homasioad properiv incraasaa are oappad.t 1n% per ymi far
tax purposes. p
Tire tax ■tatutas mesa ee pryylalon for prorating of t4mom Eased an ownership cilanaci during the Peer w;lh the APR
amaptlan of overse exemption acco min. MAY
tih•ee tax e—u— also make no provision for ptorul" In "" the Property to dloposed el duelnp the oalen4er Year. JUN
11 you Owned tae Property dorprlbod oa the Tgx motement on im*ry tat, 1% n You ata .asppnst4la to see the taxes are
pulp for the entire year. New thenen are s�l•e!is •em Ilan Eal,r� Pleeed on his Proyarty Ie.arty wwolo ftxen,
RF�4L ESTATE TAX 6T4ATIkPENT&. If you sold the prepany Rtar to JersrarY i, 7002 plaeee recut ttllc eta;erryent to a
w tfi the date you Got on the purohasaf's name and"Tl �ddrass.
P*rmt t Tahoe t e raV of uApsid after January 31 shat( aec"m Penalty and Intarest 0hKOed at the maxlnwm fats
parrnitt*d Wader alis le..s of pre Grate of T•�cas,
EAOl.B MCUMYAJN-8At31NAW Le.), 2002 TAX STATEMENT 11 � � �A� 2 Q'
JANA HAYS,TAX ASSESSORCOLLECTOR
P.O.0OX 79100
FORT WORTH,TX 713179 PROPE"VALUES
(817)232-0e80 X222 OR 229 LAND
OWNER HOMESITE
COCA—COLA BOTTLING CO NON HOMESITE
13722 NOEL RD STE 900 AG MKT
DALLAS TX 75240-1365 AG USE
IMPROVEMENTS
LEGAL: 08969658 P08969698 HOMESITE
0003400 FOSSIL CREEK NON HOMESITE
COCA COLA BOTTLING CO OTHER VALUES
BUSINESS PERSONAL PROPERTY PERSONAL 16,614 921
MINERALS
TOTAL, ASSESSED 1 16 614 921
RECEIPT #08969698
Jun . 30 . 2003 1 : IOPM No . 2113 P - 14
nprr 09 03 09:440
P.3
2002 TAX STATEMENT
EAGLE MOUNTAIN.SAGINAW LS.D,
JANA HAYS,TAX A S988CM0LLECTOR COpMP Wv
,..".�.J rtEaHi>?T 404414802
F,O.BOXRTU,T 7 IN MORTGACIS COMPANY IS NOT BLANK
PGATVYGFiiH' 741 Mbn7awaE COMPANY HAS BEEN NOTIFINO OF TAPS DU9
FORWARDINQ AND ADDRESS COFIRECTION REGUES'1'ED
TAXING TAX
JURISDICTION AMOUNT
04414802
04414802 14555 3 1
FOSSIL CRSEK #1 ADDITION
BLK 3 LOT 1
1
ACt 40.6339
COCA COLA BOTTLING CO,
13727 NOEL RD STE 900 TAXES DUE
DALLAS TX 75240-1355 AMOUNT DUE IF PAID IN:
MAR
APR
TAXES AAE DUE UPON RECEIPT ANO MAY
6@COINF OELINOEIT FEBRUARY 1 ST. JMjj ?5.
TAXING TOTAL HoNmanAD OVER BS/ DlsA wo TAXABLE TAX RATE TAX
JUFI'ISDICT10N ASSESSED EXPAPTION OISAHL O VRT _VAS PM 0100 AMOUNT
�Fil g��OC3
x
1 .
FAXES DUE 3
IF PAID IN:
ams Y �u FES
An pt tty Is s■s�xd ige;Purr app►iioed val�otnae,,;M4 proppany In rsaaaeara are mapped at ia� prrr4ym, ia►dau. M/YR
tax yurpoaas. APR
The tax steiYtes mars an povilrWo tw prorating of taxaa ttvead on PWORI-ship amnase Curing the year with the MAY
axaapUan of over-65 axamptlan aaooWM. JUN
Tlwaa.LwK statutes also mace no proylslvn for proration In oast Ow vravany Is disimad of dtrinp the calendar year.
�. II 09 1573 74J
7a4 ow,l»d ihv ROPartY Ceaerita■d oa the t eleee�nanf on.i1�M,1arY 1 t man T wn r•apel�slSle to see Mutes aro
p ¢tea for vA+a aatlh reapr. fi�w gw0ars ars sue act to s te�c lion peipy p�awd an Ata yraParty}or any vopeldtaaxes.
MIS fr= TAX 0M Ina Stlfe�p ahts3ir s�InyvtW jn�roi�s�or � �� 1' 100; plesas return this clatamaac is ua
NNor Toms s t ramaln unpaid afl4r JN�Uary 31 shell aoaro■ Penalty and Inlsrest ehr0od at fha w,arigyxn rates
pwmlltkd dnr t lows of Uta $ate of Taxaa.
2002 TAX STATEMENT IPA I D JAN 2 0 2003
EAGLE MOUNTAIWSAGINAW LSA.
JANA HAYS,TAXAsaP-980R/COLLECTOR "
PA.COXrolsp
FORT W0FtTH,TX 76170 PROPEFrN VALUES
(e17)232-W8O X=0R 223 LAND
o MER: HOMESITE •6 r
COCA COLA BOTTLING CC, NON HOMESI"M
13737 NOSL RD STE 900 AG MKT
DALLAS T% 75240-1345 AG USI-
IMPRQVEME NTS
LEGAL HOMESITE 3 49 9 5
04414802 14555 3 1 NON HOMESITE
0003400 FOSSIL CREEK OTHER VALUES
FOSSIL CREEX #1 ADDITION PERSONAL
BLK 3 LOT 1 MINERALS
TOTAL ASSESSED 6 150 000
ACRES: 40. 6339 RECEIPT #04414602
Jun - 30 . 2003 1 : 10PM Feb 28 200s 1:No . 2113P.iP• 15
r "f BETSY PR1CF 10C E. Weathertord, Fart Worth TX 761 96
TAL�RANT COUNTY t; riZBIT B (817) 884-1100
mall:taxotfice@4arrantcounty,com
` TAX ASSF,SSUR-C�LL1rCl'UR eWeb:www.tirrantcourity,com
ORIGINAL RECEIPT 1
DATE: 02/28/2003 LEGAL; FOSSIL CREEK V ADDITION
ACCOUNT: 00004414902 BLK 3 LOT 1
OWNER: COCA COLA BOTTLING CO,
PARCELADDRESS: 0003400 FOSSIL CREEK BLVO
EXEMPTIONS: PION: 14555-3-1
ACRES., 40.6339
RECEIPT*35775494 CHECK#; 02332216 DEPOSIT#:200302071476-2002/tcrps
;YEARTAXING ENTITIES VALIJ� PER $1QD' PAYT7PE RATE PAID BASE TAX RAIb. INTEREST PAID
2002 TARRANT COUNTY 6,150,00C 0.27250 L 01/312003 16,758,7 0.0
2002 T C COLLEGE 6,150,OOC 0.13938 L 01/312003 8,571,4 0 0
2002 FT WORTH CITY 6,150,00C 0.86500 L 01/31/2003 53,1 97.5C 0.0
2002 REG WATER DIST 6,150,00 0,02000 L 01/31/200,3 11230,0 0.0
2002 T C HOSPITAL 6,150.00 0.2324011 L 01/31/2003 14,292,6 0.0
AMO NTT N E !; 94,05t).12 PAYER:COCA..COLA BOTTLING CO
BASE TAX ANtBAPAXAID 94,060.72 13727 NOEL RD STE 900
TOTAL PAID 9a,p50.72 DALLAS TX 75240-1355
REMAINING AMOUNT DUE
AS OF 07/28/2003
$0.00
...... n-. .......• .h• . • ..,,..� ,._...n...... ..n++ .._�y.n•........... • - . .•--)'II iA• ♦�.,.. n.•..........
COCA COLA$OTTLING CO, " ' THIS.IS A REC-EIPT""
REMAINING AMOUNT DUE
AS OF 02/28/2003
00004414802
1111111{��I �WIIIIIi I �l�W lel ll�
COCA-COLA BOTTLING CO
13727 NOEL RD STE 900 Make checks payable to:
DALLAS TX 75240-1355 BETSY PRICE, TAX ASSESSOR-COLLECTOR
PO BOX 961018
FORT WORTH TX 76161-0018
0000441,48132 OQS6069074 0000000000 Q03476002LI 02228200320000
J u,n • 3 0 , 2 0 0 3 1 : 11 P M h ax:81(82.1,41052 Feb 28 2003 1__�o ._2113
BETS-)r PRICE 100 E. Weatherford, Fort Worth TX 76196
884-1100
TAARANT COUNTY e-mail:taxafficnOtarrantc
ounty.00m
TAX ASSSSSOR-COLLECTOR web:www.tarrantooLinty.com
ORIGINAL RECEIPT �
DATE: 02/28/2003 LEGAL: COCA COLA BOTTLING CO
ACCOUNT: 00008969698 BUSINESS PERSONAL,PROPERTY
OWNER: COCA-COLA BOTTLING CO
PARCEL ADDRESS: 0003400 FOSSIL CREEK BLVD
EXEMPTIONS. PIDN: P
ACRES: 0
RECEIPT* 35775496 CHECK#:02332216 DEPOSIT*200302071476-4021tcrps
HE N ALYEAR. TAXING ENTITIES %:-,,VALUE;. :PhR$100 ` PAY TYPE DATE PAID BASE TAX PAID , INTtREST PAID
2002 FT WORTH•CITY 16,614,921 0.86500C L 01/31/2003 143,719-07 0..0
2002 TARRANT COUNTY 16,614,921 0,27250 L 01/31/2003 45,275.86 0.0
2002 T C HOSPITAL 16,614,921 0.23240 L 01/312003 38,613.08 0,0
2002 T C COLLEGE 16,614,921 0,13938 L 01/3142003 23,157.88 0,00
2002 REG WATER DIST 16,614,921 0.02000 L 01/31/2003 3,322,98 0.0
41ylOUAT O D D 25a,088,67 PAYER:COCA-COLA BOTTLING CO
AMOUNT PAID
BASF-TAX 254,099.67 13727 NOEL RD STE 900
TOTAL PAID 234,088,P]
DALLAS TX 752x0-1355
REMAINING AMOUNT DUE
AS OF D212812003
$0.00
..,.... -COCA-COLA BOTTLINO.CO - ...R THIS IS A R1EC ]p'r ......... _,. „...�. . ........, ...- ,_ .._ ...,
REMAINING AMOUNT DUE
AS OF 02/28/2003
00908969698 50.00
COCA-COLA BOTTLING CO
13727 NOEL RD STE 900
Mike ehecKs payeDla to;
DALLAS TX 75240-1355 BETSY PRICE. TAX ASSESSOR-COLLECTOR
PO BOX 961018
FORT WORTH TX 76161-0018
00008969698 00.56069074 4400000000 0034760024 0228200220000
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EXHIBIT"E"
PHASE I PROPERTY
Warehouse Equipment, including:
• Material Handling and Racking Equipment
• Packaging Equipment
• Telephone System
• Computer System Upgrades
• Security System
• Office Furniture, including New Cubicle Units
City of Fort Worth, Texas
"lavor And 4:0ulocit Communication
DATE REFERENCE NUMBER LOG NAME PAGE
8/12/03 C-19710 1 17TAAGRMTCCE 1 of 3
SUBJECT AUTHORIZE EXECUTION OF TAX ABATEMENT AGREEMENTS WITH COCA-COLA
ENTERPRISES AND RELATED FINDINGS OF FACT BY THE CITY COUNCIL
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute Tax Abatement Agreements with Coca-Cola Enterprises
(CCE) for a three phase project; and
2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreements with
CCE are true and correct.
DISCUSSION:
The real property subject to abatement in the attached Tax Abatement Agreements with CCE is located
in the Fossil Creek Business Park in north Fort Worth. The City Council designated this property as
Tax Abatement Reinvestment Zone Number 44.
Project:
CCE, an independent, public company traded on the New York Stock Exchange and in the business
of marketing, producing, and distributing liquid nonalcoholic beverages to customers and consumers
in their franchise territories, is planning an expansion of its Fossil Creek facility. The proposed
expansion will consist of 110,000 square feet of warehouse space and 13,000 square feet of office
space. The estimated cost of the expansion is $6,200,000. Taxable inventory is estimated to be
$6,500,000 during Phase I, with the entire amount being taxable. CCE is also planning to acquire
$300,000 in new taxable personal property during Phase I of the project.
The expansion will make the Fossil Creek facility a favored location for the future development of a
plastic molding line and a new bottling line. The plastic molding line, which will be Phase II is
estimated to have an investment of $7,000,000 in personal property (equipment). The new bottling
line, which will be Phase III is estimated to have an investment of $10,000,000 in personal property
(equipment). If CCE decides to locate these operations in Fort Worth, they can be accommodated
within existing space after the proposed expansion. While CCE is considering other possible
locations for the expansion and future development, Fossil Creek is the preferred site of the study
team.
Employment:
CCE will be retaining 591 employees of which 169 are Fort Worth residents and 81 are Central City
residents. Additionally, a total of 48 new employees will be hired as a result of the three phase
expansion.
City of Fort Worth, Texas
qVC1.40ir And 4:0u"Cil Communication
DATE REFERENCE NUMBER LOG NAME PAGE
8/12/03 C-19710 1 17TAAGRMTCCE 2 of 3
SUBJECT AUTHORIZE EXECUTION OF TAX ABATEMENT AGREEMENTS WITH COCA-COLA
ENTERPRISES AND RELATED FINDINGS OF FACT BY THE CITY COUNCIL
Utilization of Fort Worth Businesses:
Regarding utilization of Fort Worth based businesses, CCE has committed 25% of total construction
spending to Fort Worth construction contractors and/or subcontractors during Phase I. Additionally,
the company has committed 25% of total supply and service expenditures to Fort Worth companies.
Utilization of Fort Worth M/WBE Businesses:
Regarding the utilization of Fort Worth Minority Business.Enterprises (MBEs) and Fort Worth Women
Business Enterprises (WBEs), CCE has committed 15% of total construction spending to Fort Worth
M/WBE construction contractors and/or subcontractors during Phase I. Additionally, the company has
committed 15% of total supply and service expenditures to Fort Worth M/WBE companies. The City's
M/WBE Office has reviewed the M/WBE participation and finds the proposal to be reasonable.
Abatement Terms:
CCE will receive a ten-year tax abatement on real and personal property for Phase I, a ten-year tax
abatement on Phase II for personal property, and a ten-year tax abatement on Phase III for personal
property, each of which could reach a maximum of 90% annually. However, if neither Phase II nor
Phase III's personal property is placed on the real property within Tax Abatement Reinvestment Zone
No. 44, by November 1, 2007, the Phase I abatement will be reduced to a maximum of 80% annually
and the abatement will not be available for the Phase II and Phase III property. Each abatement
incorporates CCE's construction/personal property expenditures, employment, and total supply and
service spending. All existing property, real and personal, will continue to be fully taxed.
Each abatement is structured as follows:
Years 1-3 Years 4-10
Construction of New Building and Improvements 20% 0%
Minimum investment of$6,500,000 (Real and Personal Property) for Phase I
Minimum investment of$7,000,000 (Personal Property) for Phase II
Minimum investment of$10,000,000 (Personal Property) for Phase III
Fort Worth Contractors at least 25% of total in Phase I
Fort Worth M/WBE Contractors at least 15% of in Phase I
Employment 30% 30%
Retain current 591 employees
Maintain 169 Fort Worth (FW) residents
Maintain 81 Central City (CC) residents
Reduce by 1 percentage point for each person below 591 total,
169 FW, and 81 CC
City of Fort Worth, Texas
"Agar And councilCommunication
DATE REFERENCE NUMBER LOG NAME PAGE
8/12/03 C-19710 17TAAGRMTCCE 3 of 3
SUBJECT AUTHORIZE EXECUTION OF TAX ABATEMENT AGREEMENTS WITH COCA-COLA
ENTERPRISES AND RELATED FINDINGS OF FACT BY THE CITY COUNCIL
Additional Employment (Total of 48 for all three phases) 30% 50%
1 percentage point for every 3 FW residents above 169
(maximum abatement for FW residents is 15% in years 1-3
and 25% in years 4-10)
1 percentage point for each CC resident above 81
Fort Worth residents must always be at least 25% of total employment
Annual Supply and Service Spending 10% 10%
Minimum annual spending of$734,200 in all phases
FW Companies at least 25% of total
FW M/WBE Companies at least 15% of total
TOTAL ABATEMENT POSSIBLE 90% 90%
Each tax abatement has a cap of 90% per.year. If the maximum abatement for all three phases is
reached, the abated taxes are projected to be approximately $103,541 annually ($37,368 for Phase I,
$27,248 for Phase 11, and $38,925 for Phase III). CCE is currently paying $ 247,037 in annual property
and inventory taxes to the City of Fort Worth.
This reinvestment zone is located in COUNCIL DISTRICT 4.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action does not require the expenditure of City funds.
RR:r
Submitted for City Manager's FUND ]_ACCOUNT.1 CENTER I AMOUNT CITY SECRETARY
Office by: (to)
Reid Rector 6140
Originating Department Head:
Tom Higgins 6192 (from) APPROVED 08/19/03
Additional Information Contact:
Peter Vaky 7601
Ardina Washington 8003