HomeMy WebLinkAboutIR 9719 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9719
To the Mayor and Members of the City Council April 7, 2015
h�T�i7 Page 1 of 1
�i
�i7 Y
°p OF A SUBJECT: NGC Renewables
h re,?CL
The City of Fort Worth entered into a Tax Abatement Agreement with NGC Renewables for the
construction of a 120,000 square foot North American headquarters and manufacturing facility at
5500 Alliance Gateway Freeway. The Agreement provides for a ten-year tax abatement with
NGC that could potentially abate up to 80 percent of the City's ad valorem taxes on the
incremental value of real and business personal property investment on the site.
The project consists of two phases with an overall investment of $96,000,000 in real and
business personal property. Phase I consists of $8,500,000 in real property improvements and
$7,500,000 in new non-inventory business personal property with an estimated completion
deadline of June 30, 2014. Due to delays in the delivery of operational equipment from suppliers,
NGC requested and City Council approved, an extension of the Phase I completion deadline to
June 30, 2015.
Due to the above mentioned delays in the delivery of operational equipment, along with pricing
reductions since the original projected expenditures, NGC Renewables is requesting a reduction
of the business personal property requirement from $7,500,000 to $6,300,000 for the Phase I
investment. The Phase 11 portion of the development consisting of an additional $80,000,000 in
new non-inventory business personal property by December 31, 2018 remains as originally
committed.
Staff recommends approving an amendment to the Agreement to reduce the minimum personal
property investment for Phase 1. An M&C will be placed on the City Council meeting agenda
scheduled for May 5, 2015, to authorize approval of the amendment to the Tax Abatement
Agreement.
Please contact Jay Chapa at 817-392-5804 if you have any questions or concerns.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS