HomeMy WebLinkAboutIR 7546 INFORMAL REPORT TO CITY CNCIL MEMBERS 7546
.,I,PT(RFO
EfOPP To the Mayor and Members of the City Council August 20 , 1991
Page 1 of 1
TFX°y Subject:
1873 DRAFT TAX ABATEMENT AGREEMENT WITH WILLIAMSON-
DICKIE MANUFACTURING COMPANY, ET AL
At the July 30 Pre-Council session, the City Council discussed
the Williamson-Dickie Manufacturing Company, et al , tax abatement
application ( I .R. 7537 ) and subsequently began the process for
tax abatement consideration by setting the August 20 public
hearing date. Following the public hearing and reinvestment zone
designation on the 20th, the City Council can take action on a
proposed tax abatement agreement .
Williamson-Dickie plans to begin the design and construction of
the facility in early fall provided the abatement agreement and
other property purchase issues are resolved. In order to achieve
this schedule, action on the tax abatement agreement would be
required at the August 27 , meeting.
The staff has drafted the attached abatement agreement which
reflects much of the Williamson-Dickie request as outlined during
the July 30 presentation. State law requires that this
information be mailed to the other tax entities at least seven
days in advance of the anticipated approval date. Accordingly
this draft agreement will be mailed on Monday, August 19, 1991,
to the affected entities .
This administrative action does not preclude any City Council
action which may be taken at the August 20 , 1991, meeting.
Unless action to the contrary is taken by the City Council this
Z
il p e r on the August 27 agenda for action.
Ivoryanager
Attachment
OFFICIAL FICORD
CITY SEC_ ,'ARY
FT.
W-LTH, TFX.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
DRAFT
STATE OF TEXAS § TAX ABATEMENT AGREEMENT BETWEEN
COUNTY OF TARRANT § THE CITY OF FORT WORTH AND
CITY OF FORT WORTH § WILLIAMSON-DICKIE MANUFACTURING
§ COMPANY. ET AL.
This Tax Abatement agreement (this "Agreement" ) is entered
into by and between the City of Fort Worth, Texas (the "City" ) ,
duly acting herein by and through its City Manager, and
Williamson-Dickie Manufacturing Company, a Texas corporation,
Gail P. Williamson, J. Don Williamson, Kimberly Williamson
Darden, Phillip Charles Wiliamson, Charles Donovan Williamson II,
Alexander Nathan Williamson, and Gregory Shaw Williamson, resi-
dents of Tarrant County, Texas, and Annette Williamson Pomeroy, a
resident of Travis County, Texas (all of whom are referred to
herein as "Owner" ) .
WHEREAS, the City has adopted a resolution stating that it
elects to be eligible to participate in tax abatement; and
WHEREAS, on the 16th day of October, 1990, the City Council
of the City of Fort Worth, Texas ( "City Council" ) adopted an
amended Policy Statement for Tax Abatement to Qualifying
Commercial/Industrial Projects (the "Policy Statement" ) , attached
hereto and incorporated herein as Exhibit "A"; and
WHEREAS, the Policy Statement constitutes appropriate "guide-
lines and criteria" governing tax abatement agreements to be
entered into by the City as contemplated by the Texas Tax Code,
as amended (the "Code" ) ; and
WHEREAS, on the 20th day of August, 1991, the City Council
passed Ordinance No. (the "Ordinance" ) establishing Tax
Abatement Reinvestment Zone No. 7, City of Fort Worth, Texas, a
commercial/industrial reinvestment zone for tax abatement (the
"Zone") , as authorized by Title 3, Chapter 312, Subchapter B, of
the Code; and
WHEREAS, Gail P. Williamson, J. Don Williamson, Kimberly
Williamson Darden, Annette Williamson Pomeroy, Phillip Charles
Williamson, Charles Donovan Williamson II , Alexander Nathan
Williamson, and Gregory Shaw Williamson own certain real prop-
erty, more particularly described in Exhibit "B" attached hereto
and incorporated herein by reference (the "Premises" ) , located
totally within the Zone; and
WHEREAS, Williamson-Dickie Manufacturing Company will own
certain fixtures and improvements to be located on and within the
Premises, consisting of a conveyor system, permanent racking and
mezzanine; and
WHEREAS, on the 16th day of August, 1991, Owner submitted an,.-,_prp
amended application for tax abatement with various attachments to
the City concerning the contemplated use of the premises (the y
"Application for Tax Abatement" ) , attached hereto and incorpo-
rated herein as Exhibit "C" ; and
WHEREAS, the contemplated use of the Premises, the Required
Improvements (as hereinafter defined) to the Premises as set
forth in this Agreement, and the other terms hereof are
consistent with encouraging development of said Zone in
accordance with the purposes for its creation and are in
compliance with the Policy Statement and the Ordinance and
similar guidelines and criteria adopted by the City and all
applicable law; and
WHEREAS, the City Council finds that the terms of this
Agreement, and the Premises and Required Improvements, meet the
applicable guidelines and criteria heretofore adopted by the City
Council, which are set forth in the Policy Statement; and
WHEREAS, written notice that the City intends to enter into
this Agreement, along with a copy of this Agreement has been
furnished, in the manner and by the time prescribed by the Code,
to the presiding officers of the governing bodies of each of the
taxing units in which the Premises is located.
NOW, THEREFORE, the City and Owner, for and in consideration
of the premises and the promises contained herein, do hereby con-
tract, covenant and agree as follows:
I.
OWNER'S COVENANTS
A. Owner shall construct, or cause to be constructed, on
and within the Premises, improvements ( "Required Improvements" )
(i) consisting of a warehouse, distribution and truck fleet cen-
ter containing at least 352,000 square feet; and (ii) having a
cost upon completion of at least $14,620,819 .
Owner intends to develop the Required Improvements generally in
accordance with the specifications submitted by Owner with the
"Application for Tax Abatement. " The kind, number and location
of the Required Improvements is more particularly described in
the Application. As long as the conditions in the first sentence
of this Paragraph A are met and the Required Improvements are
used for the purposes and in the manner described in the
Application, variations in the required Improvements from the
description provided in the application shall not be an Event of
Default.
B. Owner covenants that Owner shall commence construction
of the Required Improvements on or before November 1, 1991.
Owner shall complete all of the Required Improvements on or
before December 31, 1992 .
2
C. Owner covenants that the Required Improvements shall be
constructed and the premises shall be used in accordance with the
description of the project set forth in the application for Tax
Abatement. The Owner covenants to comply with and satisfy all of
the provisions and requirements for the project as set forth in
the Application for Tax Abatement, including but not limited to
(i) the project description and location; (ii) the activities to
be performed; (iii) the eligibility criteria for the project;
(iv) the employment impact from construction including the number
of construction jobs, payroll for the jobs, amounts to be spent
with Fort Worth contractors, subcontractors and Disadvantaged
Business Enterprises; (v) the employment impact from permanent
employment, including the number of new jobs, annual payroll for
the jobs, and number of jobs to be held by Fort Worth residents;
(vi) the cost and fiscal impact of the project; and (vii) the
dollar amount and type of annual supplier and professional ser-
vice contracts that will be awarded to Fort Worth companies®
D. As part of Owner's obligations under Paragraph C, Owner
covenants that there shall be created at least 183 jobs. by year
1992 in connection with operation of the warehouse, distribution
and truck fleet center on the Premises. At least 80 percent of
the 183 jobs will be held by Fort Worth residents, and at least
80 percent of any new jobs will be held by Fort Worth residents.
E . Owner covenants that ( i ) as of the date of this
Agreement, there are no Improvements on the Premises; (ii) all
Required Improvements and any other improvements to the Premises
( all improvements to the Premises , including Required
Improvements, shall be referred to as "Improvements " ) shall
comply with all applicable City building codes and ordinances,
including, but not limited to, subdivision, building, electrical,
plumbing, and fire prevention codes and ordinances; (iii) con-
struction of the Improvements will be in accordance with all
applicable federal and state laws and regulations ; and
( iv) throughout the Term of the Abatement, the Required
Improvements shall be continuously operated and maintained for
the purposes set forth herein so that the uses of the Premises
shall be consistent with the general purposes of encouraging
development or redevelopment of the Zone, except as otherwise
authorized or modified by this Agreement.
II .
GENERAL PROVISIONS
A. The City has adopted guidelines and criteria governing
tax abatement agreements for the City such that it can enter into
this Agreement containing the terms set forth herein. �—
B. Procedures followed by the City conform to the require�C®R®
ments of the Code and the Ordinance, and have been and wile i
TE
3
undertaken in coordination with Owner ' s corporate , public ,
employee, and business relations requirements.
C. The Premises are not in an improvement project financed
by tax increment bonds.
D. Neither the Premises nor any of the 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 of the
City or any member of the governing body of any taxing units
joining in or adopting this Agreement. '
E. This Agreement is subject to rights of holders of out-
standing bonds of the City.
F. In the event of any conflict between the City zoning
ordinances, or other City ordinances or regulations, and this
Agreement, such ordinances or regulations shall control.
G. A portion or all of the Premises and/or Improvements may
be eligible for complete or partial exemption from ad valorem
taxes, as a result of existing law or future legislation. This
Agreement is not to be construed as evidence that no such exemp-
tions apply to the Premises and/or Improvements.
III .
ABATEMENT TERMS AND CONDITIONS
A. The City hereby grants a tax abatement ( "Abatement" ) to
Owner relative to the Premises and the Improvements, subject to
the following terms and conditions.
B. The value of the Abatement shall be the following por-
tion of the increase in value of the Improvements on the Premises
over their value in 1991, the year in which this Agreement is
executed:
Seventy-five percent (75%) of the increase in
value from construction of the Required
Improvements.
Owner shall have the right to protest and contest any or all
appraisals or assessments of the Premises and/or Improvements .
C. The term of the Abatement (the "Term" ) shall begin on
January 1 of the year following the calendar year in which a
certificate of occupancy is issued by the City for the Required
Improvements (the "Beginning Date") and, unless sooner terminated
as herein provided, shall end on the December 31st immediately
preceding the tenth ( 10th) anniversary of the Beginning Date.
4
R 1
� v
IV.
RECORDS, AUDITS AND EVALUATION OF PROJECT
A. The City shall have the right to review the financial
condition of the project to determine compliance with this
Agreement. The City shall annually (or such other times deemed
appropriate by the City) evaluate the project to insure compli-
ance with this Agreement. Owner shall provide information to the
City on a form provided by the City for the evaluation. The
information shall include, but not be limited to, the following:
(i) the number and dollar amounts of all construc-
tion contracts and subcontracts awarded on the project,
specifying which companies are Fort Worth entities (to be
provided quarterly) ;
(ii) the total number of employees who work on the
premises, their total salaries, the number of employees who
reside in Fort Worth and their gross salaries . These jobs
shall be reported in job classifications appropriate to the
employees (to be provided annually) ;
(iii) the gross dollars spent on supplier and profes-
sional service contracts, broken down to demonstrate the
amounts by contract awarded and performed by Fort Worth
individuals and entities (to be provided semi-annually) ;
( iv) the dollar amount of contracts awarded to
Disadvantaged Business Enterprises ( to be provided
annually) ; and
(v) if the dollars or percentages do not equal the
original or City Council modified requirements of this
Agreement, the Owner shall explain the reason for the
failure to meet the requirements and state a recommended
course of rectification.
B. The City shall make a decision and rule on the eligi-
bility of the project for tax abatement based on the information
furnished each year on or before May 1 of the taxable year and
shall so notify the Owner. The City Council 's decision on the
matter shall be binding, final and not appealable, except for
arbitrary and capricious acts and actions, gross negligence or
willful misconduct, and any appeal shall be under the substantial
evidence rule.
C. At all times throughout the Term of this Agreement, the
City shall have access to the Premises by City employees for the
purpose of inspecting the Premises and the Required Improvements "A RECORD
ensure that the Required Improvements or repairs thereto ; are
made in accordance with the specifications and conditions of this SECRETARY
Agreement and to verify that the conditions of this Agreement are
air
TEX.
5
being complied with, provided that such inspection shall not
interfere with owner's normal business operations .
V.
BREACH
A. In the event that (i) the Required Improvements for
which an abatement has been granted are not completed in accor-
dance with this Agreement or with the guidelines and criteria
adopted by City Council in the Policy Statement to govern this
Agreement; or ( ii ) the schedule of Improvements listed in
Paragraph B of Article I of this Agreement is not satisfied; or
(iii) Owner allows Owner's ad valorem real property taxes with
respect to the Premises or Improvements owed the City to become
delinquent and fails to timely and properly follow the, legal
procedures for protest and/or contest of any such ad valorem real
property taxes; or (iv) Owner breaches any of the other terms or
conditions of this Agreement, then Owner shall be in default of
this Agreement (an "Event of Default" ) . In the event that an
Event of Default occurs, the City shall give Owner written notice
of such Event of Default and if Owner has not cured such Event of
Default within ninety (90) days of said written notice, this
Agreement may be terminated by the City; provided, however, that
if such Event of Default is not reasonably susceptible of cure
within such ninety (90) day period and Owner has commenced and is
pursuing the cure of same, then after first advising City Council
of Owner's efforts to cure same, then after first advising City
Council of Owner's efforts to cure same, Owner may utilize an
additional ninety (90) days. Time in addition to the foregoing
180 days may be authorized by the City Council. As liquidated
damages for an Event of Default after the expiration of the appli-
cable notice and cure periods, all taxes which otherwise would
have been paid to the City for each year when an Event of Default
existed, without the benefit of Abatement (after taking into
account any applicable exemptions) , and penalties and interest
thereon charged at the statutory rate for delinquent taxes as
determined by Section 33.01 of the Code, as in effect at the time
of the payment of such penalties and interest, for each such year
for which such taxes were abated, will become a debt to the City.
Such amount shall be due, owing and paid to the City within sixty
(60) days of the expiration of the above-mentioned applicable
cure period(s) as the sole and exclusive remedy of the City,
subject to any and all lawful offsets, settlements, deductions,
or credits to which owner may be entitled. The parties acknowl-
edge that actual damages in the event of default and termination
would be speculative and difficult to determine.
B. Notwithstanding the foregoing paragraph, if the City.and
Owner mutually determine that the development or use of the
Premises or Required Improvements as contemplated herein is no
longer appropriate or feasible or that a higher or better use is
preferable, the parties may terminate this Agreement by a writing
6
signed by both parties, the period of Abatement shall expire as
of the effective date of the termination, there shall be no
recapture of amounts previously abated, and neither party shall
have any further rights or obligations hereunder.
VI.
EFFECT OF SALE, ASSIGNMENT OR LEASE OF PROPERTY
The Abatement shall vest in Owner and shall be assignable to
each new owner or lessee of all or a portion of the Premises
and/or Improvements upon the City Council 's reasonable approval
based upon the creditworthiness and financial ability of the new
owner or lessee to assume all of the obligations of Owner under
this Agreement, for the balance of the Term of this Agreement;
provided, further, that any assignee must actually assume all
obligations of Owner hereunder.
VII.
NOTICE
All 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:
OWNER (for the corporation and all individual owners )
Williamson-Dickie Manufacturing Company
P.O. Box 1779
Fort Worth, Texas 76101
Attention: R. Stephen Lefler, President and Chief
Executive Officer
CITY:
City Manager
1000 Throckmorton Street
Fort Worth, Texas 76102
VIII .
CITY COUNCIL AUTHORIZATION
This Agreement was authorized by the City Council at its
meeting on the day of , 1991, by Council
approving Mayor and Council Communication No. C- authorizing
the City Manager to execute this Agreement on behalf of the City.
CITY SIMP ARY
FT. HEM, TFX.
7
IX.
This Agreement was entered into by Williamson-Dickie
Manufacturing Company pursuant to authority granted by the Board
of Directors on the day of , 1991,
whereby one or more officers of Williamson-Dickie Manufacturing
Company were authorized by corporate resolution to execute this
Agreement on behalf of Williamson-Dickie Manufacturing Company; a
copy of such Resolution is attached hereto as Exhibit "D" .
X.
SEVERABILITY
In the event any section, subsection, paragraph, sentence,
phrase or word is held invalid, illegal or unconstitutional, the
balance of this Agreement shall stand, shall be enforceable and
shall be read as if the parties intended at all times to delete
said invalid section, subsection, paragraph, sentence, phrase or
word. In the event that (i) the Term of the Abatement with
respect to any property is longer than allowed by law, or
(ii) the Abatement applies to a broader classification of prop-
erty than is allowed by law, then the Abatement shall be valid
with respect to the classification of property abated hereunder,
and the portion of the Term, that is allowed by law.
XI .
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 x:11 be addressed to a subsequent purchaser or
assignee of Owner, shall include, but not necessarily be limited
to, statements that this Agreement is in full force and effect
without default (or if default exists the nature of default and
curative action, which should be undertaken to cure same) , 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(ies) to receive the certificates.
XII.
OWNER STANDING
Owner, as a party to this Agreement, shall be deemed a
proper and necessary party in any litigation questioning, or
challenging the validity of this Agreement or any of the under-
lying ordinances , resolutions, or City Council actions autho-
rizing same and Owner shall be entitled to intervene in said
litigation.
8
XIII .
APPLICABLE LAW
This Agreement shall be construed under the laws of the
State of Texas. Venue for any action under this Agreement shall
be the State's District Court of Tarrant County, Texas . This
Agreement is performable in Tarrant County, Texas .
XIV.
RECORDATION OF AGREEMENT
A certified copy of this Agreement in recordable form shall
be recorded in the Deed Records of Tarrant County, Texas .
XV.
AMENDMENT
This Agreement may be modified by the parties hereto to
include other provisions which could have originally been
included in this Agreement or to delete provisions that were not
originally necessary to this Agreement pursuant to the procedures
set forth in Title 3, Chapter 312 of the Code.
EXECUTED this day of , 1991, by
the City.
EXECUTED this day of , 1991, by
Owner.
ATTEST: CITY OF FORT WORTH, TEXAS
By:
City Secretary City Manager
APPROVED AS TO FORM AND LEGALITY:
City Attorney
OFFICIAL MIRD
Date:
CIT' eta r,.
FT
9
WILLIAMSON-DICKIE MANUFACTURING
ATTEST: COMPANY, a Texas Corporation ,►
By:
Secretary President
Gail P. Williamson
J. Don Williamson
Kimberly Williamson Darden
Annette Williamson Pomeroy
Phillip Charles Williamson
Charles Donovan Williamson II
Alexander Nathan Williamson
Gregory Shaw Williamson
10
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally
appeared David A. Ivory, City Manager of the City of Fort Worth,
a municipal corporation, known to me to be the person and officer
whose name is subscribed to the foregoing instrument, and acknowl-
edged to me that the same was the act of the said City of Fort
Worth, Texas, a municipal corporation, that he was duly autho-
rized to perform the same by appropriate resolution of the City
Council of the City of Fort Worth and that he executed the same
as the act of the said City for the purposes and consideration
therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
1991.
Notary Public in and for
the State of Texas
Notary's Printed Name
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally
appeared R. Stephen Lefler, President of Williamson-Dickie
Manufacturing Company, a Texas corporation, known to me to be the
person whose name is subscribed to the foregoing instrument, and
acknowledged to me that he executed the same for the purposes and
consideration therein expressed, in the capacity therein stated
and as the act and deed of said corporation.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
1991.
Notary Public in and for
the State of
Notary's Printed Name
I uJ6Ci L RECORD
My Commission Expires: , }VARY
IFT. WORT?.,, T4 .
11
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on ,
1991, by Gail P. Williamson.
Notary" Public in and for
the State of
Notary's Printed Name
My Commission Expires:
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on ,
1991, by J. Don Williamson.
Notary Public in and for
the State of
Notary's Printed Name
My Commission Expires:
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on ,
1991, by Kimberly Williamson Darden.
Notary Public in and for
the State of
Notary's Printed Name
My Commission Expires: AWN
12
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on ,
1991, by Phillip Charles Williamson.
Notary' Public in and for
the State of
Notary's Printed Name
My Commission Expires:
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on ,
1991, by Charles Donovan Williamson II.
Notary Public in and for
the State of
Notary's Printed Name
My Commission Expires:
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on ,
1991, by Alexander Nathan Williamson.
Notary Public in and for
the State of
Notary's Printed Name KNN
My Commission Expires: fG�1. 1, Ry
13
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on ,
1991, by Gregory Shaw Williamson.
Notary Public in and for
the State of
'notary's Printed Name
My Commission Expires:
STATE OF TEXAS §
COUNTY OF TRAVIS §
This instrument was acknowledged before me on
1991, by Annette Williamson Pomeroy.
1
Notary Public in and for
the State of
Notary's Printed Name
My Commission Expires:
14
EXHIBIT "A"
POLICY STATEMENT
TAX ABATEMENT FOR COMMERCIAL/INDUSTRIAL PROJECTS
CITY OF FORT WORTH
L General Purpose and Objectives
Certain types of business investment show high promise of creating new jobs, new
income and positive spillover effects beneficial to the GCity. Therefore, the City of Fort
Worth will give consideration, on a case-by-case basis, to providing tax abatement
according to state law to the owners of real property for projects which stimulate
economic growth and diversification in the City of Fort Worth, Texas. New, as well
as expanding and modernizing facilities and structures, will be considered.
Evaluation of a tax abatement request will be based on the information provided in
the tax abatement application. However, the City of Fort Worth is under no -
obligation to provide tax abatement to any applicant Priority consideration will be
given to projects located in the enterprise zones and those projects which result in a
development with little or no additional cost to the City and/or result in 1,000 or
more new jobs.
H. Definitions
"Abatement" means the full or partial exemption from ad valorem taxes of eligible
properties in a reinvestment zone designated as such by the City of Fort Worth for
economic development purposes.
'Modernization!' means the replacement and upgrading of existing facilities which
increases production, updates technology, or substantially lowers the cost of
operation and extends the economic life of the facility.
"Reinvestment Zone" is an area designated as such by the City of Fort Worth in
accordance with the Texas Property Redevelopment and Tax Abatement Act, Sections
312.001 through 312.2M, Tax Code.
III. Criteria
A. Tax abatement may be granted for a development project, excluding land, which
has a minimum capital investment of
1. $10 million,
OR pFVICIAI
till
sEcaua,RY
FT, WORCN, j�• . p
AM. ,.,.
2. $500,000 if the business commits to hiring residents from an eligible "inner
city" area for full-time, permanent positions. A map of the eligible areas
can be obtained from the Office of Economic Development; however, the
"inner city' is defined as a census tract having at least two of the following
four criteria:
(1) Unemployment rate greater than 1.5 times the state rate.
(2) 20% or more poverty. . -
(3) Low income (70% or more of the household have income at or
below 80% of the city median).
(4) Population loss equal to or greater than 20%.
A project of less than $500,000, which is located in the inner city areas,
may be eligible for consideration if the City Council determines it is-ift the
best interest of the City.
B. The state law prohibits tax abatement of existing tax base. Abatement can be
considered only for the increase in valuation above the existing valuation of a
particular property and for a maximum term of 10 years. The amount and
terms of the abatement will be determined by factors such as the costs to the
City, the project's increased valuation to the tax base, and the number and types
of new jobs and new or expanding local businesses resulting from the project. `
C. The "Application for Tax Abatement" form must be completed and submitted to
the City Manager outlining the following:
1. project specifications,
2. costs and benefits to the City,
3. employment impact in the City and the region,
4. fiscal impact,
5. community impact,
6. projected construction dollars to be spent on the project with a percentage
of such dollars that would be awarded to Fort Worth contractors and
subcontractors, and
7. projected total annual supplier and professional service contracts in terms
of dollars, and the projected percentages of each such category that will be
awarded to Fort Worth companies and entities, during the abatement
period.
A Fort Worth company is one which has a principal office within the city limits
of Fort Worth.
It is the policy of the City of Fort Worth to encourage the use of disadvantaged
business enterprises in contracting opportunities.
-2-
' N. Procedural Guidelines
Any person, partnership, organization, corporation or other entity desiring that the
City of Fort Worth consider providing tax abatement to encourage location,
expansion and/or modernization of operations within the city limits of Fort Worth
shall be required to comply with the following procedural guidelines. Nothing
within these guidelines shall imply or suggest that Fort Worth is under any
obligation to provide tax abatement in any amount or value to any applicant.
Preliminary Application Steps
A. Applicant shall submit an "Application For Tax Abatement" and shall address
all criteria questions outlined in Section III above. The application shall include
financial and other information deemed appropriate for evaluating the financial
capacity and other factors of the applicant.
B. Applicant shall prepare a survey map showing the precise location of the
property, all roadways within five hundred (500) feet of the site, all existing
land uses and zoning within five hundred (500) feet of the site and the kind,
number and location of all proposed improvements.
C. City may request applicant to provide substantiation of the economic feasibility
of the overall project to assist in determining the long term benefit to the City.
D. A complete legal description of the property and tax certificate verifying that no
taxes are past due on the applicant's property shall be provided.
E. Applicant shall complete all forms and information detailed in items A through
D above and submit them to the City Manager, City of Fort Worth, 1000
Throclanorton, Fort Worth, Texas 76102.
Application Review Steps
F. All information in the application package detailed above will be reviewed for
completeness and accuracy. Additional information may be requested as
needed.
G. The application may be distributed to the appropriate City departments for �_-
internal review and comments. Additional information may be requested a .
y re q FF1CIu
needed.
CITY ., raY
FT. WORTH
—3—
AM
H. Copies of the complete application package and staff comments will be
provided to the City Council. The City Manager's Office will make a
recommendation as to whether or not it is in the City's and the other taxing
authorities' best interest to offer tax abatement to a particular applicant.
Consideration of the Application
I. The City Council will consider the application at meetings conducted pursuant
to the Open Meetings Act and the Property Redevelopment and Tax Abatement
Act. Additional information may be requested as needed.
J. The City Council shall consider a resolution calling a public hearing to-consider
establishment of a reinvestment zone.
K The City Council shall hold the public hearing and determine whether the
creation of the reinvestment zone would contribute to the retention or expansion
of primary employment or would attract major investment in the zone and
would contribute to the economic development of the City.
L. The City Council shall consider adoption of an ordinance designating the area
described in the legal description of the proposed project as a commercial/
industrial reinvestment zone for tax abatement.
Consideration of the Tax Abatement Agreement
M. The City Council may consider adoption of a resolution which approves the
terms and conditions of an agreement between the City and the applicant, and
governs the provision of the tax abatement. At minimum, the agreement shall
include the following:
I. General description of the project,
2. Amount of the tax abatement and percent of value to be abated each year,
I Duration of the abatement;
4. Type, number, location and timetable of planned improvements;
5. Proposed use of the facility,-
6.
acility;6. Number of jobs to be created or retained and a percentage of employment
in Fort Worth;
7. Any specific terms and conditions to be met by the applicant; and
8. Reporting information.
1
-4-
N. Any tax abatement granted a project will become effective on January 1 of the
year following the issuance of a Certificate of Occupancy (CO) for the new
facilities unless otherwise specified in the tax abatement agreement The total
acreage of the project shall be assessed at 100 percent market valuation upon
execution of the abatement agreement, unless otherwise addressed in the tax
abatement agreement
V. Recapture
If a project is not completed as specified in the tax abatement agreement, the City has
the right to cancel the abatement agreement and abated taxes shall become due to the
City and other affected taxing units as provided by law. If any of the provisions-
contained in the tax abatement agreement, i.e., employment, amount of investment,
etc, are not met, the City shall have the right to reduce or cancel the abatement
agreement. If a project granted a tax abatement ceases to operate or is no longer in
conformance with the tax abatement agreement, the agreement shall not be in effect
for the period of time during which the project is not operating or is not in
conformance.
VI. Inspection and Financial Ver(fication
The City of Fort Worth reserves the right to verify the applicant's credit worthiness
prior to granting a tax abatement and to review the financial condition of the project
during the term of the abatement. The City of Fort Worth also reserves the right for
a representative to inspect the facilities of the applicant during the term of the
abatement and to verify the information provided in the tax abatement agreement
Provisions to this effect shall be incorporated into the agreement.
VII. Evaluation
Upon completion of construction of the facilities, the City Manager's Office shall
annually (or such other times deemed appropriate by the City) evaluate each facility
receiving abatement to insure compliance with the agreement and report possible
violations of the agreement to all affected taxing units. Any individual or entity
receiving tax abatement shall agree to provide information to the City of Fort Worth
on a form provided by the City of Fort Worth for the evaluation.
Any individual or entity which receives a tax abatement from the City of Fort Worth w
shall provide information requested by the City including, but not limited to, the
following.
(A) The number of dollar amounts of all construction contracts and +�
subcontracts awarded on the job, specifying which companies are Fort
Worth entities. (To be provided quarterly.)
(B) The total number of employees of the company, their total salaries, the
number of employees who reside in Fort Worth and their gross salaries.
These jobs shall be reported in job classifications appropriate to the
employees. (To be provided annually.)
(C) The gross dollars spent on supplier and professional service contracts,
broken down to demonstrate the amounts by contract awarded and
performed by Fort Worth individuals and entities. (To be provided semi-
annually.)
(D) The dollar amount of contracts awarded to Disadvantaged Business
Enterprises (DBE). (To be provided annually.)
(E) If the dollars or percentages do not equal the original or City Council
approved modified projections, the party receiving the abatement shall
state the explanation for the failure to meet the projection, together with a
recommended course of rectification
It is the policy of the City of Fort Worth that, an agreed upon percentage of the
employees of companies receiving an abatement shall reside in Fort Worth At the
end of each City fiscal year, the company receiving the abatement shall submit a
certified list of employees with their addresses to the City Council If the percentage
is below that agreed upon for the prior year, the abatement may be lowered for the
next year on a pro rata basis. A separate calculation shall occur yearly.
VIII. Effect Of Sale, Assignment Or Lease Of Property
No tax abatement rights may be sold. Tax abatement rights cannot be 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 a forfeiture of all tax abatement rights as to the property sold,
assigned or leased.
(Adopted by City Council 10/16/90)
-6-
' a
z^ i INNER CITY f
10 01
ELIGIBLE AREAS FOR TAX ABATEMENT
ur"
As Identified in Sectionlll.A.(2),City of 1134.05 113A
Fort Worth Policy Statement on Tax Abatement i
X" To Qualified CommercialAndustrial Projects,
As Amended and Restated, October 16, 1990 z
1002.01 1042 1102.02 � „=.crx
ars
5
g trTM mA _>
g 1103
n
1004 ° 1001.01 ..
rift amm
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r11CtA A r+rtnn
RACE
sa a'
Tsr 1012.02 1012.01 1085.01
1021
$ 1014.01 1085,D2 1085.03
� AAOOA M, ruoow�Aowc
a 1015
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s b E 1029 tP4 1014.02 1014.03 °RAM
J
10279
ROAN AVE. ° t post"" •• "a' 1013.02
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" 4 1041 1017.02 Ate.
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erc
nmo ui.- 1048.01
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1048.01 r 1045.03 1061.01
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IOC
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1056 1046.02 1052 1061.02
1047 1 $
1111.01 `r� r
055.02 aAi 57.01 1058Mq�ppy y. L= as 111 S.W
Ai An G
EXHIBIT "B"
DESCRIPTION OF PROPERTY
33. 7172 Acres
Josiah Walker Survey, A-1600
Fort Worth, Tarrant County, Texas
BEING 33 . 7172 acres of land out of the JOSIAH WALKER SURVEY,
ABSTRACT NO. 1600 and being a portion of an 83.0005 acre tract of
land described in Volume 9943, Page 950 and Volume 9701, Page
567, Deed records of Tarrant County, Texas more particularly
described as follows:
BEGINNING at an iron rod being the northwest corner of said
83. 0005 acre tract and being in the north line of said Josiah
Walker Survey and also being in the existing east right-of-way
line of Blue Mound Road (F.M. 156) ;
THENCE, South 89 degrees 05 minutes East, along the north line of
said Josiah Walker Survey and the north line of said
83.0005 acre tract, 1545.70 feet to a highway monument
for corner being in the existing southerly right-of-way
line of U.S. Highway 287; "WA
THENCE, South 37 degrees 15 minutes 35 seconds East, along the
existing southerly right-of-way line of said U.S. Highway
287, 1007.64 feet to an iron rod for corner;
THENCE, North 89 degrees 05 minutes West, 2161.91 feet to an iron
rod being in the existing east right-of-way line of said
Blue Mound Road;
THENCE, North 00 degrees 25 minutes 51 seconds East, along the
existing east right-of-way line of said Blue Mound Road,
792.30 feet to the POINT OF BEGINNING.
The tract of land herein described contains 1,468,721 square feet
or 33.7172 acres of land, more or less.
EXHIBIT "C"
AMENDED
APPLICATION FOR TAX ABATEMENT
CITY OF FORT WORTH
'Tillie+.son-Dickkie manufact inqq Canpsny and
Lail P. williamson, J. Don williamson, Kimberly williamson Darden,
1. Pro e Owner,�nne i n Pame�iel
hi Charles Plilliamson Charles Donavan
[aiiln,II Alex er Na son, �re�or i iamsonCompanyorProlectfilame: [^]illiamson-Dir str�huti n aci ity
Mailing Address: P.O. Box 1779
Fort Worth, TX 76101
Telephone Number. (817) 336-7201
Company representative to be contacted:
Name and title: Paul I ozuk,. Vlarehouse Distribution Manager
Mailing Address: P. 0. Bcx 1779
Fbrt North, TX 76101
Telephone Number. (817) 336-7201
2. Project Description and Location:- The project consists of construction of a 352,000 sauare
foot warphnn--,P-F distribution and truck .fleet center on 33.5 acres bounded by
Btue mpri-' Fuad to the west and U.S. 287 to the east.
3. Brief description of activities to be performed at this location, including a description of products to be
produced and/or services to be provided:
nistribution Center for apparel and related items, storage and distribution
of trim accessories and cloth for manufacturing facilities. 'Ruck fleet
cxMratic m go=.
4. Date Projected for Occupancy of
Project/Initiation of Operations: 12-31-92
S. Eligibility Criteria (Attach statement describing how project meets tax abatement policy criteria):
A. Eligibility is met as structure and personal property oosts will be aver
$10x000,000.
B. Atter.
6. Project Fiscal Impact
A. Existing Value (per Tarrant Appraisal District):
1. Land $ 14,300 per acre
LUFFICIAL2. Improvements $ �,RY
3. Personal Property $ TEX.
ED012991 Page 1 of 4
CITY OF'. RT WORTH APPLICATION FOR TAX.-IATEMENT
B. Estimated Total Cost of Project (i.e., new value): Aftk
1. Site Development $ 725,000
2. Structures $ 6,425,000
3. Fixtures - Conveyor - 'Permanent Racking & ?`ezzanife 7,470,819
4. personal Propertv $ 915,856
7. Local Business/DBE Impact:
A. Percentage of Project Development and Construction Dollars to
be Spent With Fort Worth Based Contractors or Sub-Contractorm 90
cl ive f Co e Pe t Racking - Mezzanzr�
B. 'er�cen�age of�'roleceveapment and Construction
Dollars to DBE (Disadvantaged Business Enterprises): 11 16
Exclusive of. Conveyor - Permanent Racking - Mezzanine
8. Employment Impact:
A. Construction Employment Estimates:
1. Start: Month/Year Nov.! 91
2. Completion Date: Dec• 92
3. Number of Construction jobs: 200
4. Estimated Total Construction Payroll: 3,000,000
B. Permanent, Full-Time Employment Estimates at Project Location*:
1. Current(if applicable):
a. Annual payroll: -0-
b. Number of permanent, full-time employees: -0-
2. At Start/Opening Date:
a. Annual payroll: 3,181,710
b. Total number of permanent, full-time employees: 183
c. Number of employees transferred from
outside the city of Fort Worth: -0-
d. Number of new permanent full-time jobs: -0-
e. Percentage of new jobs to be filled by
Fort Worth residents: 80%
3. 5 Years After Opening-
a.
peninga. Annual payroll: 3,938,830
b. Total number of permanent, full-time employees: 239
c. Number of employees transferred from
outside the city of Fork Worth: -0-
d. Number of new permanent full-time jobs: 56
e. Percentage of new jobs to be filled by
Fort Worth residents: 80
*Each application will be reviewed on its merits. However,absent extraordinary circumstances, a minimum of 25% of the
employees should be Fort Worth residents. Company shall report annually and a prorata reduction of the abatement may
occur if the percentage is not met.
ED012991 Page 2 of 4
CITY OF FOE rVORTH APPLICATION FOR TAX Ada ;MENT
4. 10 Years After Opening:
a. Annual payroll: 4,290,350
b. Total number of permanent, full-time employees: 265
c. Number of employees transferred from
outside the city of Fort Worth: -0-
d. Number of new permanent full-time jobs: 26
e. Percentage of new jobs to be filled by
Fort Worth residents: 80%
C. Types of jobs Created gob Titles)
CRT/mer Forklift Operators
Electrical Mechanical Support Order Fillers
00111y Inspection Alterations Shipping Clerks
Sewing/Supervisory/Office Staff Truck Fleet Drivers
9. Describe Any Off-Site Infrastructure Requirements:
Water. Domestic water and lawn irrigation reauirements are normal. Fire
=Otection water reauiMerlts are significant, 1,500 GW with 90 minute
ilnrai-inn-
SanitarySewer. Building will reauire a 6" service line to main connection.
Sheets: Site access via Blue Mound Road will suffice until Highway 287 acoess
macs i S constructed.
Storm Sewer. A1mZe exist currently. All drainage now via oven swales. City
,tynila install enclosed system in future.
Other. Cs service: Building will require appr dmately 15,000 CTH @ 5 to 10 PSI.
10. Is Property Zoned Appropriately? Yes No X
Current Zoning. C
Required Zoning: I _
11. Is Property Platted? Yes No X Or
F1C 11 11 REC
Will Replatting be Necessary? Yes X No till SE�RE�
Fl. WOjK,
ED012991 Page 3 of 4
CITY OF F .T WORTH APPLICATION FOR TAX NTEMENT
12. Impact on Local Business (When Project is Fully Operational):
A. Annual value of total supplier and services contracts:
$ 2,000,000
B. Percentage of total supplier and services contracts to be awarded to Fort Worth businesses:
90 %
C. Percentage of total supplier and services contract dollars to be awarded to DBE:
10 %
13. Describe any other direct benefits to the City of Fort Worth as a result of this project(e.g.,sales tax revenue):
This project can anchor oontinuing development and growth for the northern
corridor of Fort [worth, providing a clean, stable work environment.
14. Environmental Impacts, if any, created by the project:
No negative envirorneental impacts.
15. Justification for Tax Abatement Request(Attach documentation to substantiate and more fully describe the
justification for this request. Include the amount of the abatement requested and show how it will contribute
to the financial viability of the project.)
Attached
16. Financial Information-Attach a copy of the latest audited financial statements or,in the rase of a new project,
a business plan.
The application for tax abatement is submitted with the acknowledgment that additional certified financial
information may be required.. It is further understood and acknowledged that the City Council of the City
of Fort Worth encourages the use of local consultants,construction firms and suppliers(with special emphasis
given to disadvantaged business enterprises)and that,if approved,the final abatement agreement will require
use of local firms when possible in conjunction with this project.
7 h, Z�
Aut orized Signatu
August 16, 1991
Date
EDO12991 Page 4 of 4
Attachment
5. Eligibility Requirement
B. The Williamson-Dickie Company has long prided itself in
its record as an equal opportunity employer and remains
committed to that practice. Although a relocation of
our operations may require leaving the downtown area,
our hiring activity will continue to focus on the inner
city of Fort Worth. This effect will allow us to
maintain the relative ethnic profile that we currently
enjoy.
R��►0�0
OFE�O�A�
Attachment
15 . Justification for Tax Abatement Request :
The Williamson-Dickie Manufacturing Company has been a member
of the Fort Worth business community for 69 years . The Fort
Worth operations employ approximately 600 with employment
worldwide numbering 5 , 200 . We have international operations in
Canada, England, Honduras , Jamaica, Mexico, Puerto Rico,
Belgium, and Belize.
Recently, we were notified by the State Highway Department that
due to the relocation of IH30 through' downtown Fort Worth we
would be forced to vacate our current warehousing-distribution
center by December of 1992 . We are using this occasion to
review our present operations and it is our intent to construct
.a state of the art distribution center. This 352 , 000 square
foot facility (expandable to 600, 000 square feet) will also
include our cloth and trim warehouse and truck fleet
operations .
It is Williamson-Dickies "desire for these operations to remain
in Fort Worth where we enjoy a long standing relationship with
the community and our work force. However, as a result of
alternatives presented to us by other communities we must use
this relocation opportunity to select the most conducive and
cost effective site possible.
It is in this regard that we request assistance in the form of
a full tax abatement for ten years to help justify relocating
these operations within the City of Fort Worth. Alternatives ,
which offer a lower tax base, moving incentives , excellent site
locations, and available work force, exist for Williamson-
Dickie to relocate outside Fort Worth. The information
contained in this application reflects the economic impact the
construction of this facility and the rentention of jobs
associated, would have on this community. We therefore request
that every consideration be given in evaluating this request .
s.
o Location of Williamson-Dickie Workforce
This table shows the relative concentration of the
workforce by ethnicity. For example, the table shows
that over 1 in 5 black workers, or 21% of all black
workers, live in just one zip code. Combining the 5
most concentrated resident zip codes for black workers
accounts for 2 in 3, or 67% of Will iamson-Dickie Is
entire black labor force. The remaining third of black
workers are residing elsewhere in Tarrant County's 72
zip codes .
I . Percentage of Workforce (by ethnicity) in 5 most
concentrated zip codes
Total Total
1 2 3 4 5 1-5 6-72
Black 21% 18% 13% 11% 6% 67% 33%
w
White 10% 6% 6% 6% 6V 33% 67%
Hispanic 32% 23% 13% 9% 6% 83% 17%
All 11% 11% 10% 6% 6% 43% 57%
Note: Due to rounding for ease of presentation,
columns 1-5 may not add up to the "Total 1-5"
column.
II . Zip codes used in Table I (Number of employees
in parenthesis)
Black White Hispanic All
1. 76119 (23) 76108 ( 11) 76110 ( 17) 76104 (29 )
2 . 76104 (20) 76135 ( 7) 76106 ( 12) 76110 (29)
3. 76105 ( 14) 76110 ( 6) 76104 ( 7) 76119 (26)
4 . 76112 ( 12) 76114 ( 6) 76115 ( 5) 76106 ( 17)
5 . 2 at ( 6) 76133 ( 6) 76114 ( 3) 76105 ( 16)
III . Overall ethnic profile of workforce
Total - 275 employees
Black - 112 employees or 41% of total
White - 110 employees or 40% of total
Hispanic - 53 employees or 19% of total -- "
LOFFICIALORDRY
T .
o Transportation Method - Williamson-Dickie Workforce
Drive 192 ( 70% ) '",
Carpool 36 ( 13% )
Dropped Off 34 ( 12% )
Public Transportation 12 ( 4% )
w
jz�
ZIP Code Map 7
Fort Worth and Vicinity ZIP Codes
E_ M
his 76052 76248 76092 76051
9�
76020
76135
T A R R A N T
��✓� 76034
°D 76180
76179 76137 v
76131 ~ 76021 76039
E
I 820 7 61 18
76053
0 76106 0
76117
L Ln
76111 Ln
0
76108 76114 76011
76127
war 76112
` 7610 30 76012 130
' 76107 6103
a
76104 76105 � 76019
�y0 76116 76013 76010
ti
I 20 76129 767602 1 76015 76014 0
76109 76016 to
76119 -, �
76115 I 20 N
76126 ,�1� 76132 76133!20
J� 76134 76017
O1.0
�., 76140 1 Gs 76018
76036 76119
76028 76063
OFFICIR` RECORD `<<
CITY SCO�� Ry
Denton Couna-
Hispanic Employees
1-4 ® 15-19 1-35 -
• 5-9 20-30 377
10-14
1 114
cwpc%nx Like
Wise cin
—
,� Alliance:1trporc
114
` 237
Eagle Modmain Lake
• I-35W 37
�7
121
31 26
w DallasiF rt worth
199 Internati nal Airport
�✓ � � I-320 • 133
Lake Worth � `. I-320 >
Meacham % 10
/L Airport
I-320 , 133 J
( 121
t
CarsaaelIA.F.B. \ \ �� I-30
1-30 I-30
• I-320
•
I-20 237 360
t �
• I-35W j UkC Arlington
L
% • �` I-20
--� I.320
37 •
J �~N
237
Benbrook Lake
fV
j�tililcs ' Spink3 Airport
Dcncon COUnq•
Black Employees
• 1-4 e15-19 1-3'"-
• 5-9 ® 20-30 3-/7
® 10-14
1 114
\ Grapc%ine Lake
J_ �
Wise Couna•;— "
------- ---- --- ----- -= t----'�---
larrant�oun� � ,
111ian�r Airport
287
Eagle Jtonntain Lake
I-35W 377
l> 121
31 � 26
199 Dallas/F rc IVorch
Incernati nal Airport
Lake Worth
7 I-320 I-820 183
rJ /i •
MAirporteacham (1 10
�L
J • i
I-320 133
121
Carswell A.F.B. i �.�'• 1 \ ;��/ I-30
1-30 I-30
• • I-820
I-20 287 ,\) 360
I-35W � i Lake Arlington
�' • �; I-20
)--J I-320
377 �
J 287
� � z
Ben brook Lake ¢rICI`l`• R��;CR
Cr
' S11es ' Spinks:Urporc �� !� a 3+t `"'•
Denton County
White Employees
1-4 0 15-19 1""
• 5-9 20-30 3-77
0 10-14
11#
Grapc»ne lake
WiseCounc-` -- --- ----- = ---�--
arrani�ount��
L alliance Airport ;
114
~) � 237
Ea_ele'\I ntain lake
I-3554 3771 R
• 1 121
26
199 DallasiR rt Worth
Intcrnati nal Airport
Al�
I-320 133
hkc Worch I-320
Mcacham • }
I-IzI Airport , 10
1
• r �``
t
•
I-320 183
t V
r�\ i
121/
Carswell A.F.B. �� ��
I-30
I-30 1-30 �/ • •
• I-820
• • �I-20 237 360
•
I-35W lake Arlington
1 � � •
i • `/ I-20
r,
I-820
377
287
-tel
^�\ � Benbrook lake '
5\this Spinks Airport
4 • 1� ; �
Denton Counn-
Total Employees
1-4 ® 15-19 I""
• 5-9 20-30
10-14
I 114
«ise Counn! \'
------ - ----- --- ----- -_=�_---�---
arrantZ.outiLy
Alliance Airport
114
237
Eagle MoLin Lake
/ ? I-333-W 377
\ 121
81 26 199 Dallas;F rr Wor h
L Internati nal Airport
Lake Worth
1-820 ` I-S20 133
\ Jieacham 10
ikirpori
y J•
I-820 ' f 133 i
t i t 121
Carswell A.F.B. \ I-30
1.30 I-30 /` •
• • I-320
I-20 • 2977 41 ) 360
0 I-35W ` Lake Arlington
f`f
:/-/
• • � I-20
__jI-320
377 •
1 � •
.j �
Benbrook Lake
5 ti111GSj
1 $pinta Airport
F1 _
. I