Hunt Southwest (Developer) intends to construct a new distribution center at the northeast corner of N. Sylvania Ave. and Quorum Drive. The proposed site is currently served by an asphalt road that would be insufficient for commercial traffic if the development moves forward. Transportation & Public Works has indicated that widening N. Sylvania Ave. into a two lane arterial with a center turn lane would better accommodate business park traffic and is in alignment with the City's Master Thoroughfare Plan. In order to facilitate the desired road improvements, Staff is recommending that the City enter into an Enhanced Community Facilities Agreement (ECFA) with the Developer for construction of the road improvements along N. Sylvania Ave. and to enhance construction of the distribution center.
Under the proposed ECFA, the Developer will improve approximately 1,900 lineal feet of N. Sylvania Ave., including, but not limited to, the demolition of existing asphalt road, grading, paving of new road and sidewalks, re-paving of driveway entrances, utility relocations and installations, street lighting, fire hydrants and landscaping that must be completed to City specifications, all by January 31, 2018. The Developer will publicly bid this infrastructure project, and the estimated total cost for the work is $2 million. The Developer must obtain payment and performance bonds in the full amount of the overall infrastructure project.
In order to receive City financial participation in this infrastructure project, as described below, the Developer must also expend at least $20.5 million in construction costs for completion of a 655,000 square foot shell space distribution center located at the northeast corner of N. Sylvania Ave. and Quorum Drive by January 31, 2018. In addition to construction of the facility and road improvements, the Developer has committed to securing a tenant(s) to occupy a minimum of 50 percent of the building. The Developer will use commercially reasonable efforts to meet a goal of providing at least 50 jobs via tenant(s) within the facility by December 31, 2019. The Developer will also use commercially reasonable efforts to meet a goal of expending or causing to be expended with Fort Worth Certified M/WBE companies at least 25 percent of the public improvement costs. Failure to meet these two goals will not result in any penalty to the Developer, although the Developer will be required to provide explanation and documentation to the City if it is unable to achieve either or both goals.
In exchange for completing these improvements and having the building at least 50 percent occupied by December 31, 2019, City staff has proposed an ECFA with the Developer for reimbursement up to a maximum total of 50 percent of the public infrastructure costs or $1 million, whichever is less. If the Developer does not have the building at least 50 percent occupied by December 31, 2019, the City's maximum fixed reimbursement obligation will be reduced from $1 million to $500,000. If the Developer does not meet all of the other improvement commitments above, the Developer will be ineligible for any reimbursement. The source of funds for this reimbursement will come from the 2007 Critical Capital Projects Fund and the City expects to receive $1.7 million in incremental new taxes from this development over the next ten years. The Developer may assign its interest in the agreement only with the consent of the City's Economic Development Department, which shall not be unreasonably withheld. Notwithstanding the immediately preceding sentence, Developer will at any time be able to freely assign to an affiliate of Developer.
This project is located in COUNCIL DISTRICT 4. |
