It is recommended that the City Council authorize the City Manager to execute a Tax Abatement Agreement with Parker Products, Inc. for the Construction of an 85,000 Square Foot Corporate Office and Operations Facility to be Located at Northwest Loop 820 and Strawn Lane in the Lone Star Business Park.

Parker Products, Inc. (Company) would like to construct an 85,000 square foot facility to be located at Northwest Loop 820 and Strawn Lane in the Lone Star Business Park. The facility will include warehouse, corporate office, research and development, and manufacturing space.

Construction Commitments:

The Company is consolidating two existing facilities and intends to invest at least $15,000,000.00 in real property improvements to construct the new facility by December 31, 2017.  The Company has also pledged to install $2,000,000.00 in taxable business personal property within the facility by January 1, 2018. The Economic Development Department is proposing a 10-year Tax Abatement (Agreement) with Company that could potentially abate up to 50 percent of the City's taxes on the incremental value of real and business personal property at the site.

Failure to meet the overall investment is a condition of default and will result in immediate termination of the Agreement.

Utilization of Fort Worth Companies and Fort Worth Certified M/WBE Companies (Real Property Improvements):

The Company will spend the greater of 25 percent or $3,750,000.00 of hard construction costs with Fort Worth companies and the greater of 15 percent or $2,250,000.00 of hard construction costs with companies that are Fort Worth certified Minority/Women-Owned Business Enterprises (M/WBE) companies (with an understanding that dollars spent with Fort Worth certified M/WBE companies will also count as dollars spent with Fort Worth companies).

Employment Commitments:

The Company will retain 100 full-time jobs and create 30 new full-time jobs at the site by December 31, 2018.  The Company will create an additional 30 full-time jobs by December 31, 2022 for a total of 160 jobs.  The Company will fill the greater of 60 percent or 60 of the full-time jobs with Fort Worth residents by December 31, 2018, and the greater of 60 percent or 78 of the full-time jobs with Fort Worth residents by December 31, 2022.  The Company will fill the greater of 25 percent or 25 of the full-time jobs with Fort Worth Central City residents by December 31, 2018, and the greater of 25 percent or 33 of the full-time jobs with Fort Worth Central City residents by December 31, 2022.

Utilization of Fort Worth Companies and Fort Worth Certified M/WBE Companies (Service and Supply):

The Company will spend the greater of 30 percent or $18,000.00 in annual discretionary service and supply expenditures with Fort Worth companies and greater of 15 percent or $9,000.00 of annual discretionary service and supply with companies that are Fort Worth certified M/WBEs (with an understanding that dollars spent with Fort Worth certified M/WBE companies will also count as dollars spent with Fort Worth companies).

Supply and Service Expenditures means all expenditures by the Company expended directly for the operation and maintenance of the development excluding amounts paid for electric, gas, water and any other utility services.

City Commitments:

In return, the City will grant up to a 50 percent tax abatement on the incremental increase in value of real and business personal property improvements (above a base year value) for a period of 10 years. The Company must meet specific construction spending, annual employment and annual supply and service spending commitments in order to achieve the maximum amount of potential incentive for each abatement year. The weighted values for each of the commitments are as follows: