It is recommended that the City Council authorize the execution of a Consent to Assignment of City Secretary Contract No. 37067, a Tax Abatement Agreement between the City and Health Care Service Corporation d/b/a Blue Cross Blue Shield of Texas, to QTS Investment Properties Fort Worth, LLC,  in conjunction with the sale of the data center facility located at 14100 Park Vista Boulevard.

On February 26, 2008, the City Council approved a 10-year Tax Abatement Agreement with Health Care Service Corporation d/b/a Blue Cross Blue Shield of Texas (Company) related to the construction of a data center located at 14100 Park Vista Boulevard (City Secretary Contract No. 37067 (Mayor and Council Communication (M&C) C-22688), as amended by City Secretary Contract No. 37067-A1 (M&C C-24402).

The Company now wishes to sell the data center to QTS Investment Properties Fort Worth, LLC (Purchaser).  As part of the proposed sale, the Company has requested an assignment of the Agreement to the Purchaser, so that the Purchaser may continue to receive the tax abatement for the remainder of the term of the Agreement.  Under the Agreement, the Company is prohibited from assigning the Agreement to another party without the City Council's consent.  In order to facilitate the transaction, a Consent to Assignment Agreement between the City, the Company and the Purchaser will be required.

The Company has constructed all the required improvements, as set forth in the Agreement and the Purchaser will be required to meet all ongoing obligations of the Company under the Agreement.  The City will continue to receive the public benefits resulting from development of this project.

The data center is located in COUNCIL DISTRICT 7, Mapsco 9S.