Niles City Resort Limited (Developer) proposes to construct a minimum 120 room, 4-star hotel near the intersection of East Exchange Avenue and Niles City Boulevard on the site of the former Armour packing plant. The proposed five-story building will feature an all masonry façade and other features designed to reflect the historical and architectural heritage of the Fort Worth Stockyards. The Developer will invest at least $21 million in total capital improvements for the construction of the hotel (exclusive of land acquisition costs). The hotel must have a temporary or final certificate of occupancy by December 31, 2019. The Developer will cause to be expended a minimum 30 percent of hard construction costs with contractors that are Fort Worth contractors and a minimum 25 percent of hard construction costs with contractors that are certified Fort Worth Minority and Women Business Enterprise (M/WBE) contractors, with the understanding that expenditures with Fort Worth M/WBE's count toward the Fort Worth contractor minimum. After the first operating year, the Developer will spend a minimum of 15 percent of annual discretionary service and supply expenditures with Fort Worth companies and a minimum of 15 percent of annual discretionary service and supply expenditures with certified Fort Worth M/WBE contractors, with the understanding that expenditures with Fort Worth M/WBE's count toward the Fort Worth minimum requirement. Developer has agreed, as a goal, to cause to be provided a minimum of 40 Full Time Equivalent Employees (FTEs) on the hotel property within 365 calendar days of being issued the first City of Fort Worth Certificate of Occupancy. Due to a financial gap in project feasibility, Staff recommends entering into an Economic Development Program Agreement with Developer for the project, as authorized by Chapter 380 of the Texas Local Government Code. The recommended Agreement provides for annual program grant payments equal to up to 40 percent of the incremental City real property tax attributable to the development for a period of 15 years capped at $1,000,000.00 gross value for the maximum total incentive amount. The actual amount of each annual program grant will depend upon the extent which Developer has met its commitments, as allocated in the chart below: Developer Commitment | Year 1 | Years 2 - 15 | $21 million Total Investment Commitment (Base Commitment) | 30 percent | 20 percent | 30 percent Hard Construction Costs with Fort Worth Companies | 5 percent | 5 percent | 15 percent Hard Construction Costs with Fort Worth M/WBE Companies | 5 percent | 5 percent | 15 percent Utilization of Fort Worth Companies for Services and Supplies | - | 5 percent | 15 percent Utilization of Fort Worth M/WBE Companies for Services and Supplies | - | 5 percent | TOTAL | 40 percent | 40 percent |
Except for cases of default, failure to meet a commitment will result in a reduction of the corresponding component of the grant for that year proportional to the amount by which the commitment was not met, or for the duration of the Agreement in the case of construction commitments. This project is located in COUNCIL DISTRICT 2. |