On October 25, 2016 Mayor and Council Communication (M&C C-27976) the City Council authorized the execution of an Economic Development Program Agreement (Agreement) with Parker-Hannifin Corporation (Company) for the consolidation of its existing business operation into a 242,000 square foot expansion to support increasing business needs at 4701 Mercantile Drive. Under the Agreement, the Company must invest at least $25.5 million in real and business personal property improvements (exclusive of land costs) and have at least 525 full-time equivalent jobs filled on the property by a date certain (defined as the Completion Deadline). In return, as authorized by Chapter 380, Texas Local Government Code, the City will pay Company 10 annual economic development program grants in an amount not to exceed 60 percent of incremental real and personal property taxes.
Due to delays in finalizing development plans upon conducting an environmental assessment on the site, the construction schedule had to be pushed out. In order to fulfill the commitments of the Agreement, the Company has requested a revised completion deadline of March 31, 2019. Staff has no objection to this request. It should be noted that in the course of negotiations with Company, Staff agreed to a completion deadline of December 31, 2018. However, the M&C incorrectly referenced a deadline of December 31, 2017. All other terms and conditions spelled out in the M&C will remain the same, except that the timeframe for performance of all obligations specified for 2018 will be pushed by one year to 2019. The Company will spend or cause to be expended the greater of 20 percent or $4,340,000.00 of all hard construction costs with Fort Worth companies, and will spend or cause to be expended the greater of 15 percent or $3,255,000.00 of all hard construction costs with companies that are Fort Worth Certified Minority/Women Owned Business Enterprise companies. The Company will fill a minimum of 40 percent of all FTEs with Fort Worth residents and a minimum of 20 percent of all FTEs with Fort Worth Central City residents.
The Company will also spend the greater of 35 percent or $1,400,000.00 in annual discretionary service and supply expenses with Fort Worth companies and the greater of 20 percent or $800,000.00 in annual discretionary service and supply expenses with companies that are Fort Worth Certified Minority/Women Owned Business Enterprise companies the maximum annual program grant will be equal to 60 percent of the incremental value of real and business personal property taxes on the development. This project is located in COUNCIL DISTRICT 4. |
