M&C Review


COUNCIL ACTION:  Approved on 2/13/2018 

DATE: 2/13/2018 REFERENCE NO.: C-28580 LOG NAME: 17RAIDEREXPRESS
CODE: C TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT:   Authorize Execution of Tax Abatement Agreement with Raider Express for an Office, Training and Maintenance Facility to be Located at Property in the Vicinity of the Intersection of Highway 287 and Willow Springs Road (COUNCIL DISTRICT 7)

RECOMMENDATION:

It is recommended that the City Council authorize the City Manager to execute a Tax Abatement Agreement with Raider Express for the construction of an approximately 61,000 square foot campus at property in the vicinity of the intersection of  Highway 287 and Willow Springs Road.

 
DISCUSSION:

Raider Express (Company) is an existing Fort Worth logistics and transportation company that will significantly expand their operations with this proposed expansion.  The Company plans to build a new, approximately 61,000 square foot office, training and maintenance facility at property in the vicinity of the intersection of Highway 287 and Willow Springs Road.

Company will make at least $13,000,000.00 in real property (exclusive of land costs) by December 31, 2019.  Company must also locate new taxable business personal property on the Project Site having a minimum taxable appraised value specified below by the appraisal dates specified below:

• A total taxable appraised value of at least $56.1 million (2017 base value + $40.1 million) by 1/1/2021
• A total taxable appraised value of at least $96.0 million (2017 base value + $80 million) by 1/1/2023
• A total taxable appraised value of at least $136.1 million (2017 base value + $120.1 million) by 1/1/2025

The Company will spend or cause to be expended the greater of 25 percent or $3,050,000.00 of all hard construction costs for the Development with Fort Worth contractors.  The Company will spend or cause to be expended the greater of 15 percent or $1,830,000.00 of all hard construction costs for the Development with contractors that are Fort Worth Certified Minority/Women Owned Business Enterprise companies (with the understanding that dollars spent with Fort Worth Certified M/WBE companies will also count as dollars spent with Fort Worth companies).  Fort Worth Certified M/WBE Company means a minority - or woman owned business that (i) has received certification as either a minority business enterprise (MBE), a woman business enterprise (WBE) or a disadvantaged business enterprise (DBE) by the North Central Texas Regional Certification Agency (NCTRCA); and (ii) has a principal business office located within the corporate limits of the City.

The Company must provide the following minimum number of full-time jobs on the Project Site in each of the following years (as measured by Company's employment data as of December 31 of each such year):

• at least 442 full-time jobs in 2020 and 2021
• at least 532 full-time jobs in 2022 and 2023
• at least 622 full-time jobs in 2024



The Company will fill a minimum of 30 percent of all Full Time Jobs (regardless of the total number of full-time jobs provided on the Project Site) with Fort Worth residents and 15 percent of all Full Time Jobs (regardless of the total number of full-time jobs provided on the Project Site) with Fort Worth Central City Residents (with the understanding that employment of Fort Worth Central City Residents will also count as employment of Fort Worth City Residents).

The Company will spend the greater of 35 percent or $1,225,000.00 in annual discretionary service and supply expenses with Fort Worth companies, and the greater of 15 percent or $525,000.00 in annual discretionary service and supply expenses with companies that are Fort Worth Certified Minority/Women Owned Business Enterprise companies.

In return, the City will grant a 50 percent tax abatement on the incremental increase in value of real and personal property improvements for a period of five 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.

Except for cases of default, failure to meet a particular commitment will result in a reduction to the grant amount that the Developer is entitled to receive in a given year based on the value assigned to the commitment in accordance with the following chart:

Property Owner or Company CommitmentPotential Grant

Real and Personal Property Investment (Base Commitment)

10 percent

25 percent Construction Spending with FW Contractors

5 percent

15 percent Construction Spending with FW Certified M/WBE Contractors

5 percent

Overall Employment

5 percent

30 percent Full Time Employees are Fort Worth Residents

7.5 percent

15 percent Full Time Employees are Fort Worth Central City Residents

7.5 percent

35 percent annual with FW Companies for Services and Supplies

5 percent

15 percent annual with FW M/WBE Companies for Services and Supplies

5 percent

TOTAL

50 percent


This project is located in COUNCIL DISTRICT 7.



 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that the estimated value of the abatement over the 5-year period is $2,145,463.00.






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FROM
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Submitted for City Manager's Office by:
Jay Chapa (5804)
Originating Department Head:
Robert Sturns (2663)
Additional Information Contact:
Brenda Hicks-Sorensen (8178700154)

 
 
ATTACHMENTS
  180130_RaiderExpress_RZ96_Map.pdf
  Form 1295 Certificate 100311532 - Signed.pdf