The Fort Worth Local Development Corporation (LDC) was an active party to the development of the mixed use development located at 250 West Lancaster Avenue, Fort Worth, Texas (250 Lancaster) with the purpose of promoting revitalization of the area and benefiting the citizens of Fort Worth by creating affordable housing, retail, jobs and commercial opportunities in an area in need of revitalization.
On January 23, 2018, the Board of Trustees of the LDC approved a resolution to authorize the sale of 250 Lancaster by its owner, Lancaster Corridor Redevelopment, LLC, (LLC) of which LDC is the sole member, to Beachwold Partners, LP, and on August 9, 2018, the sale of 250 Lancaster to Beachwold Partners, LP's sole asset entity, BW Lancaster LLC, was closed and the property conveyed.
On August 21, 2018, the LDC adopted a resolution authorizing the transfer of the net proceeds from the sale, less the amount for payment of capital gains tax, from the Lancaster Corridor Redevelopment, LLC to the City of Fort Worth to fund (i) a new Economic Development Specialist position focused on research, request for proposals and incentive analysis, and urban redevelopment; (ii) marketing and research resources for efforts such as, but not limited to, message development, target industry recruitment, trade shows, and international opportunities; and (iii) incentives to compete with other communities to attract new business and economic development to the City or to retain existing business via a new Economic Development Incentive Fund ((i)-(iii) collectively, "Certain Economic Development Activities").
The financial breakdown for each activity is as follows:
Economic Development Specialist ~ $425,000.00 (5 Years)
Marketing and Research Initiatives ~ $500,000.00 (5 Years)
Economic Development Incentive Fund $2,975,896.00
The LDC chose to transfer the funds to the City of Fort Worth so that the City Council will have oversight of the Economic Development Incentive Fund, including consideration of any potential grants or loans. The additional funds provide operational support for the Economic Development Department as it implements the Economic Development Strategic Plan; however, costs associated with these additional activities may be available from the LDC on an on-going basis and included in the City's annual budget process as a reimbursement.
On November 13, 2018 (M&C G-19419), the Fort Worth City Council accepted a total of $4,575,896.00 from the LLC, with $2,000,000 as a repayment for the Lancaster Avenue project from the LLC on behalf of the LDC and $2,575,896.00 as an initial donation, which donation reflected a reduction of $400,000.00 in the original estimate due to revised capital gains tax estimates. The capital gains tax has since been paid and it was $563,378.00 less than the prior estimate. The additional $400,000.00 transfer completes the original planned funding of the Economic Development Incentive Fund, which was approved by City Council on January 29, 2019 (Resolution No. 5039-01-2019).
A Form 1295 is not required for this contract because: This M&C does not request approval of a contract with a business entity. |
