Economic Development Agreements with Radio Shack City of Fort Worth Housing and Economic Development Department May 18, 2010.

Slides:



Advertisements
Similar presentations
City of North Liberty North Liberty Area Development Corporation University of Iowa Community Credit Union Economic Development Partnership Project October.
Advertisements

Alternatives to Financing Lake Development Infrastructure in Mississippi Public Improvement Districts and Tax Increment Financing February 4, 2009 Lucien.
March  The last library millage proposal took place 11/8/94.  Per Michigan state law, a district library’s operating tax may not exceed 4 mills.
TOWN OF ORONO FY2014 Draft Municipal Budget Presentation June 10, 2013.
RSMo: What’s Changed & What Hasn’t. What’s Changed & What Hasn’t. Writing the report. Writing the report.
Tax Increment Financing Town Center Project Midwest City, OK.
Proposed Amendments for Palomar Airport Center dba Premier Jet Abbreviated Presentation Palomar Airport Advisory Committee June 15, 2006.
Missouri Quality Jobs Program Sections
Washington County Economic Development Council Utah Alliance for Economic Development RICHFIELD MEETING Friday, 13 July 2012.
1 Understanding Revenue Allocation Districts (“RADs”) Prepared for the Jersey City Redevelopment Agency Presented by: Glenn F. Scotland, Esq. & Jennifer.
Taxes and TIF’s A School District Perspective. What is the Tax Cap? What is the Tax Cap? (PTELL) The tax cap limits the extension of a taxing body’s budget.
City Council Meeting Lisa A. Kuss City Administrator May 10, 2011.
Document 51 1 Lansdowne Partnership Plan Business Model Document 5.
Proposed Amendments for Palomar Airport Center dba Premier Jet Special Workshop/Meeting Palomar Airport Advisory Committee June 14, 2006.
Michigan Association of Counties Traverse City, September 19 th, 2011.
Interlocal Agreement – Transportation Impact Fees City Council Workshop July 9, 2013.
Municipal Tax Increment Financing
1 CEDBR Fiscal Benefit – Cost Model Pattie Bradley, Senior Research Economist Center for Economic Development and Business Research July 2013.
ADDITIONAL HOMESTEAD EXEMPTION FOR LOW INCOME SENIORS October 22, 2013.
Public Sector Incentives The Missing Piece of the Retail Development Puzzle? Jim M. Page, CCE, IOM President and CEO Chamber of Commerce of West Alabama.
TAX INCREMENT FINANCING REDEVELOPMENT PLAN & PROJECT The Pekin City Council has been considering implementing a commercial and industrial TIF district.
Commonwealth Housing Task Force Draft – For Final Review Confidential – Not for Distribution Zoning Overlay Districts & State Financing Recommendations.
Cleveland Municipal School District Fiscal Year 2009 Budget Overview.
Refinancing the District’s Outstanding Special Tax Bonds October 2, 2014.
TIF and Beyond: City Economic Development Projects Patricia Martin, Ahlers & Cooney, P. C. R. Mark Cory, Ahlers & Cooney, P. C. 1.
City Land Based Customized Incentive Proposal City Centrum Economic Development Office City of Cape Coral, Florida March 21, 2011.
3TB Project Review Tax Increment Financing (“TIF”) Overview January 25, 2013.
FY Budget Briefing General Fund Operating Budget and Fees & Charges.
Robert E. Josten Dorsey & Whitney LLP 801 Grand Avenue, Suite 4100 Des Moines, Iowa WHAT IS TAX INCREMENT FINANCING? Questions and Answers.
Revenue-Based Development Incentives Property Tax Revenues Bob Rychlicki Kane, McKenna and Associates, Inc.
Simplifying the Dissolution Process California Department of Finance February 2015.
Regional Recycling Solutions, LLC.   County purchased 103 acres in July of 1993 from Greene Land Company  Elchin Inc purchases 40 acres in April 1998.
Interlocal Agreement – Transportation Impact Fees City Council Meeting July 16, 2013.
Governor’s January Budget “Best Case Scenario” Budget Package Entire package assumes voters will approve a $12 billion tax package (measure on June ballot)
Other RLF Possibilities Local Approaches. Local Solutions to Establish RLFs  Direct Contributions Kossuth County—initial funding direct from the Board.
FISCAL YEAR 2016 BUDGET City of Lockport, Illinois.
Proposed TIF-Funded Road Improvements: TIF 7 North Tarrant Parkway Presented by Jay Chapa, Assistant City Manager April 12, 2016.
1 Personal Property Tax Reform Update for Community Colleges Michigan Community College Business Officers Association Spring 2015 Workshop March 5, 2015.
Proposed Hotel and Convention Center City Council Meeting December 10, 2013.
April 26, 2016 PRESENTER: Doug Green, Vice President.
Discussion of Crime Control Prevention District Telecommunications Services Sales Tax & Legislative Changes Related to Local Sales & Use Tax on Residential.
But-For Determination Report & Cost-Benefit Analysis October 14, 2015 Tom Denaway – Assistant Vice President Springsted Incorporated 9229 Ward Parkway,
1 Economic Development Program Agreement Sundance Square Central Plaza Robert Sturns Housing and Economic Development Department April 10, 2012.
Village of Tarrytown Tentative Budget Fiscal Year 2012 – 2013 June 1, 2012 through May 31, 2013.
TIF 9 (Trinity River Vision) Expansion and Updated Project and Financing Plans Jay Chapa, Director Housing and Economic Development.
Designs for Health (Project Protein) Economic Development Incentive Agreement.
Financing Options I. Bond Issues 1. General Obligation 2. Leasehold Revenue 3. Certificates of Participation (COPs) II. State DNR SRF/Grant Program Revenue.
Babc.com ALABAMA I DISTRICT OF COLUMBIA I MISSISSIPPI I NORTH CAROLINA I TENNESSEE Overview of Industrial Development Board TIFs The City of Spring Hill.
Request for Enterprise Project Designation from EFW Inc. Presented to the Housing & Economic Development Committee May 5, 2009.
1 Presented to Housing and Economic Development Committee February 2, 2010 Timberland/Beach Roadway Project.
1 TIF 9 (Trinity River Vision) Expanded and Updated Project and Financing Plans December 8, 2009 Presented to the City Council Jay Chapa Housing & Economic.
What is Tax Increment Financing?
WHAT IS TAX INCREMENT FINANCING? Questions and Answers About TIF
Community Dialogue about The NuCLEus Project
The Future of Redevelopment in Folsom:
CITY SERVICES INSTITUTE
Tax Foreclosed Property
Princeton City School District Finance Report
Presented to City Council
Tax Increment Financing (TIF) Update
Allens Inc Incentives Agreement

Tax Abatement Bonds Presentation City of Marshall, Minnesota
City of Richmond, California FY Draft Budget
State Road 100 CRA Redevelopment Proposal Administrative Services &
Presented by: Deborah Early Icenogle Seaver Pogue, P.C.
Implementing and Understanding Tax Increment Financing (TIF) Districts Prepared for the Village of Alsip May, 2017.
Superintendent’s Proposed Budget
Freeport’s Active TIF Districts

Presentation transcript:

Economic Development Agreements with Radio Shack City of Fort Worth Housing and Economic Development Department May 18, 2010

2 Overview of Presentation Background Radio Shack Economic Impacts Proposal Summary City Agreement Amendments Point of Sale Agreement TIF Amendments Recommendations/Next Steps

3 Background In 2002 Radio Shack began search for a new headquarters location The City entered into an economic development agreement in 2004 making Radio Shack eligible to receive up to 100% of the Real & Personal Property Tax Increment from the new Downtown Campus location The City created TIF 6 (Riverfront) as part of the overall incentive agreement to allow the County, TRWD & TCC to participate on public infrastructure associated with the development

TIF 6 (Riverfront) Boundary

Background Requirements under original economic development agreement: –Employment 1,000 Fort Worth Residents 250 Central City Residents –Fort Worth Based Businesses $1.2M annually –MWBE Commitments $200,000 annually 30 year term Estimated maximum incentive approximately $60 million TIF reimbursement of $9.8 mil. + 6% interest 6

7 Economic Development Agreement Incentive Payments to Date Payments to date total: $2,877,282* –Payment #1 (11/01/06)$ 900,635 –Payment #2 (5/23/07)$ 1,284,443 –Payment #3 (5/30/08)$ 692,204 * Payments were suspended in 2009 awaiting outcome of TAD valuation associated with TCC purchase

8 Current Situation Radio Shack began search for new headquarters location in Fall 2009 Multiple cities part of site selection process Radio Shack leases approximately 40% of TCC Downtown Campus - lease ends June 2011 Radio Shack would like to extend the lease for 5-years through June 2016 with opportunity to recapture costs associated with the TIF public improvements

Radio Shack Profile Total Employees 1,139 Fort Worth Residents 434 Fort Worth Central City Residents 138 Value of Business Personal Property$19,900,530 Value of Real Property$81,302,624

10 Economic Impact Direct Jobs 1,139* Direct & Indirect Jobs 3,075 Radio Shack HQ Payroll$ 94,000,000 Economic Impact of HQ Payroll$253,800,000 Direct Amount to FW MWBE$ 59,257* Direct Amount to FW Vendors$ 7,401,426* * Based on 2009 economic development agreement audit

11 Corporate Retention Proposal Summary Radio Shack enters into lease extension with TCC to keep headquarters at current location through 2016 City and TIF Board amend agreements to reflect Radio Shack’s current profile City of Fort Worth enters into a new Point of Sale (POS) agreement with Radio Shack for sales tax currently not cited in Fort Worth Total of incentives capped at outstanding value of public improvements associated with radio Shack Headquarter campus ($10.76 million) due from TIF City will nominate Radio Shack for Enterprise Project Designation by the State

12 Proposed Economic Development Agreement Amendment OriginalProposed Fort Worth Residents 1, Central City Residents FW Businesses $1.2 mil. $1.2 mil. MWBE $200,000$100,000 Agreement ends at the earlier date of either June 2016 or when total payout to Radio Shack from all sources equals $10.76 million

13 Economic Development Agreement Incentive Projections Projected taxes Personal Property: –Taxable Value$19,900,530 –Annual Taxes $ 170,150 Real Property: –Taxable Value$81,302,624 –Annual Taxes $ 695,137 EstimatedTotal Annual Tax Generated$ 865,287 Est. Incentive payments over lease term $ 5,938,541* * Includes 2009/2010 payments not made - awaiting final TAD valuation associated with TCC purchase

14 Point of Sale Agreement Similar agreement with Acme Brick Consolidation of sales tax purchases by RadioShack based on point of purchase and of eligible retail sales Agreement would allow for 100% of the 1% sales tax currently not collected in Fort Worth (new incremental taxes) to be part of the retention package City would retain the.5% sales taxes for CCPD and The T would collect.5% associated with transit Term of POS agreement would be 15 years with options to extend by mutual consent Once $10.76 million on infrastructure is paid to Radio Shack, POS will be split 50/50 with City

15 Point of Sale Projections Estimated RadioShack cites $15 Million in new sales annually within the City of Fort Worth Example: $15,000,000Taxable Sales Cited X 1%Fort Worth Sales Tax Rate $ 150,000POS Grant from City Est. Sales Tax during lease term: Radio Shack$780,606 CCPD$390,303 The T$390,303

16 Proposed TIF Amendment No City Council action required TIF Board approves amendment TIF agreement would stay in place at current levels 100% Participation: –Tarrant County –Tarrant Regional Water District –Tarrant County Hospital District 80% Participation: –Tarrant County College Repayment provision added if Radio Shack does not meet lease terms All TIF obligations end when $10.76 million reached from all sources Est. TIF Payments over lease term $4,047,367

17 Estimated Revenue Forecast

18 Benefits of Proposal Ensures Radio Shack Headquarters remains in Fort Worth Retains over 1100 jobs and $94 million payroll Allows additional time (5-year lease) to find permanent location locally for headquarters New revenue stream developed for CCPD and The T from POS agreement

19 Recommendation/Next Steps Staff recommends that the City Council approve, as proposed: –amending the existing Economic Development Agreement; and –approve new Point of Sales Agreement Next Steps –City Council considers M&Cs on June 8 –TIF 6 (Riverfront) Board considers TIF amendment on June 9