The Fort Worth City Council on Dec. 5 approved a revised tax abatement agreement between American Airlines and Tarrant County for construction of a new corporate headquarters at the Dallas Fort Worth International Airport.
On Oct. 29, 2015, the DFW Airport approved execution of an amendment and extension of the American Airlines Special Facilities Agreement under which American would lease property at DFW for the project. On Nov. 10 of that year, the council approved a one-year tax abatement agreement and a 14-year economic development program agreement between the city and American.
Last June 6, the council approved expansion of the reinvestment zone to accommodate construction of the headquarters facility on an additional parcel of land. It also voted to amend the tax abatement agreement.
In June the city also agreed to abate a maximum of 75 to 90 percent of the incremental real and personal property from the site for one year, provided the company spend at least $200 million in real property improvements on the reinvestment zone by Dec. 31, 2019.
Because American now wants to expand the original zone to allow additional buildings, a portion of it would have to be built to the north of the existing reinvestment zone on land controlled by the company.
“This is mostly a procedural issue. The county has been working with American to revise its tax abatement agreement to take in the additional acreage added by Reinvestment Zone No. 91A,” Economic Development Director Robert Sturns said. “This new resolution will allow the county is to execute a fully new tax abatement agreement encompassing the revised zone that both Dallas and Fort Worth will need to execute in their capacities as DFW owners.”
As part of the project American will also spend more than $1.65 million on construction of deceleration lanes, signaling, and sidewalk and street light improvements. American has agreed to pay for all necessary rights-of-way and easements across the property it controls.
Also in June, the council approved a recommendation by the economic development department to help with the cost of the road improvements through an enhanced community facilities agreement in the amount of $950,000.