During its Tuesday meeting, the Fort Worth City Council approved an amendment to an economic development agreement with Parker-Hannifin Corporation.
The company received an extension on its deadline for consolidation of its existing business operation into a 242,000 square-foot expansion at 4701 Mercantile Dr. to meet increasing needs. The new deadline is Dec. 31, 2021. The project involves the renovation of 150,000 square feet of former call center into manufacturing space and includes the construction of 92,400 square feet of office addition.
The original agreement was issued on Oct. 25, 2016.
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, Parker-Hannifin had requested a revised completion deadline of March 31 (from the original date of Dec. 31, 2018), which was granted by council in early December.
Now, however, the company said the expansion project is moving slower than anticipated due to strong customer demand. They now expect the renovations will be completed later this year, with construction of the office facility to begin shortly after with an estimated completion in 2021.
The adjustment of the completion deadline also extends the deadline for having new taxable tangible personal property valued at least $3.8 million to Jan. 1, 2022.
Under the original 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 the completion deadline. In return, the city will pay the company 10 annual economic development program grants in an amount not to exceed 60 percent of incremental real and personal property taxes.
The company will also spend, or cause to be spent, the greater of 20 percent or $4.34 million of all hard construction costs with Fort Worth companies, and will spend or cause to be spent, the greater of 15 percent or $3.255 million of all hard construction costs with companies that are Fort Worth Certified Minority/Women Owned Business Enterprise (MWBE).
The company will fill a minimum of 40 percent of all full-time employees (FTE) 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 $1.4 million in annual discretionary service and supply expenses with Fort Worth companies, and the greater of 20 percent or $800,000 in annual discretionary service and supply expenses with companies that are Fort Worth Certified MWBE.
Parker-Hannifin is a Fortune 250 global leader in motion and control technologies.
City officials said that while the delayed investment delays the impact for the City of Fort Worth, in general, the company will end up paying taxes on the renovated manufacturing space without getting any of their incentive payment until the entire project is completed. At that time, the city will also be benefiting from the entire