proposed economic development program a greement with fw...

Proposed Economic Development Program Agreement with FW Museum District Resort Partners, LLCMichael HennigEconomic Development DepartmentMarch 19, 2019

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Site Located in Museum Place north of Kimbell Art Museumat NW Corner of Camp Bowie and Van Cliburn Way

• FW Museum District Resort Partners, LLC

• $70 Million Capital Investment

• 171 Room Hotel (minimum 4-star rating)

• 9,000 Sq. Ft. Meeting Space, plus Art Lobby

• 4,500 Sq. Ft. Full-Service Restaurant

• Min. 140 Full-Time Equivalent Employees

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Proposed Project Overview

Strategic Impact: Initiative 3.1.10.3. Encourage the development of new boutique hotels in the city’s urban core to enhance the appeal of downtown and surrounding districts.

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• Invest a minimum of $70 million by 12/31/2021• Min. $56 million Hard Costs• Min. 15% Hard and Soft Costs to Fort Worth M/WBE Contractors

• Develop and operate a minimum 171-room hotel• 9,000 SF Meeting Space, 4,500 SF Restaurant• Minimum 140 FTEs• Project is being designed to meet Supplemental Design Standards to ensure

compatibility with surrounding properties• Developer will enter into Room Block Agreement

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Developer Commitments

• 12-year Chapter 380 EDPA

• 80% of City’s 7% Hotel Occupancy Tax

• Total value not to exceed $10 million (11:1 Private-to-Public Ratio NPV)

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Proposed Chapter 380 Agreement

Developer CommitmentPotential

Grant$70 M Real Property Investment (Base Commitment) 60%15% Fort Worth M/WBE Contractors 10%140 Overall Employment 10%TOTAL 80%

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Development Summary• Private Investment

• Minimum $70.0 Million in Real property• Minimum $56.0 Million in Hard Costs

• Employment• 140 new FTEs by June 30, 2022

• 12 year incentive proposal • 80% Ch. 380 on City 7% HOT

• Payback• 2 years

• Private/Public Ratio EDPA(based on max. estimate / cap)

• Est. Benefit (12 yrs.) $9,231,789 • NPV Benefit (12 yrs.) $6,289,162 • City Participation 8.9 % • Est. Ratio 11:1

• CFW Tax Revenue (10 yr. projection)• Net New Property Tax $ 2,033,145• Net City HOT $ 5,605,015• Net State HOT $ 9,891,203• City 1% Sales Tax $ 925,926• CCPD $ 462,963• Transportation District $ 462,963

• Enter into an Economic Development Program Agreement with FW Museum District Resort Partners, LLC

• M&C for City Council consideration to approve EDPA Agreement on March 26th

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Recommendation/Next Steps

Thank you