FORT WORTH -- The City Council unanimously approved a $2.2 million, 12-year property tax abatement Tuesday for a Canadian producer of pipeline systems that promised to open a plant in southeast Fort Worth that would employ as many as 350 people.
The vote was 9-0.Flexpipe Systems, based in Calgary, Alberta, with U.S. headquarters in Houston, would end up paying a projected $2.85 million in city property tax over the 12 years. The abatement would be worth up to 60 percent of the company's projected taxes on the real and business property investment it makes in Fort Worth.The company would lease quarters this year in the Carter Industrial Park at Interstate 20 and Interstate 35W, and take possession next year.The city says most of the company's clients are in the southwest United States, and a plant here would cut transportation costs.The maximum abatement is based on the company achieving overall employment levels; employing Fort Worth and central city residents; using Fort Worth suppliers and contractors and Fort Worth minority and women-owned ones; and meeting investment targets.Sixty percent of the maximum abatement is tied to the employment targets.Under the abatement agreement, Flexpipe agreed to invest $44.75 million in three stages: $2.25 million in improvements and $10 million in business property by Dec. 31, 2014; $22.5 million more in business property by the end of 2017; and $10 million in business property by the end of 2022.Failure to meet the first-phase targets could result in default on the deal.Flexpipe agreed to employ up to 100 full-time equivalent employees by Dec. 31, 2014, continuing through 2017; up to 250 people from that point through 2022; and up to 350 people from then through 2025.The company agreed to fill at least 40 percent of full-time equivalents with Fort Worth residents and 25 percent with residents who live inside Loop 820.Flexpipe also agreed to use Fort Worth contractors for at least $1.125 million of construction costs and at least $562,500 with local minority and women-owned contractors.Legal fees for pension suitThe City Council also approved 9-0 to pay $100,000 in legal fees to the Kelly, Hart & Hallman law firm to represent the city in a lawsuit against the Fort Worth Employees' Retirement Fund.The city sued the fund two weeks ago, asking a judge to declare changes to the city's employee pension plan legal under the Texas Constitution. The suit also asks the judge to declare a recent Fort Worth Police Officers Association vote on the issue invalid, arguing that the city's general and fire employees also should have been able to vote. Police officers overwhelmingly voted to increase their pension contributions and leave more money in the retirement fund in exchange for retaining their benefits formula.The City Council rejected that proposal and approved City Manager Tom Higgins' proposal to pare pension benefits for future service.Scott Nishimura,817-390-7808Twitter: @JScottNishimuraHave more to add? News tip? Tell us
