Allens Inc Incentives Agreement Presented by Robert Sturns, Economic Development Manager Housing & Economic Development Department May 4, 2010

Allens Inc Founded in 1926, remains a family-owned and operated business and is the largest privately owned vegetable company in the USA Allen’s produces a full line of canned and frozen vegetables and beans Brands include Allens; Butterfield, East Texas Fair, Freshlike, Popeye, and Trappey's Primary customers are US companies in the retail food, foodservice, and food-manufacturing sectors Annual Sales: $419.3M (2008) Employees: 2000

Allens Inc Commitments Invest $4.7 million in real and business personal property investment by December 31, 2010 Minimum of 20% of real property investment with Fort Worth MWBE firms Commitment to hiring Fort Worth and Fort Worth MWBE firms Greater of 50% or $250,000 of discretionary service & supply expenditures will be done by Fort Worth MWBE firms Commitment to hiring Fort Worth and Fort Worth Central City residents Creation of a minimum of 110 new jobs Minimum 60% of new FTEs are Fort Worth Residents Minimum 25% of new FTE’s are Fort Worth Central City residents Invest a minimum of $20,000 in exterior facade improvements/landscaping

Proposed Incentive Terms Ten year tax abatement on up to 60% of incremental new value based on real and business personal property investment Failure to meet investment deadlines results in default Failure to meet employment thresholds results in loss of the percentage abatement for that year Company Commitment Potential Maximum Abatement Real & Business Personal Property Investment 25% FW MWBE Contracting 5% Exterior Improvements 10% Overall Employment Employment of Fort Worth Residents Employment of FW Central City Residents TOTAL 60%

Tax Projections Maximum Abatement is 60% Total Taxes Taxes Abated Taxes Paid Real Property $112,344 $ 67,406 $ 44,938 Business Personal Property* $175,660 $105,396 $ 70,264 Total $288,004 $172,802 $115,202 PV in 10 years (6%) $217,629 $130,578 $ 87,052 *Assumes 10 year useful life Maintain existing RP revenue of $23,000 annually

Development Summary Private Investment Employment $4.7 million by December 31, 2010 Employment Minimum 110 FTE Maximum Public Investment $130,578 PV Ratio (Private:Max. Public) 36:1 Percent City Participation 2.8% PV of Added Property Tax Revenue $87,052

Next Steps M&C and Resolution to hold public hearing and authorizing staff to execute contract (5/18/2010)

Allens Inc Incentives Agreement Questions/Comments/Conclusion