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

4. 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

5. 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

6. 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%

7. 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

8. 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

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

10. Allens Inc Incentives Agreement
Questions/Comments/Conclusion