Bell Helicopter Textron

Jay Chapa Housing and Economic Development Department

November 1, 2011

Company Background • Founded in 1935 • Headquartered in Fort Worth, Texas • Additional plants in Amarillo, TX and Mirabel,

Canada • Maintain key logistics supply and service

centers in Europe, Canada, and Singapore as well as in the USA

Company Products

Project

• Expansion/consolidation of current Fort Worth facilities at the main headquarters operation located south of Hwy 10 and north of Trinity Blvd. and at Centreport distribution facility

• Project consist of a new headquarters facility, employee center and training academy at the headquarters site

• This project will be constructed in four phases • Effort is to improve efficiencies that will allow

Bell to stay competitive in the long term

Current Locations In Tarrant County

Facility to Consolidate

Facility to Remain in Current Location

Bell Helicopter Facility

Plant 8A (Fort Worth)

Training Academy / Customer Service Center, Bldg. 63 /

Military Programs Center (MPC)

Plant 8B (Roanoke)

Bldg. 55 / Logistics Center, Repair and Overhaul Center (ROC)

Plant 1 & 2 (Fort Worth)

HQ, Rotor Systems Center (RSC) , Advanced Composite

Center (ACC)

Plant 3 (Fort Worth)

Central Distribution Center (CDC)

Plant 5 (Grand Prairie)

Drive Systems Center (DSC)

Plant 6 (Arlington)

XworX

Plant J (Fort Worth)

Warehouse

Development Commitments • Investment

– Minimum investment of $235 M by December 31, 2015 – Fort Worth Construction – Minimum of 30% – Fort Worth M/WBE Construction – Minimum of 25%

• Jobs – Retain 4,500 FTE from Dec. 31, 2014 through Dec. 31, 2020 – 4,100 FTE by December 31, 2022 – 3,900 FTE by December 31, 2028 – Maintain 20% of FTE with Fort Worth residents – Maintain 5% of FTE with Central City residents

• Supply & Service – Fort Worth contractors – minimum of $1,000,000 – Fort Worth MWBE contractors – minimum of $500,000

Development Commitments by Phase • Phase I-- $5 M

– Construction of a new employee center by December 31, 2012 • Phase II -- $5 M

– Relocation, consolidation and renovation for the repair and overhaul activities as well as relocation of inventory to the central distribution center at CentrePort by December 31, 2013

– If the additional new investment is not met the program grants will be reduced by 15% for the remainder of the agreement

• Phase III --$50 M – Construction of a new main headquarters and administration building

and associated infrastructure at Hwy 10 and Bell Spur by December 31, 2014

– If the additional new investment is not met the program grants will be reduced to a maximum of 50% for the remainder of the agreement

• Phase IV --$15 M – Construction of a new training academy at Norwood Drive and Trinity

Blvd by December 31, 2015 – If the additional new investment is not met the program grants will be

reduced by 5% for the remainder of the agreement • $160 million in personal property to be invested by 12-31-2015

8

Existing Plant 1 & 2 Configuration

9

Proposed Plant 1 & 2 Site Plan

10

• Consolidated campus • Center for administration, engineering,

human resources, program offices

Traditional design

Intra-building connectivity

Administration Building

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• Consolidated campus • Utilizes existing facility resources for training, ROC, and warehousing

World class integrated training facility

Flight training and airfields in a location less affected by metroplex growth

Training Academy

12

Proposed Plant 1 & 2 Site Plan

Training Academy Improvements

Recommended Economic Development Incentive

• City enters into a 1-year tax abatement and 19-year, Chapter 380 Economic Development Program agreement to abate/refund up to 80% on incremental Ad-valorem taxes created within Fort Worth above current Bell taxes base

• Waiver of development fees associated with the project

• Enter in to an Enhanced Community Facilities Agreement (ECFA) of up to $1.0 million for the road improvements on South Norwood Street

Proposed Incentive Terms

• Failure to meet investment deadline for Phase 1 results in default and termination of agreement and other phases have reduction of abatement/grant

• Failure to meet a commitment will result in a reduction of the corresponding component of the grant for that year proportional to the amount the commitment was not met

Company Commitment Potential

Abatement

Real and Personal Property Investment 30%

Fort Worth Contractors 10%

Fort Worth M/WBE Contractors 5%

Overall Employment 5%

Employment of Fort Worth Residents 10%

Employment of Fort Worth Central City Residents 10%

Utilization of Fort Worth Companies for Services and Supplies 5%

Utilization of Fort Worth M/WBE Companies for Supplies and Services 5%

TOTAL 80%

Development Summary

• Private Investment – Minimum $235 M in real and personal property

• Employment

– 4,500 by December 31, 2020

• Public Investment for abatement and 380 grant capped at 10:1 ratio private investment to public investment – Est. Benefit $13,500,000 – Est. Ratio 16:1 – Norwood Infrastructure ECFA: $1,000,000

• CFW Tax Revenue (20 yr projection)

– Est. New RP & BPP $ 3,375,000 – Existing RP & BPP $43,325,000 – Total Revenue $46,690,000

Questions / Comments