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HomeMy WebLinkAboutResolution 4632-05-2016 A Resolution NO. 4632-05-2016 NOMINATING THE WILLIAMS ON-DICKIE MANUFACTURING COMPANY CAMPUS AT 509 W. VICKERY BOULEVARD, 9400 BLUE MOUND ROAD, 319 LIPSCOMB STREET, 121 JENNINGS AVENUE, AND 125 S. JENNINGS AVENUE AS AN ENTERPRISE PROJECT PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, OF THE TEXAS GOVERNMENT CODE WHEREAS, on November 4, 2003 the City Council of the City of Fort Worth (the "City") previously adopted Ordinance No. 15733 electing to participate in the Texas Enterprise Zone Program; and WHEREAS, on May 12, 2015 the City Council of the City adopted Ordinance No. 21743-05-2015 amending Ordinance No. 15733 by adding additional potential local incentives that could be made available to qualified businesses under the Texas Enterprise Zone Program; and the local incentives available pursuant to this Resolution are the same on this date as were outlined in Ordinance No. 21743-05-2015; and WHEREAS, the Office of the Governor, Economic Development and Tourism (EDC), through the Economic Development Bank ("Bank"), will consider Williamson-Dickie Manufacturing Company as an enterprise project pursuant to a nomination and an application made by the City; and WHEREAS, the City desires to pursue the creation of the proper economic and social environment in order to induce the investment of private resources in productive business enterprises located in the City and to provide employment to residents of enterprise zones and to other economically disadvantaged individuals; and WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas Government Code (the "Act"), Williamson-Dickie Manufacturing Company has applied to the City for designation as an enterprise project; and WHEREAS, the City finds Williamson-Dickie Manufacturing Company meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds: 1. Williamson-Dickie Manufacturing Company is a "qualified business" under Section 2303.402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site within the governing body's jurisdiction located within an enterprise zone, and at least twenty-five percent (25%) of the business's new or retained employees will be residents of an enterprise zone, economically disadvantaged individuals or veterans;and 2. There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities within the area; and 3. The designation of Will iamson-Dickie Manufacturing Company as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area; and oRTwo r WHEREAS,the City finds that Williamson-Dickie Manufacturing Company meets the criteria for tax relief and other incentives adopted by the City and nominates Williamson-Dickie Manufacturing Company for enterprise project status on the grounds that it is located at the qualified business site and will create a higher level of employment, economic activity and stability in the area; and WHEREAS,the City finds that it is in the best interest of the City to nominate Williamson-Dickie Manufacturing Company as an enterprise project pursuant to the Act; NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: 1. THAT the findings of the City and its actions approving this Resolution taken at the Council meeting are hereby approved and adopted. 2. THAT Williamson-Dickie Manufacturing Company is a "qualified business," as defined in Section 2303.402 of the Act, and meets the criteria for designation as an enterprise project, as set forth in Section 2303, Subchapter F of the Act. 3. THAT the enterprise project shall take effect on the date of designation of the enterprise project by the Bank and terminate five(5)years after the date of designation. Adopted this 24`h day of Mav' 2016. 4o�r®Rp� a O�.°00000.0k- a p � ATT T: 0* 0 zd 0 ° By: ,c.G� P�� 00 0000 "ICf Mary J.Kayser,City S r ary a�4 aaao a4ao ORT WO T City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/24/2016 - Resolution No. 4632-05-2016 DATE: Tuesday, May 24, 2016 REFERENCE NO.: **G-18741 LOG NAME: 17ED WILLIAMDICKIEEZ SUBJECT: Adopt Resolution Nominating the Williamson-Dickie Manufacturing Company Campus Located at 509 W. Vickery Boulevard, 9400 Blue Mound Road, 319 Lipscomb Street, 121 Jennings Avenue, and 125 South Jennings Avenue as an Enterprise Project, Pursuant to the Texas Enterprise Zone Act, Chapter 2303 of the Texas Government Code (COUNCIL DISTRICT 9) RECOMMENDATION: It is recommended that the City Council adopt the attached resolution nominating the Williamson-Dickie Manufacturing Company Campus as an Enterprise Project, pursuant to Chapter 2303 of the Texas Government Code. DISCUSSION: The Williamson-Dickie Manufacturing Company (Williamson-Dickie) project involves capital investments over the next five years at its Fort Worth, Texas Campus, home to Williamson-Dickie's North American distribution center, warehouse, and corporate headquarters, which includes the management teams overseeing global manufacturing, distribution and retails sales for both traditional and E-commerce. This $15 million investment will include $5 million invested in systems and computer equipment, and $10 million invested in conveyer and other distribution equipment. The investment will result in the creation of at least 10 new jobs, and retention of 707 jobs. Williamson-Dickie will make these capital investments and improvements between January 2016 and June 2021. The City Council previously adopted Ordinance No. 15733, under which the City has elected to participate in the Texas Enterprise Zone Program. The City Council subsequently amended Ordinance No. 15733 on May 12, 2015 to update the list of potential local incentives that may be provided to a project on a case- by-case basis (Ordinance No. 21743-05-2015, M&C G-18473). The Office of the Governor Economic Development and Tourism through the Economic Development Bank will consider the Williamson-Dickie Campus as an Enterprise Project, pursuant to a nomination and an application made by the City. The Texas Enterprise Zone Program allows the City to pursue its goal of inducing the investment of private resources in productive business enterprises and provide employment to residents of enterprise zones and other economically disadvantaged individuals. The attached Resolution establishes the City Council's finding that the Williamson-Dickie Campus meets the criteria for designation as an Enterprise Project, under Chapter 2303, Subchapter F of the Act on the following grounds: 1. Williamson-Dickie is a "qualified business," under Section 2303.402 of the Act, since it will be engaged in the active conduct of a trade or business at a qualified business site within the governing body' s jurisdiction located within an enterprise zone and at least 25 percent of the business' new or retained employees will be residents of an enterprise zone, economically disadvantaged individuals or veterans; Logname: 17ED WILLIAMDICKIEEZ Pagel of 2 2. There has been, and will continue to be, a high level of cooperation between public, private and neighborhood entities within the area; and 3. The designation of the Williamson-Dickie Campus as an Enterprise Project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area. If awarded an Enterprise Project designation, Williamson-Dickie will be eligible to apply for state sales and use tax refunds on qualified expenditures. Based on its $15 million capital investment, Williamson-Dickie will retain a minimum of 490 jobs and create 10 new jobs, for a total of 500 jobs. As part of the anticipated investment, Williamson-Dickie could be eligible for a maximum refund of$2,500.00 per job, distributed over the five year designation period. The maximum potential refund William-Dickie could receive is $1,250,000.00 over the five year designation period. These state benefits have no fiscal impact on the City' s general fund. This project is located in COUNCIL DISTRICT 9, Mapsco 77E. This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that this action will not impact the City of Fort Worth's annual revenues. FUND IDENTIFIERS (FIDs): TO �Fundy Department ccoun Project Program ctivity Budget Reference # mount ) ID ID Year (Chartfield 2) FROM f=und Department ccoun Project Program ctivity Budget Reference # moun ID ID Year Chartfield 2 CERTIFICATIONS: Submitted for City Manager's Office by: Jesus Chapa (6116) Originating Department Head: Robert Sturns (2122663) Ossana Hermosillo (2122665) Additional Information Contact: Natalie Moore (2122680) Logname: 17ED WILLIAMDICKIEEZ Page 2 of 2