HomeMy WebLinkAboutIR 9959 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9959
To the Mayor and Members of the City Council November 8, 2016
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SUBJECT: INTERLOCAL AGREEMENTS WITH TARRANT COUNTY TO
rQzCL SUPPORT THE COUNTY'S TEXAS ENTERPRISE ZONE
NOMINATIONS FOR ANDREWS DISTRIBUTING COMPANY OF
NORTH TEXAS, LLC AND EFW, INC.
The Texas Enterprise Zone Program is an economic development tool for local communities to
partner with the State of Texas to promote job creation and capital investment in economically
distressed areas of the State. The City Council of the City of Fort Worth (City) has previously
passed Ordinance No. 15733 electing to participate in the Texas Enterprise Zone Program. On
May 12, 2015 the City Council 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.
Chapter 2303 of the Texas Government Code, the Texas Enterprise Zone Act, permits the
governing body of a county to nominate for designation as an Enterprise Project a project or
activity of a qualified business that is located within the jurisdiction of a municipality located in the
county. The nominating county must enter into an interlocal agreement with the municipality that
has jurisdiction of the territory in which the nominated project or activity will be located.
Both the City of Fort Worth and Tarrant County agree to approve the nomination for Andrews
Distributing Company of North Texas, LLC (Andrews) and EFW Inc. (EFW) as Enterprise
Projects. Said nominations will be considered a part of Tarrant County's allocated Enterprise
Project designations and will have no impact on the City's permitted nine designations per
biennium, as permitted under Section 2303.406(d) of the Texas Government Code.
Andrews qualifies for a single Enterprise Project Designation with a projected capital investment
of $35,000,000.00 in the construction of a new distribution center. Andrews will retain 490 jobs,
and 10 new jobs will be created. EFW qualifies for a single Enterprise Project Designation with a
projected capital investment of $32,500,000.00 in software, test equipment, building renovations,
machinery, and marketing demonstration equipment projects at its Tarrant County facilities. EFW
will retain 544 jobs.
A single project designation allows for a state sales and use tax refund on qualified expenditures
of $2,500 per job, for up to 500 jobs, with a maximum benefit of $1.25 million over a five year
period. Under the Texas Enterprise Zone Act at least twenty-five percent of the business' new or
retained employees will be residents of an enterprise zone, economically disadvantaged
individuals or veterans. In addition, the jobs will be provided through the end of the designation
period or at least three years after the date on which a state benefit is received, whichever is
later.
Staff will place an M&C for City Council consideration on the November 15, 2016 agenda
recommending City Council authorize execution of the interlocal agreements with Tarrant County,
through which Tarrant County will nominate Andrews Distributing Company of North Texas, LLC
and EFW Inc. as Enterprise Projects.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9959
To the Mayor and Members of the City Council November 8, 2016
h�T�i7 Page 2 of 2
�i
�i7 Y
SUBJECT: INTERLOCAL AGREEMENTS WITH TARRANT COUNTY TO
rQzCL SUPPORT THE COUNTY'S TEXAS ENTERPRISE ZONE
NOMINATIONS FOR ANDREWS DISTRIBUTING COMPANY OF
NORTH TEXAS, LLC AND EFW, INC.
If you have any questions concerning this information, please contact Robert Sturns, Economic
Development Director at 817-212-2663 or robert.sturns@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS