HomeMy WebLinkAboutResolution 4699-11-2016 A Resolution
NO. 4699-11-2016
NOMINATING ALCON LABORATORIES, INC.
AT 6201 SOUTH FREEWAY 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 Alcon Laboratories, Inc. 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"), Alcon Laboratories, Inc. has applied to the City for designation as an
enterprise project; and
WHEREAS, the City finds Alcon Laboratories, Inc. meets the criteria for designation as an enterprise
project under Chapter 2303, Subchapter F of the Act on the following grounds:
1. Alcon Laboratories, Inc., 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
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3. The designation of Alcon Laboratories, Inc. as an enterprise project will contribute
significantly to the achievement of the plans of the City for development and revitalization of the
area; and
WHEREAS, the City finds that Alcon Laboratories, Inc. meets the criteria for tax relief and other
incentives adopted by the City and nominates Alcon Laboratories, Inc. 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 Alcon Laboratories, Inc.
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 Alcon Laboratories, Inc. 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 15th day of November, 2016.
ATTEST: / ��� �,I=�o,
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Y
By O
Mary J. KaJ4, aty S retary � a°
ORT WORT
Ir-
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 11/15/2016 - Resolution No. 4699-11-2016
DATE: Tuesday, November 15, 2016 REFERENCE NO.: **G-18880
LOG NAME: 17ED ALCONEZ
SUBJECT:
Adopt Resolution Nominating Alcon Laboratories, Inc., Located at 6201 South Freeway as an Enterprise
Project, Pursuant to the Texas Enterprise Zone Act, Chapter 2303 of the Texas Government Code
(COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council adopt the attached Resolution nominating Alcon Laboratories,
Inc., as an Enterprise Project, pursuant to Chapter 2303 of the Texas Government Code.
DISCUSSION:
Over the next five years, Alcon Laboratories, Inc. (Alcon), anticipates investing approximately
$78,400,000.00 in a "Campus Revitalization Project" at its existing campus located at 6201 South
Freeway. The investment includes $71,800,000.00 to be spent on real property improvements, including
over $16,000,000.00 in the redesign and restoration of existing R&D and manufacturing space. $6.6
million will be spent on machinery and equipment and telecommunication equipment. The company will
retain its current workforce of 1,469 total employees and create an additional 100 full-time jobs, with an
average annual salary of$89,994.00.
The City Council previously adopted Ordinance No. 15733 (M&C G-14137), 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
Alcon 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 or veterans.
The attached Resolution establishes the City Council's finding that Alcon meets the criteria for designation
as an Enterprise Project, under Chapter 2303, Subchapter F of the Act on the following grounds:
1. Alcon 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;
2. There has been, and will continue to be, a high level of cooperation between public, private and
neighborhood entities within the area;
3. The designation of Alcon as an Enterprise Project will contribute significantly to the achievement of the
Logname: 17ED ALCONEZ Page 1 of 2
plans of the City for development and revitalization of the area.
If awarded an Enterprise Project designation, Alcon will be eligible to apply for state sales and use tax
refunds on qualified expenditures. Based on its $78,400,000.00 capital investment, Alcon could be eligible
for a maximum refund of $2,500.00 per job, for up to 500 jobs, distributed over the five year designation
period. The maximum potential refund Alcon 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 8, Mapsco 91X.
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 increase the total appropriations of City funds.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # Amounj
ID ID Year Chartfeld 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year ChartField 2
CERTIFICATIONS:
Submitted for Cily Manager's Office by: Jesus Chapa (6116)
Originating Department Head: Robert Sturns (2122663)
Ana Alvarado (8716029)
Additional Information Contact: Natalie Moore (2122680)
Logname: 17ED ALCONEZ Page 2 of 2