HomeMy WebLinkAboutIR 9986 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9986
To the Mayor and Members of the City Council February 14, 2017
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*a SUBJECT: TEXAS ENTERPRISE ZONE NOMINATION FOR TTI, INC.
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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. The Office of the Governor Economic Development and Tourism
through the Economic Development Bank will consider TTI, Inc. (TTI) as an enterprise project
pursuant to a nomination and an application made by the City.
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. An enterprise project is defined as a business that is nominated by
a municipality or county and then approved for state benefits. Designated projects are eligible to
apply for state sales and use tax refunds on qualified expenditures. The level and amount of
refund is related to the capital investment and jobs created at the qualified business site.
The new TTI distribution center is a $74.5 million investment in a 610,000 square foot facility. The
facility located at 3737 Meacham will house the company's North American warehouse,
assembly, and distribution facilities. The space will feature an extensive picking system with
conveyors, pick modules, racking systems and a three-level carousel platform. The investment
will include $51.5 million in real property and $23 million in business personal property. Though
TTI has already invested approximately $46 million, the remaining $28.5 million of investment
qualifies TTI for a single Enterprise Project Designation. The investment will result in the creation
of at least 10 new jobs, and retention of approximately 700 jobs, although the benefit for an
Enterprise Project Designation is capped at 500 jobs. TTI could be eligible for a maximum refund
of $2,500 per job, distributed over the 5 year designation period. The maximum potential refund
TTI could receive is $1,250,000 over the 5 year designation 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 February 21 , 2017 agenda
nominating TTI as an Enterprise Zone Project pursuant to the Texas Enterprise Zone Program.
Submittal and approval of this application for State benefits will have no fiscal impact to the City's
general fund.
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