HomeMy WebLinkAboutIR 10007 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10007
To the Mayor and Members of the City Council May 9, 2017
h�T�i7 Page 1 of 1
�i
�i7 Y
*a SUBJECT: TEXAS ENTERPRISE ZONE NOMINATION FOR DILLARD TEXAS
rrn f
FOUR-POINT, LLC
The City Council 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 Dillard Texas Four-
Point, LLC (Dillard's) as an enterprise project pursuant to a nomination and 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. 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.
Over the next five years, Dillard's anticipates spending $11.2 million on capital investment projects at its
Fort Worth distribution facility located at 4501 North Beach Street. $5.2 million will be spent on facility
maintenance and improvement projects, including the upgrade of shipping divert lanes, installation of a
garment on hangar infield line, replacement of a refusal line, as well as the purchase of yard tractors used
to move trailers within the facility property. In addition to these projects, Dillard's is proposing to spend $6
million on a remodel of its pool stock area to support the replenishment of warehoused merchandise to the
stores serviced by the Fort Worth Distribution Center. This remodel project will update the pool stock work
areas and provide new storage as well and provide new solutions for receiving, picking and shipping
replenishment goods.
This investment qualifies Dillard's for a single Enterprise Project Designation and will result in the retention
of 540 jobs with an average annual wage of $50,000, although the benefit for an Enterprise Project
Designation is capped at 500 jobs. Dillard's could be eligible for a maximum refund of $2,500 per job,
distributed over the 5 year designation period. The maximum potential refund Dillard's 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 May 16, 2017 agenda nominating Dillard's 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