HomeMy WebLinkAboutResolution 4781-05-2017 A Resolution
NO. 4781-05-2017
NOMINATING THE DILLARD TEXAS FOUR-POINT, LLC FACILITY
AT 4501 NORTH BEACH STREET
AS AN ENTERPRISE PROJECT PURSUANT TO
THE TEXAS ENTERPRISE ZONE ACT,
CHAPTER 2303, 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 Dillard Texas Four-Point, LLC, 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"), Dillard Texas Four-Point, LLC has applied to the City for designation as
an enterprise project; and
WHEREAS, the City finds Dillard Texas Four-Point, LLC, meets the criteria for designation as an
enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds:
1. Dillard Texas Four-Point, LLC, 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
ORT WORT
3. The designation of Dillard Texas Four-Point, LLC, 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 Dillard Texas Four-Point, LLC, meets the criteria for tax relief and
other incentives adopted by the City and nominates Dillard Texas Four-Point, LLC 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 Dillard Texas Four-
Point, LLC, 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 Dillard Texas Four-Point, LLC, 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 16"' day of May, 2017.
ATTEST:
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By: j:f
Mary J. Kayse C' y e etary 0 ° p
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ORT WORT
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/16/2017 - Resolution No. 4781-05-2017
DATE: Tuesday, May 16, 2017 REFERENCE NO.: **G-19005
LOG NAME: 17ED DILLARDSEZ
SUBJECT:
Adopt Resolution Nominating Dillard Texas Four-Point, LLC, Located at 4501 North Beach Street as an
Enterprise Project, Pursuant to the Texas Enterprise Zone Act, Chapter 2303 of the Texas Government
Code (COUNCIL DISTRICT 4)
RECOMMENDATION:
It is recommended that the City Council adopt the attached resolution nominating Dillard Texas Four-
Point, LLC, located at 4501 North Beach Street as an Enterprise Project, pursuant to the Texas Enterprise
Zone Act, Chapter 2303 of the Texas Government Code.
DISCUSSION:
Over the next five years, Dillard Texas Four-Point, LLC (Dillard's) anticipates spending $11,200,000.00 on
capital investment projects at its Fort Worth distribution facility located at 4501 North Beach Street.
$5,200,000.00 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 $6,000,000.00 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 and new solutions for
receiving, picking and shipping replenishment goods. The investment will result in the retention of 540 jobs
with an average annual wage of$50,000.00.
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 Dillard's 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 Dillards' facility meets the criteria for
designation as an Enterprise Project, under Chapter 2303, Subchapter F of the Act on the following
grounds:
1. Dillard's 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 DILLARDSEZ Page 1 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 Dillard's 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, Dillard's will be eligible to apply for state sales and use tax
refunds on qualified expenditures. Dillard's investment of $11,200,000.00 qualifies Dillard's for a single
Enterprise Project Designation. Dillard's will retain a minimum of 540 jobs, with an average annual wage of
$50,000.00, although the benefit for an Enterprise Project Designation is capped at 500 jobs. As part of
the anticipated investment, Dillard's could be eligible for a maximum refund of $2,500.00 per job,
distributed over the five year designation period. The maximum potential refund Dillard's 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 4, Mapsco 50N.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that approval of the above recommendation will have no material effect
on the Fiscal Year 2017 Budget. Upon approval of this Agreement, the long term financial impacts will be
included in the multi-year financial forecast.
FUND IDENTIFIERS (FIDs):
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CERTIFICATIONS:
Submitted for City Manager's Office by: Jesus Chapa (5804)
Originating Department Head: Robert Sturns (2122663)
Additional Information Contact: Natalie Moore (2122680)
Logname: 17ED DILLARDSEZ Page 2 of 2