HomeMy WebLinkAboutResolution 4827-08-2017 A Resolution
NO. 4827-08-2017
NOMINATING THE SMITH & NEPHEW, INC. FACILITY
AT 4900 W. VICKERY BLVD.
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 Smith&Nephew, 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"), Smith & Nephew, Inc. has applied to the City for designation as an
enterprise project; and
WHEREAS, the City finds Smith & Nephew, Inc. meets the criteria for designation as an
enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds:
1. Smith & Nephew, 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
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Resolution No.4827-08-2017
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 Smith & Nephew, 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 Smith&Nephew, Inc., meets the criteria for tax relief and other
incentives adopted by the City and nominates Smith & Nephew, 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 Smith &
Nephew, 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 Smith&Nephew, 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 151h day of August, 2017.
ATT s
By:
Ronald P. Gonzales, Assito t City Secretary Ul
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�XAS
ORTWO T
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/15/2017 - Resolution No, 4827-08-2017.,
DATE: Tuesday, August 15, 2017 REFERENCE NO.: **G-19059
LOG NAME: 17EDS&NEZ
SUBJECT:
Adopt Resolution Nominating Smith & Nephew, Inc., Facility at 4900 W. Vickery Boulevard as an
Enterprise Project, Pursuant to the Texas Enterprise Zone Act, Chapter 2303 of the Texas Government
Code (COUNCIL DISTRICT 3)
RECOMMENDATION:
It is recommended that the City Council adopt the attached Resolution nominating Smith & Nephew, Inc.,
located at 4900 W. Vickery Boulevard as an Enterprise Project, pursuant to the Texas Enterprise Zone
Act, Chapter 2303 of the Texas Government Code.
DISCUSSION:
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
Smith & Nephew, Inc., (Smith & Nephew) 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.
Smith & Nephew qualifies for a single Enterprise Project Designation with a projected capital investment of
$25.7 million for the expansion of its operations at the existing medical manufacturing facility at 4900 W.
Vickery Boulevard. The investment includes $4.7 million to be spent on real property improvements and
$21 million to be spent on machinery and equipment for increased manufacturing capacity. The company
will retain 83 employees and create an additional 100 full-time jobs, with an average annual salary of
$64,000.00.
The 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.
Logname: 17EDSNEZ Page 1 of 2
On June 20, 2017, the City Council approved a five-year tax abatement with Smith & Nephew and Staff
also recommended nominating Smith & Nephew, Inc., 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.
This project is located in Council District 3.
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):
TO
Fundl Department ccoun Project JProgram ctivity Budget Reference # moun
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project JProgram ctivity Budget Reference # moun
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Jesus Chapa (5804)
Originating Department Head: Robert Sturns (2122663)
Additional Information Contact: Ossana O. Hermosillo (21222665)
Logname: 17EDSNEZ Page 2 of 2