HomeMy WebLinkAboutResolution 2073
A Resolution
Resolution No~~~
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FORT WORTH TEXAS NOMINATING A QUALIFIED BUSINESS
FOR DESIGNATION AS AN ENTERPRISE PROJECT
WHEREAS on August 30 1988 the Texas Department of Commerce (the Department')
approved the creation of the North Enterprise Zone (the Zone') in the city of
Fort Worth (the City) and
HEREAS the City desires to pursue the creation of a proper economic and social
environment to induce the investment of private resources in productive business
enterprises located in the Zone and to provide employment to residents of the
Zone and to other economically disadvantaged individuals and
WHEREAS pursuant to Chapter 2303 the Texas Enterprise Zone Act, Texas Government
Code (the Act') Federal Express Corporation ('FEDEX) has applied to the
.. city for designation of their Alliance Airport Hub Facility as an enterprise project
in the Zone and
WHEREAS the Department will consider the designation of FEDEX as an enterprise project
pursuant to a nomination and an application made by the city
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH TEXAS
1 The City Council finds and determines that FEDEX meets the criteria for
designation as an enterprise project under Chapter 2303 of the Act on the
following grounds
a. FEDEX is a qualified business under Section 2303 401 of the Act since
it will be engaged in the active conduct of a trade or business in the Zone
and at least 25 percent of the business new employees in the zone will be
residents of an Enterprise Zone within the City's jurisdiction or
economically disadvantaged individuals
b FEDEX will be located in the Zone which has an unemployment rate of
not less than one and one-half times the state unemployment rate
C7
c FEDEX will be located entirely in the Zone and will maintain separate
books and records of the business activity conducted in the Zone
d There has been and will continue to be a high level of cooperation
between public private and neighborhood entities with in the Zone and
e The designation of FEDEX as an enterprise project will contribute
significantly to the achievement of the plans of the city for redevelopment
and revitalization of the Zone
2 The City finds and determines that FEDEX meets the criteria for tax relief and
other incentives adopted by the City and hereby nominates FEDEX as an
enterprise project in accordance with the Act on the grounds that it will be located
wholly within the Zone and will create a higher level of employment, economic
activity and stability
3 The City finds and determines that it is in the best interest of the City to nominate
FEDEX as an enterprise project pursuant to the Act.
4 The enterprise project shall take effect on the date of designation of the enterprise
project by the Department and shall terminate five years after the date of such
designation.
ADOPTED this 27th day of June, 1995
~ ~~~'l
Kay CJ'' •anger
Mayor
~.~
ATTEST
_~~~ ~/'
Alice Church
City Secretary
APPROVED
CITY COU~lC~~.
~~~ ~~
~~~
o~°'~~~
I Alice Church, Ciry Secretary of the City of Fort Worth, Texas certify that the above
is a true and correct copy of Resolution No ,207'' 3 on file in my office and that I as
City Secretary of the city of Fort Worth, have legal custody of such resolution.
~~,~ ~~
Alice Church
City Secretary
~ a ~ f ~s-
ate
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Federal Bxpre~
Tune 30, 1995
l~dr. Dan Wattles
Z~exas Fate Zone Program
Teaas brsent of Comtnet+Ce
ybrt ORica Box 1272$
Attsdn, Texas 7$711
Re: Oommitmcxtt Latttr for Poderal. ~cpreas (`,orporatitln - Package Hub at Alliance
Airpodt~t, Foot Worth North Tsatetgrise Zane
Year Mr Wattles:
Federal Bxpres9 Corporation ("reckxal ~xpreas") was inccuporated in netawarre on June
24, 1971 aad began operations in 1472. Its corporate headquarters ate in Metttphis, Tem~cssaoc_
Federal. Express ig a publicly held eorpo~n whose shares are traded on the New York Stack
B:cganYa. Poderal Express oFfcrs a wide range of exprtss services for tha lima dbfinite
u~gpc-station of documents acid goods throughout the world using an e~teasive float of sitr~
• and vehicles and leading-edge information tcchnolagies. Federal l~press offers tllrlt domestic
mremight deli~ary larrvices, Sour inbernauQnal dxtimea~t and pacimga delivery servis~s, and two
it~xnational. fse~ght xrvices. Yn acldit~ to docum~ts~ and goods delivary sezvicas, Federal
Express offers charter services to supplement the utilixatlon of its aircraft capacity Feral
Express also otTers BusUiess Logistics Services ("BLS") which atflxs a full range of global and
regional logistics aolutivns, including transportation and logistics tnanagematt servsccs.
By tljia application, Federal 8xpress is reque~ttg a ptojcat designation for its proposed
"Hub" package sortit>g facility located at Alliance Airport in Port 1~Vorth's North F.rlterpn~e
Zone. Tt~e Hub will be a package sorting facility equipped with an automated mtttcria! handling
spatem designed tv sort 24,000 herd packages Per hour 21nd 50,000 soR pages per flour. ?ire
wooaw~~a.~ara•
auvi ~i rcur.Rti~ rxrtccaJ ~vnr
Int. Da'h '1Natths
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u-~u-au J term [3UJINCJJ 1KAIVJAI~llV1V'y t31lf3lltil~i4 ~ ~/lU
paOkages wilt be diauibuted o0 other faailidts within tf>c Federal system by a
consbinatloa o£ ult~craR and over rho road truclm. Tha bath building and cart syttern ass
e~pandabl~e 80~ incremental growth as package voluraas increase.
Falcrai Sxpa~ess +~peds to fund the progaaeed Httb through the issuance of baa>ds tsy tha
•
Alliartoc AirQott Authority, inc. in ona or mare series, in such asgn~ate ptin~l arnotmt. not
to exceed 5250,000,000. The anticipa0pd aP ootsstsuction oammcnceaoaar~t is Fobsuacy, 1998
and the esdmamd date of oompletian i e October, 1997 The two dtcoCttas wi11 be hinod in 1996.
~odezal Bxpresa ~vitl comraaue hiring Ilse balance of the euzpdoyaes ix February 1997
eornmetteemant of operatioass will begin in October, 1997 fiedarai I3xpr+esa ~dY ~oYg
2948 iutt ame pecsvnne5, 1923 part time, and no soasanal p~nmd. bur Texan payroll is
appra~dmataly 5133,04?,808. All of these jobs arc axpocted to be rotainod whin Ovt near
facility is placed in opCration.
The Federal BYparess Hub wall cr~ea~te approximately 1016 jobs, incluQittg 426 per~ant
and fall»dene totsployees. It is cstimacc~i that these will ba 590 part tame cmplayees working less
thar-1,0~4 hours per year 1fie Hub will ontploy the following otn~layees with the s6~ociated
ranges of annual salan lea and wages:
~oB Cl~Slf~tioa
I3lirectar
Senior Managers
Hub Somers (full time)
Hub Jorttrs (putt t3tne)
Antmat
x
2 566,432.0(1
8 543,852.00
46 X4.860.00
3T0 51$.866.60
590 5 8,253.7Q
~+oaoiro~ssas-x
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Jnaa 30, 1995
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The tctal estimated payroll at today's pay =ants is 513,447,(!00 with befit costs of
35,300,000 ' 'oa, far a tom! campensatlon pac~ge of 519.2~t7,000. Typically, ttu c~rttpany
provides pay rsisos at an overall 296 lncreasc oacl~ year.
Ali Hub ernploye~ witl oomp+ieoe a creek of initial p~sid ttslaing. Depending on tho job
classification, ad~tiwial tniaing may be tters~aty Objectives of etttplayee training ane so
familiarize ~w Hub employees vrith tltz dutite of a handle in the major of the Hub, to
minlmite and prevent adddeuts cad in,~urics by teaching safety precautions far rot»p and work
areas, and to crrtify eanployeav as Dangr~ous Goods Handless.
Our total capdtal investment to the Hub proj~t fa csttmatett at 5218,790,000.00 ~
includes the fottonaing tests;
Land 5 20,420,000
SuiL4iugs 83,0?0,000
Sort >~quipmea~t 71,290,4W
Other Egtupmcnt 1S~6TD,OOU
Ramp 19,810,400
bthcr Pavement 6,190,040
Miscellaneous 2,340,OOQ
tlruca~iturel5igr~eJTestingf T=avcl)
T'atat Capital ImrestEtent a218,T9Q,000
In additiout to providing penttanent jobs, the pxopased unit would provide economic
benefits in site areas of transportation (air and truck), local Purchases, tr-aittte~ncc gupplica,
opGratiag supplies, fuels, and other mstrxials.
Federal Express is m the sccvice business, which is diPFexent from manufstictwring. We
do opt roquit~o epeCltic raw materials to cgattufacture a pradua. The purchasing depamnent grill
~oooun~s ~zx~
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Jwrc~.4e a rnunber of daily operating soppliea, howcvGr come of t{tese may be piuchased in bu{k
>~ ehippod to the Hab. 7'he hugest product we win pure wlu. lilaely ba ~~ fud ana
truck fool which will be lmadlod br our Pue1 Farchaaiag YsouP.
Federal 13xpirese believes tha Aab will qualify as a "gaaliilod buaineag" and that the Hub
will bo eligible for dcaignati+at as an •eraterprise prgject" under the'Ttxus P.citrcluise T~wte Act.
Tha pcx~aibiiity of obtaini~y tax incet~tivcs and Otnea' benefits by being designated an "enterprise
p~c+ojecx" urns a ftu:Dvr in Fedesei Exp:~g's docision t+o locate thG Hub at Alliance Airport. If
gain tax benefits associated with the enterprise projects are not available, this could potentially
daiay Podd~el Express from impleanenting future phases of the Hub frota its cuzcunt proposal at
thin site.
Federal Express hereb~+ aertines titE-t tbt proposed facility is located entirely within Fore
vyorch's 1~Yorth Enbrrprise zone. 1'Cdelal Exps+~ slao cCrtifies that it will rn~drttaia xe.Qarate
boons cad rooor+ds of the buaincss acdvity conduouct is tt~ z~te or other iaformativr- as s+equited
try lac~l and state government units.
Federal ~pre$s commits to participate in a variety of local effflrts to achieve
d+evdopat,~tt and revitalization goals of Fort Worth's North Bnterprise 7Aaie. Fedetstl Bxpress
wilt hire underskiUed, diaedvaataged or dispLa~ed a-arker, minacitias, or residents of tlm
mt~prise gone. Uat manstgenteat fuxd~r unsiecstands "Qtutlifiad buairyess" eligible far ~taprisa
project deaignatinn nnust meat the statutory regairemeM thAt twenty-five percent (?S 16) of its nttw
or additions] employees must bo raaidcnts of an emerprise Zone within tha nominating
authorities' jwristlirtions, cot economically diaadvantagcd pcrson9 as defined by the Texas
. noow~uaa:emu
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~. ~8t1 Wattles
• tone 30, 1995
Page 3
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Zane Act (Chapt+~r 2303, Teaas ~3oarernanent C.odcj. Fodccai Bzpsnae hereby commits
fire ?S 96 of its new emplayee,4 wall be resided of a zont or econamicalty disadvanta~tei
Fecal Exp~reaa requires the consideration and u9e of diverse sauts;es of suppliers. Ttte9e
sappliera must i4Clude mincnity, wmnea, and srnallldisadvantagod busin~aea as fi~]l pertiapauota.
along with other suppliers, iri ail purchasing activities. 'Ihe Minar9tylWomen Buaiaess
Developmedt Procurement Dcpartrnent is respcnnaibl~e for policy development, caoldination of
the oo~npaay's performance goals, adminisaatian of supplier ragiatration, and internal
pesfortnanoa reporting. Minority purchases for 1994 totatlod 591.2 million and for Y995 is
pzv,~ected to be ut least 543.$ million, which amounts to as estlndated 2096 of the pro,~ect
itut+e8 for ow Fori 'Worth Hub facility.
• M a carpo=at~e citizen, Federal Hx~ess is committed to community Support as an active
eortoerned neighbor, rather than s patron. 'fhc spirit of Fed~l express' corporate giv3rtg
Program emanates from the rsl?mpaay's Peoplo..Service-Profitphllosapl-y• When the compaoY
puts its poople first, they will pravidc outstanding service, which 3n turn wiU lead to protlts.
This same `~epple first" philosopi~y is at the heart of Federal Bxpi+oss' commitmens to social
respo,rsfbility But in this case, it's the community which profits. M example of both ful~cial
and human irsauricc support Is the United WaY program. HtAployees not only contribute
personal dollars durYng thetuinutrl campaigns, but alga they help coordinate the annual camp~aigtls
nationwide. Under the "I.osned Executives" program, executives are anvuaUy fiotn
their regular Sob reapona~'biltties to orgahize employee easripaig~ for other companies. Below
~..
wc~oas~nuK.~
•
JLI Y 1 Ll l 1 ~L' UL' 1CHL CJII RLJ.~ 1.~V1U
173 ~ T~ wsuW
. Jnen: 34, 1fl95
Page 6
O-GU-~~7 7 1~7I"M liU5lN1:.'~J IiCAIVJAl,11V-vy t31lCSllt]ld4 ~ I/lU
is a salmplin$ of ebacltabla activity far the peat three ytars in tha Mewphie area (Sea Tab S,
8xhibit F fbt- details of aotporata glvi~:
~ Qf _Chazitable Cantn`bntions:
~,~ 1~ ~~ ~~¢
,
Hoy C1uba of Memphis S 40,105 $40,000 $ 4q,000
Maonphis Ans CawwCil $22,857 $143,000 x143,000
National Ciri1 Rights Musewn 550,000 S x,000 $50,400
IInibod way Ccnporate GiR, Mempius SS32,000 $532,000 5532,040
Total Fedgg]y~'g~~ess Ca~h_
~nS:' 81,704,814 $1,659,262 51,450,000
Pedmal PScpres~s apprc~cistes the nomination and valtloa the implications of this designation
as am entotpriae prajcct in Fort 1Narth's North Eatetgrise Zone. We look fa=vva=d t4 warlcing
with the City of Fort VSTpzth and the Stato of Tc~cas in furthering tits purposes of the micas
• 13ntetpriaa Zone Program,
Very t=iny ycara,
~n1, axl~ss CoxPol~ATiax
~~
N John IN Bell
17de: Assistant Ts~suret
Attachment: Table C
tIa addition to cash conkcibutiona, Fedenat Bxpreas ajso contributes approximately 5500,004
a yotu in charitable shipping. See Tab S, Exhibit F for detail,
ncieast~ ~r~t
•
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TABLE C
lF,S17MAT8D PROJECT CQAtSTRUGTIQN ANTS JOB CF.BATIOAi SC.HEIfIILB
~ 1'~i ,1~1 ~
PwmtntP~1~ ~t i 1/IW,
~natet~ction New rbs
Ditaoeor 0 2 0 0
SanLOr Mw~ors 0 0 6 0
~jj 0 0 46 0
P1i11 Tltl:~ Sort~erJ d 0 270 100
Ptsrt i9ortore 0 0 490 100
Tote! Consavotia~ Jobs 1.000
(e+st(mete)
lbtal Prama~t dubs far 3 yetttt 32b
Inc~a~ nn 1.~Oit WaQ~t.~}~ ari
~iL~ D ~ 133 S15>3$0. 53,734
'~am~a and s~ (SL~001 519,247
l~ MP ~ g et1l riY .~ ~~]LOII~~
Isnd
2i}.42
0
0
0
IiaildirtSB 8.3 26.43 46,69 1.65
Sort Equiprnetu 8.15 36.b Zb.O+t 0.5
Other Egaipa~t 1.Z~4 7.67 6.Zb O.S
Rtur>F 5.5 14,31 0 0
Orbs panremant d 4.19 2 4
MUcelttmeou; (Furniture, Signage) 0.21 1.4 0.lS3 0.1
Anr~ustl 'foWta +43.82 50.6 81.62 2.75
Ga~aad Tts~tt 5218.79
• wvcais~f i~r~~
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~r~vl ~Y rrurrc+~~ ~-~~~ LUG' b-Ll1-y5 5 16PM BUSINESS TRANSACI'lUN-~
gsvenva~ec~t~a~c~r~1
Pyrauant to Section 230~.OOStB) oP tiu Tssas Eataspriiw Zone Act (Tezai
Govarnnrt4nL Code). the uaderefgned bwanoafs door hereby cer#3f~r to the e~aterpzfae
aomw governing taody(s) of t~Ioaais Inter Warta of ~vvernir~q b~acdY~tes11'
City o~ :art WortB _
tb 2e~t~eta Departm~ant of Cotruaeree, $ad to the Camptrfl~ler of Public Acxduato
tComp~t:cller) !br the State o~Te~w mat tpIoaee initial at l~ when appJuable and
s r cane ~arttaJ:
1. it $ vuprgrd ie err hs~ prpvldee4 Aabetstuisl ooemanites~n! to !ai!la~e the
(Ini~tiul~sy sus ooeu~al+of~lssda er bvsat~e ~ tbe.._:;,.~: ~+~ s~~t+'a=~' Ate- ..r_
...._„ . ,!~r~_ 13~$sl~p=is! 7,0f1e {aoue}; ~4d
2. aiL ksrti tv-fa;1F~5ve peroeat t8a9t+} al its as+~ ~y is tie sons ue
{Itsitiai~) rsu3ants of ~ snae is too ~a-arniat bodlro err badieP juri~dfcdoa err
comically diesdvsuasaed iadirtdwls: or
3. !1-s bnaiuees xiil retsla a level o£+tmelslrmeat 4r~sat the date of sslu taae
{in1~^ tiati~ rei~std Sae tbsoe yeu+e, ar mq- by attb~e~ to neapmne of sands by tfie
Comptroller
The naderiigaed bnsiaeat eg~+ees t4 ~atxally cerdfy to the parlaea aame~d. harem
no Inter thaw ~atabsr 1 that the buaiueae is. and witI reataia is compliance wfth
tl~ above triCaria~, eutd tbat, if during any time perliod tba4 eampliance is sot met,
the bw~iAeee w~l be ineligible to clafm. anV b+~aefita to whist it may 6e entitled to as
a qusiiB~ed hviceiaeaa is the enterprise none.
Th{8 agreem~eat and ceroa is e~'active from tho date of dvaigaatiott thsetugh
the data of aspiration as a qualit3iod btisineaS.
~gfl~ this ._.: et..,dAYa€..= ulv - X9 S_ s__,___
'~mP~y Nam; Fed• ° ea Co oration
HF .Tohn W IieII
p~,~~,~: Assists fireasurer
~~~ ogCtsmpa~-. 2005 Corporate Avenue
~~r_.~~h±s. T1S ~,p (;O~e' 38.,,E lr. 3Z,_, P134A9 Nn~••~..1.( Oi~- 922-5_~5.5~^
14-1819i
Rosiness bvelopmeat Divl*ia~ Toss Z}epa~ieat of Comma~ce
Form EPF.Oa
•
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.7L1v1 Lrl 1 LuL'aViL GA~ICGJJ IJVRI V-GU-ilJ u 1 rt ir1 DWIIVGJJ l1V~LVJHl.1 ! Vlv~
F'F,DERAL EXPRESS CORPORATION
,.
CERTIFICATE OF VICE PRESIDELVT AND A55IST.ANT SECRETAR'Y'
I, George 9d Hearn, Vice President and Assistant Secretary of
Federal Express Corporation, a Delaware corporation (the
"Company"}, do hezeby certify as follows
1 The below-named person has been duly elected ox
appointed, has d>~ly qualified and on January 21, 199, was, and at
all subsequent times to and including the date hereof has been, an
Assistant Tzeasurer of the Company and such person is authorized
to sign Lhe Commitment Letter and associated documents fox Federal
Express Corporation related to the Enterprise Zone Applicat~,vn to
be executed and delivered by the Company
Name Office Signature
`` Jahn W Bell Managing Director - xax LiL~~~i
Assistant Treasurer
IN WITNESS 4PHEREOF I have hereunto set my hand, and caused
this certificate to be delivered this o~ day of June, 1995
B °
Y
Name Gevzq W Hearn
Title Vice president and
Assistant Secretary
21033 J IX1G