HomeMy WebLinkAboutResolution 5004-11-2018 A Resolution
NO. 5004-11-2018
NOMINATING THE MERCEDES-BENZ FINANCIAL
SERVICES USA LLC FACILITY
AT 14372 HERITAGE PARKWAY
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 Mercedes-Benz Financial Services USA 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"), Mercedes-Benz Financial Services USA LLC has applied to the City for designation as an enterprise
project; and
WHEREAS, the City finds Mercedes-Benz Financial Services USA LLC meets the criteria for designation as an
enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds:
1. Mercedes-Benz Financial Services USA 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 not located within an enterprise zone,but at least thirty-five percent(35%)
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
oRTWo z
Resolution No. 5004-11-2018
3. The designation of Mercedes-Benz Financial Services USA 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 Mercedes-Benz Financial Services USA LLC meets the criteria for tax relief and
other incentives adopted by the City and nominates Mercedes-Benz Financial Services USA 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 Mercedes-Benz Financial Services
USA 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 Mercedes-Benz Financial Services USA 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 13'day of November, 2018.
5
ATTEST: �^
By
Ma J.ray r ry `
gR wo
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 11/13/2018 . Resplution I4o.5004.-11:2.,01$
DATE: Tuesday, November 13, 2018 REFERENCE NO.: G-19420
LOG NAME: 17MBFS TEZ
SUBJECT:
Adopt Resolution Nominating Mercedes-Benz Financial Services USA LLC Facility at 14372 Heritage
Parkway as an Enterprise Project Pursuant to the Texas Enterprise Zone Act, Chapter 2303 of the Texas
Government Code (COUNCIL DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council adopt the attached Resolution nominating the Mercedes-Benz
Financial Services USA LLC facility to be located at 14372 Heritage Parkway 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
Mercedes-Benz Financial Services USA LLC (Mercedes-Benz Financial) 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.
Mercedes-Benz Financial qualifies for a single Enterprise Project Designation with a projected
capital investment of$50 million for the relocation of its operations to new construction at 14372
Heritage Parkway. The investment includes $3 million to be spent on land acquisition, $28 million
to be spent on building construction and $19 million to be spent on office and technical equipment
for increased financial services capacity. The company will retain 500 employees with an average
annual salary of$70,000.00.
The single project designation allows for a state sales and use tax refund on qualified expenditures of
$2,500.00 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. This project is located in Council District
2.
Logname: 17MBFS_TEZ Page 1 of 2
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 City funds.
FUND IDENTIFIERS (FIDS):
TO
Fund 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 Cily Manager's Office by: Susan Alanis (3928180)
Originating Department Head: Robert Sturns (3922663)
Additional Information Contact: Tracy Williams (3922627)
Logname: 17MBFS TEZ Page 2 of 2