HomeMy WebLinkAboutResolution 5241-06-2020 A Resolution
NO. 5241-06-2020
AMENDING ECONOMIC DEVELOPMENT PROGRAM ADOPTED
PURSUANT TO RESOLUTION NO. 5039-01-2019,AS AUTHORIZED BY
CHAPTER 380,TEXAS LOCAL GOVERNMENT CODE
WHEREAS, the City of Fort Worth (the "City") has established the Economic Development
Department to, among other things, administer programs that further the public purposes of development
and diversification of the City's economy,the elimination of unemployment and/or underemployment in
the City, and the development and expansion of commerce in the City; and
WHEREAS, in accordance with the 2018 Comprehensive Plan, adopted by the City Council
pursuant to Ordinance No. 23133-03-2018, and consistent with previous Comprehensive Plans, the City
has committed to use custom-designed incentives and partnership programs with private businesses on
a case-by-case analysis of individual projects to help ensure the growth and diversification of the local
economy; and
WHEREAS,Chapter 380 of the Texas Local Government Code authorizes the governing body
of a municipality to establish and provide for the administration of one or more programs for making loans
and grants of public money and providing personnel and services of the municipality to promote state or
local economic development and to stimulate business and commercial activity in the municipality (a
"Chapter 380 Economic Development Program"); and
WHEREAS, on January 29, 2019 the City Council adopted Resolution No. 5039-01-2019 a
Chapter 380 Economic Development Program, with guidelines and eligibility criteria governing receipt
of certain economic development loans and grants made by the City; and
WHEREAS, the City Council wishes to amend Section 6 of the Chapter 380 Economic
Development Program adopted pursuant to Resolution No. 5039-01-2019 that relate to the eligibility
requirements for research and development projects to revise the maximum applicable grant period under
the Program, to amend limitations on the percentage of taxes from the subject property that may be
represented by an annual grant, to add certain limitations regarding the zoning of subject property under
an assignment, and to make certain clerical revisions;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
THAT Section 6 of the Chapter 380 Economic Development Program established pursuant to
Resolution No. 5039-01-2019, is hereby amended as set forth in Exhibit"A", attached hereto.
ADOPTED this 16th day of June 2020. f F0RT�L
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Mary J. Kayser, City Secretary PS
EXHIBIT "A"
6. ELIGIBILITY REQUIREMENTS FOR RESEARCH AND DEVELOPMENT
PROJECTS.
Target Industry applicants are eligible to receive 380 Grants equal to a percentage of their Qualified
Expenses relating to ongoing research and development activities that take place in the City of Fort Worth.
Qualified Expenses outside the City of Fort Worth will not be considered.
380 Grants under this Section may be made for a period of up to 15 years equal to up to 50%of
Qualified Expenses that are reported for a given year during a period of up to 10 years. At no time will
the amount of any 380 Grant exceed 75% of annual incremental real property and Business Personal
Property taxes received by the City in the preceding year from the subject property of an applicant or an
assignee.
The maximum amount of each 380 Grant under this Section will be determined by the location
in which the Target Industry research and development project is located, as set forth in the table below:
Maximum Potential
R&D Reimbursement
Central Business District/Innovation Equal to 50%of
District Qualified Expenses
Designated Investment Zones Equal to 35%of
Qualified Expenses
Other Fort Worth Location Equal to 25%of
Qualified Expenses
Notwithstanding Section 19.6 of this Policy, a Target Industry business receiving 380 Grants
pursuant to this Section 6 may assign, sell, or transfer its right to receive the 380 Grants to any party it
wishes, subject to execution of a written agreement between the City, the Target Industry business, and
the assignee party memorializing this arrangement. The Target Industry Business will still be required
to submit any reports and documentation required by the Economic Development Program Agreement
in order for the City to verify the amount of each 380 Grant. The amount of any transferred or assigned
380 Grant will be reduced by 5 percentage points to account for the City's additional administrative costs
in overseeing the program. No property that is zoned Residential by the City shall be permitted to be
included as part of an Assignee's Subject Property except where such zoning may be changed to facilitate
new development (example: a property zoned for One-Family Detached subsequently rezoned for
Industrial in connection with new development). Properties that are zoned Mixed-Use (including any
part of a form-based code)or properties that are zoned Planned Development may be included as part of
an assignee's subject property.
City of Fort Worth,Texas
Mayor and Council Communication
DATE: 06/16/20 M&C FILE NUMBER: M&C 20-0420
LOG NAME: 17EDPAPOLICY2019AMEND1
SUBJECT
Adopt Resolution Amending Certain Portions of the Chapter 380 Economic Development Program that Relate to the Eligibility Requirements for
Research and Development Projects(ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached Resolution amending the Chapter 380 Economic Development Program.
DISCUSSION:
Chapter 380 of the Texas Local Government Code authorizes the governing body of a municipality to establish and provide for the administration
of one or more programs for making loans and grants of public money and providing personnel and services of the municipality to promote state or
local economic development and to stimulate business and commercial activity in the municipality(a"Chapter 380 Economic Development
Program").The City of Fort Worth first established a Chapter 380 Economic Development Program on January 30,2001 pursuant to Resolution
No.2704,which was continued and expanded on January 29,2019 pursuant to Resolution No.5039-01-2019.
Among other guidelines and criteria for the City of Fort Worth's Chapter 380 Program as adopted on January 29,2019 were those concerning the
eligibility requirements for research and development projects.When applying the guidelines and criteria to new project opportunities,certain
provisions were identified as being inconsistent with the underlying intent of the Program or as otherwise inconsistent with certain other the aims of
the City,including but not limited to the implementation of the Economic Development Strategic Plan as adopted On December 12,2017(M&C G-
19192).As such,a set of proposed revisions necessitating an amendment to the Program are proposed that address the concerns identified and
that also correct certain textual inconsistencies or clerical items.
The specific changes to the Economic Development Program Policy relate only to the eligibility requirements for research and development
projects and address the following:
• Revise the maximum applicable grant period under the Program to be no more than 15 years,with the required company performance and
reporting period remaining at no more than 10 years;
• Amend limitations on the percentage of taxes from the subject property that may be represented by an annual grant so that it may not exceed
75%of annual real property and Business Personal Property taxes received by the City from the subject property of an applicant or an
assignee;
• Add certain limitations regarding the zoning of subject property under an assignment(by excluding subject property that is zoned
Residential);and
• Make certain clerical revisions for purposes of clarity and consistency
The amended Economic Development Program Policy will be effective upon adoption of the resolution by City Council.
While no current year impact is anticipated from this action,any effect on expenditures and revenues will be budgeted in future fiscal years and will
be included in the long term forecast.
A Form 1295 is not required because: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 these recommendations will have no material effect on City funds.
Submitted for City Manager's Office by: Jay Chapa 5804
Originating Business Unit Head: Robert Sturns 2663
Additional Information Contact: Michael Hennig 6024