HomeMy WebLinkAboutIR 10452 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10452
To the Mayor and Members of the City Council August 4, 2020
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ern SUBJECT: LETTER OF SUPPORT TO THE FOREIGN-TRADE ZONES BOARD
1875 TO EXPAND FOREIGN TRADE ZONE NO. 196 ENCOMPASSING
ALLIANCE TO INCLUDE 2660 PETTY PLACE, BUILDING 1
The purpose of this Informal Report is to provide information on a request to submit a letter of support
to expand the existing Foreign Trade Zone No. 196.
A Foreign Trade Zone (FTZ) is a restricted-access site, in or adjacent to a Customs port of entry.
FTZs are considered outside the United States Customs Territory and foreign or domestic
merchandise can be stored or manufactured before formal Customs entry procedures. These special
geographic areas are under the supervision of the U.S. Customs and Border Protection and
establishment of the FTZ allows for state and local ad valorem exemption on tangible personal
property imported from outside the United States and held in a zone. This tariff and tax relief is
designed to lower the costs of U.S. based operations engaged in international trade and thereby
create and retain the employment and capital investment opportunities that result from those
operations.
With the continued growth at AllianceTexas, Hillwood, serving as the administrator of Foreign Trade
Zone No. 196, is anticipating projects on several parcels of undeveloped land. Much of this land was
not included in the original FTZ designation. However, it is within the FTZ Service Area under the new
Alternative Site Framework program (ASF). Under the ASF program, in order to include the revised
boundaries in the current zone footprint, the FTZ administrator has to receive a letter of no objection
from the locally affected taxing entities. This process can be very time consuming and is
unacceptable for most site selection processes.
The Foreign Trade Zone Board (FTZB) in Washington, D.C. has approved a plan to allow FTZ
administrators to collect letters of no objection in advance, and therefore commit to a site selection
prospect that the FTZ application can be approved in a 30-day window. Hillwood, as administrator for
Foreign Trade Zone No. 196, has contacted staff and requested a letter of no objection from the City
of Fort Worth in order to modify the current Foreign Trade Zone boundary under the Alternative Site
Framework, pursuant to the Foreign-Trade Zone Act. An exhibit outlining the expansion of the zone is
attached. The letter of no objection will only extend to the land that does not currently have FTZ
status.
This request is being made to accommodate a relocation of Wabtec (formerly known as GE
Transportation) from their current location within the FTZ, located at 4100 International Plaza, to their
new location-2660 Petty Place Building 1 . There is no planned expansion of activities and therefore,
there should be no additional impact to the City's finances. Current tenants within the proposed
boundary are not interested in pursuing FTZ benefits. Of the thirty-seven current tenants that would
be included in the revised boundary, only to perform activities that could be eligible for FTZ benefits.
Staff will place an M&C for City Council consideration on the August 11 , 2020 agenda, recommending
approval to expand the boundary of FTZ No. 196 to include FTZ Subzone No. 196B.
If you have any questions concerning this information, please contact Robert Sturns, Economic
Development Director at 817-392-2663 or robert.sturns(a)-fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS