HomeMy WebLinkAboutIR 10464 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10464
To the Mayor and Members of the City Council August 18, 2020
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" r VA SUBJECT: TEXAS ENTERPRISE ZONE NOMINATION FOR TTI, INC.
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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.
On February 21 , 2017 the City Council adopted Resolution No. 4747-02-2017 nominating TTI, Inc.
as an enterprise project pursuant to the Act with an effective date of 03/01/2017 and termination of
03/01/2022. The Office of the Governor Economic Development and Tourism through the
Economic Development Bank will consider TTI, Inc. (TTI) as a concurrent 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.
TTI is planning new capital investments over the next five years in Fort Worth. The planned capital
investment consists of approximately $7 million for upgrades and installation information
technology equipment made between April 2020 and September 2025. Specifically, the costs will
be related to upgrades to the company's data center, new hardware and laptop equipment for
employees, system and hardware upgrades, and upgraded storage for the company. The company
is committing to retaining at least 300 positions. TTI could be eligible for a maximum refund of
$2,500 per job, distributed over the 5 year designation period. The maximum potential refund TTI
could receive is $1 ,250,000 over the 5 year designation 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.
Staff will place an M&C for City Council consideration on the August 18, 2020 agenda nominating
TTI 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.
If you have any questions concerning this information, please contact Robert Sturns, Economic
Development Director at 817-392-2663 or robert.sturns@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS