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Nomination of Target and LG Electronics to the State Enterprise Zone
Program
The purpose of this IR is to consider requests by Target and LG Electronics to be designated as State
Enterprise Projects. Companies seeking enterprise designation must be nominated by the City of Forth
Worth, through Council approval of a resolution, along with an application to the State.
In order to qualify for enterprise program benefits, project applicants must meet specific requirements
regarding the level of capital investment, along with full-time jobs to be created or retained. If a project
is located within an enterprise zone, 25% of new or retained employees must be residents of an enterprise
zone and/or be economically disadvantaged (as defined by the State). However, if a project is not located
in an enterprise zone, a company must commit that at least 35% of any new and retained employees be
residents of an enterprise zone and/or be economically disadvantaged, as defined by the State.
The State benefit that can be received is a refund of state sales and use taxes on qualifying expenses.
This includes taxes on building materials, all tangible property, machinery/equipment, labor for
rehabilitation of existing structure, electricity/natural gas purchased, and taxable services. Upon
designation as an enterprise project, each company will work directly with the State to receive these
benefits. The benefit period is for five years.
Collectively, the two projects being nominated during this quarter will comprise a total investment of
approximately $30 million over the next 5 years.
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
No. 8708
August 23, 2005
Page 2 of 2
Nomination of Target and LG Electronics to the State Enterprise Zone
Program
Every two years, the City of Fort Worth receives six designations to allocate to significant projects. The
legislature has provided for a total of 85 enterprise projects statewide for the biennium beginning
September 1, 2005 and ending August 31, 2007. The State accepts nominations four times each year.
Staff recommends that the resolution nominating Target and LG to the State's Enterprise Zone Program
on the August 23, 2005 Council agenda be approved, in order to submit these nominations to the State by
the September 1 deadline for the current round of designations.
Charles R. Boswell
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS