HomeMy WebLinkAboutIR 10534 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10534
To the Mayor and Members of the City Council January 12, 2021
Page 1 of 2
s
*a SUBJECT: PARTICIPATION IN TAX ABATEMENT AUTHORIZED BY CHAPTER 312
r rn OF TEXAS TAX CODE AND ESTABLISHING A TAX ABATEMENT
1g7S
POLICY GOVERNING CERTAIN TAX ABATEMENT AGREEMENTS AND
AMEND ECONOMIC DEVELOPMENT PROGRAM AS AUTHORIZED BY
CHAPTER 380
A municipality may enter into tax abatement agreements authorized by Chapter 312 of the Texas
Tax Code ("Code") only if the governing body of the municipality has previously adopted a
resolution stating that the municipality elects to be eligible to participate in tax abatement and has
established guidelines and criteria governing tax abatement agreements ("Tax Abatement Policy"),
with such policy effective for two (2) years from the date of adoption.
On January 29, 2019, the City Council adopted Resolution No. 5040-01-2019 electing to be eligible
to participate in tax abatement in accordance with Chapter 312 of the Code, and adopted a Tax
Abatement Policy effective January 29, 2019 through January 28, 2021.
The adopted policy enhanced the tools available to the City and was developed, following
significant stakeholder engagement and research, to specifically address the Economic
Development Strategic Plan recommendation 4.2 Create new incentive tools to encourage
business growth within target industries and to facilitate development and redevelopment in
designated districts. The City Council accepted the Economic Development Strategic Plan (M&C
G-19192) on December 12, 2017.
The Tax Abatement Policy is effective through January 28, 2021 . Staff is recommending amending
the existing policy with four basic changes as follows:
1) Definition of Certified M/WBE Company to mirror the definitions included in the New
Business Equity Ordinance, Chapter 20, Article X, as approved by City Council November
17, 2020 (M&C 20-0841).
2) Revise the minimum average annual salary from $43,992 to $52,300, which remains 80% of
the City of Fort Worth Median Income. This change will impact the eligibility criteria in
Sections 3, 4 and 5 of the policy as found in the redlined version attached
3) Revise Section 8: Eligibility Requirements for Catalytic Development Projects to include
Urban Villages and identified Revitalization Areas in addition to the Designated Investment
Zones.
4) Revise Section 10: Eligibility for Redevelopment Projects on Central Business District
Surface Parking Lots to include areas of East Lancaster and Jacksboro Highway.
A redline of the policy with all proposed changes is attached.
Staff will place an M&C for City Council consideration on the January 26, 2021 agenda,
recommending that the City Council elect to be eligible to participate in tax abatement in
accordance with Chapter 312 of the Code, and adopt a Tax Abatement Policy effective January
29, 2021 through January 28, 2023.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10534
To the Mayor and Members of the City Council January 12, 2021
Page 2 of 2
s
*a SUBJECT: PARTICIPATION IN TAX ABATEMENT AUTHORIZED BY CHAPTER 312
r rn OF TEXAS TAX CODE AND ESTABLISHING A TAX ABATEMENT
1g7S
POLICY GOVERNING CERTAIN TAX ABATEMENT AGREEMENTS AND
AMEND ECONOMIC DEVELOPMENT PROGRAM AS AUTHORIZED BY
CHAPTER 380
Likewise, 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").
On January 29, 2019 the City Council adopted Resolution No. 5039-01-2019 to establish a more
detailed Economic Development Program under Chapter 380. On June 16, 2020, the Council
amended the program (Resolution No. 5241-06-2020). Staff is recommending that the changes
proposed for the Tax Abatement Policy be adopted in the Chapter 380 Economic Development
Program, as well as some revisions associated with clerical matters and/or clarification, and will
include a M&C for Council consideration on the January 26, 2021 agenda.
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
attachments
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
City of Fort Worth
General Tax Abatement Policy
Effective January 29,24P)-2021 through January 28,24242023
1. GENERAL PROVISIONS.
1.1. Purpose
Chapter 312 of the Texas Tax Code allows, but does not obligate or require, the City to
grant a Tax Abatement on the value added to a particular property on account of a specific
development project that meets the eligibility requirements set forth in this Policy. In order for
the City to participate in Tax Abatement, the City is required to establish guidelines and criteria
governing Tax Abatement Agreements. This Policy is intended to set forth those guidelines and
criteria for persons or entities interested in receiving a Tax Abatement from the City. This Policy
shall expire on January 28, 2024-3.
1.2. General Eligibility Criteria
A Tax Abatement can only be granted to persons or entities eligible for Tax Abatement
pursuant to Section 312.204(a) of the Texas Tax Code, which persons or entities as of the
effective date of this Policy must be (i) the owner of taxable real property located in a Tan
Abatement reinvestment zone; or(ii)the owner of a leasehold interest in real property located in
a Tan Abatement reinvestment zone. Although the City will consider all applications for Tax
Abatement that meet the eligibility requirements set forth in the associated Policy,it is especially
interested in supporting projects that are expected to produce a meaningful impact on the City
and its economy and that result in one or more of the following:
• Growth of business activity, employment, or investment in one of the City's identified
Target Industries;
• Creation of high-wage jobs;
• Significant Investment;
• Growth of business activity, employment, or investment in the Central Business District;
• Revitalization with likelihood of ancillary development in a key employment node or
specifically designated area of the city;
• Retention or expansion of an existing major employer; and
• Anchoring of a business expansion project with potential to generate additional supply
chain activity.
1.3. General Exclusions and Limitations
1.3.1. Lessees of Real Property
A person or entity seeking Tax Abatement on real property that is leased from a
third party should be advised that,pursuant to state law,unless the real property owner is
also a party to a Tan Abatement Agreement,the City can only abate taxes on the increased
value of the taxable leasehold interest in the real property,if any, and the increase in value
City of Fort Worth General Tax Abatement Policy
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of taxable improvements and Business Personal Property located on the real property and
subject to the leasehold interest, if any. Before applying for a Tax Abatement from the
City, such persons or entities should seek professional and legal guidance, and may wish
to consult with the appraisal district having jurisdiction over the property in question as
to whether their development projects will result in a taxable leasehold interest in the
property and, if so, the anticipated value of that leasehold interest.
1.3.2. Property Located in Neighborhood Empowerment Zones ("NEZs")
The City Council has designated certain distressed areas of the City needing
economic development and expanded public services as NEZs. Notwithstanding
anything that may be interpreted to the contrary, this Policy does not apply to property
located in a NEZ. A person or entity seeking Tan Abatement on property owned or leased
in a NEZ should refer to the Neighborhood Empowerment Zone Tan Abatement Policy,
adopted by the City Council pursuant to Resolution No. 4 792 05 20 75042-01-2019, as
may be amended or readopted.
1.3.3. Property Located in Tax Increment Reinvestment Zones ("TIFs")
The City Council has designated certain areas of the City as TIFs. This Policy
does apply to property located in a TIF. However, a person or entity seeking Tax
Abatement on property owned or leased in a TIF should be advised that state law requires
a TIF's board of directors and the governing bodies of all taxing jurisdictions contributing
tax increment revenue to a TIF to approve a City Tax Abatement Agreement on property
located in that TIF before the Agreement can take effect.
1.3.4. Property Located in Enterprise Zones
The State of Texas has designated certain areas of the City with high
unemployment as enterprise zones. Various economic development incentives are
available to owners of property located in enterprise zones. In accordance with state law,
all property located within an enterprise zone is automatically designated as a Tan
Abatement reinvestment zone. However, the City typically designates individual Tax
Abatement reinvestment zone overlays when it wishes to grant Tax Abatements on
property located in an enterprise zone.
2. DEFINITIONS
Capitalized terms used in this Policy but not defined elsewhere shall have the following
meanings:
Abatement or Tax Abatement - A full or partial exemption from ad valorem taxes on eligible taxable
real property and Business Personal Property located in a Reinvestment Zone for a specified period on
the difference between(i) the amount of increase in the appraised value (as reflected on the most recent
certified tax roll of the appropriate appraisal district) and (ii) the appraised value (as reflected on the
City of Fort Worth General Tax Abatement Policy
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certified tax roll of the appropriate county appraisal district for the year in which the Tax Abatement
Agreement was executed).
Abatement Benefit Term — The period of time specified in a Tax Abatement Agreement, but not to
exceed ten (10) years, that the recipient of a Tax Abatement may receive the Abatement.
Abatement Compliance Term — The period of time specified in a Tax Abatement Agreement during
which the recipient of a Tax Abatement must comply with the provisions and conditions of the Tax
Abatement Agreement and file an annual report with the City which outlines and documents the extent
of the recipient's compliance with such provisions and conditions.
Business Personal Property—Any taxable tangible personal property other than inventory and supplies
that(i)is subject to ad valorem taxation by the City; (ii)is located on the property subject to Abatement;
(iii) is owned or leased by the party to the Tax Abatement Agreement; and (iv) was not located in the
City prior to the effective date of the Tax Abatement Agreement.
Capital Investment — Expenditures for real property improvements such as, without limitation, new
facilities and structures, site improvements, infrastructure improvements, facility expansion, facility
modernization, and utility installation. Capital Investment does NOT include land acquisition costs or
the cost or value of any improvements existing on the property prior to the City Council's authorization
of execution of a Tax Abatement Agreement.
Catalytic Development—A development that meets the prerequisites set forth in Section 8.
Central Business District—A geographic area within the City,also referenced as Downtown,as defined
in the Fort Worth Comprehensive Plan.
Certified Minority-Owned Business Enterprise (MBE) — Those firms identified
by the (i)North American Industry Classification SystemNAICS) that(ii) have been determined to be
a bona fide MBE or WBE by the North Central Texas Regional Certification Agency (NCTRCA
Dallas/Fort Worth Minority Supplier Development Council (DFW/MSDC), Women's Business
Council-SW(WBCS), Texas Department of Transportation(TxDOT)or other certifying agency that the
City of Fort Worth Department of Diversity and Inclusion (DVIN) may deem appropriate and accepted
by the City of Fort Worth, and(iii)has a significant business presence in the marketplace.
woman owned bttsifiess that(i)has fveeived eeftifieatien as eithef:a fninef4y bttsiness enter-pfise(MBE),
within Taf:,aat Dallas, Denton, ohnso�r of Wise G,,,,,,ties.
Comprehensive Plan - The City of Fort Worth's official guide for making decisions about growth and
development. The Plan is a summary of the goals, objectives,policies,strategies,programs, and projects
that will enable the city to achieve its mission of focusing on the future,working together to build strong
neighborhoods, develop a sound economy, and provide a safe community.
Designated Investment Zone —The geographic area within the City containing those census tracts (i)
that are eligible for community development block grants (CDBG), as defined and determined by the
City of Fort Worth General Tax Abatement Policy
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United States Department of Housing and Urban Development (HUD), meaning that fifty-one percent
(51%)or more of residents have low to moderate incomes and(ii)those census tracts that have a poverty
rate of 20% of higher, as shown in the map of Exhibit"A" of this Policy.
Existing Business — A business that was operating within the corporate limits of the City prior to the
effective date of this Policy.
Investment—The aggregate of Capital Investment and Personal Property Investment.
Marketplace - The geographic area as defined by the City's most current Disparity Study and includes
the City of Fort Worth, including portions of Parker, Wise and Denton counties, and all of Tarrant,
Dallas, and Johnson counties. Additionally, the City may recognize other counties like Collin within a
100-mile radius from 200 Texas Street, Fort Worth, Texas 76102 on a case by case basis when
contractors located within those counties can prove they have done business in the City of Fort Worth.
Mega Project-A project meeting the prerequisites set forth in Section 6.
Mixed-Use Development Project — A development project in which a facility or facilities will be
constructed or renovated such that (i) at least twenty percent (20%) of the total gross floor area will be
used as residential space and (ii) at least ten percent (10%) of the total gross floor area will be used for
office,restaurant, entertainment and/or retail sales and service space. In the event that all or any portion
of the residential space is rental (i.e. apartments), there must be at least fifty (50)units.
Personal Property Investment— The value of Business Personal Property installed on a development
site by a date certain, as determined solely by the appraisal district having jurisdiction over the
development site.
Dallas,personnel to pr-evide the pr-edttet or- serviee of the btisiness to eliefits in the City Wi
Denton, johnsen,
Paf:kef and Wise Gettati
Reinvestment Zone — An area designated by the City as a Tax Abatement reinvestment zone in
accordance with Chapter 312 of the Texas Tax Code.
Salary — A cash payment or remuneration made to a full-time employee, including paid time off,
commissions, and non-discretionary bonuses. A Salary does not include any benefits, such as health
insurance or retirement contributions by the employer, reimbursements for employee expenses, or any
discretionary bonuses.
Significant Business Presence - A business which has its principal place of business outside the
Marketplace and a location within the Marketplace that has been verified to be in existence for a
minimum of 24 months and from which (1) at least 20% of the business's workforce is based in the
Marketplace and(2) provides a Commercially Useful Function that is significant to a specific project. A
post office box, mail drop, or telephone message center or any combination thereof, with no other
substantial work function, shall not be construed to constitute a Significant Business Presence.
City of Fort Worth General Tax Abatement Policy
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Target Industry-A business providing services in the sectors specifically identified in Section 4.
Tax Abatement Agreement- A written Agreement that the recipient of a Tax Abatement must enter
into with the City that outlines the specific terms and conditions pertaining to and governing the Tax
Abatement.
Technology Company - A company working in an industry with a high concentrations of workers in
STEM (Science, Technology, Engineering, and Mathematics) occupations, including, but not limited to,
design,prototype development and testing,preliminary manufacturing and product marketing.
Transit Oriented Development - A Mixed-Use Development located within one-half mile of a
commuter rail line station and in which all buildings will be at least 3 stories in height.
3. ELIGIBILITY CRITERIA FOR GENERAL PROJECTS.
Unless a project meets one of the other minimum eligibility criteria set forth in Sections 4-10
below, in order to be considered for Tax Abatement, a project must commit to a minimum Investment
of at least$25 million and creation of new full-time jobs with certain minimum annual average employee
Salary levels. The table below establishes the maximum percentage of Abatement that w41--mU_be
available to general projects based on minimum Investment and employment and annual average
employee Salary levels:
Minimum Investment Level and Corresponding Minimum Annual Average Salaries
Maximum Tax
Abatement $70 Million $55 Million $40 Million $25 Million
Percentage Investment Investment Investment Investment
20% $43,992-$58,551
30% $58,552-$73,111 $58,552-$73,111
40% $73,112-$87,671 $73,112-$87,671 $73,112-$87,671
50% $87,672 or above $87,672 or above 1 $87,672 or above 1 $87,672 or above
Minimum Annual Average Wage Rate and Minimum Investment Level
Base Tax
Abatement $70 Million $55 Million $40 Million $25 Million
Percentage Investment Investment Investment Investment
20% $52,300-$65,799
30% $65,800-$80,389 $65,800-580,389
40% $80,390-$94,949 $80,390-$94,949 $80,390 -$94,949
50% $94,950 or above $94,950 or a bove $94,950 or a bove $94,950 or a Bove
As reflected in this table, a general project that commits to annual average annual Salary levels of
less than $ 94,950 (but not less than $4319252,300) will be considered for Abatement only if the
project commits to higher minimum levels of Investment, but only at lower maximum percentages of
Abatement, depending on the Salary commitments that are made.
City of Fort Worth General Tax Abatement Policy
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In general,the City of Fort Worth will consider the following lengths of time for Tax Abatements
for general projects that are not otherwise covered in Sections 4-10:
Maximum
Abatement
Term Parameters
3-5 years Less than$50 Million Invested or Less than 250 Jobs
5-7 years $50+Million or 250+Jobs
7-9 years $75+Million Invested or 350+Jobs
10 years $100+Million Invested or 500+jobs
4. ELIGIBILITY REOUIREMENTS FOR TARGET INDUSTRY PROJECTS.
The City is particularly interested in developing certain target industries (each defined herein as
a "Target Industry"), whose presence the City has determined especially will help strengthen and
diversify the City's economy:
Established Sectors Emerging Sectors
• Transportation and warehousing • Transportation innovation
• Manufacturing • Life sciences delivery and innovation
• Healthcare • Geotechnical engineering
• Oil and gas • International business
• Tourism • Corporate and regional headquarters
• Professional services
• Financial services
• Aerospace Manufacturing and design
In order to be considered for Tax Abatement, a Target Industry project must commit to a
minimum Investment of at least $25 million and creation of new full-time jobs with certain minimum
annual average employee Salary levels. The table below establishes the maximum percentage of
Abatement that will be available to general projects based on minimum Investment and employment and
annual average employee Salary levels:
Minimum Annual Average Wage Rate and Minimum Investment Level
Base Tax
Abatement $70 Million $55 Million $40 Million $25 Million
Percentage Investment Investment Investment Investment
40% $43,992- $58,551
50% $58,552- $73,111 $58,552 -$73,111
60% $73,112- $87,671 $73,112 -$87,671 $73,112-$87,671
70% $87,672 or above $87,672 or above 1 $87,672 or above 1 $87,672 or a Bove
City of Fort Worth General Tax Abatement Policy
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Minimum Annual Average Wage Rate and Minimum Investment Level
Base Tax
Abatement $70 Million $55 Million $40 Million $25 Million
Percentage Investment Investment Investment Investment
40% $52,300-$65,799
50% $65,800-$80,389 $65,800-$80,389
60% $80,390-$94,949 $80,390-$94,949 $80,390-$94,949
70% $94,950 or above $94,950 or above $94,950 or above I $94,950 or above
As reflected in this table, a general project that commits to annual average annual Salary levels of
less than $87,67 (but not less than $43,99252,300) will be considered for Abatement only if the
project commits to higher minimum levels of Investment, but only at lower maximum percentages of
Abatement, depending on the Salary commitments that are made. The difference in the eligibility criteria
between general projects under Section 3 and Target Industry projects under this Section 4 is that the
maximum percentage of Abatement available for Target Industry projects is 70%instead of 50%.
5. ELIGIBILITY REQUIREMENTS FOR EXISTING BUSINESS EXPANSION
PROJECTS.
The City wants to support the growth of business already located in the City. In order to be
considered for Tax Abatement, an Existing Business expansion project must commit to a minimum
Investment of at least$10 million and creation of at least 25 new full-time jobs with a minimum annual
average employee Salary level of$43,99252,300.
Any Existing Business expansion project will be considered for Tax Abatement at an Abatement
percentage not to exceed 85%.
6. ELIGIBILITY REQUIREMENTS FOR MEGA PROJECTS.
A "Mega Project" can be within any industry However, the City of Fort Worth is especially
interested in Fortune 1,000, Fortune Global 500, or Inc. 5000 designated firms, pursing development or
redevelopment opportunities within the City. Projects granted this designation must commit to at least one
of the following (with the exception of data centers or other unique low employment/high capital
investment projects which must have a minimum investment of$50 million):
• Commit to a minimum Investment of at least$250 million; or
• Commit to hire at least 1,500 full-time employees; or
• Commit to a minimum annual payroll of at least$150 million.
A Mega Project will be considered for Tan Abatement at an Abatement percentage not to exceed
85%.
7. ELIGIBILITY REQUIREMENTS FOR TECHNOLOGY COMPANY PROJECTS.
City of Fort Worth General Tax Abatement Policy
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The City wishes to encourage and promote the development of technology businesses. In order to
be considered for Tax Abatement, a Technology Company project must employ at least 5 individuals.
Incentives delivered to a Technology Company may include abatement that equals one of the following:
• Up to 80%of net new real property taxes on owned or leased facilities for up to 5 years; or
• Up to 80%of net new Business Personal Property taxes for up to 5 years.
8. ELIGIBILITY REQUIREMENTS FOR CATALYTIC DEVELOPMENT PROJECTS.
A"Catalytic Development Project" is a business project that:
• will be located within either a Designated Investment Zones Urban Village, or identified
Revitalization Target Areas, depicted in Exhibits"A", "B" and"C",respectively,
• commits to at least$5 million in Investment; and
• complies with at least one of the following requirements:
o will be a Mixed-Use Development;
o will fill a gap, such as a grocery store in a food desert or a childcare facility, as
determined by City staff based on goals set forth in the City's then-current
Comprehensive Plan or other statistical data or relevant documentation;
o will be located along a commercial corridor or within an urban village,as identified
in the City's then-current Comprehensive Plan;
o Generates significant job opportunities in the area,as determined by City staff based
on then-current employment data; or
o Helps create a hub of entrepreneurial activity, positioning the City to attract
entrepreneurs and high-growth companies, as determined by City staff based on
goals and recommendations set forth in the City's Economic Development Strategic
Plan, the City's then-current Comprehensive Plan, or on other statistical data or
relevant documentation.
Notwithstanding the foregoing, a Mixed-Use Development that commits to at least $5
million in Investment and whose residential component comprises rental units(i.e. apartments)that
meet the affordable housing commitments set forth in Section 11.2 will be considered as a
"Catalytic Project" eligible for Tax Abatement even if it is located outside of a Designated
Improvement Zone.
All Catalytic Projects will be eligible for consideration for Tax Abatement. The maximum
percentage of Abatement available for a Catalytic Development Project will be 80%of incremental
real property and Business Personal Property tan.
9. ELIGIBILITY REQUIREMENTS FOR TRANSIT ORIENTED DEVELOPMENTS.
City of Fort Worth General Tax Abatement Policy
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The City encourages and supports the construction of Transit Oriented Developments. In order
to be considered for Tax Abatement, a Transit Oriented Development project must commit to at least$5
million in Investment. The maximum percentage of Abatement available for a Transit Oriented
Development project will be 50% of incremental real property and Business Personal Property taxes for
a maximum term of 7 years.
10. ELIGIBILITY FOR REDEVELOPMENT PROJECTS ON CENTRAL BUSINESS
DISTRICT SURFACE PARKING LOTS.
The City encourages and supports redevelopment of surface parking lots in the Central Business
District and its major arterial roads of East Lancaster and Jacksboro Highway with buildings that will
support compatible businesses in the Central Business District and associated commercial corridors. In
order to be considered for Tax Abatement, a project must redevelop a surface parking lot in the Central
Business District that occupies at least 30% of the area of the City block on which it is located. The
maximum percentage of Abatement available for a Central Business District surface parking lot
redevelopment project is 40% for a maximum term of 5 years; provided, however, that if the
redevelopment project involves two or more surface parking lots owned by unrelated parties, the
maximum percentage of Abatement available for the project will be 45%.
11. ADDITIONAL TAX ABATEMENT REQUIREMENTS.
11.1 Commitment for Utilization of Certified M/-VV-BE Companies.
All projects subject to Tax Abatement must make a commitment to utilize Certified
M/-WBE Companies for a minimum of 15% of all construction costs (both hard and soft)
associated with the project. Failure to meet the goal will result in a reduction of the overall
percentage of Abatement available under the Tax Abatement Agreement of 10%.
11.2. Affordable Housing Commitment for Mixed-Use Development Proiects.
All Mixed-Use Development Projects subject to Tax Abatement that contain rental
residential units must make a commitment to provide affordable housing as follows:
• At least 10% of all rental residential units must be set aside exclusively for lease
to qualifying households whose adjusted incomes do not exceed the then-current
eighty percent (80%) income limits established by HUD at rents that are
affordable to such households.
• At least 10% of all rental residential units must be set aside exclusively for lease
to qualifying households whose adjusted incomes do not exceed the then-current
sixty percent(60%)income limits established by HUD at rents that are affordable
to such households.
City of Fort Worth General Tax Abatement Policy
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12. TAX ABATEMENT CALCULATION.
12.1. Improvements Required.
All Tax Abatement Agreements shall require the recipient to construct or cause
construction of specific improvements on the real property that is subject to the Abatement.
Failure to construct these specific improvements at the minimum Capital Investment expenditure
and by the deadline established in the Tax Abatement Agreement will constitute an event of
default and give the City the right to terminate the Tan Abatement Agreement.
12.2. Percentage and Amount.
Although this Policy establishes the maximum percentage of Abatement that may be
available for a particular type of project, the specific amount of a particular Tax Abatement shall
be negotiated on a case-by-case basis and may be less than the maximum available percentage
specified in this Policy,based,without limitation, on the review criteria set forth in Section 14.3.
The calculation of Tax Abatement for any project that meets the requirements of this Policy shall
be negotiated on a case-by-case basis and governed solely by the terms and conditions of the Tax
Abatement Agreement.
13. TAX ABATEMENT IMPLEMENTATION
13.1. Term.
Although this Policy establishes the maximum term of Abatement that may be available
to certain types of projects,the actual term of a Tax Abatement shall be negotiated on a case-by-
case basis and may be less than the maximum available term specified in this Policy, based on
the review criteria set forth in Section 14.3.
13.2. Compliance.
The City will review and determine the recipient's compliance with the terms and
conditions of the Tax Abatement Agreement in each year of the Abatement Compliance Term.
The first year of the Abatement Compliance Term shall be either the calendar year in which the
recipient achieved all Investment required by the Tax Abatement Agreement or the following
calendar year, as negotiated and set forth in the Tax Abatement Agreement. Tax Abatements
will be provided for the tax years comprising the Abatement Benefit Term,with the first such tax
year occurring in the year following the first year of the Abatement Compliance Term. In other
words, the degree to which the recipient meets the commitments set forth in the Tax Abatement
Agreement will determine the percentage of taxes abated for the following tax year. The City
will continue to review and determine the recipient's compliance with the terms and conditions
of the Tax Abatement Agreement for each subsequent calendar year,which findings shall govern
the percentage of taxes abated for the following tax year, until expiration of the Tax Abatement
Agreement.
City of Fort Worth General Tax Abatement Policy
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14. TAX ABATEMENT APPLICATION PROCEDURES
Each Tax Abatement application shall be processed in accordance with the following standards
and procedures:
14.1. Submission of Application
If a given development project qualifies for Tan Abatement pursuant to the eligibility
criteria detailed in of this Policy, an applicant for Tan Abatement must complete and submit a
City of Fort Worth Tax Abatement Application(with required attachments)(the"Application").
An Application can be obtained from and must be submitted to the City's Economic
Development Department. In order to be complete, the Application must include documentation
that there are no delinquent property taxes due for the property on which the development project
is to occur. In addition, projects that include, in whole or in part, the renovation of one or more
existing structures shall provide, as part of the applicant's Tax Abatement Application, a detailed
description and the estimated costs of the renovations contemplated.
14.2. Application Fee
Upon submission of the Application, an applicant must also pay an application fee. This
application fee shall be $5,000 ("Application Fee") of which $3,000 will be credited to any
permit, impact, inspection or other fee paid by the applicant and required by the City directly in
connection with the proposed project, as long as substantive construction on the project, as
determined by the City in its sole and reasonable discretion,has been undertaken on the property
specified in the Application within one (1) year following the date of its submission.
If any Application Fee funds are remaining after the development project covered in the
Application has been completed in accordance with the Tax Abatement Agreement,the applicant
must submit a letter to the director of the City's Economic Development Department requesting
a refund of the remaining funds. The request must be made within ninety (90) days following
the date of the project's completion date. Any Application fees remaining after ninety(90)days
following the project's completion date will become the property of the City and will not be
eligible for. The remaining $2,000 of the Application Fee is non-refundable and will be utilized
for City staff expenses associated with processing the Application and fees associated with legal
notice requirements.
14.3. Application Review and Evaluation
The Economic Development Department will review an Application for accuracy and
completeness. Once complete, the Economic Development Department will evaluate an
Application based on the perceived merit and value of the project, including the guidelines
established by this Policy as well as,without limitation, the following criteria:
• Types and number of new jobs created, including: respective Salaries and employee
benefits packages, such as health insurance, day care provisions, retirement packages,
transportation assistance, employer-sponsored training and education, any other benefits
City of Fort Worth General Tax Abatement Policy
Page 11 of 17
and whether all benefits are offered on an equal and non-discriminatory basis to all
employees;
• Percentage of Capital Investment committed to local companies, including Certified
M/WBE Companies;
• Financial viability of the project;
• The project's reasonably projected increase in the value of the tax base;
• Costs to the City (such as infrastructure participation, etc.);
• Remediation of an existing environmental problem on the real property;
• Type of industry and activities associated at the project site;
• If the company is foreign owned and/or includes Capital Investment sources from outside
the United States; and
• Any other items that the City may determine to be relevant with respect to the project.
14.4. Consideration by the City Council
The City Council retains sole authority to approve or deny any Tan Abatement Agreement
and is under no obligation to approve any Application or Tan Abatement Agreement.
15. GENERAL POLICIES AND REQUIREMENTS
Notwithstanding anything that may be interpreted to the contrary herein, the following general
terms and conditions shall govern this Policy:
15.1. A Tan Abatement shall not be granted for any development project in which a building
permit application has been filed with the City's Planning and Development Department. In
addition, the City will not abate taxes on the value of real or Business Personal Property for any
period of time prior to the year of execution of a Tax Abatement Agreement with the City.
15.2. The applicant for a Tan Abatement must provide evidence to the City that demonstrates
that a Tan Abatement is necessary for the financial viability of the development project proposed.
15.3. The City will not abate taxes levied on inventory, supplies or the existing tax base.
15.4. An applicant for Tax Abatement shall provide Salary and employee benefit information
for all positions of employment to be located in any facility covered by the Application as well
as a copy of the applicant's written non-discrimination policy applicable to the applicant's
employees.
City of Fort Worth General Tax Abatement Policy
Page 12 of 17
15.5. Unless otherwise specified in the Tax Abatement Agreement,the amount of real property
taxes to be abated in a given year shall not exceed one hundred fifty percent(150%)of the amount
of the minimum Capital Investment expenditure required by the Tax Abatement Agreement for
improvements to the real property subject to Abatement multiplied by the City's tax rate in effect
for that same year, and the amount of Business Personal Property taxes to be abated in a given
year shall not exceed one hundred fifty percent (150%) of the minimum value of Business
Personal Property required by the Tax Abatement Agreement to be located on the real property,
if any, subject to Abatement multiplied by the City's tax rate in effect for that same year.
15.6. The owner of real property and/or Business Personal Property for which a Tax Abatement
has been granted shall properly maintain the property to assure the long-term economic viability
of the project.
15.7. If the recipient of a Tax Abatement breaches any of the terms or conditions of the Tan
Abatement Agreement and fails to cure such breach in accordance with the Tan Abatement
Agreement, the City shall have the right to terminate the Tan Abatement Agreement. In this
event, the recipient will be required to pay the City any property taxes that were abated pursuant
to the Tan Abatement Agreement prior to its termination.
15.8. As part of the consideration under all Tan Abatement Agreements, the City shall have,
without limitation, the right to (i) review and verify the applicant's financial statements and
records related to the development project and the Abatement in each year during the term of the
Tax Abatement Agreement prior to the granting of a Tax Abatement in any given year and (ii)
conduct an on-site inspection of the development project in each year during the term of the Tan
Abatement to verify compliance with the terms and conditions of the Tan Abatement Agreement.
Any incidents of non-compliance will be reported to all taxing units with jurisdiction over the
real property subject to Abatement.
15.9. The recipient of a Tan Abatement may sell, assign, transfer, or otherwise convey any of
its rights under a Tan Abatement Agreement to an affiliate of the recipient, as defined in the Tax
Abatement Agreement, or as security to a lender of the recipient, provided that the City, the
assignor, and the assignee each execute a document acceptable to the City that outlines the roles
and responsibilities of the parties in that event. Otherwise, a recipient of a Tax Abatement may
not sell, assign, transfer or otherwise convey its rights under a Tax Abatement Agreement unless
specifically approved by the City Council. A sale, assignment, lease, transfer or conveyance of
the real property that is subject to the Abatement and which is not permitted by the Tan
Abatement Agreement shall constitute a breach of the Tan Abatement Agreement and may result
in termination of the Tan Abatement Agreement and recapture of any taxes abated after the date
on which the breach occurred. For additional information about this Tax Abatement Policy,
contact the City of Fort Worth's Economic Development Department using the information
below:
City of Fort Worth General Tax Abatement Policy
Page 13 of 17
City of Fort Worth
Economic Development
1150 South Freeway
Fort Worth, Texas 76104
817-392-6021 1 www.fortworthtexas.gov/ecodev
City of Fort Worth General Tax Abatement Policy
Page 14 of 17
Exhibit "A"
DESIGNATED INVESTMENT ZONES
114
® 114
67 1
170
114
114
81 121
199 77
fio
26 121
199 121
77 26 121
10
183
121.
199 1 y
I
��L 180
87
03
77 60
183
�J
87
•+.-.:
y 60
77
87
77
Copyright 2020 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws. This products of
for informational purposes and may not have been prepared for or be suitable for legal, engineering, or
surveying purposes. It does not represent an on-the-ground survey and represents on the approximate relative
location of property boundaries.The City of Fort Worth assumes no responsibility for the accuracy of said data.
City of Fort Worth General Tax Abatement Policy
Page 15 of 17
Exhibit `B"
URBAN VILLAGES
� 77
26 12
183
Historic Marine 121
199
_
183 Six P,oints
West Seventh
r Near East Side
Oakland Corners
South Main
r
-Ma nolia PolytechniclWesleyan Historic Handley
g' Evans&Rosedale ��
Ridglea
87 q
BerrylUniversity
BerrylRiverside Lake ArlingtonlBerrylStalcup
Bluebonnet Circle
Hemphill/Berry
183
87
Copyright 2020 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws.This products of
for informational purposes and may not have been prepared for or be suitable for legal, engineering, or
surveying purposes. It does not represent an on-the-ground survey and represents on the approximate relative
location of property boundaries.The City of Fort Worth assumes no responsibility for the accuracy of said data.
City of Fort Worth General Tax Abatement Policy
Page 16 of 17
Exhibit "C"
REVITALIZATION TARGET AREAS
t
77 26 121
183
199 Near Northside 121
183
L� t
East Lancaster
t Evans and Ramos ±,We_slayanl Poly Historle Handley
Rosedale and Riverside
80 West Camp BovAe I
Como/Horne Street 87
Stop Slx '
: 1
77 ;
183
� r
87
J r
Altamesa and McCart
lip
Copyright 2020 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws.This products of
for informational purposes and may not have been prepared for or be suitable for legal, engineering, or
surveying purposes. It does not represent an on-the-ground survey and represents on the approximate relative
location of property boundaries.The City of Fort Worth assumes no responsibility for the accuracy of said data.
City of Fort Worth General Tax Abatement Policy
Page 17 of 17
City of Fort Worth
Economic Development Program Policy
for Grants Authorized by Chapter 380,
Texas Local Government Code
Effective January''O�T26.2021
1. GENERAL PROVISIONS.
1.1. Purpose
Chapter 380 of the Texas Local Government Code authorizes the City Council to
establish and provide for the administration of one or more programs,including programs for the
making of loans and grants of public money and providing personnel and services of the City, to
promote economic development. This Policy is intended to establish a program and set forth
guidelines and criteria for persons or entities interested in receiving economic development
program grants or loans (collectively, "380 Grants") from the City pursuant to Chapter 380 of
the Texas Local Government Code (the "Grant Program"). This Economic Development
Program Policy ("Policy") supersedes the Policy adopted by City Council on January 29, 2019
(Resolution 5039-01-2019), as amended on June 16, 2020 (Resolution No. 5241-06-2020).
1.2. General Eligibility Criteria
The terms and conditions of any 380 Grant will be set forth in an Economic Development
Program Agreement that must be negotiated and executed by both the City and the applicant or
an affiliate of the applicant (an "Economic Development Program Agreement"). Although
the City will consider all applications for the 380 Grants that meet the eligibility requirements
set forth in the associated Policy,it is especially interested in supporting projects that are expected
to produce a meaningful impact on the City and its economy and that result in one or more of the
following:
• Growth of business activity, employment, or investment in one of the City's identified
Target Industries;
• Creation of high-wage jobs;
• Significant Investment;
• Growth of business activity, employment, or Investment in the Central Business District;
• Revitalization with likelihood of ancillary development in a key employment node or
specifically designated area of the city;
• Retention or expansion of an existing major employer; and
• Anchoring of a business expansion project with potential to generate additional supply
chain activity.
City of Fort Worth 380 Grant Policy
Page 1 of 24
2. DEFINITIONS
Capitalized terms used in this Policy but not defined elsewhere shall have the following
meanings:
380 Grant Term — The period of time specified in an Economic Development Program Agreement in
which a party may receive annual 380 Grants, not to exceed a total of fifteen(15) years.
Business Personal Property--Any taxable tangible personal property other than inventory and supplies
that(i)is subject to ad valorem taxation by the City; (ii)is located on the property subject to an Economic
Development Program Agreement; (iii) is owned or leased by the party to the Economic Development
Program Agreement; and (iv) was not located in the City prior to the effective date of the Economic
Development Program Agreement.
Capital Investment - Expenditures for real property improvements such as, without limitation, new
facilities and structures, site improvements, infrastructure improvements, facility expansion, facility
modernization, and utility installation. Capital Investment does NOT include land acquisition costs or
the cost or value of any improvements existing on the property prior to the City Council's authorization
of execution of an Economic Development Program Agreement.
Catalytic Development—A development that meets the prerequisites set forth in Section 10.
Central Business District—A geographic area within the City,also referenced as Downtown, as defined
in the Fort Worth Comprehensive Plan.
Certified Minority-Owned Business Enterprise (MBE) — Those firms identified by the (i) North
American Industry Classification SystemNAICS)that(ii) have been determined to be a bona fide MBE
or WBE by the North Central Texas Regional Certification Agency NCTRCA), the Dallas/Fort Worth
Minority Supplier Development Council (DFW/MSDC), Women's Business Council-SW (WBCS),
Texas Department of Transportation (TxDOT) or other certifying agency that the City of Fort Worth
Department of Diversity and Inclusion (DVIN) may deem appropriate and accepted by the City of Fort
Worth, and (iii)has a significant business presence in the marketplace. Certified A4AV9E Company
Dallas,A aiiner4y of: woman owned bttsiness that (i) has r-eeeived eei4ifieatien as either- a fniner4y bttsiness
Denton,
Comprehensive Plan - The City of Fort Worth's official guide for making decisions about growth and
development. The Plan is a summary of the goals, objectives,policies,strategies,programs, and projects
City of Fort Worth 380 Grant Policy
Page 2 of 24
that will enable the city to achieve its mission of focusing on the future,working together to build strong
neighborhoods, develop a sound economy, and provide a safe community.
Designated Investment Zone —The geographic area within the City containing those census tracts (i)
that are eligible for community development block grants (CDBG), as defined and determined by the
United States Department of Housing and Urban Development (HUD), meaning that fifty-one percent
(51%)or more of residents have low to moderate incomes and(ii)those census tracts that have a poverty
rate of 20% of higher, as shown in the map of Exhibit"A" of this Policy.
Existing Business — A business that was operating within the corporate limits of the City prior to the
effective date of this Policy.
Innovation District— Geographic areas where leading-edge anchor institutions and companies cluster
and connect with start-ups, business incubators, and accelerators that are, physically compact, transit-
accessible, and technically-wired and offer mixed-use housing, office, and retail.
Investment—The aggregate of Capital Investment and Personal Property Investment_
Marketplace - The geographic area as defined by the City's most current Disparity Study and includes
the City of Fort Worth, including portions of Parker, Wise and Denton counties, and all of Tarrant,
Dallas, and Johnson counties. Additionally, the City may recognize other counties like Collin within a
100-mile radius from 200 Texas Street, Fort Worth, Texas 76102 on a case by case basis when
contractors located within those counties can prove they have done business in the City of Fort Worth.
Mega Project-A project meeting the prerequisites set forth in Section 8.
Mixed-Use Development Project — A development project in which a facility or facilities will be
constructed or renovated such that (i) at least twenty percent (20%) of the total gross floor area will be
used as residential space and (ii) at least ten percent (10%) of the total gross floor area will be used for
office,restaurant, entertainment and/or retail sales and service space. In the event that all or any portion
of the residential space is rental (i.e. apartments), there must be at least fifty (50)units.
Personal Property Investment— The value of Business Personal Property installed on a development
site by a date certain, as determined solely by the appraisal district having jurisdiction over the
development site.
Program Cap —The maximum amount of 380 Grant award available over the term of 380 Grant Term.
City of Fort Worth 380 Grant Policy
Page 3 of 24
Qualified Expenses — Those expenses classified as qualified expenses under Internal Revenue Code
Section 41 (the Research and Experimentation Tax Credit) and any other expenses identified and agreed
to by the City in an Economic Development Program Agreement as direct expenses for utility patent
generation, technology commercialization, or spinoff incubation costs.
Salary — A cash payment or remuneration made to a full-time employee, including paid time off,
commissions, and non-discretionary bonuses. A Salary does not include any benefits, such as health
insurance or retirement contributions by the employer, reimbursements for employee expenses, or any
discretionary bonuses.
Significant Business Presence - A business which has its principal place of business outside the
Marketplace and a location within the Marketplace that has been verified to be in existence for a
minimum of 24 months and from which (1) at least 20% of the business's workforce is based in the
Marketplace and 2)provides a Commercially Useful Function that is significant to a specific project. A
post office box, mail drop, or telephone message center or any combination thereof, with no other
substantial work function, shall not be construed to constitute a Significant Business Presence.
Target Industry—A business providing services in the sectors specifically identified in Section 4.
Technology Company — A company working in an industry with a high concentrations of workers in
STEM (Science, Technology, Engineering, and Mathematics) occupations, including, but not limited to,
design,prototype development and testing,preliminary manufacturing and product marketing.
Transit Oriented Development - A Mixed-Use Development located within one-half mile of a
commuter rail line station and in which all buildings will be at least 3 stories in height.
3. ELIGIBILITY CRITERIA FOR GENERAL PROJECTS.
Unless a project meets one of the other minimum eligibility criteria set forth in Sections 4-13
below, in order to be considered for a 380 Grant, a project must commit to a minimum Investment of at
least $25 million and creation of new full-time jobs with certain minimum annual average employee
Salary levels. The amount of a 380 Grant will be based on a percentage of annual tax revenues that the
City receives in a particular year, including ad valorem taxes on real property, ad valorem taxes on
Business Personal Property, local sales taxes directly attributable to the project, or some combination
thereof. The table below establishes the maximum percentage of annual tax revenues on which 380
Grants to general projects may basedbe eligible, in correlation with minimum Investment and
employment and annual average employee Salary levels:
Minimum Investment Level and Corresponding Minimum Annual Average Salaries
Maximum Tax
Revenue $70 Million $55 Million $40 Million $25 Million
Percentage Investment Investment Investment Investment
20% $43,992-$58,551
—ity3lilonu or rran of
o $58,552- 73,111 $58,552-$73,111
40% $73,112-$87,671 $73,112-$87,671 $73,112-$87,671
50% $87,672 or above $87,672 or above $87,672 or above 1 $87,672 or above
Minimum Annual Average Wage Rate and Minimum Investment Level
Base Tax
Abatement $70 Million $55 Million $40 Million $25 Million
Percentage Investment Investment Investment Investment
20% $52,300-$65,799
30% $65,800-$80,389 $65,800-580,389
40% $80,390-$94,949 $80,390-$94,949 $80,390-$94,94qq1.
50% $94,950 or above $94,950 or above $94,950 or abov
As reflected in this table, a general project that commits to annual average annual Salary levels of
less than $ 94,950 (but not less than $4339252,300) will be considered for 380 Grants only if the
project commits to higher minimum levels of Investment, but only at lower amounts, depending on the
Salary commitments that are made.
In general, the City of Fort Worth will consider the following lengths of time for 380 Grants for
general projects that are not otherwise covered in Sections 4-13:
Maximum Grant
Term Parameters
3-5 years Less than$50 Million Invested or Less than 250 Jobs
5-7 years $50+Million or 250+Jobs
7-9 years $75+Million Invested or 350+Jobs
10 years $100+Million Invested or 500+jobs
4. ELIGIBILITY REQUIREMENTS FOR TARGET INDUSTRY PROJECTS.
The City is particularly interested in developing certain target industries (each defined herein as
a "Target Industry"), whose presence the City has determined especially will help strengthen and
diversify the City's economy:
Established Sectors Emerging Sectors
• Transportation and warehousing • Transportation innovation
• Manufacturing • Life sciences delivery and innovation
City of Fort Worth 380 Grant Policy
Page 5 of 24
• Healthcare • Geotechnical engineering
• Oil and gas • International business
• Tourism • Corporate and regional headquarters
• Professional services
• Financial services
• Aerospace Manufacturing and design
In order to be considered for a 380 Grant, unless the applicant meets the criteria specified in
Section 5, a Target Industry project must commit to a minimum Investment of at least $25 million and
creation of new full-time jobs with certain minimum annual average employee Salary levels. The
amount of a 380 Grant will be based on a percentage of annual tax revenues that the City receives in a
particular year, including ad valorem taxes on real property, ad valorem taxes on Business Personal
Property, local sales taxes directly attributable to the project, or some combination thereof. The table
below establishes the maximum percentage of annual tax revenues on which 380 Grants to general
projects will be based, in correlation with minimum Investment and employment and annual average
employee Salary levels:
Minimum Investment Level and Corresponding Minimum Annual Average Salaries
Maximum Tax
Revenue $70 Million $55 Million $40 Million $25 Million
Percentage Investment Investment Investment Investment
40% $43,992-$58,551
50% $58,552-$73,111 $58,552-$73,111
60% $73,112-$87,671 $73,112-$87,671 $73,112-$87,671
70% $87,672 or above 87 672 or above $87,672orabove 87 672 or above
Minimum Annual Average Wage Rate and Minimum Investment Level
Base Tax
Abatement $70 Million $55 Million $40 Million $25 Million
Percentage Investment Investment Investment Investment
40% $52,300-$65,799
50% $65,800-$80,389 $65,800-$80,389
60% $80,390-$94,949 $80,390-$94,949 $80,390-$94,949
70% $94,950 or above $94,950 or above $94,950 or above I $94,950 or above
As reflected in this table, a general project that commits to annual average annual Salary levels of
less than $97,67 Z94.950 (but not less than $43,99252,300) will be considered for 380 Grants only if the
project commits to higher minimum levels of Investment, but only at lower amounts, depending on the
Salary commitments that are made. The difference in the eligibility criteria between general projects under
Section 3 and Target Industry projects under this Section 4 is that the maximum 380 Grant amount
available for Target Industry projects is equal to 70% of the designated tax revenues instead of 50%.
City of Fort Worth 380 Grant Policy
Page 6 of 24
5. ELIGIBILITY REQUIREMENTS FOR CERTAIN TARGET INDUSTRY PROJECTS IN
THE CENTRAL BUSINESS DISTRICT.
Applicants in Target Industries that locate in the Central Business District (the "CBD TI
Businesses") are eligible to be considered for if i) the applicant agrees to maintain a minimum of 50
permanent full-time employees at the proposed site of business,ii)the Salaries associated with the positions
are a minimum of$54,876 annually, and iii)the project is that of an Existing Business or a relocation from
outside the Dallas-Fort Worth Metropolitan Statistical Area. If the CDB TI Business does not own the real
property on which the project will be located, the Economic Development Program Agreement may
include the owner of the property to be occupied by the CBD TI Business,but in all cases will include the
CBD TI Business as a party and be subject to certain performance commitments attributable to the CBD
TI Tenant.
If the CBD TI Business locates its project in an existing building in the Central Business District,
the maximum amount of the 380 Grants will equal:
• Up to 80% of the CBD TI Business's incremental Business Personal Property taxes for a
maximum of15 years; or
• Up to 80% of the CBD TI Business's incremental real property taxes in a proportional share
to the amount of space within the building that is occupied by the CBD TI Business for up to
10 years.
If the CBD TI Business locates in a new building in the Central Business District for which a
building permit has not been obtained as of the date of the incentive application, the maximum amount
of the 380 Grants will equal:
• Up to 80% of net new real property taxes (specifically excluding any Business Personal
Property taxes) in a proportional share to the amount of space within the building that is
occupied by the CBD TI Business for up to 15 years, subject to the following requirements:
o CBD TI Tenant must be a Fortune 1,000 or Inc. 5000 corporate or regional headquarters;
and
o A minimum of 100,000 sf must be occupied by the CBD TI Tenant; and
o The CBD Property must be new construction in order to house the CBD TI Tenant; and
o A minimum of$100 million must be invested in hard construction costs associated with
the new construction.
A CBD TI Business locating in a new building in the Central Business District will only be
eligible for 380 Grants if it meets all of the above-referenced criteria. No other CBD TI Business will
be eligible for 380 Grants under this Section 5 unless it relocates to an existing building in the Central
Business District.
City of Fort Worth 380 Grant Policy
Page 7 of 24
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. In the event an assignee advances funds to the Target Industry business
within the first 24 months following execution of the 380 agreement the assignee may, subject to terms
expressed in the Economic Development Program Agreement,have the right to receive 380 Grants equal
to up to 75% of its annual incremental real and business personal property ad valorem tax received by
the City in an amount equal to the lesser of the amount advanced or 15%of the Program Cap for a period
of up to 10years. 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 380 Grant Policy
Page 8 of 24
7. ELIGIBILITY REQUIREMENTS FOR EXISTING BUSINESS EXPANSION
PROJECTS.
The City wants to support the growth of business already located in the City. In order to be
considered for 380 Grants, an Existing Business expansion project that is not eligible for 380 Grants
elsewhere in this Policy must commit to a minimum Investment of at least $10 million and creation of
at least 25 new full-time jobs with a minimum annual average employee Salary level of$43,99�52,300.
The amount of a 380 Grant under this Section will be based on a percentage of annual tax
revenues that the City receives in a particular year, including ad valorem taxes on real property, ad
valorem taxes on Business Personal Property, local sales taxes directly attributable to the project, or
some combination thereof,not to exceed 85%.
8. ELIGIBILITY REQUIREMENTS FOR MEGA PROJECTS.
A "Mega Project" can be within any industry, however, the City of Fort Worth is especially
interested in Fortune 1,000, Fortune Global 500, or Inc. 5000 designated firms, pursing development or
redevelopment opportunities within the City. Projects granted this designation must commit to at least one
of the following (with the exception of data centers or other unique low employment/high capital
investment projects which must have a minimum investment of$50 million):
• Commits to a minimum Investment of at least$250 million; or
• Commits to hire at least 1,500 full-time employees; or
• Commits to a minimum annual payroll of at least$150 million.
The amount of a 380 Grant under this Section will be based on a percentage of annual tax
revenues that the City receives in a particular year, including ad valorem taxes on real property, ad
valorem taxes on Business Personal Property, local sales taxes directly attributable to the project, or
some combination thereof,not to exceed 85%.
9. ELIGIBILITY REQUIREMENTS FOR TECHNOLOGY COMPANY PROJECTS.
The City wishes to encourage and promote the development of technology businesses. In order to
be considered for 380 Grants, a Technology Company project must employ at least 5 individuals.
The maximum amount of any 380 Grant to a Technology Company will be:
• Up to 80%of net new real property taxes on owned or leased facilities for up to 5 years; or
City of Fort Worth 380 Grant Policy
Page 9 of 24
• Up to 80%of net new Business Personal Property taxes for up to 5 years; or
• Up to$10,000 for each new full-time j ob in first three years of operation with annual
salary over$60;00)65,800.
City of Fort Worth 380 Grant Policy
Page 10 of 24
10. ELIGIBILITY REQUIREMENTS FOR CATALYTIC DEVELOPMENT PROJECTS.
A"Catalytic Development Project" is a business project that:
• will be located within either a Designated Investment Zone, an Urban Village, or an
identified Revitalization Area, depicted in Exhibits"A", `B", and"C",respectivelX;
• commits to at least$5 million in Investment; and
• complies with at least one of the following requirements:
o will be a Mixed-Use Development;
o will fill a gap, such as a grocery store in a food desert or a childcare facility, as
determined by City staff based on goals set forth in the City's then-current
Comprehensive Plan or other statistical data or relevant documentation;
o will be located along a commercial corridor or within an urban village,as identified
in the City's then-current Comprehensive Plan;
o Generates significant j ob opportunities in the area,as determined by City staff based
on then-current employment data; or
o Helps create a hub of entrepreneurial activity, positioning the City to attract
entrepreneurs and high-growth companies, as determined by City staff based on
goals and recommendations set forth in the City's Economic Development Strategic
Plan, the City's then-current Comprehensive Plan, or on other statistical data or
relevant documentation.
Notwithstanding the foregoing, a Mixed-Use Development that commits to at least $5
million in Investment and whose residential component comprises rental units(i.e. apartments)that
meet the affordable housing commitments set forth in Section 154.2 will be considered as a
"Catalytic Project" eligible for 380 Grants even if it is located outside of a Designated Improvement
Zone.
All Catalytic Projects will be eligible for consideration for 380 Grants. The amount of a
380 Grant under this Section will be based on a percentage of annual tax revenues that the City
receives in a particular year, including ad valorem taxes on real property, ad valorem taxes on
Business Personal Property, local sales taxes directly attributable to the project, or some
combination thereof, not to exceed 80%.
11. ELIGIBILITY REQUIREMENTS FOR TRANSIT ORIENTED DEVELOPMENTS.
The City encourages and supports the construction of Transit Oriented Developments. In order
to be considered for 380 Grants, a Transit Oriented Development project must commit to at least $5
million in Investment. The amount of a 380 Grant under this Section will be based on a percentage of
annual tax revenues that the City receives in a particular year, including ad valorem taxes on real
property, ad valorem taxes on Business Personal Property, local sales taxes directly attributable to the
project, or some combination thereof,not to exceed 50%, for a period of no more than 7 years.
City of Fort Worth 380 Grant Policy
Page 11 of 24
12. ELIGIBILITY FOR REDEVELOPMENT PROJECTS ON CENTRAL BUSINESS
DISTRICT SURFACE PARKING LOTS.
The City encourages and supports redevelopment of surface parking lots in the Central Business
District and its major arterial roads of East Lancaster and Jacksboro Highway with buildings that will
support compatible businesses in the Central Business District and associated commercial corridors. In
order to be considered for 380 Grants, a project must redevelop a surface parking lot in the Central
Business District that occupies at least 30% of the area of the City block on which it is located. The
amount of a 380 Grant under this Section will be based on a percentage of annual tax revenues that the
City receives in a particular year, including ad valorem taxes on real property, ad valorem taxes on
Business Personal Property, local sales taxes directly attributable to the project, or some combination
thereof, not to exceed 40%, for a period of no more than 5 years; provided, however, that if the
redevelopment project involves two or more surface parking lots owned by unrelated parties, the
maximum 380 Grant percentage available for the project will be 45%.
13. ELIGIBILITY REQUIREMENTS FOR FULL SERVICE HOTELS.
The City will consider providing 380 Grant incentives to full-service hotel projects, including the
hotel portion of mixed-use projects.
The following matrix presents the minimum features required by the City of Fort Worth in order
for a full-service hotel project to be eligible for 380 Grants.
Hotel Full Service Ballroom*Size Meeting*Space Boardroom* Room Block
Rooms Restaurant Space Agreement
200 rooms Yes 6,000 sq.ft. 2,400 sq.ft. 500 sq.ft. Yes
250 rooms Yes 7,500 sq.ft. 4,000 sq.ft. 500 sq.ft. Yes
300 rooms Yes 10,000 sq.ft. 6,000 sq.ft. 500 sq.ft. Yes
* Hotel projects located within Fort Worth's Central Business District that are 12 stories or taller may qualify for
a reduction or reconfiguration of conference space requirements.To be eligible for such adjustments,the
developer must demonstrate that sufficient parking has been secured to serve the needs of the hotel,
whether through a shared parking agreement, provision of new parking,or)the installation of equipment or
infrastructure that supports the use of car sharing services or other shared transportation services.
The amount of a 380 Grant under this Section will be based on a percentage of annual tax
revenues that the City receives in a particular year, including hotel occupancy taxes, ad valorem taxes
on real property, ad valorem taxes on Business Personal Property, local sales taxes directly attributable
to the project, or some combination thereof, not to exceed 80%.
City of Fort Worth 380 Grant Policy
Page 12 of 24
City of Fort Worth 380 Grant Policy
Page 13 of 24
14. EMPLOYMENT DESIGNATED PROJECT FUND INCENTIVES.
From time to time, the City may have cash reserves designated to incentivize businesses that
commit to increase employment levels at Salary levels desired by the City. These cash reserves will be
utilized to make cash grants, either upfront or following attainment of certain performance metrics, or
loans.
All industries will be considered but strong consideration will be given the applicants that derive
the majority of its revenues from one of the following Target Industries(subject to additional requirements
outlined below):
Maximum Amount Per Minimum Annual Wage
New Position Rate
$1,000 $58,552-$73,111
$1,500 $73,112-$87,671
$2,000 $87,672-$102,231
$2 500 $102 232 or above
Established Sectors Emerging Sectors
• Transportation and warehousing • Transportation innovation
• Manufacturing • Life sciences delivery and innovation
• Healthcare • Geotechnical engineering
• Oil and gas • International business
• Tourism • Corporate and regional headquarters
• Professional services
• Financial services
Existing Businesses will only be eligible for 380 Grants under this Section if the City is able to
verify that they are receiving competing offers to relocate their operations outside of the City.
The following table reflects the maximum level of 380 Grants available to a qualifying business
based on the required minimum Salaries for net new full-time permanent jobs. All jobs must be filled
and maintained for a minimum of 3 years in order to qualify. Remedies for enforcement of this
requirement will be established in the Economic Development Program Grant Agreement.
N.,..,D.,S;�;.,,-.
rraTTVTrcro-a
999 $59,552 $73,144
City of Fort Worth 380 Grant Policy
Page 14 of 24
1 / $ 3,1T2 $87-,r�rl
$97,-r-or2��3-3
$2418 $102 232 or b,,.,o
Minimum Annual Wage Maximum Amount Per
Rate New Position
$65,800 -$80,389 $1,000
$80,390 -$94,949 $1,500
$94,950 -$109,499 $2,000
$109,500 or above $2,500
15. ADDITIONAL ECONOMIC DEVELOPMENT PROGRAM REQUIREMENTS.
15.1 Commitment for Utilization of Certified NV-VV-BE Companies.
All projects receiving 380 Grants must make a commitment to utilize Certified M/WBE
Companies for a minimum of 15% of all construction costs (both hard and soft) associated with
the project. Failure to meet the goal will result in a reduction in the calculation of the maximum
380 Grant each by 10 percentage points.
15.2. Affordable Housing Commitment for Mixed-Use Development Proiects.
All Mixed-Use Development Projects subject to an Economic Development Program
Agreement that contain rental residential units must make a commitment to provide affordable
housing as follows:
• At least 10% of all rental residential units must be set aside exclusively for lease
to qualifying households whose adjusted incomes do not exceed the then-current
eighty percent (80%) income limits established by HUD at rents that are
affordable to such households.
• At least 10% of all rental residential units must be set aside exclusively for lease
to qualifying households whose adjusted incomes do not exceed the then-current
sixty percent(60%)income limits established by HUD at rents that are affordable
to such households.
City of Fort Worth 380 Grant Policy
Page 15 of 24
16. ECONOMIC DEVELOPMENT PROGRAM CALCULATION.
16.1. Improvements Required.
All Economic Development Program Agreements shall require the recipient to construct
or cause construction of specific improvements on the real property that is subject to the 380
Grant. Failure to construct these specific improvements at the minimum Capital Investment
expenditure and by the deadline established in the Economic Development Program Agreement
will constitute an event of default and give the City the right to terminate the Economic
Development Program Agreement.
16.2. Percentage and Amount.
Although this Policy establishes the maximum calculations for 380 Grants that may be
available for a particular type of project, the specific amount of a particular Economic
Development Program Agreement shall be negotiated on a case-by-case basis and the amount of
the 380 Grants may be less than the maximum amounts specified in this Policy, based on the
review criteria set forth in Section 18.3. The calculation of Economic Development Program for
any project that meets the requirements of this Policy shall be negotiated on a case-by-case basis
and governed solely by the terms and conditions of the Economic Development Program
Agreement.
17. ECONOMIC DEVELOPMENT PROGRAM IMPLEMENTATION
17.1. Term.
Although this Policy establishes the maximum term of Economic Development Program
Agreements that may be available to certain types of projects, the actual term of any particular
Economic Development Program Agreement shall be negotiated on a case-by-case basis and may
be less than the maximum available term specified in this Policy,based on the review criteria set
forth in Section 18.3.
17.2. Compliance.
Unless otherwise provided in the Economic Development Program Agreement, the City
will review and determine the recipient's compliance with the terms and conditions of the
Economic Development Program Agreement for a full calendar year prior to the first year in
which the first 380 Grant will be payable (the "First Compliance Review Year"). The
Compliance Review Year shall either be the full calendar year in which a final certificate of
City of Fort Worth 380 Grant Policy
Page 16 of 24
occupancy is issued for the improvements required by the Economic Development Program
Agreement (or if a certificate of occupancy is not required for some or all of the improvements,
then such other written confirmation of completion of such improvements) for the real property
and Business Personal Property investment required by the Economic Development Program
Agreement or the following calendar year, as negotiated and set forth in the Economic
Development Program Agreement. The first 380 Grant will be paid in the calendar year
following the Compliance Review Year. In other words,the degree to which the recipient meets
the commitments set forth in the Economic Development Program Agreement will determine the
amount of the 380 Grant payable in the following year. The City will continue to review and
determine the recipient's compliance with the terms and conditions of the Economic
Development Program Agreement for each subsequent calendar year, which findings shall
govern the amount of each subsequent 380 Grant,until expiration of the Economic Development
Program Agreement.
18. ECONOMIC DEVELOPMENT PROGRAM APPLICATION PROCEDURES
Each 380 Grant application shall be processed in accordance with the following standards and
procedures:
18.1. Submission of Application
If a given development project qualifies for 380 Grants pursuant to the eligibility criteria
detailed in of this Policy, an applicant must complete and submit a City of Fort Worth Economic
Development Program Application (with required attachments) (the "Application"). An
Application can be obtained from and should be submitted to the City's Economic Development
Department. In order to be complete, the Application must include documentation that there are
no delinquent property taxes due for the property on which the development project is to occur.
In addition, projects that include, in whole or in part, the renovation of one or more existing
structures shall provide, as part of the applicant's Economic Development Program Application,
a detailed description and the estimated costs of the renovations contemplated.
18.2. Application Fee
Upon submission of the Application, an applicant must also pay an application fee. This
application fee shall be $5,000 ("Application Fee") of which $3,000 will be credited to any
permit, impact, inspection or other fee paid by the applicant and required by the City directly in
connection with the proposed project, as long as substantive construction on the project, as
determined by the City in its sole and reasonable discretion,has been undertaken on the property
specified in the Application within one (1) year following the date of its submission.
City of Fort Worth 380 Grant Policy
Page 17 of 24
If any Application Fee funds are remaining after the development project covered in the
Application has been completed in accordance with the Economic Development Program
Agreement, the applicant must submit a letter to the director of the City's Economic
Development Department requesting a refund of the remaining funds. The request must be made
within ninety (90) days following the date of the project's completion date. Any Application
fees remaining after ninety (90) days following the project's completion date will become the
property of the City and will not be eligible for. The remaining $2,000 of the Application Fee is
non-refundable and will be utilized for City staff expenses associated with processing the
Application and fees associated with legal notice requirements.
18.3. Application Review and Evaluation
The Economic Development Department will review an Application for accuracy and
completeness. Once complete, the Economic Development Department will evaluate an
Application based on the perceived merit and value of the project, including,without limitation,
the following criteria:
• Types and number of new jobs created, including: respective Salaries, and employee
benefits packages such as health insurance, day care provisions, retirement packages,
transportation assistance, employer-sponsored training and education, any other benefits
and whether all benefits are offered on an equal and non-discriminatory basis to all
employees;
• Percent of construction contracts committed to (i) Fort Worth Companies and (ii)
Certified M/WBE Companies;
• Financial viability of the project;
• The project's reasonably projected increase in the value of the tax base;
• Costs to the City (such as infrastructure participation, etc.);
• Remediation of an existing environmental problem on the real property;
• Type of industry and activities associated at the project site;
• If the company is foreign owned and/or includes capital investment sources from outside
the United States;
• Other items that the City may determine to be relevant with respect to the project.
18.4. Consideration by the City Council
City of Fort Worth 380 Grant Policy
Page 18 of 24
The City Council retains sole authority to approve or deny any Economic Development
Program Agreement and is under no obligation to approve any Application or Economic
Development Program Agreement.
19. GENERAL POLICIES AND REOUIREMENTS
Notwithstanding anything that may be interpreted to the contrary herein, the following general
terms and conditions shall govern this Policy:
19.1. An Economic Development Program Agreement shall not be granted for any
development project in which a building permit application has been filed with the City's
Planning and Development Department.
19.2. The applicant for an Economic Development Program Agreement must provide evidence
to the City that demonstrates that 380 Grants are necessary for the financial viability of the
development project proposed.
19.3. An applicant for the Economic Development Program shall provide Salary and employee
benefit information for all positions of employment to be located in any facility covered by the
Application as well as a copy of the applicant's written non-discrimination policy applicable to
the applicant's employees.
19.4. If the recipient of an Economic Development Program Agreement breaches any of the
terms or conditions of the Economic Development Program Agreement and fails to cure such
breach in accordance with the Economic Development Program Agreement, the City shall have
the right to terminate the Economic Development Program Agreement.
19.5. As part of the consideration under all Economic Development Program Agreements, the
City shall have, without limitation, the right to (i) review and verify the applicant's financial
statements and records related to the development project and the amount of any 380 Grant that
may be payable in any given year; and (ii) conduct an on-site inspection of the development
project in order to verify compliance with the terms and conditions of the Economic Development
Program Agreement.
19.6. The recipient of 380 Grants may sell, assign, transfer, or otherwise convey any of its
rights under an Economic Development Program Agreement to an affiliate of the recipient, as
defined in the Economic Development Program Agreement,provided that the City,the assignor,
and the assignee each execute a document acceptable to the City that outlines the roles and
responsibilities of the parties in that event. Otherwise, a recipient of 380 Grants may not sell,
assign, transfer or otherwise convey its rights under an Economic Development Program
Agreement unless specifically approved by the City Council. A sale, assignment, lease, transfer
or conveyance of the real property that is subject to and which is not permitted by the Economic
City of Fort Worth 380 Grant Policy
Page 19 of 24
Development Program Agreement shall constitute a breach of the Economic Development
Program Agreement and may result in termination of the Economic Development Program
Agreement. For additional information about this Economic Development Program Policy,
contact the City of Fort Worth's Economic Development Department using the information
below:
City of Fort Worth
Economic Development
1150 South Freeway
Fort Worth, Texas 76104
817-392-6021 1 www.fortworthtexas.gov/ecodev
City of Fort Worth 380 Grant Policy
Page 20 of 24
Exhibit "A"
DESIGNATED INVESTMENT ZONES
14
R/
d11V
lad
28I RA
170 '
114i
81 121
99
9
ffi 121
H 991
21
77 21
� 90
BO
83
21
188
eo
7
_ 3
h7� 0
183
FjI._
7
7
77 87
J
Copyright 2020 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws. This products of
for informational purposes and may not have been prepared for or be suitable for legal, engineering, or
surveying purposes. It does not represent an on-the-ground survey and represents on the approximate relative
location of property boundaries.The City of Fort Worth assumes no responsibility for the accuracy of said data_
City of Fort Worth 380 Grant Policy
Page 21 of 24
Exhibit `B"
URBAN VILLAGES
a �
� I 77
26 12
183
Historic Marine 121
199
183 Six Points
A_ West Seventh �►
r Near East Side
■
l Oakland Corners
South Main
r
-Ma nolia PolytechniclWe_sleyan Historic Handley
g' Evans&Rosedale __r
Ridglea
87 ; ,q.
JW
Berry/University
BerrylRiverside Lake ArlingtonlBerrylStalcup
Bluebonnet Circle
Hemphill/Berry
183 0
N87
Copyright 2020 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws.This products of
for informational purposes and may not have been prepared for or be suitable for legal, engineering, or
surveying purposes. It does not represent an on-the-ground survey and represents on the approximate relative
location of property boundaries.The City of Fort Worth assumes no responsibility for the accuracy of said data.
City of Fort Worth 380 Grant Policy
Page 22 of 24
Exhibit "C"
REVITALIZATION TARGY ARL.
77 26 121
183
199 Near Northside 121
183
L� t
East Lancaster
t Evans and Ramos ±,We ey
80 West CampBovAe _slayanl Poly Historic Handl
�-. Rosedale and Riverside
Como/Horne Street 87
Stop Six '
: 1
77
183
87
Altamesa and McCart
lip
Copyright 2020 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws.This products of
for informational purposes and may not have been prepared for or be suitable for legal, engineering, or
surveying purposes. It does not represent an on-the-ground survey and represents on the approximate relative
location of property boundaries.The City of Fort Worth assumes no responsibility for the accuracy of said data.
City of Fort Worth 380 Grant Policy
Page 23 of 24
i
City of Fort Worth 380 Grant Policy
Page 24 of 24