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HomeMy WebLinkAboutIR 10580INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10580 To the Mayor and Members of the City Council May 11, 2021 Page 1 of 1 SUBJECT: BANK OF AMERICA ENTERPRISE PROJECT NOMINATION ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS 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. Bank of America owns an approximately 294,000 sq.ft. office building at 4200 Amon Carter Boulevard, Fort Worth, TX 76155 (outside an enterprise zone), where they employ approximately 1,550 global tech and operations, and customer support representatives. On February 18, 2020, the City approved Resolution No. 5184-02-2020 nominating the property as an enterprise project for the investment of approximately $6.1 million for building improvements, furniture, fixtures, and equipment and facilitating the creation of 10 or more new jobs and the retention of approximately 490 existing jobs for a total number of "for-benefit" jobs equaling 500 in aggregate. Bank of America now proposes to invest a total of approximately $25,000,000.00 in capital improvements at the site to support the consolidation of certain operations outside of Texas to be located in Fort Worth at 4200 Amon Carter Boulevard. The investment, together with the previously nominated project, is expected to result in the retention of over 2,000 jobs currently on site and the creation of at least 10 new jobs with average annual wages exceeding $85,000.00. Both the previous and the current nomination, if approved, will run concurrently. The single project designation allows for a state sales and use tax refund on qualified expenditures of $2,500.00 per job, for up to 500 jobs, with a maximum benefit of $1.25 million over a five-year 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 May 18, 2021 agenda, authorizing a resolution nominating the project as an Enterprise Project through the Texas Enterprise Zone Program. 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