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HomeMy WebLinkAboutResolution 5398-05-2021 A Resolution NO. 5398-05-2021 NOMINATING THE BANK OF AMERICA CORPORATION FACILITY AT 4200 AMON CARTER BOULEVARD AS AN ENTERPRISE PROJECT PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE WHEREAS, on November 4, 2003 the City Council of the City of Fort Worth (the "City") previously adopted Ordinance No. 15733 electing to participate in the Texas Enterprise Zone Program; and WHEREAS, on May 12, 2015 the City Council of the City 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;and the local incentives available pursuant to this Resolution are the same on this date as were outlined in Ordinance No. 21743-05-2015; and WHEREAS, the Office of the Governor, Economic Development and Tourism (EDC), through the Economic Development Bank ("Bank"), will consider Bank of America Corporation, as an enterprise project pursuant to a nomination and an application made by the City; and WHEREAS, the City desires to pursue the creation of the proper economic and social environment in order to induce the investment of private resources in productive business enterprises located in the City and to provide employment to residents of enterprise zones and to other economically disadvantaged individuals and veterans;and WHEREAS,pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas Government Code (the "Act"), Bank of America Corporation has applied to the City for designation as an enterprise project; and WHEREAS,the City finds Bank of America Corporation,meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds: 1. Bank of America Corporation, is a"qualified business" under Section 2303.402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site within the governing body's jurisdiction located outside of an enterprise zone, and at least thirty-five percent (35%) of the business's new or retained employees will be residents of an enterprise zone, economically disadvantaged individuals or veterans; and 2. There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities within the area; and 3. The designation of Bank of America Corporation,as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area; and WHEREAS,the City finds that Bank of America Corporation,meets the criteria for tax relief and other incentives adopted by the City and nominates Bank of America Corporation, for enterprise project status on the grounds that it is located at the qualified business site and will create a higher level of employment, economic activity and stability in the area; and WHEREAS,the City finds that it is in the best interest of the City to nominate Bank of America Corporation, as an enterprise project pursuant to the Act; NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: 1. THAT the findings of the City and its actions approving this Resolution taken at the Council meeting are hereby approved and adopted. 2. THAT Bank of America Corporation, is a"qualified business," as defined in Section 2303.402 of the Act,and meets the criteria for designation as an enterprise project,as set forth in Section 2303, Subchapter F of the Act. 3. THAT the enterprise project shall take effect on the date of designation of the enterprise project by the Bank and terminate five(5)years after the date of designation. Adopted this 18°i day of May 2021. ATTEST: FORT y J. ay ity retary U �_ 0 `�.. a I - 4 I u " r _ n e I a a O -- Lf) t L. m a O L x 4-1 � 5 I - . _ _ # - �g F � ram' CL� I O �C Q O p CO r�4 ir 24 v VV # S ..1 �.,., Ili '` _ M City of Fort Worth,Texas Mayor and Council Communication DATE: 05/18/21 M&C FILE NUMBER: M&C 21-0340 LOG NAME: 17BANKOFAMERICA TEZ2 SUBJECT (CD 5)Adopt Attached Resolution Nominating the Bank of America Corporate Facility at 4200 Amon Carter Boulevard as an Enterprise Project Pursuant to the Texas Enterprise Zone Act,Chapter 2303 of the Texas Government Code RECOMMENDATION: It is recommended that the City Council adopt the attached resolution nominating the Bank of America Corporate Facility at 4200 Amon Carter Boulevard as an enterprise project,pursuant to the Texas Enterprise Zone Act,Chapter 2303 of the Texas Government Code. DISCUSSION: 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.The Office of the Governor Economic Development and Tourism through the Economic Development Bank will consider Bank of America as an 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. Bank of America owns an approximately 294,000 sqft 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. This project is located in Council District 5. A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that approval of the above recommendation will have no material effect on City funds. Submitted for City Manager's Office by: Jay Chapa 5804 Originating Business Unit Head: Robert Sturns 2663 Additional Information Contact: Michael Hennig 6024