HomeMy WebLinkAboutResolution 5399-05-2021 A Resolution
NO. 5399-05-2021
NOMINATING THE REV1 FACILITY
AT 1851 JOEL EAST ROAD
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 Revl, 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"),Revl has applied to the City for designation as an enterprise project;and
WHEREAS, the City finds Revl, meets the criteria for designation as an enterprise project under Chapter 2303,
Subchapter F of the Act on the following grounds:
1. Rev 1 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 Revl, 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 Rev],meets the criteria for tax relief and other incentives adopted by the City and
nominates Rev], 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 Revl, 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 Rev], 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 181"day of May 2021.
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 05/18/21 M&C FILE NUMBER: M8C 21-0342
LOG NAME: 17REVlTEZ
SUBJECT
(CD 8)Adopt Attached Resolution Nominating Rev1 LLC Facility at 1851 Joel East Road 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 Rev1 LLC Facility at 1851 Joel East Road 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(Mayor and Council Communication (M8C) G-
14137)electing to participate in the Texas Enterprise Zone Program.On May 12,2015 the City Council adopted Ordinance No.21743-05-2015
(M8C G-18473), 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 Rev1 LLC(Rev1)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.
Rev1 qualifies for a single enterprise project designation with a planned capital investment of approximately$700,000.00 in initial facilities
improvements to establish operations for manufacturing their proprietary renewable food packaging materials in Fort Worth,with a possible future
phase investment of$5,000,000.00 in capital improvements.Additionally,Rev1 will bring approximately$25,000,000.00 in new business personal
property and expects to spend approximately$250,000.00 annually toward research and development.
If designated as an enterprise project by the State of Texas, Rev1 commits to hiring twenty-five percent(25%)economically disadvantaged
persons or enterprise zone residents for its new certified jobs at its Fort Worth facility during its enterprise project designation. Rev1 expects to
retain all full-time jobs for benefit under the Enterprise Zone Program.
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$1,250,000.00 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 8.
A Form 1295 is not required because:This M8C does not request approval of a contract with a business entity.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that approval of this recommendation will have no material effect on City funds.
Submitted for City Manager's Office by: Jay Chapa 5804
Oriciinatinq Business Unit Bead: Robert Sturns 2663
Additional Information Contact: Michael Hennig 6024