HomeMy WebLinkAbout(0030) M&C 21-0272.pdfCITY COUNCIL AGENDA
Official site of the City of Fort Worth, Texas
FORTORTH
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DATE: 4/13/2021 REFERENCE NO.: **M&C 21-0272 LOG NAME: 170ATLYINC_TEZ
CODE: G TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT. (CD 8) Adopt Attached Resolution Nominating Oatly, Inc. Facility Located at 7550 Oak
Grove 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 Oatly, Inc. Facility
located at 7550 Oak Grove Road as an enterprise project, pursuant to the Texas Enterprise Zone
Program 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 Oatly, Inc. 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 are related to the capital investment and jobs created at the qualified business site.
The City Council of the City of Fort Worth (City) has previously approved M&C 21-0071 (Authorize
Execution of an Economic Development Program Agreement with Oatly, Inc., or an Affiliate, for the
development of a manufacturing production facility located at 7550 Oak Grove Road), which,
mentioned that the City of Fort Worth is prepared to submit an application for an Enterprise Zone
Project Designation on behalf of Oatly, Inc. Oatly, Inc. qualifies for a single Enterprise Project
Designation with a planned capital investment of approximately $84,000,000.00 in real and
business personal property improvements and modernizations over the next five years at its Fort
Worth facility. These planned investments include significant upgrades in order to bring the interior
space up to the company's required standards. The company will also require the reactivation and
extension of the rail spur to the building. Finally, due to the nature of the company's manufacturing
process, it will be necessary to add external silo structures to the rear of the building space in
order to accommodate the storage of raw materials. These facility improvements and upgrades
will allow Oatly, Inc. to continue to provide a high -quality product to its local customers and
beyond.
If designated as an enterprise project by the State of Texas, Oatly, Inc. 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. Oatly, Inc. 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
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that the approval of this recommendation will have no material effect
on the City funds.
TO
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year Chartfield 2
Submitted for City Manager's Office by_ Jay Chapa (5804)
Originating Department Head: Robert Sturns (2663)
Additional Information Contact: Robert Sturns (2663)
ATTACHMENTS
210323 Oatly Fort Worth Nominating Resolution (Updated 3.16.21).docx
Oatlylnc Location Map. docx