HomeMy WebLinkAbout(0009) M&C 20-0080City of Fort Worth, Texas
Mayor and Council Communication
DATE: 02/18/20 M&C FILE NUMBER: M&C 20-0080
LOG NAME: 17ALCON TEZINTERLOCAL
SUBJECT
Authorize Execution of an Interlocal Agreement with Tarrant County, Texas, Approving Nomination by Tarrant County of Alcon Research, LLC, as an
Enterprise Project, Pursuant to the Texas Enterprise Zone Act, Chapter 2303 of the Texas Government Code (COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of an Interlocal Agreement with Tarrant County, Texas, approving Tarrant County's
nomination of Alcon Research, LLC, as an Enterprise Project, pursuant to the Texas Enterprise Zone Act, Chapter 2303 of the Texas Government
Code.
DISCUSSION:
The City Council previously adopted Ordinance No. 15733 (M&C G-14137), under which the City has elected to participate in the Texas Enterprise
Zone Program. The City Council subsequently amended Ordinance No. 15733 on May 12, 2015 to update the list of potential local incentives that
may be provided to a project on a case -by -case basis (Ordinance No. 21743-05-2015, M&C G-18473).
Chapter 791 of the Texas Government Code authorizes the formulation of Interlocal Cooperation Agreements between and among municipalities
and counties for the performance of governmental functions. Chapter 2303 of the Texas Government Code, the Texas Enterprise Zone Act, permits
the governing body of a county to nominate for designation as an Enterprise Project a project or activity of a qualified business that is located
within the jurisdiction of a municipality located in the county. The nominating county must enter into an Interlocal Agreement with the municipality that
has jurisdiction of the territory in which the nominated project or activity will be located.
Both the City of Fort Worth and Tarrant County agree to approve the nomination for Alcon Research, LLC (Company) as an Enterprise Project.
Said nomination will be considered a part of Tarrant County's allocated Enterprise Project designations and will have no impact on the City's
permitted nine designations per biennium, as permitted under Section 2303.406(d) of the Texas Government Code.
Company's expansion, located at 6201 South Freeway qualifies for a single Enterprise Project Designation with a projected capital
investment well in excess of $175 million, $125 million of which is dedicated to a multi -phase project aimed at expanding manufacturing capability
and capacity of surgical devices at the Fort Worth facility. There is no anticipated decrease to the 1,100+ employee count.
If awarded an Enterprise Project designation, Company will be eligible to apply for state sales and use tax refunds on qualified expenditures. A
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 25 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.
These state benefits have no fiscal impact on the City's General Fund.
The project is located in COUNCIL DISTRICT 8.
A Form 1295 is not required because: This contract will be with a governmental entity, state agency or public institution of higher education: Tarrant
County
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that this action will have no fiscal impact.
Submitted for City Manager's Office by. Jay Chapa
Originating Business Unit Head:
Robert Sturns
5804
2663
Additional Information Contact: Brenda Hicks -Sorensen 2606