HomeMy WebLinkAbout(0015) M&C 20-0082City of Fort Worth, Texas
Mayor and Council Communication
DATE: 02/18/20 M&C FILE NUMBER: M&C 20-0082
LOG NAME: 17MILLERCOORS TEZ
SUBJECT
Adopt Resolution Nominating MillerCoors LLC Facility at 7001 South Freeway 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 adopt the attached Resolution nominating the MillerCoors LLC Facility at 7001 South Freeway 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 MillerCoors LLC (MillerCoors) 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.
MillerCoors qualifies for a single Enterprise Project Designation with a planned capital investment in excess of $28 million in various facility and
equipment upgrades between October 18, 2019 and March 3, 2025 at its Fort Worth facility. These planned investments in machinery and
equipment to upgrade the facility and increase efficiency include, but may not be limited to, the following: upgraded grain handling systems, boiler
replacement to develop a sustainable steam generation solution, upgraded facility mass communication systems, new palletizer and wrapper and
associated conveyor and controls, upgraded sparge water heated brew lines, installation of bypass capability for additional wort capacity, and tank
relief replacements and collection upgrades targeting CO2 savings efforts. Additional capital investments totaling approximately $15 million fora
brewhouse process control system modernization/automation project and various facilities electrical infrastructure upgrade projects are
anticipated but are not yet confirmed.
As a result of these planned improvements the Fort Worth facility will instill increased safety, energy and water efficiency, product quality, and
packaging flexibility in the plant. These facility improvements and upgrades will allow MillerCoors 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, MillerCoors 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. MillerCoors 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 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 8.
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: Brenda Hicks -Sorensen 2606