HomeMy WebLinkAbout(0098) M&C 20-0522City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/11/20 M&C FILE NUMBER: M&C 20-0522
LOG NAME: 17FTZ196B
SUBJECT
Authorize Submission of a Letter of No Objection to the Foreign Trade Zones Board to Expand Foreign Trade Zone No. 196 in the Alliance Airport
Corridor to Include 2660 Petty Place, Building 1 (COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council authorize the submission of a letter of no objection to the Foreign Trade Zones Board to expand Foreign
Trade Zone No. 196 in the Alliance Airport Corridor to include 2660 Petty Place, Building 1.
DISCUSSION:
A Foreign Trade Zone (FTZ) is a restricted -access site, in or adjacent to a customs port of entry. FTZs are considered outside the United States
Customs Territory and foreign or domestic merchandise can be stored or manufactured before formal customs entry procedures. These special
geographic areas are under the supervision of the U.S. Customs and Border Protection and establishment of the FTZ allows for state and local ad
valorem exemption on tangible personal property imported from outside the United States and held in a zone. This tariff and tax relief is designed
to lower the costs of U.S. based operations engaged in international trade and thereby create and retain the employment and capital investment
opportunities that result from those operations.
With the continued growth at Alliance, Texas, Hillwood, serving as the administrator of Foreign Trade Zone No. 196, is anticipating projects on
several parcels of undeveloped land. Much of this land was not included in the original FTZ designation. However, it is within the FTZ service area
under the new Alternative Site Framework program (ASF). Under the ASF program, in order to include the revised boundaries in the current zone
footprint, the FTZ administrator has to receive a letter of no objection from the locally affected taxing entities. This process can be very time
consuming and is unacceptable for most site selection processes.
The Foreign Trade Zone Board (FTZB) in Washington, D.C. has approved a plan to allow FTZ administrators to collect letters of no objection in
advance, and therefore commit to a site selection prospect that the FTZ application can be approved in a 30-day window. Hillwood, as
administrator for Foreign Trade Zone No. 196, has contacted staff and requested a letter of no objection from the City of Fort Worth in order to
modify the current Foreign Trade Zone boundary under the Alternative Site Framework, pursuant to the ForeignTrade Zone Act. An exhibit outlining
the expansion of the zone is attached. The letter of no objection will only extend to the land that does not currently have FTZ status. This request is
being made to accommodate a relocation of Wabtec (formerly known as GE Transportation) from their current location within the FTZ, located at
4100 International Plaza, to their new location-2660 Petty Place Building 1. There is no planned expansion of activities and therefore, there
should be no additional impact to the City's finances.
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 these recommendations 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: Robert Sturns 2663