HomeMy WebLinkAbout(0050) M&C 20-0282 (2)City of Fort Worth, Texas
Mayor and Council Communication
DATE: 05/05/20 M&C FILE NUMBER: M&C 20-0282
LOG NAME: 17BALLMETALBEVERAGECORP EZ
SUBJECT
Adopt Resolution Nominating the Ball Metal Beverage Container Corp. Facility at 6600 Will Rogers Boulevard 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 Ball Metal Beverage Container Corp. Facility at 6600 Will
Rogers Boulevard as an Enterprise Project Pursuant to the Texas Enterprise Zone Act, Chapter 2303 of the Texas Government Code (COUNCIL
DISTRICT 8).
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 Ball Metal Beverage Container
Corp. (Ball) 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.
Ball qualifies for a single Enterprise Project Designation with a planned capital investment in excess of $50 million in various facility and
equipment upgrades between June 1, 2020 and May 31, 2025 at its Fort Worth facility. These planned investments in machinery and equipment
are to upgrade a portion of the facility currently utilized for warehousing to manufacturing space. Warehousing will then be done offsite via a leased
warehouse facility.
If designated as an enterprise project by the State of Texas, Ball 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. Ball expects to retain all full-
time jobs for benefit under the Enterprise Zone Program as well as add an additional 60 positions paying an average annual wage of $61,500.
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