HomeMy WebLinkAboutIR 176 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-176
To the Mayor and Members of the City Council December 6, 2022
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SUBJECT: EXTENSION OF EMPLOYMENT COMPLETION DEADLINE FOR
1875 SMART ACTION LLC CHAPTER 380 AGREEMENT
SmartAction, LLC (the "Company") provides artificial intelligence-based services to businesses across
diverse industries.The company was founded in 2002,with its headquarters based in El Segundo, California.
Following a national site search, the Company relocated its corporate headquarters to Fort Worth in 2021 to
office space located at 306 W 7th St, Fort Worth,TX 76102.
In order to facilitate the relocation of the corporate headquarters, the City provided a grant in an amount of
$660,000.00 as authorized by the Chapter 380, Texas Local Government Code. The Company qualified for
the incentives through the City's targeted 380 program for Technology Company Projects,which allows up
to $10,000.00 for each new full-time job in the first three years of operation with minimum annual salaries
of$65,800.00.
To earn the grant, the Company is required to meet the following commitments under the agreement:
• Lease a minimum of 7,400 square feet of permanent office space in Fort Worth on or before January
1, 2022.
• Provide a minimum of 66 full-time jobs by December 31, 2022 and retain the 66 full-time jobs
through December 31, 2025.
• Pay the 66 employees an annual minimum salary of $65,800.00 during the entire term of the
agreement.
If, at any time during the term of the agreement, the Company only employs between 46 and 65 Full-Time
Jobs, then they will be required to pay the City $15,000 for each Full-Time Job below the minimum required
66. If, at any time during the term of the Agreement,the Company employs less than 46 Full-Time Jobs,then
the Company will be required to pay the City the full $660,000.00
The Company met commitments to lease a minimum of 7,400 square feet of permanent office space within
the City of Fort Worth before the January 1, 2022 deadline. However, the Company struggled to get
employment for the 66 required jobs before the December 31, 2022 deadline, citing labor shortages in the
technology industry and other challenges that have lengthened the hiring ramp-up schedule versus what had
been anticipated prior to their relocation to Fort Worth.
In response, the Company is requesting an extension of its employment Completion Deadline for one year to
December 31, 2023. Staff is recommending approval of the request.
An M&C will be placed on the January 10, 2023 agenda for City Council consideration with the
recommendation to amend the 380 Agreement and extend the date for employment commitments for one
year as outlined above.
For further questions, please contact Robert Stums, Director of the Economic Development Department, at
817-392-2663.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS