HomeMy WebLinkAboutResolution 5724-03-2023A R e solution
NO. 5724-03-2023
Approving Policy Guidelines and Procedures for
the Creation and Operation of Innovation Districts
WHEREAS, on December 17, 2017, City Council accepted the Fort Worth Economic
Development Strategic Plan ("Plan") (M&C G-19192) which was subsequently revised and
accepted on February 22 , 2022 (M&C 22-0113);
WHEREAS, the Plan includes multiple references to innovation districts ,
recommended the establishment of a Medical Innovation District, and called for the
implementation of national best practices in the use of innovation districts to support economic
development;
WHEREAS, additional policy measures, including the Chapter 380 Economic
Development Program Policy, as amended on June 16 , 2020 (Resolution No. 5241-06 -2020) and
again on January 26, 2021 (Resolution No. 5338-01-2021) refer to innovation districts to provide
enhanced benefit to investment and business activity located in a formally recognized innovation
district.
WHEREAS, a variety of activities by staff, area stakeholders, and private investors have
sought to evaluate, promote, and develop innovation districts in Fort Worth;
WHEREAS, there currently is no City policy defining Innovation Districts, describing
their purpose and basic characteristics , nor any policy that guides the process for the formal
establishment and recognition of innovation districts and their boundaries in the City of Fort
Worth; and
WHEREAS, City Council desires to formally establish an Innovation Districts Policy
("Policy") intended to accomplish the following:
• Define Innovation Districts and their purpose;
• Guide the process for the establishment of Innovation Districts in Fort Worth,
including application process and eligibility;
• Describe the role of public, private, and institutional partners in support of Innovation
Districts;
• Refer to Chapter 380 Economic Development Program Policy for any use of specific
economic Development incentives;
• Provide for the eligibility and formal recognition of specific Nodes of Innovation,
with the understanding that certain institutions and other private or civic assets might
not be contiguous with an associated innovation district but nevertheless important to
the support of innovation in Fort Worth; and
• Allow for the establishment of forma l districts with clear boundaries while
identifying, linking to, and benefiting key nodes of innovation.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS, THAT:
The Policy Guideline s and Procedures for the Creation and Operation of Innovation
Districts attach ed h ereto is hereby approv ed.
Adopted this 2 1st day o f March 2023 .
ATTE ST:
By: r;,.~
Jannette S. Goodall, City Secretary
City of Fort Worth
Innovation Districts Policy
Effective March 21, 2023
1. GENERAL PROVISIONS.
1.1. Purpose. Recognizing their contribution to economic development and the
important role played by innovation, research, and associated entrepreneurial activity through
increased economic productivity, new product development and commercialization, and the
emergence of new market opportunities, the City of Fort Worth (the "City") wishes to provide
targeted and lasting support for innovation within the community. Therefore, the intent of this
Policy is to provide direction to City Staff and interested parties regarding the development,
establishment, and use of "Innovation Districts" within the City of Fort Worth .
1.2. Statutory Authority. Municipalities are granted broad authority to support local
economic development via tax abatements, 380 agreements, and other mechanism s and to exercise
any power necessary and convenient to the furtherance of the same.
2. GENERAL DESCRIPTION.
2.1. Innovation Districts . "Innovation Districts" are specific geographic areas where
leading -edge anchor institutions and companies cluster and connect with start-ups, business
incubators, accelerators, and producers of marketable intellectual property . Generally, Innovation
Districts tend to focus on a specific industry or set of interrelated industries or functions.
Innovation Districts , initially or over time , tend also to feature a physically compact,
interconnected, transit-accessible , and technically-wired environment and offer mixed-use
housing , office, and retail ("Innovation District Building Patterns") so as to create a built
environment that encourages personal interaction, tight business relationships, and intellectual
cross-pollination. Innovation Districts should have clear and specific boundaries that define them
(the "District Boundaries"). Recognizing that districts evolve over time it may occasionally be
necessary to adjust District Boundaries. Nevertheless , District Boundaries should encircle key
anchors, institutions, companies, and other assets that characterize the Innovation District as
distinct from its surroundings. The geographic scale of the Innovation District should reflect the
scale of operations typified by the industry that it is meant to support. In certain instances,
particularly those in which it may be necessary to establish District Boundaries that extend large
distances , it may be beneficial to establish subdistricts or zones. Fort Worth Innovation Districts
must be fully located within the municipal boundaries of the City of Fort Worth (the "City
Limits") or its extra-territorial jurisdiction ("ETJ").
2.2. Nodes of Innovation. In many cases , a key anchor institution or facility that is
significant to the growth, development , promotion, or activity of an Innovation District is not
sufficiently close to the location of the Innovation District to justify its incorporation into the
District Boundaries. However , it may nevertheless be to the benefit of the Innovation District to
recognize it s relationship to these locations and the current or potential role they may have in
support of goals for the Innovation District. In such instances , these individual locations will be
established as "Nodes oflnnovation" with respect and in relation to a specific Innovation District.
City of Fort Worth Innovation Districts Policy Page I of7
It is similarly recognized that some Nodes of Innovation impact multiple industries , contribute
basic research , or provide other institutional support that is directly linked to a wide variety of
innovative activities and may therefore be established in relation to more than one Innovation
District or individually. Fort Worth Nodes of Innovation should generally consist of one anchor
institution and any property in its immediate vicinity which might be developed or used in a
manner that would directly contribute to the goals of the associated Innovation District(s). Fort
Worth Nodes oflnnovation must be fully located within the City Limits or the ETJ and should be
designated in direct relation to one or more specified Innovation Districts.
2.3. Public, Private, and Institutional Roles in Support of Innovation Districts.
The strength , impact, and long-term development oflnnovation Di ~tricts are determined in large
part by the strength of support and direct participation by public, private , and institutional entities
working individually and in partnership to advance the district.
a. Public . The public sector plays a critical role in the development of an
Innovation District that reach beyond the district's mere establishment as a formally
recognized geographic area. In particular, well-functioning and competitive Innovation
Districts rely on public support through the installation of basic infrastructure (streets,
utilities , sidewalks , transportation systems , etc.), advanced infrastructure ( communications
systems , advanced zoning codes, Smart City / Smart Building technology integration , wet
labs, supportive legal codes, etc.), efficient development services , and, in certain cases ,
direct support for facilities and incentives for innovation and co1mnercial activity. Finally,
the public sector can play a valuable role in Innovation District programming in partnership
with the private sector and institutional partners .
b. Private. Competitive and dynamic Innovation Districts require sustained
investment and participation by the private sector. This includes capital investment in new
facilities or equipment and the location or expansion of business operations ( especially
those involving significant research and development or technology commercialization). It
also includes financial support from the private sector (targeted lending programs, angel
investment, venture capital, etc.), talent recruitment and training , promotional support for
the district, and interorganizational collaboration. Additionally , the private sector plays an
essential role in Innovation District programming, through participation in and support of
various professional networks , seminars, speaking series , and other programs that promote
the exchange of industry best practices, develop skills among industry professionals, and
strengthen local, national, and international relationships within the industry.
c. Institutional. Institutional support for Innovation Districts can take many
forms . In some cases, it can involve the presence of a major institutional anchor, such as a
university or a research hospital. In other instances, it could also involve participation and
support by a charitable foundation , civic group, or industry association. Less easily seen
but equally powerful are the infonnal systems, networks, norms, and cultures that arise in
a particular district , industry cluster, or community. All of these combine to support the
long-term growth , development , and competitiveness of an Innovation District.
City of Fort Worth Inn ov ation Districts Policy Page 2 of7
3. DISTRICT ESTABLISHMENT
3.1. Basic Requirements. Innovation Di stricts may be established either by application
or by City Staff recommendation. All proposed Innovation Districts and Nodes oflnnovation must
be fully located within City Limits or the ETJ. In all instances, final authority to authorize or
recognize establishment of an Innovation District in the City of Fort Worth rests with the City
Council. Estab li shment of an Innovation District wi ll be by City Council resolution. Any Nodes
of Innovation proposed to be established in association with an Innovation District will be
indicated as such in the establishing resolution of the Innovation District if proposed at the time of
district establ ishment or by separate resolution if proposed the re after. Any Node of Innovation
proposed for individual designation must demonstrate a clear relationship to and an ab ili ty to
support innovation and development across multiple Innovation Districts.
3.2. Innovation District Requirements . Each application or City Staff
recommendation for the establishment of a new Innovation district must demonstrate:
a. Sufficient existing industry assets, anchor institutions, research centers, and
infrastructure that are capable of supporting the long-term growth and development of the
proposed Innovation District;
b. Significant employment in research , innovation, and technology-related
occupations ;
c. Substantial employment in a "Target Sector" (as defined in the City of Fort
Worth Economic Development Program Policy), industry subsegment, or collection of
enabling functions that support innovation across multiple Target Industries , such as
research, information technology, new materials , robotics, etc . ("I nnovation Platform");
d. Significant presence of or reasonable capacity to attract and support growth-
oriented start-up firms in a Target Sector, industry subsegment, or Innovation Platform ;
e. Capacity to attract new investment, businesses, business activity, research
and development, and innovative activity;
f. Existing development patterns that are or could be supportive of a walkable,
mixed-use environment, either throughout the district or in key subdistrict locations;
g. Existing or potential lo cations that may serve to support and promote social
interactions between workers and collaboration in concentrated "hot spots."
h. Programming support by the private sector or by one or more professional
associations for the promotion and development of industry best practices and linkages as
through the establishment, use, or development of seminars, professional networks , and
associations .
i. The establishment of an Innovation District will accelerate the clustering of
innovative commercial activities, serve to attract industry talent to the area, and will
promote the development of the associated industry in Fart Worth; and
j. The Innovation District, once established, will capture a significant
concentration of the associated industry's presence in Fort Worth.
Failure to meet individual requirements listed above may not be grounds for denial.
However, the applicant or City Staff must demonstrate sufficiency across these criteria to justify
establishment of an Innovation District before the City Council may authorize its establishment.
City of Fort Worth Innovation Districts Policy Page 3 of7
3.3. Nodes of Innovation Requ irements. Each application or City Staff
recommendation for the approval of a new Node of Innovation to be designated individually or in
association with an established Innovation District must demonstrate:
a. The presence of a highly significant anchor institution, research center, or
major industry participant;
b. Significant employment in research, innovation, and technology-related
occupations;
c . Substantial employment in the Target Sector, industry subsegment, or
Innovation Platform that is the focus of the associated Innovation District(s);
d. Patent filings in the past five-year period that are in the top twenty percent
of the City of Fort Worth when measured on a per acre basis;
e. Capability of advancing the growth and development of the associated
Innovation District(s);
f. Capacity to support strong linkages or consortia with the associated
Innovation District;
g. Physical capacity onsite or on adjacent properties for new development or
tenants that may contribute to competitiveness of the Innovation District(s); and
h. Administrative commitment by the primary firm or anchor institution
within the proposed Node of Innovation to participate in the governance and promotion of
the associated Innovation District(s).
Failure to meet individual requirements listed above may not be grounds for denial.
However, the applicant or City Staff must demonstrate sufficiency across these criteria to justify
designation of a Node oflnnovation before the City Council may authorize its designation.
3.4. A dminis tr a tion and F unding. All Innovation Districts will be administered by the
City of Fort Worth Economic Development Department except as may be permitted through City
Council-authorized agreement with an outside party for district administration or governance.1-f o
City fund will be established for any Innovation District. Any funding or financia l support
necessary to the support or administration of an Innovation District will be incorporated into the
departmental budget of the Economic Development Department or the Economic Development
Initiatives Fund as presented in the City of Fort Worth Adopted Budget.
3.5. E ligibility for Incentives. Projects that are located in an established Innovation
District or Node of Innovation pursuant to this Policy may be eligible for incentives as indicated
in the Economic Development Program Policy. In all other instances, the presence of an
established Innovation District or Node of Innovation or its proximity to a proposed project will
be among the factors considered when evaluating a project for incentives.
3.6. O ther City S upp ort. Upon the establishment of an Innovation District, the City
will through its direct administration and, indirectly, through partnerships with the private sector,
other public organizations, foundations, and non-profit organizations, seek to support the long-
term success of the Innovation District through its various policy decisions and investments in
supporting infrastructure. Moreover, the City will seek to collaborate with Innovation District
City of Fort Worth Innovation Di stri c ts Policy Page 4 of7
partners on the installation of advanced infrastructure , such as Smart City or Smart Building
technologies, on the adoption of development review practices that consider the unique needs or
features of the industry , and on the promotion of the Innovation District.
3. 7. Diversity, Equity, and Inclusion. Established best practices demonstrate the value
of diversity, equity, and inclusion ("DE&I") to the long-term success and impact of Innovation
Districts. Innovation Districts thrive on the exchange of diverse ideas , perspectives, relationships ,
and backgrounds. As such, Fort Worth Innovation Districts and district partners should strongly
encourage and incorporate practices that promote DE&I among individual firms, professional
networks , associations, and institution s and shou ld consider and incorporate DE&I when building
and executing long-term visions , goals , and strategies for the district.
4. INNOVATION DISTRICT TERM
' 4.1. Indefinite Term. The term of an Innovation District and any associated Nodes of
Innovation shall begin as of the date on which the establishing resolution is adopted by City
Council and will continue thereafter in perpetuity until any subsequent action by the City Council
to terminate and dissolve the district.
4.2 . Periodic Review . At the end of a five-year period following establishment of any
Innovation District and upon the end of each subsequent five-year period, City Staff will review
and evaluate the Innovation District to:
a. Evaluate whether the continued existence of the Innovation District is
warranted and of continued benefit to the economic development efforts of the City.
b. Consider the boundaries of the Innovation District to determine if any
adjustments are warranted, such as a boundary expansion or reduction.
c. Make recommendation to City Council, if necessary , as to i) any proposed
change to the boundaries of the Innovation District, ii) any addition or removal of an
existing or proposed Node of Innovation, or iii) any proposal for termination of the
Innovation District.
4.3. Termination. Termination of the term of an Innovation District will be recognized
by resolution of the City Council and will be effective immediately or on a date otherwise specified
in the terminating resolution.
5. INNOVATION DISTRICT APPLICATION PROCESS
The City of Fort Worth Economic Development Department will receive and evaluate all
Innovation District and Nodes of Innovation requests and applications. All information must be
provided in both paper and electronic form. The City will not be obligated in any respect to the
establishment of an Innovation District upon the receipt of an application and such establishment
may be refused for any purpose arising out of the evaluation process and criteria set forth within
this Policy . In the event that the proposed Innovation District originates ·from the recommendation
of City Staff, the City of Fort Worth Economic Development Department will be responsible for
City of Fort Worth Inno vation Districts Policy Page 5 of7
the evaluation and processing of the proposed Innovation District establishment and will be exempt
from all other requirements presented in this Section of the Policy.
Depending on the exact nature and complexity of the proposed Innovation District, the
estimated timeframe to complete the process for designation is at least three (3) months.
Applications will be accepted and reviewed throughout the year.
All applications for creation of a proposed Innovation District and applicable fee(s)
should be delivered to:
City of Fort Worth
Economic Development Department
1150 South Freeway
Fort Worth, Texas 76104
817-871-6021
FWBAC@ fortworthtexas.gov
5.1. Application Form. Applicants desiring to designate an Innovation District a Node
of Innovation must fully complete an "Application for Designation of an Innovation District,"
provide all information as outlined below in one original paper copy and one complete electronic
copy and submit the applicable application fee.
Before reviewing an application for the creation of an Innovation District, the City will
require that the applicants provide the following as part of their application:
a. A summary that includes a general description of the proposed Innovation
District or Node of Innovation, including proposed boundaries, an overview of key
contributing assets, anchor institutions, or existing centers for innovation. This summary
should not be more than one page in length;
b. An overview of any proposed projects for the Innovation District as well as
a description of any requested support from the City;
c. A description of any proposed financial or operational participation by any
non-City partners;
d. A description and a map of the real property proposed for Innovation
District or Node of Innovation designation; and
e. Letters of support from businesses, property owners, non-profit
organizations, or anchor institutions that are located in the proposed Innovation District or
Node oflnnovation.
5.2. Pre-Application Review Process. An Applicant may request a meeting with
appropriate City Staff prior to submitting an application in order to address Innovation District
requirements and processes. Applicant must bring a draft of the completed application and
supporting documentation to the meeting. The meeting can be scheduled through the Economic
Development Department.
City offo1i Worth Inn ovation Districts Poli cy Page 6 of 7
5.3. Application Fee . A non-refundable application fee of $2,500 must accompany all
applications for the establishment of an Innovation District. The application fee should be in the
form of a check or a money order and made payable to "The City of Fort Worth". The application
fee is to support administrative costs of initial review for completeness, internal processes , and
presentations.
5.4. Preliminary Review. City Staff will conduct a preliminary review of the
application within ten ( 10) working days to ensure compliance with these guidelines. If City Staff
detennines that an application does not meet the criteria hereunder, the applicant will be so
notified, the application fee will not be refunded, and no further action on the application will
occur. The applicant will have fourteen (14) working days to supply any information that is lacking
without having to resubmit a new application .
5.5. Application Review . If City Staff determines that an application meets these
Guidelines, a full strategic, policy, and programmatic review of the proposed project will occur.
This review may be conducted by City Staff, an outside agency, or consultant and may result in a
City Staff recommendation that Innovation District designation is not appropriate. City Staff may,
as part of its recommendation to City Council, amend the boundaries proposed for the Innovation
District or Node oflnnovation prior to its establishment.
5.6. Public Information Act. Upon submission of an application, all project
information provided to or developed by the City may become "public information," and therefore
may be subject to release under provisions of the Texas Public Information Act.
City of Fort Worth Innovation Districts Policy Page 7 of7
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 03/21/23
LOG NAME: 17INNOVATIONDISTRICTPOLICY
SUBJECT
M&C FILE NUMBER: M&C 2 3-0235
(ALL) Adopt Resolutions Establishing a Poli cy for the Creation of Innovation Distri cts in Fort Worth , Es tablish ing the Fort Worth Mobility Innovation
Zone, and Establishing the Fort Worth Medical Innovation District
RECOMMENDATION:
It is recommended that the City Council :
1. Adopt the atta ched resolution establ ishing a policy for the creation of Innovation Distri cts in Fort Worth ;
2 . Adopt the attached resolution establishing the Fort Worth Mob ility Innovation Zone ; and
3. Adopt the attached resolution establishing the Fort Worth Medical Innovation District.
DISCUSSION:
On December 17 , 2017 , City Council accepted the Fort Worth Economic Development Strategic Plan (Plan) (M&C G-19192) which was
subsequently revised and accepted on February 22 , 2022 (M&C 22-0113). The Plan includes multiple references to innovation distri cts,
recommended the establishment of a Medical Innovation District , and called for th e implementation of national best pra ctices in the use of
innovation districts to support economic development. Additional policy measures , including the Chapter 380 Economic Development Program
Policy as amended on June 16, 2020 (Resolution No . 5241-06-2020) and again on January 26, 2021 (Resolution No . 5338-01-2021) make
reference to innovation districts to provide enhanced benefit to investment and business activity located in a formally recognized innovation district.
Similarly, a variety of activities by staff, area stakeholders , and private investors have sought to evaluate , promote , and develop innovation districts
in Fort Worth .
However, there currently is no City policy defining Innovation Districts , describing their purpose and basic characteristics, nor any policy that guides
the process for the formal establishment and recognition of innovation districts and their boundaries in the City of Fort Worth .
Therefore , staff recommends that a resolution be adopted by the City Council that formally establishes an Innovation Districts Policy (Policy). The
proposed policy is intended to accomplish th e following :
• Define Innovation Districts and the ir purpose
• Guide the process for the establishment of Innovation Districts in Fort Worth , including application process and eligibility
• Describe the role of public , private , and institutional partners in support of Innovation Districts
• Refer to Chapter 380 Economic Development Program Policy for any use of specific economi c Development incentives
• Provide for the eligibility and forma l recognition of specific Nodes of Innovation , with the understanding that certain institutions and other
private or civic assets might not be contiguous with an associated innovation district but nevertheless important to the support of innovation
in Fort Worth
• Allow for the establishment of formal districts with clear boundaries while identifying, linking to , and benefiting key nodes of innovation
The proposed policy is attached and staff recommends its adoption . Once adopted , the amended Policy will be effective on February 15 , 2022 .
Additionally and consistent with the Policy , staff also recommends the adoption of a resolution formally establishing the Fort Worth Mobility
Innovation Zone and a resolution formally establishing the Fort Worth Medical Innovation District. The Fort Worth Mobility Innovation Zone will be
generally located in the area surrounding Alliance Airport and the Alliance lntermodal Facility reaching north along Interstate 35 to include property
surrounding Texas Motor Speedway . The Fort Worth Medical Innovation District will be located in the Near Southside wi th boundaries aligned to
the present boundaries of Tax Increment Reinvestment Zone Number Four. In recognition of multiple key institutional assets that, while
noncontiguous with the proposed boundaries of the Medical Innovation District, are nevertheless important to the development and promotion of
health innovation in Fort Worth , three formally recognized Nodes of Innovation will also be established in direct association with Medical Innovation
District. These include the campus of the University of North Texas Health Science Center, Texas A&M School of Law, and the University of Texas
at Arlington Research Institute . Maps indicating the boundaries of the proposed Innovation Districts and Nodes of Innovation are attached .
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 recommendations will have no material effect on the Fiscal Year 2023 Budget, and any
effect on expenditures and revenues will be budgeted in future fiscal years and in cluded in the long term forecast.
Submitted for City Manager's Office by: William Johnson 5806
Originating Business Unit Head: Rob ert Sturn s 2663
Additional Information Contact: Mi chael Henn ig 6024
Exped ite d