HomeMy WebLinkAboutResolution 5736-05-2023A Resolution
NO. 5736-05-2023
NOMINATING BELL TEXTRON INC. AT
3255 BELL FLIGHT BOULEVARD AS AN ENTERPRISE PROJECT
PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT,
CHAPTER 2303, OF THE TEXAS GOVERNMENT CODE
WHEREAS, on November 4, 2003 the City Council of the City of Fort Worth (the "City") previously adopted
Ordinance No. 15733 electing to participate in the Texas Enterprise Zone Program; and
WHEREAS, on May 12, 2015 the City Council of the City 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; and the local incentives available pursuant to this
Resolution are the same on this date as were outlined in Ordinance No. 21743-05-2015; and
WHEREAS, the Office of the Governor, Economic Development and Tourism (EDC), through the Economic
Development Bank ("Bank"), will consider Bell Textron Inc. as an enterprise project pursuant to a nomination
and an application made by the City; and
WHEREAS, the City desires to pursue the creation of the proper economic and social environment in order to
induce the investment of private resources in productive business enterprises located in the City and to provide
employment to residents of enterprise zones and to other economically disadvantaged individuals; and
WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas Government Code
(the "Act"), Bell Textron Inc. has applied to the City for designation as an enterprise project; and
WHEREAS, the City finds Bell Textron Inc. meets the criteria for designation as an enterprise project under
Chapter 2303, Subchapter F of the Act on the following grounds:
1. Bell Textron Inc. is a "qualified business" under Section 2303.402 of the Act since it will be
engaged in the active conduct of a trade or business at a qualified business site within the governing
body's jurisdiction located outside an enterprise zone, and at least thirty-five percent (35%) of the
business's new employees will be residents of an enterprise zone, economically disadvantaged individuals
or veterans; and
2. There has been and will continue to be a high level of cooperation between public, private, and
neighborhood entities within the area; and
3. The designation of Bell Textron Inc. as an enterprise project will contribute significantly to the
achievement of the plans of the City for development and revitalization of the area; and
WHEREAS, the City finds that Bell Textron Inc. meets the criteria for tax relief and other incentives adopted by
the City and nominates Bell Textron Inc. for enterprise project status on the grounds that it is located at the
qualified business site and will create a higher level of employment, economic activity and stability in the area;
and
WHEREAS, the City finds that it is in the best interest of the City to nominate Bell Textron Inc. as an enterprise
project pursuant to the Act;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
THAT the findings of the City and its actions approving this Resolution taken at the Council
meeting are hereby approved and adopted.
2. THAT Bell Textron Inc. is a "qualified business," as defined in Section 2303.402 of the Act, and
meets the criteria for designation as an enterprise project, as set forth in Section 2303, Subchapter
F of the Act.
3. THAT the enterprise project shall take effect on the date of designation of the enterprise project
by the Bank and terminate five (5) years after the date of designation.
Adopted this 23rd day of May 2023.
ATTEST:
By:
Jannette S. Goodall, City Secretary
FORT WORTH . Bell Textron
3255 Bell Flight Blvd
Fort Worth, TX 76118
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 05/23/23 M&C FILE NUMBER: M&C 23-0409
LOG NAME: 17BELL2023 TEZ
SUBJECT
(CD 5 / Future CD 5) Adopt Resolution Nominating Bell Textron, Inc.'s Facility at 3255 Bell Flight Boulevard as an Enterprise Project Pursuant to
the Texas Enterprise Zone Act, Chapter 2303 of the Texas Government Code
RECOMMENDATION:
It is recommended that the City Council adopt the attached resolution nominating Bell Textron, Inc. business site at 3255 Bell Flight Boulevard 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 Bell Textron Inc. 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.
Bell Textron Inc. (Bell) qualifies for a single Enterprise Project Designation with planned capital investments of approximately $35.7 million to
purchase manufacturing equipment, complete renovations and upgrade information technology at its Fort Worth complex from January 24, 2023
through June 1, 2028. These planned capital investments include $16.5 million to purchase Future Long -Range Assault Aircraft (FLRAA) EMD
Wing equipment to manufacture composite spars, stringers, and skins. Additionally, to increase capabilities and readiness for the FLRAA project,
Bell Textron plans to spend $2.6 million on renovations to the inspection room, engineering test labs and offices as well as $5.6 million on high
performance computing hardware and related equipment. Bell Textron also plans to spend $11 million to complete an enterprise consolidation
project which will establish its digital enterprise capabilities to support all business needs at the complex.
As part of the project, Bell Textron Inc. will retain its current headcount and remain an integral part of Fort Worth's thriving aerospace and defense
manufacturing sector. Current employment is 3,141 with an average wage of $163,913.00. Bell Textron does not anticipate hiring new employees
associated with this project.
If designated as an enterprise project by the State of Texas, Bell Textron Inc. commits to hiring thirty five percent (35%) economically
disadvantaged persons or enterprise zone residents for its certified jobs at its Fort Worth facility during its enterprise project designation. Bell
Textron Inc. 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 $2,500.00 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.
The project is located in Council District 5/Future Council District 5.
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 this recommendation will have no material effect on City funds.
Submitted for City Manager's Office by: William Johnson 5806
Originating Business Unit Head: Robert Sturns 2663
Additional Information Contact: Cherie Gordon 0652