HomeMy WebLinkAboutResolution 5737-05-2023A Resolution
NO. 5737-05-2023
NOMINATING HIGBEE LOUISIANA, LLC AT
4501 NORTH BEACH STREET 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 Higbee Louisiana, LLC 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"), Higbee Louisiana, LLC has applied to the City for designation as an enterprise project; and
WHEREAS, the City finds Higbee Louisiana, LLC meets the criteria for designation as an enterprise project
under Chapter 2303, Subchapter F of the Act on the following grounds:
1. Higbee Louisiana, LLC 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 within an enterprise zone, and at least twenty-five percent (25%) 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 Higbee Louisiana, LLC 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 Higbee Louisiana, LLC meets the criteria for tax relief and other incentives
adopted by the City and nominates Higbee Louisiana, LLC 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 Higbee Louisiana, LLC as an
enterprise project pursuant to the Act;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
1. THAT the findings of the City and its actions approving this Resolution taken at the Council
meeting are hereby approved and adopted.
2. THAT Higbee Louisiana, LLC 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 23' day of May 2023.
ATTEST:
By:
Jannette S. Goodall, City Secretary
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Higbee Louisiana, LLC, a subsidiary of Dillard's Inc., (Higbee)
4501 North Beach St Fort Worth TX 76137
Copyright 2023 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws. This product is for informational purposes and may not have been
prepared for or be suitable for legal engineering or surveying purposes. It does not represent an on -the -ground survey and represents only the appropriate relative
location of property boundaries. The City of Fort Worth assumes no responsibility for the accuracy of said data.
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 05/23/23 M&C FILE NUMBER: M&C 23-0411
LOG NAME: 17DILLARDS TEZ
SUBJECT
(CD 2 / Future CD 2) Adopt Resolution Nominating Higbee Louisiana, LLC's, a Subsidiary of Dillard's Inc., Facility at 4501 North Beach Street 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 the Higbee Louisiana, LLC's, a subsidiary of Dillard's Inc., facility
at 4501 North Beach Street 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 Higbee Louisiana, LLC's, a subsidiary of
Dillard's Inc., (Higbee) facility 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.
Higbee qualifies for a single Enterprise Project Designation with a planned capital investment of approximately $29.2 million in facility
improvements and modernizations over the next five years at its Fort Worth location. The planned investment includes the purchase and install of a
new automated storage and retrieval system to increase the facility's ability to process and distribute product with improved precision, accuracy,
and speed. The project will increase the distribution facility's capability by maximizing its storage density, enhancing product security, and provide
real-time inventory controls. The system will not only modernize facility operations but will provide a better and safer working environment for
Dillard's employees by increasing ergonomics and reducing lifting, bending, and twisting activities.
If designated as an enterprise project by the State of Texas, Higbee commits to hiring twenty-five percent (25%) economically disadvantaged
persons or enterprise zone residents for its certified jobs at its Fort Worth facility during its enterprise project designation. Higbee 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 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 2.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION I 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 b. William Johnson 5806
Originating Business Unit Head:
Additional Information Contact:
Robert Sturns 2663
Cherie Gordon 6053
Expedited