HomeMy WebLinkAboutResolution 5783-08-2023A Resolution
NO.5783-08-2023
NOMINATING THE GULFSTREAM AEROSPACE SERVICES CORPORTATION
AT 2500 GOLDEN TRIANGLE BOULEVARD — BUILDING 4
AS AN ENTERPRISE PROJECT PURSUANT TO
THE TEXAS ENTERPRISE ZONE ACT,
CHAPTER 2303, 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 Gulfstream Aerospace Services Corporation 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 veterans; and
WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas Government Code
(the "Act"), Gulfstream Aerospace Services Corporation has applied to the City for designation as an enterprise
project; and
WHEREAS, the City finds Gulfstream Aerospace Services Corporation meets the criteria for designation as an
enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds:
1. Gulfstream Aerospace Services Corporation 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 of an enterprise zone, and at least thirty-five percent (35%)
of the business's new or retained 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 Gulfstream Aerospace Services Corporation 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 Gulfstream Aerospace Services Corporation meets the criteria for tax relief and
other incentives adopted by the City and nominates Gulfstream Aerospace Services Corporation 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 Gulfstream Aerospace Services
Corporation 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 Gulfstream Aerospace Services Corporation 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 22°d day of August 2023.
ATTEST:
By: (i
Jannette S. Goodall, City Secretary
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City of Fort Worth assumes no responsibildyforthe accuracyof said data.
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/22/23 M&C FILE NUMBER: M&C 23-0674
LOG NAME: 17GULFSTREAM2023 TEZ
SUBJECT
(CD 4) Adopt Resolution Nominating Gulfstream Aerospace Services Corporation's Facility at 2500 Golden Triangle Boulevard, Building 4, 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 Gulfstream Aerospace Services Corporation's facility at 2500
Golden Triangle Boulevard, Building 4, 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 Gulfstream Aerospace Services
Corporation 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.
Gulfstream Aerospace Services Corporation (Gulfstream) qualifies for a single Enterprise Project Designation with planned capital investments of
approximately $21.9 million to build out an existing 108,548 square foot industrial building (constructed in 2021) from January 1, 2023 through
June 1, 2026. These planned capital investments include $12.8 million of real property construction costs and $7.4M in equipment and personal
property. Gulfstream's principal business is aircraft manufacturing and service - they manufacture, sell, and service business aircraft for
customers. Once complete, this building will house multiple shops for the repair & overhaul of aircraft parts, including structural, wheels & brakes,
batteries, avionics, and composites. This facility is the first of its type for Gulfstream, as it will house all of these operations under one roof, along
with all of the associated shared support operations (machine shop, x-ray, media blast, paint, shipping/receiving, etc.) As part of the project,
Gulfstream will retain 5 current employees while adding 100 new employees as an integral part of Fort Worth's thriving aerospace sector, with an
average annual salary at $75,448.00.
If designated as an enterprise project by the State of Texas, Gulfstream 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.
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 4.
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 by: William Johnson 5806
Originating Business Unit Head: Robert Sturns 2663
Additional Information Contact: Cherie Gordon 6053