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HomeMy WebLinkAboutIR 0733INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 23-0733 To the Mayor and Members of the City Council August 15, 2023 Page 1 of 1 SUBJECT: TEXAS ENTERPRISE ZONE NOMINATION FOR GULFSTREAM AEROSPACE SERVICES CORPORATION The Fort Worth City Council (City) previously passed Ordinance No. 15733 electing to participate in the Texas Enterprise Zone Program. On May 12, 2015 the City adopted Ordinance No. 21743- 05-2015, adding additional potential local incentives that could be made available to qualified businesses under the Texas Enterprise Zone Program. The State of Texas Office of Economic Development and Tourism will consider the City's nomination of Gulfstream Aerospace Services Corporation (Gulfstream) as an enterprise project. 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 may apply for state sales and use tax refunds on qualified expenditures. On October 4, 2022, Gulfstream announced the opening of its newest Gulfstream Support Center at Fort Worth Alliance Airport. This $55 million, 162,000 square foot facility will provide maintenance and repair activities for Gulfstream owners around the country and internationally. Approximately 200 people now work at the facility, and Gulfstream is partnering with Tarrant County College's Airframe and Powerplant (A&P) program to hire new technicians. They also work with several other local educational institutions to build a talent pipeline in the community. The company intends to open another facility in Fort Worth located at 2500 Golden Triangle Boulevard to provide component repair and maintenance activities. The proposed facility, consisting of over 108,000 square feet, will employ at least 105 additional workers. Gulfstream expects to complete the facility to its specifications and invest another $6 million for equipment to be used onsite. The completed facility would include offices, shipping and receiving, and light industrial space. Gulfstream expects to target job training to zone residents and other disadvantaged citizens in the community. If designated by the State, Gulfstream commits to hiring thirty-five percent (35%) economically disadvantaged persons or enterprise zone residents for new permanent jobs at its Fort Worth facility. Staff will submit an M&C for City Council consideration on the August 22, 2023 agenda nominating Gulfstream Aerospace Services Corporation as an Enterprise Zone Project pursuant to the Texas Enterprise Zone Program. Submittal and approval of this application for State benefits will have no fiscal impact to the City's general fund. If you have any questions concerning this information, please contact Robert Sturns, Economic Development Director at 817-392-2663 or robert.sturns@fortworthtexas.gov. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS