HomeMy WebLinkAboutOrdinance 26419-09-2023ORDINANCE NO. 26419-09-2023
AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE
CITY OF FORT WORTH AS "TAX ABATEMENT
REINVESTMENT ZONE NUMBER ONE HUNDRED AND EIGHT,
CITY OF FORT WORTH, TEXAS"; PROVIDING THE
EFFECTIVE AND EXPIRATION DATES FOR THE ZONE AND A
MECHANISM FOR RENEWAL OF THE ZONE; AND
CONTAINING OTHER MATTERS RELATED TO THE ZONE.
WHEREAS, pursuant to the City of Fort Worth's ("City") Tax Abatement Policy,
which was adopted by the City Council to be effective on February 28, 2023 by way of
Resolution No. 5709-02-2023 ("Tax Abatement Policy"), the City has elected to be
eligible to participate in tax abatement and has established guidelines and criteria
governing tax abatement agreements entered into between the City and various third
parties, as authorized by and in accordance with the Property Redevelopment and Tax
Abatement Act, codified in Chapter 312 of the Texas Tax Code ("Code");
WHEREAS, the City Council desires to promote the development of the area in
the City more specifically described in Exhibit "A" of this Ordinance ("Zone") through
the creation of a reinvestment zone for the purpose of supporting new business investment
or expansion, as authorized by and in accordance with Chapter 312 of the Code;
WHEREAS, DrinkPAK LLC, or an Affiliate, ("Company"), which is a US -based
contract manufacturer of premier alcoholic and non-alcoholic beverage wishes to expand
its operations to add two manufacturing facilities and a total of 1,000 employees at two
separate locations in the City for a total minimum investment of $452 million in real
property and business personal property improvements ("Project");
WHEREAS, with regard to property within this Zone, Company desires to (i)
expend or cause to be expended at least $32 million in real property improvements, and (ii)
install new taxable tangible personal property worth at least $200 million that will
ultimately result in a combined real and personal property investment of at least $232
million (collectively, the "Improvements");
WHEREAS, Company has applied for real and business personal property tax
abatements from the City in return for the construction and installation of the
Improvements in the Zone and compliance with certain other employment and spending
requirements;
WHEREAS, to foster economic development in the Zone, and the City, in general,
it is anticipated that the City will enter a tax abatement agreement(s) for one or more
Improvements within the Zone;
Page 1
Ordinance Designating Tax Abatement Reinvestment Zone Number One Hundred and Eight,
City of Fort Worth, Texas
WHEREAS, on September 12, 2023, the City Council held a public hearing
regarding the creation of the Zone, received information concerning the Improvements
proposed for the Zone, and afforded a reasonable opportunity for all interested persons to
speak and present evidence for, or against, the creation of the Zone ("Public Hearing"),
as required by Section 312.201(d) of the Code;
WHEREAS, notice of the Public Hearing was published in a newspaper of general
circulation in the City at least seven (7) days prior to the Public Hearing, which satisfies
the requirement of Section 312.201(d)(1) of the Code; and
WHEREAS, in accordance with Sections 312.201(d)(2) and (e) of the Code, notice
of the Public Hearing was also delivered, in writing, to the presiding officer of the
governing body of each taxing unit that includes in its boundaries real property that is to
be included in the proposed Zone not later than the seventh day before the date of the public
hearing.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH, TEXAS:
SECTION 1.
FINDINGS.
That, after reviewing all information before it regarding the establishment of the
Zone and after conducting the Public Hearing and affording a reasonable opportunity for
all interested persons to speak and present evidence for, or against, the creation of the Zone,
the City Council hereby makes the following findings of fact:
1.1. The statements and facts set forth in the recitals of this Ordinance are true and
correct. Therefore, the City has met the notice and procedural requirements
established by the Code for creation of the Zone under Chapter 312 of the Code.
1.2. The Improvements proposed for the Zone, as more specifically outlined in the
Public Hearing, are feasible and practical and, once completed, will benefit the land
included in the Zone as well as the City for a period of more than ten (10) years,
which is the statutory maximum term of any tax abatement agreement entered into
under the Chapter 312 of the Code.
1.3. As a result of designation as a reinvestment zone, the area within the Zone is
reasonably likely to contribute to the expansion of primary employment and to
attract major investment in the Zone that will be a benefit to property in the Zone
and will contribute to the economic development of the City.
Page 2
Ordinance Designating Tax Abatement Reinvestment Zone Number One Hundred and Eight,
City of Fort Worth, Texas
SECTION 2.
DESIGNATION OF ZONE
That the City Council designates the Zone described in the boundary description
attached hereto as Exhibit "A" and made a part of this Ordinance for all purposes as a
reinvestment zone for purposes permitting tax abatement as may be found desirable by the
City or any other eligible taxing units for purposes authorized by and in accordance with
Chapter 312 of the Code. This Zone will be known as "Tax Abatement Reinvestment
Zone Number One Hundred and Eight, City of Fort Worth, Texas." This Project is eligible
for tax abatements under Section 6 of the Tax Abatement Policy because it concerns a
Mega Project.
SECTION 3.
TERM OF ZONE
The Zone takes effect upon the effective date of this Ordinance and expires five (5)
years thereafter. The Zone may be renewed by the City Council for one or more subsequent
terms not to exceed five years, unless otherwise allowed by law.
SECTION 4.
SEVERABILITY
If any portion, section, or part of a section of this Ordinance is subsequently
declared invalid, inoperative, or void for any reason by a court of competent jurisdiction,
the remaining portions, sections or parts of sections of this Ordinance will remain in full
force and effect and shall not in any way be impaired or affected by such decision, opinion,
or judgment.
SECTION 5.
IMMEDIATE EFFECT.
That this Ordinance takes effect upon its adoption.
APPROVED AS TO FORM
AND LEGALITY:
ByJ�
Tyler F Wallach
Senior Assistant City Attorney
ATTESTED BY:
,P `;"
Janette Goodall
City Secretary
ADOPTED AND EFFECTIVE: September 12, 2023
M&C: 23-0710
Page 3
Ordinance Designating Tax Abatement Reinvestment Zone Number One Hundred and Eight,
City of Fort Worth, Texas
EXHIBIT "A"
BOUNDARY DESCRIPTION OF ZONE
Tax Abatement Reinvestment Zone No. 108
FORT WORTH,. 7500-7601 Oak Grove Fort Worth TX 76140
"Exhibit W
s !a Ili
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: 09/12/23 M&C FILE NUMBER: M&C 23-0710
LOG NAME: 17EDTARIZ108
SUBJECT
(CD 8) Conduct Public Hearing and Adopt the Attached Ordinance Designating Tax Abatement Reinvestment Zone No. 108, City of Fort Worth,
Texas, for Property Located at 7500-7601 Oak Grove Road for Development of a Manufacturing Facility for DrinkPAK, LLC, or an Affiliate
(PUBLIC HEARING - a. Report of City Staff: Cherie Gordon; b. Public Presentations; c. Council Action: Close Public Hearing and Act on M&C)
RECOMMENDATION:
It is recommended that the City Council:
1. Conduct a public hearing concerning the designation of Tax Abatement Reinvestment Zone No. 108, City of Fort Worth, Texas, for property
located at 7500-7601 Oak Grove Road for the development of a manufacturing facility for DrinkPAK, LLC, or an Affiliate;
2. Find that the intended improvements, which are set forth in more detail below, are feasible and practical and would be a benefit to the land to
be included in Tax Abatement Reinvestment Zone No. 108 and to the City after the expiration of any tax abatement agreements; and
3. Adopt the attached ordinance designating Tax Abatement Reinvestment Zone No. 108, City of Fort Worth, Texas, pursuant to and in
accordance with Chapter 312 of the Texas Tax Code.
DISCUSSION:
The proposed Tax Abatement Reinvestment Zone No. 108, City of Fort Worth, Texas (TARZ 108) is for the property located at 7500-7601 Oak
Grove Road in Fort Worth, Texas (Property). A more detailed description of the Property is included as Exhibit A to the attached Ordinance.
DrinkPAK, LLC, (DrinkPAK) which is a United States -based contract manufacturer of premier alcoholic and non-alcoholic beverages,
currently based out of Santa Clarita, California with approximately 400 employees. As the most technologically advanced canned beverage facility
in North America, DrinkPAK's 24/7 operation is capable of producing 2.1 billion cans annually. Following a multi -state site selection
process, DrinkPAK has decided to expand its operations to add two manufacuring facilities and a total of 1,000 employees in the DFW region
(Project). The facilities will include production of energy drinks, hard seltzer, canned cocktails, and alternative dairy beverages, including canned
cold brew and oat milk.
The Project will be constructed in two phases on two separate properties in the Clty of Fort Worth.
Phase 1 will be constructed on property owned by PR III/Crow Building C, LP (Trammel Crow) located at 25001 Eagle Parkway and will
consist of approximately 1.25 million square feet of building space for DrinkPAK's manufacutring operations (Phase 1 Project Site). As part
of Phase 1, DrinkPAK will be responsible for expending or causing to be expened at least $220 million in real and business personal
property, along with hiring and maintaining at least 550 full-time employees earning a minimum salary of $70,000 on the Phase 1 Project
Site.
Phase 2 will be constructed on property owned by Carter Park East Land, LLC (Carter Park) located at 7500-7601 Oak Grove and will
consist of approximately 1 milliion square feet of building space for the for DrinkPAK's manufacutring operations (Phase 2 Project Site). As
part of Phase 2, DrinkPAK will be responsible for expending or causing to be expened at least $232 million in real and business personal
property, along with hiring and maintaining at least 450 full-time jobs earning a minimum salary of $70,000 on the Phase 2 Project Site.
The City Council will be considering both the Phase 1 Project Site and Phase 2 Project Site for designation as separate but related tax abatement
reinvestment zones through separate Mayor and Council Communications (M&Cs). This M&C concerns the designation of the Phase 2 Project
Site as TARZ 108, which allows the City the option to enter into a tax abatement agreement with DrinkPAK to help faciliate development within the
Phase 2 Project Site.
As required by Chapter 312 of the Texas Tax Code, a public hearing must be conducted regarding the creation or expansion of a Reinvestment
Zone. Notice of this hearing was delivered to the governing body of each affected taxing unit and published in a newspaper of general circulation
at least seven days prior to this hearing.
Pursuant to Chapter 312 of the Texas Tax Code, the area encompassing the proposed TARZ 108 meets the statutory criteria for designation as a
Tax Abatement Reinvestment Zone beacuse the area is likely, as a result of the designation, to contribute to the retention or expansion of primary
employment or to attract major investment in TARZ 108 that would be a benefit to the Property and that would contribute to the economic
development of the City. Further, the proposed improvements and investments are feasible and practical and would be a benefit to the land to be
included in the TARZ 108 and to the City after the expiration of any tax abatement agreement.
The term of TARZ 108 will be five years from the date of adoption of the attached Ordinance and may be renewed for periods not to exceed
ten years each unless otherwise allowed by law.
The proposed zone is located in COUNCIL DISTRICT 8.
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 these recommendations 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