Loading...
HomeMy WebLinkAboutResolution 5953-05-2024A Resolution NO.5953-05-2024 NOMINATING MP MAGNETICS LLC AT 13840 INDEPENDENCE PARKWAY 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 MP Magnetics LLC for a double jumbo 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 economicaIIy disadvantaged individuals and veterans; and WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas Government Code (the "Act"), MP Magnetics LLC has applied to the City for designation as an enterprise project; and, WHEREAS, the City finds MP Magnetics LLC meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds: 1. MP Magnetics 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 outside of an enterprise zone, and at Ieast 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 MP Magnetics LLC as a double jumbo 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 MP Magnetics LLC meets the criteria for tax relief and other incentives adopted by the City and nominates MP Magnetics LLC for double jumbo 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 MP Magnetics LLC as double jumbo 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 MP Magnetics 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 2151 day of May 2024. ATTEST: By: Jannette S. Goodall, City Secretary City of Fort Worth, Texas Mayor and Council Communication DATE: 05/21/24 M&C FILE NUMBER: M&C 24-0446 LOG NAME: 17MPMAGNETICS2024 TEZ SUBJECT (CD 10) Adopt Resolution Nominating MP Magnetics LLC's Facility at 13840 Independence Parkway, 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 MP Magnetics LLC's facility at 13840 Independence Parkway 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 Govemor Economic Development and Tourism through the Economic Development Bank will consider MP Magnetics LLC 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. MP Magnetics LLC (MP Materials) qualifies for an Enterprise Project Designation with planned capital investments of approximately $74 million for manufacturing for rare earth materials equipment in addition to its scheduled $100 million investment to total $172,530,025,00. These projects will include facility maintenance and improvements at an existing 200,000 square foot building, as well as investments in manufacturing machinery and equipment from June 1, 2024 through June 1, 2029. MP Materials' principal business is providing products and systems solutions focusing on manufacturing for rare earth materials. As part of the project, MP Materials will retain 90 current employees, with an average annual salary at $80,390.00 and add 260 newjobs at $120,784.00 average annual salary to total 350 employees. If designated as an enterprise project by the State of Texas, MP Materials 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 enterprise project designation allows for a state sales and use tax refund on qualified expenditures of $2,500.00 perjob, for up to 350 jobs. Under the Texas Enterprise Zone Act, at least thirty-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 10. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCAL_ INFORMATION 1 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 Stums 2663 Additional Information Contact: Kelly Baggett 2617