HomeMy WebLinkAboutIR 7341 INFORMAL REPORT TO CITY COUNCIL MEMBERS No 7341 p.1
To the Mayor and Members of the City Council December 20, 1988
�TEX Subject:
411 PROPOSED ENTERPRISE PROJECT-TARDY ADVANCED PRODUCTS
On August 9, 1988, the City Council approved K & C G-7673
which provided authorization for the City Manager to submit an
application to the Texas Department of Commerce to establish a
North Enterprise Zone and a South Enterprise Zone. On August 30 ,
1988, the Texas Department of Commerce approved Fort Worth's
applications and designated two enterprise zones in Fort Worth.
As noted in the applications, the City of Fort Worth
Enterprise Zone Program is designed based upon the following
principles:
1. Expanding employment opportunities for residents of
disadvantaged neighborhoods by encouraging and
supporting active community participation in order to
maximize benefits to those communities and protect
residents from displacement and other negative impacts.
2. Providing incentives to encourage business investment
and job creation, with an emphasis on encouraging the
retention and expansion of existing businesses.
3. Creating an opportunity for a coordinated and
cooperative relationship to leverage the resources of
various levels of city, county, state and federal
governments and, in particular the local private
sector, in order to promote the improvement of the
local economy.
4. The Enterprise Zone Program is only one component
required to revitalize the economically distressed
areas of Fort Worth. overall economiq revitalization
will require effective effort to improve housing,
provide required social services, reduce crime and
improve the general appearance and quality of life in
these areas. The Enterprise Zone Program seeks to
enhance and cooperate with these efforts.
The Texas Enterprise Zone Act (Article 5190.7, Texas Civil
Statutes) provides direct development incentives for a limited
number of enterprise zone projects to support economic
redevelopment in the most distressed areas of the state. Only
fifteen enterprise projects in the state may be designated during
the current state fiscal year, which ends August 31, 1989, and
only two projects per enterprise zone may be approved during any
state fiscal year.
#* The Texas Economic Development Commission will designate
qualified businesses as enterprise projects on a competitive
basis. The Commission will base its decision on a weighted scale
with 60 percent dependent on the economic distress of the
- ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7341 p.2
0";,T I st,
a To the Mayor and Members of the City Council December 20, 1.988
*rrx"�"+
Subject: PROPOSED ENTERPRISE PROJECT-TANDY ADVANCED PRODUCTS
16715
enterprise zone in which the project is located and 40 percent
dependent on the local effort to achieve development and
revitalization of the enterprise zone.
Tandy Corporation has requested that the City of Fort Worth
nominate its Tandy Advanced Products Manufacturing Plant at 2400
Western Center Boulevard in the North Enterprise Zone to be
designated as an enterprise project. This plant is scheduled to
open the first of February, 1989, with 284-300 employees. It is
anticipated that within six months to one year the operation will
expand to approximately 500 employees. An Enterprise Project
requires that 25% of the jobs created result in hires from
residents of the zone or persons with low incomes. (Please see
attached map for location of the plant and boundaries of the
North Enterprise Zone) .
A qualified business may be designated as an enterprise
project for a maximum period of 5 years. An enterprise project
is eligible for a refund of state sales tax on purchases of
equipment or machinery for the use in an enterprise zone or
building materials for use in remodeling, rehabilitating or
constructing a structure in the zone. An enterprise project is
eligible for a refund of state sales taxes equal to $2,000 for
each new job that the enterprise project provides for a resident
of the zone or a low income person during the period of its
designation as an enterprise project up to a total of $250,000
per state fiscal year.
Because local area distress factors make up 60% of the
selection criteria for enterprise projects, it may be difficult
for a business in the metroplex to be selected when compared to
other areas of Texas, such as the Valley or West Texas. As a
result, the application for the project will emphasize the local
effort and such factors as lack of displacement or neighborhood
opposition. The local effort will encompass the commitment and
investment of Tandy Corporation to the City of Fort Worth, the
community support for this project, and the public effort to
assist zone residents' and low income citizens of Fort Worth
obtain and maintain employment in this facility.
The deadline to submit the application to the State
Department of commerce is January 9, 1989. The proposal to
nominate Tandy Advanced Products as an enterprise project will
be on the agenda of the December 20, 1988 Pre-Council Session.
Mr. Bob Ballard of Tandy Corporation will be in attendance at
that time to answer any questions the City Council may have.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 734rt P_
'Q"*"Pltfteo To the Mayor and Members of the City Council December 20, 1988
Subject: PROPOSED ENTERPRISE PROJECT-TANDY ADVANCED PRODUCTS
Following that discussion, unless staff is otherwise
directed, a resolution will be placed on the January 3, 1989 City
Council agenda nominating Tandy Advanced Products at 2400 Western
Center Boulevard to be designated as an enterprise project.
/arm
Citglas y Manager
Attachment: North Enterprise Zone Map
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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