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HomeMy WebLinkAboutResolution 6026-11-2024 (2)A Resolution NO. 6026-11-2024 NOMINATING TTI, INC. AT 3737 MEACHAM BLVD. AS A SINGLE ENTERPRISE PROJECT PURSUANT TO THE T�XAS ENTERPRISE ZONE ACT, CHAPTER 2303, OF THE 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-OS-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-OS-2015; and WI3EREAS, the Office of the Governor, Economic Development and Tourism (EDC), through the Economic Development Bank ("Banlc"), will consider TTI, Inc. as a single enterprise project pursuant to nomination and application; and WIIEREAS, the City finds that it is in full compliance with Chapter 2303, Texas Government Code prior to nomination of an eligible business; and WHEREAS, the City desires to pursue the cr•eation 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"), TTI, Inc. has applied to the City for designation as a single enterprise project; and WHEREAS, the City finds TTI, Inc. meets the criteria for designation as a single enter•prise project under Chapter 2303, Subchapter F of the Act on the following grounds: 1. TTI, Inc. 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 goveining body's jurisdiction located inside of an enterprise zone and at least twenty-five percent (25%) of the business' new 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 TTI, Inc. as a single 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 TTI, Inc. meets the criteria for tax relief and other incentives adopted by the City and nominates TTI, Inc. for a single 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 WFIEREAS, the City finds that it is in the best interest of the City to nominate TTI, Inc. as a single 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 TTI, Inc. 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 19�' day of November 2024. ATTEST: By: � ..�-Q � � oo ��e Ja ette S. Goodall, City Secretary ��S �� d a oa �� � oo ��� '�,�� °00000nn�°� "� �� ��� ����� City of Fort Worth, Mayor and DATE: 11 /19/24 Texas Council Communication M&C FILE NUMBER: M&C 24-1023 LOG NAME: 17TTI TEZ SUBJECT (CD 2) Adopt Resolution Nominating TTi, Inc.'s Facility at 3737 Meacham Bivd., as a Single 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 TTI, Inc.'s facility at 3737 Meacham Blvd. as a single 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 TTi, Inc. (Company) as an enterprise project pursuant to a nomination and an application made by the Ciry. 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. The Company qualifies for a Single Enterprise Project Designation with planned IT-related capital investments of approximately $8.8 million dollars. More specifically this will include $4 million towards a new mainframe systems, $2.8 million on acquisition of new servers, and $2.0 million for IT-related modernization. As a result of these investments, it will enhance TTI, Inc.'s operational efficiency and capacity for the years to come. As part of the project, the Company will retain 490 current employees, and create 10 new jobs at its Fort Worth facility, with an average annual salary at $76,500.00. If designated as an enterprise project by the State of Texas, the Company commits to hiring twenty five percent (25%) 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 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 dis,advantaged 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 2. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCA� INFORMATION / CERTIFICATION: The Director of Finance certifies that approval of this recommendation will have no material effect on Ciry funds. Submitted for City Manager's Office b� William Johnson 5806 Originating Business Unit Head• Robert Sturns 2663 Additional Information Contact: Cherie Gordon 6053