HomeMy WebLinkAboutResolution 6025-11-2024A Resolution
NO. 6025-11-2024
NOMINATING HAGGARD CLOTHING CO. AT
5401 N. RIVERSIDE DRIVE AS A HALF ENTERPRISE PROJECT
PURSUANT TO THE TEXAS 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. 21743-05-2015 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 Haggar Clothing Co. as ahalf enterprise project pursuant to nomination
and application; and
WHEREAS, 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 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 economically disadvantaged individuals and veterans; and
WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas Government Code
(the "Act"), Haggar Clothing Co. has applied for designation as a half enterprise project; and
WHEREAS, the City finds Haggar Clothing Co. meets the criteria for designation as a half enterprise proj ect under
Chapter 2303, Subchapter F of the Act on the following grounds:
1. Haggard Clothing Co. 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 least thirty-five percent (35%) 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 Haggard Clothing Co. as a half 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 Haggar Clothing Co. meets the criteria for tax relief and other incentives adopted
by the City and nominates Haggar Clothing Co. for a half 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 Haggard Clothing Co. as a half
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 Haggar Clothing Co. is a "qualified business," as defined in Section 2303.402 of the Act,
and meets the criteria for designation as a half 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:
Jannette S. Goodall, City Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 11/19/24 M&C FILE NUMBER: M&C 24-1021
LOG NAME: 17HAGGARTEZ
SUBJECT
(CD 4) Adopt a Resolution Nominating Haggar Clothing Co. at 5401 N. Riverside Drive, as a Half 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 Haggar Clothing Co.'s facility at 5401 N. Riverside Drive as a
half 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 Haggard Clothing Co. (Company) as a half
enterprise project pursuant to a nomination and an application made by the City. i
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 Half Enterprise Project Designation with planned capital investments of approximately $35.0 million to cover costs
associated with renovating the current facility, and updating machinery handling equipment. More specifically this will include $7.35 million in
building expansion and renovation costs and $28.0 million in machinery and equipment. These investments support a strategic modernization
and renovation initiative at the Fort Worth facility to support the company's growth.
As part of the project, the Company will retain 202 current employees, and create 5 new jobs at its Fort Worth facility, with an average annual salary
at $62,324.40.
If designated as an enterprise project by the State of Texas, the Company 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 half enterprise project designation allows for a state sales and use tax refund on qualified expenditures of $2,500.00 per job, for up to 500
jobs, with a maximum benefit of $625,000 over a five-year period. 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 4
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 this recommendation will have no material effect on City funds.
Submitted for City Manager's Office b . William Johnson 5806
Orlainating Business Unit Head: Robert Sturns 2663
Additional Information Contact: Robert Sturns 2663