HomeMy WebLinkAboutOrdinance 27375-12-2024ORDINANCE NO. 27375-12-2024
AN ORDINANCE NOMINATING THE REAL PROPERTY AT 2701
SPIRIT DR., FORT WORTH, TEXAS, FOR DESIGNATION AS A
QUALIFIED MEDIA PRODUCTION LOCATION PURSUANT TO
CHAPTER 485A, TEXAS GOVERNMENT CODE.
WHEREAS, Chapter 485A, Texas Government Code (the "Act") allows for the
designation of inedia production development zones and locations in the State of Texas to
maintain, strengthen, and promote the media production industry in Texas; and
WHEREAS, the Act provides that persons certified by the Office of the Governor may
receive two-year eXemptions from sales and use taXes on items used for the construction,
maintenance, expansion, improvement or renovation of a mectia production facility at a qualified
media production location and the building improvements housing that facility, as well as on
items used to equip such a media production facility; and
WHEREAS, the Act authorizes the governing body of a municipality to nominate to the
Office of the Governor a location within its jurisdiction for designation as a qualified media
production location, provided that the location is situated in a media production development
zone that has been recognized by the City and under other conditions outlined in the Act, as more
specifically set forth in this Ordinance; and
WHEREAS, in accordance with the Act, the City Council has adopted Ordinance No.
27374-12-2024 recognizing and designating the area within the municipal, or corporate,
boundaries, of the City of Fort Worth as a media production development zone known as "Media
Production Development Zone Number One"; and
WHEREAS, the real property at 2701 Spirit Dr., Fort Worth, is located within the boundaries of
Media Production Development Zone Number One; and
Ordinance nominating the real property at 2701 Spirit Dr., Fort Worth, Texas,
for designation as a Qualified Media Production Location pursuant to
Chapter 485A, Texas Government Code
Page 1 of 5
WHEREAS, the City Council wishes to encourage the development of inedia production
businesses in the City by nominating the real property at 2701 Spirit Dr., Fort Worth, as a
qualified media production location in accordance with the Act;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS THAT:
Section 1.
FINDINGS.
Considering all infarmation known to it, the City Council hereby makes the
following findings of fact:
A. The real property at 2701 Spirit Dr., Fort Worth, Texas (the "Location"),
is located within the boundaries of Media Production Development Zone Number One,
recognized and designated pursuant to Ordinance No. 27374-12-2024. A specific legal
description of the Location, and a corresponding site plan, is attached hereto as Exhibit
"�, which is made a part of this Ordinance for all purposes.
B. The Location is owned by Alliance Center East No. 3 Ltd. (the
"Requestor") who intends to renovate the Location exclusively to convert that space
solely for use as one ar mare media production facilities. The Location will accommodate
both large-scale film productions and long-term television tenants, offering state-of-the-
art infrastructure and services for the media industry and cater to a wide range of
production needs, from feature films to television series. The Location features over
224,000 square feet, including 72,000 square feet of soundstage space divided into four
18,000 square foot stages. These stages can be combined into two larger 36,000 square
foot stages, providing flexible configurations for productions of various sizes. The
Requestor has submitted written requests to the City that the City Council nominate the
Ordinance nominating the real property at 2701 Spirit Dr., Fort Worth, Texas,
for designation as a Qualified Media Production Location pursuant to
Chapter 485A, Texas Government Code
Page 2 of 5
Location for designation as a qualified media production location. In addition to the
soundstages, the facility will offer mill workspaces for set construction, office spaces for
production teams, storage facilities, and dedicated wardrobe areas to support every aspect
of production. Therefore, the proposed redevelopment and use of the Location meet the
criteria of Section 485A.102 of the Act.
C. The Requestor has supplied the City with an economic impact analysis of
the proposed project prepared by TXP, Inc., an independent economic analysis and public
policy consulting firm founded in 1987 in Austin, Texas. This economic impact analysis
is attached hereto as Exhibit "B" and made a part of this Ordinance for all purposes (the
"Economic Impact Analysis").
D. The Requestor anticipates that the renovation project proposed far the
Location will cost approximately $6.4 million in order to redevelop the Location for use
as media production facilities. A specific description and depiction of the project is set
forth in the attached Economic Impact Analysis.
E. By nomjnating the Location for designation as a qualified media
production location, the City Council understands that persons certified by the Office of
the Govemor may receive a two-year exemption from sales and use taxes on items used
for the construction, maintenance, expansion, improvement, or renovation of the Location
for use as media production facilities. The Requestor estimates that the amount of tax-
exempt renovation materials and equipment costs attributable to the space at the Location
will be $5,650,586. Accordingly, the City anticipates that the local sales tax exemptions
generated for qualified persons, as that term is defined in Section 485A.201 of the Act,
resulting from designation of the Location as a qualified media production location will
Ordinance nominating the real property at 2701 Spirit Dr., Fort Worth, Texas,
for designation as a Qualified Media Production Location pursuant to
Chapter 485A, Texas Government Code
Page 3 of 5
amount to approximately $64,150, in the aggregate. In return, accarding to the Economic
Impact Analysis, this project over the next five years is anticipated to (i) generate at least
54 new full-time jobs, and (ii) produce an additional $7.2 million in regional economic
activity; an additional $1,916,206 in labor income; an additional $1,049,720 in tax
revenue for the State of Texas; and an additional $189,474 in tax revenue for the City.
F. As a result of the new capital investment and the economic benefits that
are likely to accrue, both directly and indirectly, from redevelopment of the Location for
use as media production facilities and the job creation resulting therefrom, the City
Council wishes to nominate the Location for designation as a qualified media production
location and hereby finds that designation as such by the Office of the Governor is in the
best interest of the City and the State of Texas.
G. Taking into consideration all of the foregoing, the City Council finds that
the Location meets all requirements of the Act for designation as a qualified media
production location.
Section 2.
NOMINATION OF LOCATION FOR DESIGNATION
AS A QUALIFIED MEDIA PRODUCTION LOCATION.
On the basis of the findings set forth in Section 1, and otherwise in accordance with the
Act, the City Council hereby nominates 2701 Spirit Dr., Fort Worth, Texas, for designa�ion as a
qualified media production location.
Section 3.
DESIGNATION OF CITY REPRESENTATIVE.
In accardance with Title 13, Part 8, Section 123.4(d)(1)(D), Texas Administrative Code,
the City Council designates Robert Sturns, Director of �he City's Economic Development
Department, or his designee, to execute and submit an Application for Exemption (as specified
Ordinance nominating the real property at 2701 Spirit Dr., Fort Worth, Texas,
for designation as a Qualified Media Production Location pursuant to
Chapter 485A, Texas Government Code
Page 4 of 5
in Section 485A.106 of the Act) to the Music, Film, Television, and Multimedia Office within
the Office of the Governor requesting designation of the Location as a qualified media production
location under the Act and to serve as the City's representative to the Texas Film Commission in
connection with this project.
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 shall be and 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.
This Ordinance shall take effect and be in full force and effect from and after its adoption.
APPROVED AS TO FORM AND LEGALITY:
/...q�'i; Collister
Larry Colli5ff(Dec 17, 202415:18 CST)
Larry Collister, Sr. Assistant City Attorney
ADOPTED AND EFFECTIVE: December 10, 2024
M&C: 24-1152
Ordinance nominating the real property at 2701 Spirit Dr., Fort Worth, Texas,
for designation as a Qualified Media Production Location pursuant to
Chapter 485A, Texas Government Code
Page5of5
ATTEST:
Janette Goodall, City Secretary
City of Fort Worth,
Mayor and
DATE: 12/10/24
LOG NAME: 17MPDZ
SUBJECT
Texas
Council Communication
M&C FILE NUMBER: M&C 24-1152
(ALL) Adopt (i) an Ordinance Designating the Area within the Boundaries of the City of Fort Worth, Texas as Media Production Development Zone
Number One ("MPDZ No. 1") and (ii) an Ordinance Nominating the Real Property Located at 2701 Spirit Dr., for Designation as a Qualified Media
Production Location within MPDZ No. 1
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance designating the area comprising the City of Fort Worth,
Number One, City of Fort Worth, Texas ("MDPZ No. 1"); and
2. Adopt the attached ordinance nominating the real property located at 2701 Spirit Dr.
Qualified Media Production Location within MPDZ No. 1.
DISCUSSION:
Texas as a Media Production Development Zone
for designation by the Office of the Governor as a
Section 485A, Texas Government Code, enacts the Media Production Development Zone Act ("the Act") which is administered by the Texas Film
Commission. The Media Production Development Zone ("MPDZ") is designed to encourage the development of permanent moving image
production sites to help strengthen the Texas economy. This incentive program not only supports growth of the media industry but also brings about
tangible investment in assets that strengthen the local tax base. It also provides an opportunity to continue implementation of the City of Fort Worth
Economic Development Strategic Plan's goal to become a hub for creative businesses.
MPDZs allow for a finro year sales and use tax exemption for the construction, maintenance, expansion, improvement, or renovation of a media
production facility at a Qualified Media Production Location in a designated MPDZ.
The City of Fort Worth will meet the criteria for recognition as a MPDZ under the Act so long as a Qualified Media Production Location is
designated within that area. The exact boundaries of the proposed zone are described in Exhibit A of the attached ordinance designating the
Zone.
Under the Act, the governing body of a municipality, by ordinance, may nominate a location as a Qualified Media Production Location if the
location is situated in a MPDZ.
To be designated a Qualified Media Production Location, a location must be land or other real property that is in a MPDZ and will:
(1) be used exclusively to build or construct one or more media production facilities;
(2) if the real property is a building or other facility, be renovated solely for the purpose of being converted into one or more media
production facilities; or
(3) if the real property consists solely of one or more media production facilities, be improved or renovated for that purpose or will be
expanded into one or more additional media production facilities.
The building improvements located at 2701 Spirit Dr., will qualify for designation as a Qualified Media Production Location on the basis of the
following proposed renovation and uses:
One media-related project ("Requestor") is proposed at this location. Renovation is anticipated to begin in the fourth quarter of 2024, and will take
approximately four months to complete.
Alliance Center East No. 3, Ltd. is located at 2701 Spirit Dr. and is transforming its expansive 200,000+ square foot facility into a premier
soundstage and production hub. This development will accommodate both large-scale film productions and long-term television tenants, offering
state-of-the-art infrastructure and services for the media industry. The site will cater to a wide range of production needs, from feature films to
television series.
Site Details: The facility features over 224,000 square feet, including 72,000 square feet of soundstage space divided into four 18,000 square foot
stages. These stages can be combined into two larger 36,000 square foot stages, providing flexible configurations for productions of various
sizes. In addition to the soundstages, the facility will offer mill workspaces for set construction, office spaces for production teams, storage
facilities, and dedicated wardrobe areas to support every aspect of a production.
Scope of Planned Operations: The facility will be a comprehensive production center, designed to handle a variety of media projects. Alliance
Center East No. 3, Ltd. will focus on attracting both short-term film productions and long-term television series, providing dedicated soundstage
space with full soundproofing, lighting grids, and special effects capabilities. In addition to soundstages, the facility will include areas for mill work,
production offices, storage, and wardrobe, creating a complete ecosystem for pre-production, filming, and post-production. Long-term television
tenants will benefit from stable, equipped stages for extended productions, while large-scale film productions will have access to vast resources for
creating high-quality content.
Types of Jobs: The development will generate a wide range of job opportunities, including; immediate construction jobs. During the retrofitting and
construction phase, local construction crews will be hired to modify the existing warehouse into a fully equipped soundstage facility. These jobs will
involve soundproofing, electrical work, HVAC installation, stage building, and interior design.
Administrative Roles: Facility manager, leasing agent, and some office staff will oversee daily operations, client management, and production
schedules for tenants and short-term projects.
Support Staff: Security personnel, maintenance teams, and logistics staff will ensure the smooth day-to-day operations of the facility, managing
safety, infrastructure, and logistics.
Full Production Crews: Once operational, Alliance Center East No. 3, Ltd. will host full production crews working on location, including directors,
camera operators, set builders, costume designers, production assistants, etc ... By focusing on both short-term film projects and long-term
television productions, Alliance Center East No. 3, Ltd. will create a thriving production environment while boosting the local economy through job
creation and sustained business operations.
Other locations within the proposed MPDZ can be designated as Qualified Media Production Locations by the State and receive the same sales
tax exemptions, but only if nominated by the City Council. There is a limitation of three locations allowed at any one time in a zone.
This M&C does not request approval of a contract with a business entity.
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:
Additional Information Contact:
Robert Stums 2663
Christie Goodman Duke 6544