HomeMy WebLinkAboutOrdinance 27374-12-2024ORDINANCE NO. 27374-12-2024
AN ORDINANCE DESIGNATING AND RECOGNIZING THE
AREA WITHIN THE MUNICIPAL, OR CORPORATE,
BOUNDARIES OF THE CITY OF FORT WORTH, TEXAS, AS
MEDIA PRODUCTION DEVELOPMENT ZONE NUMBER ONE
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 a two-year exemption from sales and use taxes on items used for the construction,
maintenance, expansion, improvement, or renovation of a media production facility at a qualified
media production location and the building 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 designate and
recognize a media production development zone under conditions outlined in the Act, as more
specifically set forth in this Ordinance; and
WHEREAS, the City Council wishes to encourage the development of inedia production
businesses in the City by designating and recognizing the area within the municipal, or corporate,
boundaries, of the City of Fort Worth as a media production development zone 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 information known to it, the City Council makes the following findings:
Ordinance designating and recognizing the area within the municipal, or corporate, boundaries
of the City of Fort Worth, Texas, as Media Production Development Zone Number One pursuant to
Chapter 485A, Texas Government Code Page 1 of 4
A. The City of Fort Worth (the "City") is located in the Dallas-Fort Worth-
Arlington, Texas Metropolitan Statistical Area (the "MSA"), as described on the State
Metropolitan Statistical Area Reference Table maintained by the Texas Demographic
Center, University of Texas at San Antonio. The MSA is the fourth largest metropolitan
statistical area in the United States with a total population of 8,100,037 according to the
2023 Bureau of Economic Analysis published by the United States Department of
Commerce, which includes the City of Dallas (with a 2023 estimated population of
1,302,868) and the City of Fort Worth (with a 2023 estimated population of 978,468).
B. As part of the MSA, the City of Fort Worth, a principal municipality in the
MSA, has a vibrant workforce, strong infrastructure, and established media production
resources necessary to support a wide array of visual and sound productions, including
films, television programs, national and multistate commercial productions, and digital
interactive media productions.
C. The City meets the criteria specified in Section 485A.101 (1) of the Act in
that it is a principal municipality in the MSA, (i) located in the MSA and (ii) has the
adequate workforce, infrastructure, facilities, or resources to support the production and
completion of moving image projects.
D. The City meets the criteria specified in Section 485A.101 (2) of the Act
upon approval of this Ordinance.
E. Alliance Center East No. 3 Ltd. (the "Requestor") is a business venture
that will transform its 224,000 square foot facility located at 2701 Spirit Dr., Fort Worth
(the "Location") into a premier soundstage and production hub. 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
Ordinance designating and recognizing the area within the municipal, or corporate, boundaries
of the City of Fort Worth, Texas, as Media Production Development Zone Number One pursuant to
Chapter 485A, Texas Government Code Page 2 of 4
of production needs, from feature films to television series. The Requestor has submitted
written requests to the City that the City Council nominate the Location for designation
as a qualified media production location. In accordance with the Act, by separate
ordinance the City Council has nominated the Location for designation as a qualified
media production location. Therefore, the criterion of Section 485.101 (A)(3) of the Act
has been met in that (subject to approval by the Office of the Governor, in accordance
with the Act) the proposed media production development zone will contain within its
geographical boundaries a qualified media production location that meets the
requirements set forth in Section 485A.102 of the Act.
F. Based on the economic impact analysis of the proposed project, prepared
by TXP, Inc. and submitted to the City by the Requestor, the proposed redevelopment of
the Location will result in an expenditure of approximately $6.4 million in capital costs
to renovate and redevelop an e�sting 224,000 square foot building. In addition, once
completed, the proposed media production facilities at the Location are anticipated to
generate in excess of 54 new full-time jobs over the next 5 years. The City Council also
believes that this project will serve as a catalyst for attracting additional creative and video
production enterprises to this area. As a result of this 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 finds that recognition and designation of the area
within the municipal, or corporate, boundaries, of the City of Fort Worth as a media
production development zone is in the best interest of the City and the State of Texas.
Section Z.
RECOGNITION AND DESIGNATION OF MEDIA PRODUCTION DEVELOPMENT
ZONE.
On the basis of the findings set forth in Section 1, and otherwise in accordance with the
Ordinance designating and recognizing the area within the municipal, or corporate, boundaries
of the City of Fort Worth, Texas, as Media Production Development Zone Number One pursuant to
Chapter 485A, Texas Government Code Page 3 of 4
Act, the City Council designates area within the municipal, or corporate, boundaries, of the City
of Fort Worth as shown in the official records of the city, as a media production development
zone, to be known as "Media Production Development Zone Number One."
Section 3.
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 4.
IMMEDIATE EFFECT.
This Ordinance shall take effect immediately upon adoption, and it is so ordained.
APPROVED AS TO FORM AND LEGALITY: ATTEST:
L-arry Collister
Larry Collister (Dec 17, 202415:18 CST)
Larry Collister, Sr. Assistant City Attorney Janette Goodall, City Secretary
ADOPTED AND EFFECTIVE: December 10. 2024
M&C: 24-1152
Ordinance designating and recognizing the area within the municipal, or corporate, boundaries
of the City of Fort Worth, Texas, as Media Production Development Zone Number One pursuant to
Chapter 485A, Texas Government Code Page4of4
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 inedia 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 b� William Johnson 5806
Originating Business Unit Head: Robert Sturns 2663
Additional Information Contact: Christie Goodman Duke 6544