HomeMy WebLinkAboutResolution 6048-01-2024A Resolution
NO.6048-01-2024
AMENDING RESOLUTION NO. 5953-05-2024 TO INDICATE
THE DESIGNATION OF MP MAGNETICS LLC, FACILITY
LOCATED AT 13840 INDEPENDENCE PARKWAY
AS A DOUBLE JUMBO ENTERPRISE PROJECT, COUNTING AS
TWO PROJECT DESIGNATIONS OR NOMINATIONS,
PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT,
CHAPTER 2303, TEXAS GOVERNMENT CODE
WHEREAS, on November 4, 2003, the City Council of the City of Fort Worth ("City") 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 are the same on this date as were outlined in Ordinance No. 21743- 05- 2015; and
WHEREAS, on May 21, 2024, the City Council of the City of Fort Worth adopted Resolution No. 5953-05-2024
nominating MP Magnetics, LLC, at its project located at 13840 Independence Parkway, Fort Worth, Texas
("Project") as an enterprise project under the Texas Enterprise Zone Act, Chapter 2203, Texas Government Code
("Act"); and
WHEREAS, although the intent was for the Project to be a double jumbo enterprise project and count as two
enterprise projects and two nominations under the Act, Resolution 5953-05-2024 was somewhat ambiguous; and
WHEREAS, the City finds that it is in the best interest of the City to adopt a revised resolution to make explicit
the nomination of MP Magnetics LLC as a double jumbo enterprise project with the acknowledgement that the
double jumbo enterprise project designation will count as two designations or nominations against the total number
of designations or nominations allowed pursuant to the Act;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS THAT:
1. The findings of the City and its actions approving this Resolution taken at the Council meeting are
hereby approved and adopted and that Resolution No. 5953-05-2024 is amended to reflect the
addition of the findings in this Resolution.
2. MP Magnetics, LLC is a "qualified business," as defined in Section 2303.402 of the Act, and that
the Project meets the criteria for designation as a double jumbo enterprise project, as set forth in
Section 2303, Subchapter F of the Act.
3. The project identified in Resolution No. 5953-05-2024, meeting the criteria for designation as a
double jumbo enterprise project as set forth in Section 2303, Subchapter F of the Act, is hereby
nominated for such designation, with Resolution No. 5953-05-2023 hereby amended to effect such
nomination.
4. Except as set forth in this amendment, all other provisions of Resolution No. No. 5953-05-2024
remain in full force and effect as the action of the Council and apply to the Designation of MP
Magnetics, LLC project located at 13840 Independence Parkway as two enterprise projects and two
designations or nominations pursuant to the Texas Enterprise Zone Act, Chapter 2203, Texas
Government Code.
Adopted this 28' day of January 2025.
ATTEST:
By:
Jannette S. Goodall, City Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 01/28/25 M&C FILE NUMBER: M&C 25-0098
LOG NAME: 17MPMAGNETICS2025 TEZ Al
SUBJECT
(CD 10) Authorize Execution of a Resolution Amending City Secretary Resolution Number 5953-05-2024, to Indicate the Designation of MP
Magnetics LLC's Facility Located at 13840 Independence Parkway, as a Double Jumbo Enterprise Project, Counting as Two Project
Designations or Nominations, Pursuant to the Texas Enterprise Zone Act, Chapter 2303 of the Texas Government Code
RECOMMENDATION:
It is recommended that City Council authorize the execution of a resolution amending City Secretary Resolution Number5953-05-2024, to indicate
the designation of MP Magnetics LLC's Facility Located at 13840 Independence Parkway, as a double jumbo enterprise project, counting as two
project designations or nominations, 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 MP Magnetics LLC as a double jumbo
enterprise project pursuant to a nomination and an application made by the City.
The Texas Enterprise Zone Program is an economic development tool for local communities to partnerwith 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.
MP Magnetics LLC (MP Materials) qualifies for a Double Jumbo Enterprise Project Designation that counts as two designations with planned
capital investments of approximately $104 million for manufacturing for rare earth materials equipment in addition to its scheduled $100 million
investment to total $204,000,000.00. These projects will include facility maintenance and improvements at an existing 200,000 square foot
building, as well as investments in manufacturing machinery and equipment from December2, 2024 through December 3, 2029. MP Materials'
principal business is providing products and systems solutions focusing on manufacturing for rare earth materials.
As part of the project, MP Materials will retain 80 current employees, with an average annual salary at $150,000.00 and add 274 new jobs at
$93,000,00 average annual salary to total 354 employees.
If designated as an enterprise project by the State of Texas, MP Materials 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 enterprise project designation allows for a state sales and use tax refund on qualified expenditures of $2,500.00 per job, for up to 350 jobs.
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.
City Secretary Resolution Number 5953-05-2024 (passed May 21, 2024) is being amending by resolution to Indicate the designation of MP
Magnetics LLC's facility located at 13840 Independence Parkway, as a double jumbo enterprise project, counting as two project designations or
nominations, pursuant to the Texas Enterprise Zone Act, Chapter 2303 of the Texas Government Code Texas Government Code. The resolution
being amended was ambiguous as to whether the double jumbo project was to count as a single project designation or nomination ortwo project
designations or nominations. The project is a double jumbo project and the resolution being presented for consideration to amend the prior
resolution makes it clear the project is to count as two project designations or nominations.
The project is located in Council District 10.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION 1 CERTIFICATION:
The Director of Finance certifies that approval of this recommendation will have no material effect on City funds.
Submitted for Cify Managers Office b . William Johnson 5806
Originating Business Unit Head: Robert Sturns 2663
Additional Information Contact: Kelly Baggett 2617
Expedited