HomeMy WebLinkAboutIR 25-0065INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 25-0065
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To the Mayor and Members of the City Council
June 3, 2025
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SUBJECT: ECONOMIC DEVELOPMENT Q1 and Q2 2025 UPDATE
The Economic Development Department continues its efforts towards the goals and outcomes
outlined in the 2022 Economic Development Strategic Plan Update. This Informal Report is to
provide highlights of the first and second quarter projects and initiatives for FY25.
Business Attraction/Retention and Redevelopment Efforts
• The first two quarters of Fiscal Year 2025 started strongly with several notable project wins
for Fort Worth and with the total private capital investment committed in the first half of FY
25 nearly matching that of the past two complete fiscal years combined.
• A major standout among FY25 projects is the announced selection of Fort Worth by Bell as
a primary Future Long Range Assault Aircraft (FLRAA) manufacturing center, a project that
is expected to result in at least $632 million in new capital investment and more than 520
new jobs.
• Other notable project wins in Q1 and Q2 include a $42 million, 250-job Embraer aircraft
maintenance facility, a $68 million cold storage facility by Americold (which supports other
business attraction efforts in industries that rely on cold storage inventory), an expanded
regional headquarters and distribution hub by Ariat, and expansion/equipment
modernization projects by Haggar and TTI.
• The momentum from earlier in the year has continued forward into the beginning of Q3, with
City Council authorizing an agreement with ACS to support the development of a new data
center campus that is anticipated to result in more than $2.1 billion in new investment in
Real and Business Personal Property.
• Staff prepared certain revisions to the City's Tax Abatement and Chapter 380 policies to
ensure the City's ability to respond to new opportunities in the market, increase average
salaries, strengthen target industries, and drive projects to target areas.
• Staff provided support and response efforts relating to state legislation that could impact the
City's economic development activities.
• Term extensions for the Downtown and Lancaster Tax Increment Financing (TIF) Districts
were secured in Q1, enabling continued investment in public improvements and support for
key projects within the Central Business District.
• Staff facilitated multiple meetings of key stakeholders in the Medical Innovation District,
focusing on the development of near- and long-term governance structures for the growth
of the district as a center of innovation and as a magnet for business investment.
• Staff continued support of the Fort Worth Economic Development Partnership in business
attraction efforts, collaborating not just on specific project opportunities, but also on long-
term promotional efforts and joint initiatives between the two organizations.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 25-0065
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To the Mayor and Members of the City Council
June 3, 2025
Page 2 of 11
SUBJECT: ECONOMIC DEVELOPMENT Q1 and Q2 2025 UPDATE
To date of the preparation of this informational report, the department has 57 open and active
projects, including business recruitment/development and community redevelopment projects. The
following charts provide an overview of the current pipeline of business development and
community development projects as well as a look at project wins to this point in the fiscal year.
Projects Won FY 2025 To -Date
Note: FY 25 figures do not include projects that are in process of near -term approval as of the date of IR preparation.
5
0
3,500
3,000
2,500
2,000
1,500
1,000
500
Number of Projects Won
14
13
5
Total Capital Investment Commitments
w $3,000
$2,500
8 $2,000
$1,500
$1,000 $892
$500 $202
$0 E-
FY 2022 FY 2023 FY 2024 FY 2025 YTD FY 2022 FY 2023
Total Job Commitments
3,285
2,053
330 old
FY 2022 FY 2023 FY 2024
$2,433
$1,542
FY 2024 FY 2025 YTD
Average Salary Commitments
$120,000
$100,000
$80,000 $69,242 $69,609
$60,000
1,122 $40,000
$20,000
$0
FY 2025 YTD FY 2022 FY 2023
$95,312
$74,488
FY 2024 FY 2025 YTD
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 25-0065
To the Mayor and Members of the City Council
June 3, 2025
Page 3 of 11
SUBJECT: ECONOMIC DEVELOPMENT Q1 and Q2 2025 UPDATE
Project Pipeline
Note: Project Pipeline only represents a snapshot in time. It does not include project leads and closed projects
(including projects won or those considered/ evaluated but subsequently declined or lost within the year), nor does it
include the 81 City and TIF projects that are currently in active review for compliance.
All Open Business Community
Projects Development Development
57 28 29
Stage
Prospecting
Oppoflundy
Project
Imminent
Pending Contract
Announced
New Leads This FY
Inbound Business Development Leads Only
Total New Project Leads: 77 Total Mega Projects: 8
# of Leads
Total Capex: $20.0 B Total New Jobs: 21,580
Leads Pursued •
Leads Declined (by Reason)
Insufficient Capital Investment •
Insufficient Wages
Lack of Available Sites I Sites Not Suitable 40
Not in Target Industry Jr Unaligned with Strategy 41
Negative Impact or Byproduct
Other
of New Leads Received by RFP:
65%
%of Inbound or RFP Leads Declined:
52%
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 25-0065
To the Mayor and Members of the City Council June 3, 2025
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New Leads This FY by Industry
Business Development Leads Only
Total New Project Leads: 77 Total Mega Projects: 8 Total Capex: $20.0 B Total New lobs: 21,580
Primary Industr,
(n) Aerospace & Defense — Aerospace Manufacturing and Design le
(TI) Aerospace & Defense— Omer
(TI) Anchors & Innovators — BlopnannaceutiUl Products and Medical Technologies
(TI) Anchors & Innovators — Computer and Information Services
(TI) Anchors & Innovators — Corporate Headquarters
(TI) Anchors & innovators —Financial Services
d/o of New Leads in a Target Industry:
(Tq Anchors & innovators —Other Professional Services 40
Energy — Alternative Energy Equipment
49i %
22(TI)
(TI) Energy— Alternative Energy Generation
77 (I) Energy— Energy Storage and Distribution
(TI) Energy — Omer
(TI) Energy— Smart Building Systems
(TI) Mobility — Vehicle Technologies
(Tt) Mobility — Automotive & Transportation Manufacturing
(TI) Mobility — Logistics Technologies and Management
(TI) Mobility — Omer
(TI) Mobility — Transportation Services
Agriculture
Chemicals
Construction
Data Center
Distribution & Warehousing
Electronics
Food & Beverage
Manufacturing
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 25-0065
To the Mayor and Members of the City Council June 3, 2025
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New Projects This FY by Industry
Total New Projects: 38 Total Mega Projects: 4 Total Capex: $10.8 B Total New Jobs: 8,635
(TI) Aerospace & Defense - Aerospace Manufacturing and Design •
(TI) Anchors & Innovators - Biopharmaceutcal Products and Medical Technologies •
°/o of New Projects in a Target Industry:
(71)Anchors & Innovators- Colleges and Universities •
2
(TI) Anchors & Innovators - Computer and Information Services •
(TI) Anchors & Innovators - Corporate Headquarters • 74%
(TI) Anchors & Innovators - Engineerng Services •
(Tt) Anchors & Innovators - Hospitals •
(TI) Culture - Hospitality & Tourism •
38
(TI) Energy - Other
(TI) Energy - Smart Building Systems
(TI) Mobility - Automotive & Transportation Manufacturing •
(Tr) Mobility - Vehicle Technologies •
3
Dare Center
-
Distribution & Warehousing
Food & Beverage
Government
Manufacturing
Other
Public Improvements •
Real Estate Development •
All Open Projects by Industry
Total Open Projects: 57
Total Mega Projects: 7 Total Capex: $15.5 B
Primary Induslr.
ITi) Aerospace & Defense -Aerospace Manufacturing and Design •
(Tp Aerospace & Defense - Other •
(TI) Anchors & Innovators - Biopharmaceutical Products and Medical Technologies •
(TI) Anchors & Innovators - Colleges and Unversibes •
(TI) Anchors & Innovators - Computer and Information Services •
(TI) Anchors & Innovators - Corporate Headquarters •
57
(TI) Anchors & Innovators - Engineering Services •
(TI)Culture - Film •
(TI) Culture - Other •
'
(TI) Energy - Other
(TI) Energy - Smart Building Systems
(TI) Mobility - Automotive & Transportation Manufacturing •
(TI) Mobility - Other •
(TI)Mobility- Transpo=on Services •
(TI) Mobility - Vehicle Technologies •
Data Center
Distribution & Warehousing
Food & Beverage
Government
Manufacturing
Other
Public Improvements •
Real Estate Development •
Recreation
Retail
Total New Jobs: 10,745
% Open Projects in a Target Industry:
72%
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 25-0065
To the Mayor and Members of the City Council June 3, 2025
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All Open Projects by Target Area
3
Communitv Revitalization
Fort Worth Target Area
Industry Growth Center - Bonds Ranch 1287 Corridor
Industry Growth Center - DFW Airport
Industry Growth Center - 1-35 Corridor South
Industry Growth Center - Meacham
Industry GrovAh Center -Southeast 287
Industry GrovAh Center- Western Ranches
Innovation Dkstnct - Near Southside Medical Innov Dist. •
Innovation District —Alliance Mobility Innov Zone •
None I Unknown
RTA - East Berry •
RTA - Historic Handley •
RTA - Historic Southside •
RTA - Near Northside •
Strategic Dev. Area - DowntovMCBD •
Strategic Dev. Area - Near West Side •
Strategic Dev Area - Panther Island •
Strategic Dev Area - Stockyards •
Strategic Dev Area - Trinity River and Lakes •
% Open Projects in a Target Area:
84%
• Evans & Rosedale: After issuance of a Request for Expressions of Interest (RFEI) in March
of 2025, the City of Fort Worth and community stakeholders who served on the selection
committee selected Royal Capital, LLC to develop the seven (7) acres of City -owned land
in the Evans and Rosedale Urban Village. Royal Capital and the City of Fort Worth hosted
a series of three community sessions to narrow down the scope of the project to meet
community and City needs. After financial analysis, negotiations, and monthly meetings with
the Historic Southside Neighborhood Association, the final proposed development was
presented at the Fort Worth Housing Finance Corporation and Fort Worth Local
Development Corporation Board meetings on April 22, and Near Southside TIF 4 Board
meeting on April 30. The City Council approved sale of the land to and execution of an
Economic Development Program Agreement with Royal Capital, LLC on May 13, 2025. The
developer will seek to close on the properties and break ground within 14 months of the
signed agreements.
• Fort Worth Main Street Program: The City's Fort Worth Local Development Corporation
(FWLDC) launched the Fort Worth Main Street Pilot Program nearly three years ago to build
the capacity for place -based community organizations to revitalize our historic, commercial
corridors as economic and community vitality hubs. Over the past 6 months, The Historic
Northside District (HND) finalized their work with the Urban Land Institute to proactively
address concerns around displacement and equitable development, ensuring growth
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 25-0065
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To the Mayor and Members of the City Council
June 3, 2025
Page 7 of 11
SUBJECT: ECONOMIC DEVELOPMENT Q1 and Q2 2025 UPDATE
reflects the priorities of long-standing residents. HND also launched its Posadas holiday
activation to improve safety, support local businesses, and increase district vibrancy and
visitation —drawing participation from 10 small businesses along North Main Street
(generating an estimated $10,780+ in additional revenue) and 39 artisans in a vendor
market. To support business sustainability, HND enrolled 15 businesses in the Fort Worth
Hispanic Chamber of Commerce (FWHCC) FastTrac Program and began hosting monthly
safety meetings in collaboration with the Fort Worth Police Department. Public art initiatives
and murals added vibrancy to Mercado Plaza and Marine Park. HND completed its
transformation strategy training with Main Street America, attended the national conference,
and is now engaged in long-term strategic planning, including exploring a Public
Improvement District (PID), rezoning along the corridor and finalizing other priorities for
implementation. Polytechnic Heights hosted board development training, and the City and
district partners are now exploring a new partner to implement the programming moving
forward.
CDFI Friendly Fort Worth: On October 19, 2021, the City Council approved an allocation
of up to $3 million from the American Rescue Plan Act (ARPA) funds to enter into a contract
with CDFI Friendly America, LLC to bring financing from one or more community
development financial institutions ("CDFIs") to the City. The contract engaged the consultant
to provide consulting services in assessing the potential roles of CDFI financing in the
community, organizing potential CDFI Friendly strategies, developing an actionable CDFI
Friendly business plan, and providing the City with consultative capacity -building support for
the implementation of that business plan in collaboration with the Economic Development
Department and the Department of Diversity & Inclusion. Since its kickoff on January 26,
2022, CDFI Friendly Fort Worth has closed on over 150 loans for nearly $11 million. Just
recently, CDFI Friendly Fort Worth partnered with LiftFund to launch a 0% Interest Buy -
Down Program for loans up to $100,000 for eligible small businesses. This makes financing
more affordable and helps reduce barriers for small business owners.
Woodhaven Conservation Plan: The Woodhaven Neighborhood Conservation Plan
provides a shared vision for the Woodhaven community, creating a roadmap for its future
investment, preservation, and growth over the next 15 years. With the neighborhood's Tax
Increment Financing District (TIF 13) expiring in 2028, the plan also serves as a timely guide,
helping prioritize investments to meet the area's current and future needs. The plan is
organized around five main goals, which were informed by community feedback:
o Economic Opportunity
o Housing
o Health & Wellbeing
o Environment
o Implementation
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 25-0065
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To the Mayor and Members of the City Council
June 3, 2025
Page 8 of 11
SUBJECT: ECONOMIC DEVELOPMENT Q1 and Q2 2025 UPDATE
The plan was completed in March 2025 after a little over a year of data collection, research,
community and stakeholder engagement, and strategic assessment. It was created by a
consultant team composed of Interface Studio, The Collaborative Fort Worth, and Ninigret
Partners, with the support of former Mayor Pro Tern Gyna Bivens, the City's Economic
Development Department, and the TIF 13 Board.
Berry/Stalcup Redevelopment: After receiving approval from the Fort Worth Local
Development Corporation (LDC) and City Council in August of 2024, the City continues to
work with Berry Stalcup Redevelopment Partners, LLC, on a site plan for the property which
includes a proposal for the development of 34 townhouse units and up to 11 live/work units.
The design and overall scope of the project will create a catalytic mixed -use environment
and provide for open space amenities in the neighborhood. Staff anticipates the developers
will break ground in Q4 of 2025.
Community Development Projects by Revitalization Target Area (RTA)
Tc t{i l P roje cts; 19 Tota L Da pex. $257.6M
■ RTA- LiuLnnc. i*r
■ RTA, His cmr_Handleyr
■ RTA-HlslomcSG4Ahis Pde
■ MA-Nearhlonh slde
■ RTA -Wc' 3fmvcrr•
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 25-0065
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Small Business
To the Mayor and Members of the City Council
June 3, 2025
Page 9 of 11
SUBJECT: ECONOMIC DEVELOPMENT Q1 and Q2 2025 UPDATE
• The Devoyd Jennings Business Assistance Center (BAC) is a comprehensive resource hub
that is dedicated to equipping entrepreneurs with the essential skills and tools they need to
start, grow or operate a business. The BAC offers a range of services including training,
technical assistance, access to capital, and business support. With the introduction of
initiatives such as the 1 Million Cups" weekly meetings, the Prosperity Bank Masterclass
Cohort Series, and the Impact Ventures Capital Readiness Series over the past two
quarters, our community has seen a significant increase in the activity on the BAC campus.
• All of these programs are designed to empower entrepreneurs and equip them with the skills
necessary to pursue bank financing. The entrepreneurs who take part in one of the campus
cohort series are then well -prepared to compete in the City's Fort Worth Business Plan
Competition, which kicks off in May. This event combines a business plan and pitch
competition, awarding $10,000, $6,000, and $4,000 to the first, second, and third place
winners, respectively.
Entrepreneurship
• Fort Worth's entrepreneurship and innovation (E&I) ecosystem has been shaped by high -
impact partnerships and milestone programs. Recently, the Techstars Physical Health Fort
Worth Accelerator culminated in Demo Day 2024 at Tannahill's Tavern & Music Hall. The
program celebrated 11 innovative founders whose solutions in rehabilitation, physical
therapy, performance, and exercise were supported by the Health Science Center (HSC),
Goff Capital, and the City of Fort Worth. Over 13 weeks, participants received intensive
mentorship, curated programming, and access to a vast network of industry leaders, firmly
placing Fort Worth on the map for physical health innovation.
• The Medical Innovation District (MID) has emerged as a particularly strong opportunity to
demonstrate the type of inter -institutional collaboration and partnership for which Fort Worth
is known. While activities over several years have focused on the development of the area
as a modern innovation district, progress was impeded by the pandemic and various other
factors. However, with the recent opening of the TCU Medical School and several major
expansions by hospitals located within the district, the City and key stakeholders have
identified an opportunity to recommit to the effort and are in active collaboration to address
questions of near- and long-term governance and effective strategies to position the district
as a hub for life science innovation and biomedical research, business attraction, and
entrepreneurship.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 25-0065
To the Mayor and Members of the City Council June 3, 2025
Page 10 of 11
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Economic Development Marketinq/Messaginq
• National Marketing Campaign: The three-year "It Begins in Fort Worth" campaign
developed in collaboration with Schaefer Advertising Agency concluded in September 2024.
On January 14, 2025, the LDC Board approved an agreement between the City and the Fort
Worth Economic Development Partnership (EDP) to lead Fort Worth's economic
development marketing efforts. The LDC unanimously voted to allocate $500,000 for third -
party marketing vendor services, and the EDP agrees to contribute its capacity and
economic development expertise to execute a business attraction and economic
development marketing campaign.
• Collaboration with Quinn PR: The Quinn team continues working with department staff,
the Mayor's Office, and the Fort Worth EDP to strategically place stories in national outlets
and capitalize on broadcast opportunities to support Fort Worth's economic development
efforts. Most recently, they secured interviews on national podcasts with City leadership,
including former Economic Development Director Robert Sturns on The Eco Dev Show and
TPW Assistant Director Kelly Porter on Talking Headways.
• Department Marketing and PR:
o Worked on and/or secured 55+ placements in local and regional media so far this FY.
o Continued building the department's social media presence:
o Linkedln
■ Growth: 900 new followers in the past six months
■ Average engagement rate: 5.53% (Industry average: 3.6%)
o Facebook
■ Growth: 211 new followers in the past six months
■ Average engagement rate: 2.8% (Industry average: 2%)
o Designed all marketing and promotional collateral for the 2024 Smart City Expo World
Congress delegation.
o The department received a 2024 Impact Award for the Embraer project from Business
Facilities, a national site selection publication.
o Currently building out more robust small business marketing infrastructure to better
promote classes and workshops, particularly at the Business Assistance Center.
Workforce Strateqv and Development
• Launched a Workforce & Talent Business Retention & Expansion (BRE) Survey for the
Target Industries Businesses to understand employment trends, challenges, and
opportunities. The Department received 40 survey responses so far. Staff conducted 8
company site visits (which are ongoing) and have also introduced companies to workforce
training programs, such as the Skills Development Fund, and to the City's workforce
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 25-0065
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To the Mayor and Members of the City Council
June 3, 2025
Page 11 of 11
SUBJECT: ECONOMIC DEVELOPMENT Q1 and Q2 2025 UPDATE
partners. The site visits also allow the Economic Development Department to learn about
company expansion plans. The team is continuing to:
o Do outreach to companies each week to discover workforce needs;
o Connect industry to local workforce training programs as there is still significant
funding and opportunity with Skills Development Fund and Skills for Small Business
Fund; and
o Respond to company notices of closures and mergers. There have been four
notices that we have responded to in the past two quarters.
Conducted a comprehensive workforce analysis of the city's workforce landscape and
produced a workforce report being packaged for publishing in Q3. The department plans to
update this annually.
• Started collaborating with the Mayor's Council on Education & Workforce. Maintained a
strong partnership with Workforce Solutions for Tarrant County. Continues to meet with
various university partners such as TCU, TWU, UTA, and others to industries, strategic
projects, and collaborations.
Conducted workforce research reports for site selectors who are working with clients
looking at Fort Worth as a potential place to move or expand their business.
The above highlighted projects and initiatives are an overview of many that the Economic
Development Department staff are engaged in but represent the collective and collaborative work
to address the goals and outcomes as outlined in the Economic Development Strategic Plan.
For questions concerning this information, please contact Kevin Gunn, Interim Economic
Development Director at kevin.gunn@fortworthtexas.gov.
Jesus "Jay" Chapa
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS