HomeMy WebLinkAboutOrdinance 27818-06-2025ORDINANCE NO. 27818-06-2025
AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE
CITY OF FORT WORTH AS "TAX ABATEMENT
REINVESTMENT ZONE NUMBER ONE HUNDRED AND
THIRTEEN, CITY OF FORT WORT II, TEXAS"; PROVIDING: THE
EFFECTIVH; AND EXPIRATION DATES FOR THE ZONE AND A
MECHANISM FOR RENEWAL OF THE ZONE; AND
CONTAINING OTHER MATTERS RELATEDTO THE ZONE,
WHEREAS, pursuant to the City of Fort Worth's ("City") Tax Abatement Policy,
which was adopted by the City Council to be effective on April 22, 2025 by way of
Resolution No. b 100-05-2(125 ("Tax Abatement Policy"), the City has elected to be
eligible to participate in tax abatement and has established guidelines and criteria governing
tax abatement agreements entered into between the City and various third parties, as
authorized by and in accordance with the Property Redevelopment and Wax Abatement
Act, codified in Chapter 312 of the Texas Tax Code ("Code"),
WHEREAS, the City Council desires to promote the development of the area in
the City more specifically described in Exhibit "A" of this Ordinance ("`Lone") through
the creation of a reinvestment zone for the purpose of supporting new business investment
or expansion, as authorized by and in accordance with Chapter 312 of the Code;
WHEREAS, Wistron InfoComm (tISA) Corporation, or an Affiliate,
("Company") wishes to expend or cause to be expended at least $80 million in real
property improvements for the development of Company's manufacturing facility to be
located in the Zone, and Company intends to install new taxable tangible business personal
property at the facility worth at least. $41 1 million that will ultimately result in a combined
real and personal property investment of at least $491 million (collectively, the.
"Improvements");
WHEREAS. Company has applied for real property and business personal
property tax abatements from the City in return for the installation of the Improvements in
the Zone and compliance with certain other employment and spending requirements;
WHEItEAS, to foster economic development in the Zone, and the City, in general,
it is anticipated that the City will enter a tax abatement agreement(s) for one or more
Improvements within the Zone;
WHEREAS, on .Tune 24, 2025, the City Council held a public hearing regarding
the creation of the Zone, received information concerning the Improvements proposed for
the Zone, and afforded a. reasonable opportunity for all interested persons to speak and
present evidence for, or against, the creation of the Zone. ("Public Hearing"), as required
by Section 312.201(d) of the Code;
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Ordinance Designating Tax Abatement Reinvestment Zone Number one Hundred and Six,
City ofFort Worth, Texas
WHEREAS, notice of the Public Hearing was published in a newspaper of general
circulation in the. City at least seven (7) days prior to the Public, Hearing, which satisfies
the requirement of Section 312.201(d)(1 ) of the Code; and
WHEREAS, in accordance with Sections 312.2101(d)(2) and (e) of the Code, notice
of the. Public Hearing was also delivered, in writing. to the presiding officer of the
governing body of each taxing unit that includes in its boundaries real property that is to
be included in the proposed :Lone not later than the sevcnth day before the date of the public
hearing.
NOW, THEREFORE, BE 11' ORDAIN.EU BY THE CITY COUNCIL OF'
THE CITY OF FORT WORTH, TEXAS.,
SECTION 1.
FINDINGS.
That, after reviewing all information before it regarding the establishment of the
Zone and after .conducting the Public Hearing and affording a reasonable opportunity for
all interested persons to speak and present evidence for, or against, the creation of the Zone.
the City Council hereby makes the following findings of fact:
1.1. The statements and facts set forth in the recitals of this Ordinance are true and
correct. Therefore, the City has met the notice and procedural requirements
established by the. Code for creation of the Zone under Chapter 312 of the Code.
1.2. The Improvements proposed For the Zone, as more specifically outlined in the
Public Hearing, are feasible and practical and, once completed, will benefit the land
included in the Zone as well as the, City for a period of more than ten (10) years,
which is the statutory maximum term of any tax abatement agreement entered into
under the Chapter 312 of the Code.
1.3. As a result of designation as a reinvestment zone, the. area within the. Zone is
reasonably likely to contribute to the expansion of primary employment and to
attract major investment in the 'Lone that will be a benefit to property in the Zone
and will contribute to the economic development of the City.
SECTION 2.
DESIGNATION OF ZONE
That the City Council designates the Gone described in the boundary description
attached hereto as Exhibit "A" and inade a part of this Ordinance for all purposes as a
reinvestment zone for purposes perinitting tax abatement as may be found desirable by the
City or any other eligible taxing units for purposes authorized by and in accordance. with
Chapter 312. of the Code. This /one will be known as "Tax Abatement Reinvestment Zone
Number One Hundred and Thirteen, City of fort Worth, Texas." This project is
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Ordinance Designating Tax Abatement Reinvestment zone Number One Hundred and Six,
City of Fort Worth, Texas
eligible for commercial.lindustrial tax abatements per Section 4 of the Tax Abatement
Policy because it concerns a Target Industry.
SECTION 3.
TERM OF ZONE
The Zone takes effect upon the effective date of this Ordinance and expires five (5)
years thereafter. The Zone may be renewed by the City° Council for one or more subsequent
terms not to exceed five years, unless otherwise allowed by law.
SECTION 4.
SEVER_ABII,ITY
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 will 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.
That this Ordinance takes effect upon its adoption.
ADOPTED AND EFFECTIVE: June 24, 2025
APPROVED AS TO FORM.
AND LEGALITY:
I:
Ln.ufr mz,-G. Catis#er
Assistant City Attorney
M&C:25-0583
64
�n Nex A
ATTESTED BY,
Janette S. Goodall
City Secretary
Page 3
Ordinance Designating Tax Abatement Reinvestment Zone Number One Hundred and Six,
City ofFort Worth, Texas
EXMBIIT "A„
15200 IIeritage Way
B0UNDARY DESCRIPTION OF LONI?
Being all of Lot 1, Block 2, of Tram in.ell Crory 35 Eagle Addition, an addition to the City of
Fort Worth, Denton County, Texas according to the plat therof recorded under Clerks
File No. 2022-252 Flat Records, Denton County, Texas.
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 06/24125 M&C FILE NUMBER: MSC 25-0583
LOG NAME: 17WISTRON TA
SUBJECT
(C❑ 10) Conduct Public Hearing and Adopt Ordinance Designating Tax Abatement Reinvestment Zone No. 113 and Tax Abatement Reinvestment
Zone No. 114. Authorize Execution of a Ten -Year Tax Abatement Agreement with Wistron InfoComm (USA) Corporation, its Parent Company, or
an Affiliate, For Development of Two Electronics Manufacturing Facilities to be Located on Properties at 15200 Heritage Parkway, Fart Worth,
Texas and at 14601 Mobility Way, Fort Worth, Texas, Both in Denton County, in Tax Abatement Reinvestment Zones 113 and 114, Respectively
(PUBLIC HEARING - a. Staff Available for Questions: Cherie Gordon; b. Public Presentations; c. Council Action: Close Public Hearing and Act
on M&C)
RECOMMENDATION:
It is recommended that the City Council:
1. Conduct a public hearing concerning the designation of Tax Abatement Reinvestm ant Zone No. 113 and Tax Abatement Reinvestment Zone
ND. 114, City of Fort Worth, Texas, Denton County, for properties located at 15200 Heritage Parkway and 14601 Mobility Way,
respectively, for the development and operation of electronics manufacturing facilities for Wistron InfoCDmm (USA) Corporation, Parent
Company, or an Affiliate;
2. Authorize the execution of a ten-year tax abatement ag reement with .Wistron InfoComm (USA) Corporation, parent company, or affiliate for
the development and operation of two electronics manufacturing facilities to be located on properties at 15200 Heritage Parkway, Fort
Worth, Texas and at 14601 Mobility Way, Fort Worth, Texas both in Denton County, in Tax Abatement Reinvestment Zones 113 and 114,
respectively; and
3. Find thatthe terms of, and the property subject to, the Tax Abatement Agreement meet the criteria and guidelines set forth in the City of Fort
Worth's General Tax Abatement Policy (Resolution No. 5709-02-2023).
4. Find that the intended improvements, which are set forth in more detail below, are feasible and practical and would be a benefit to the land to
be included in Tax Abatement Reinvestment Zone No. 113 and Tax Abatement Reinvestment Zone No. 114 and to the City after the
expiration of any tax abatement agreements; and
5. Adopt the attached ordinance designating Tax Abatement Reinvestment Zone No. 113 and Tax Abatement Reinvestment Zone No. 114, City
of Fort Worth, Texas, pursuant to and in accordance with Chapter 312 of the Texas Tax Cade.
DISCUSSION:
The purpose of this Mayor and Council Communication is to approve a tax abatement for the development of two electronics manufacturing
facilities.
Wistron InfoComm (USA) Corporation (Company), is a wholly owned subsidiary of Wistron Corp, a Taiwanese company specializing in
manufacturing and designing electronics, with U.S. headquarters in San Jose, California. Company is proposing to develop two new facilities in
Fort Worth, Site 1 at 15200 Heritage Parkway, Font Worth, Texas is approximately 19.56 acres with a building of at least 324,400 square
feet (Project Site 1). Site 2 at 14601 Mobility Way, Fort Worth: Texas is approximately 42.94 acres with an approximately 766.994 square foot
building (Project Site 2).
In order to facilitate investment in the Company's facilities at Project Site 1 and Project Site 2, the City proposes to enter into a Tax Abatement
Agreement with Wistron InfoComm (USA) Corporation, its parent company, or an affiliate. The tax abatement will be tied to the amount of
investment made by the Company and satisfaction of other project and spending requirements, as follows:
Investment and Cnmoanv Commitments at Proiect Site 1:
1. Company must expend a minimum of $80,000,000.00 in total construction costs for real property improvements at the Project Site on or
before June 30, 2026,
2. Company must install taxable business personal property (BPP) that is new to the City at the Project Site having a minimum taxable
appraised value of $411,000,000.00 by January 1, 2027;
3. Company will forfeit abatement if the total investment far real property improvements and BPP is not timely met. The ag reement wi I I permit
up to a 12-month extension of the completion deadline by administrative approval; and
4. Company must provide a minimum of 634 additional full-time jobs at Project Site 1 an or before December 31, 2026, and maintain that level
for the duration of the agreement, with average salary of at least $63,000.00. The annual abatement will be forfeited for any year in which the
minimum number of 634 full-time jobs or in which a $63,000.DO average Salary minimum is not met.
Investment and Comoanv Commitments at Proiect Site 2:
1. Company must expend a minimum of $32,000,000.00 in total construction costs for real property improvements at the Project Site on or
before June 30, 2026;
2. Company mast install taxable business personal property (BPP) that is new to the City atthe Project Site having a minimum taxable
appraised value of $154,000,000.00 by January 1, 2027,
3. Company will forfeit abatement if total investment for real property improvements and BPP is not timely met. The agreement will permit up to
a 12-month extension of the completion deadline by administrative approval; and
4. Company must provide a minimum of 254 additional full-time jobs at Project Site 2 on or before December 31, 2026, and maintain that level
for the duration of the agreement, with average salary of at least $63,000.00. The annual abatement will be forfeited for any year in which the
minimum number of 254 full-time jobs or in which a $63,000.00 average salary minimum is not met.
Citv Commitments:
The City will enter into a Tax Abatement Agreement with the Company for a term of ten years;
The amount of incremental City real property and BPP taxes to be abated in a given year will be equal to up to seventy percent (70%) at
Project Site 1, if only Project Site 1 moves forward with a location in Fort Worth, Texas;
The amount of incremental City real property and BPP taxes to be abated in a given year will be equal to up to fifty percent (50%) at Project
Site 2, if only Project Site 2 moves forward with a location in Fort Worth, Texas; and
If Company satisfies all requirements for investments at Project Site 1 and Project Site 2 an or before the All -Projects Completion Deadline,
including up to the 12-month extension of completion deadline with administrative approval, then the amount of incremental City real property
and BPP taxes to be abated in a given year will be equal to up to eighty percent (80%) at Project Site 1, and up to sixty percent (60%) at
Project Site 2.
The abatement is subject to company performance requirements as outlined above and as will be more specifically detailed within the Tax
Abatement Agreement.
The project will result in an estimated $41,399,739.00 in new incremental property tax to the City associated with the Project being reduced by
$30,757,535.00, resulting in the collection of $10,542,204.00 in net new incremental property tax revenue over the ten-year period following project
completion.
Reinvestment Zones:
The proposed Tax Abatement Reinvestment Zone No. 113 and Tax Abatement Reinvestment Zone No. 114, City of Fort Worth, Texas (TARZ 113
and TARZ 114) for properties located at 15200 Heritage Parkway and 14601 Mobility Way in Fart Worth, Texas [Properties]. A more detailed
description of the Properties is included as Exhibit A to the attached Ordinance.
Designating these areas as a reinvestment zone allows the City the option to enter into a tax abatement agreement with the Company to help
facilitate development within the areas.
As required by Chapter 312 of the Texas Tax Cade, a public hearing must be conducted regarding the creation or expansion of a Reinvestment
Zone. Notice of this hearing was delivered to the governing body of each affected taxing unit and published in a newspaper of general circulation
at least seven days prior to this hearing.
Pursuant to Chapter 312 of the Texas Tax Cade, the areas encompassing the proposed TARZ 113 and TARZ 114 meet the statutory criteria for
designation as a Tax Abatement Reinvestment Zone because the area is likely, as a result of the designation, to contribute to the retention or
expansion of primary employment or to attract major investment in TARZ 113 and TARZ 114 that would be a benefit to the Property and that would
contribute to the economic development of the City. Further, the proposed improvements and investments are feasible and practical and would be
a benefit to the land to be included in the TARZ 113 and TARZ 114 and to the City after the expiration of any tax abatement agreement.
The term of TARZ 113 and TARZ 114 will be five years from the date of adoption of the attached Ordinance and may be renewed for periods not to
exceed five years each unless otherwise allowed by law.
The project is located in COUNCIL DISTRICT 10
FISCAL INFORMATION r CERTIFICATION:
The Director of Finance certifies that approval of this Tax Abatement Agreement will have no material effect an the Fiscal Year 2025 Budget. While
no current year impact is anticipated from this action, any effect on revenues will be incorporated in long-term financial forecast upon the Tax
Abatement being officially granted.
Submitted for City Manaaer's Office bv: Jesica McEachern 5804
Orininatina Business Unit Head: Kevin Gunn 2015
Additional Information Contact: Cherie Gordan 6053