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HomeMy WebLinkAboutResolution 6127-08-2025RESOLUTION NO. 6127-08-2025 NOMINATING THE DESIGNATION OF ALCON RESEARCH, LLC, LOCATED AT 6201 S. FREEWAY, AS A CONCURRENT ENTERPRISE PROJECT 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 ("EZP"); and WHEREAS, on May 12, 2015, the City Council adopted Ordinance No. 21743-05-2015, which amended Ordinance No. 15733, and added additional potential local incentives that could be made available to qualified businesses under the EZP; and the local incentives available pursuant to this Resolution are the same on this date as were outlined in Ordinance No. 21743-05-2015; and WHEREAS, Alcon Research, LLC ("Alcon"), currently designated as a single enterprise project under the EZ Program, requests to have its capital expansion nominated by the City as a concurrent enterprise project under the EZ Program; and WHEREAS, the Office of the Governor, Economic Development and Tourism, through the Economic Development Bank ("Bank"), will consider Alcon, located at 6201 S. Freeway, Fort Worth, Texas, as a concurrent enterprise project pursuant to a nomination and an application made by the City; and WHEREAS, the City finds that it is in full compliance with the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code ("Act"), prior to the nomination of a qualified business; and WHEREAS, the City desires to pursue the creation of a proper economic and social environment in order to induce the investment of private resources in productive business enterprises located in the City and to provide employment to residents of enterprise zones and to other economically disadvantaged individuals; and WHEREAS, pursuant to the Act, Alcon has applied to the City for designation as a concurrent enterprise project under the EZP; and WHEREAS, the City finds Alcon meets the criteria for designation as a concurrent enterprise project under the Act on the following grounds: 1. Alcon Research, LLC is a "qualified business" under Section 2303.402 of the Act because it will be engaged in the active conduct of a trade or business at a qualified business site within the governing body's jurisdiction located outside an enterprise zone, and at least thirty-five percent (35%) of the business's new employees will be residents of an enterprise zone, economically disadvantaged individuals or veterans; and 2. There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities within the area; and 3. The designation of the Alcon Research, LLC located at 6201 S. Freeway, Fort Worth, Texas, as a concurrent enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area; WHEREAS, the City finds that Alcon meets the criteria for tax relief and other incentives adopted by the City for concurrent enterprise project status on the grounds that it is located at the qualified business site and will create a higher level of employment, economic activity and stability in the area; and WHEREAS, the City finds that it is in the best interest of the City to nominate Alcon Research, LLC as a concurrent enterprise project pursuant to the Act; and 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. 2. Alcon Research, LLC is a "qualified business," as defined in Section 2303.402 of the Act, and meets the criteria for designation as a concurrent enterprise project, as set forth in Section 2303, Subchapter F of the Act. 3. Alcon Research, LLC will be nominated by the City as a concurrent enterprise project. 4. The concurrent enterprise project will take effect on the date of designation of the enterprise project by the Bank and terminate five (5) years after the date of designation. Adopted this 12t' day of August 2025. ATTEST: By: Jannette S. Goodall, City Secretary a'��4fr 0n �aG a a(00000044 d7' 0 0 9® a�4 9 do065. r4' ..o City of Fort Worth, Texas Mayor and Council Communication DATE: 08/12/25 M&C FILE NUMBER: M&C 25-0672 LOG NAME: 17ALCONRESEARCH2025 TEZ SUBJECT (CD 8) Adopt a Resolution Nominating Alcon Research, LLC's Facility Located at 6201 South Freeway, Fort Worth, Texas as a Single Enterprise Project, Pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code RECOMMENDATION: It is recommended that the City Council adopt the attached resolution nominating Alcon Research, LLC's facility at 6201 South Freeway as a single enterprise project pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code. DISCUSSION: On November 4, 2003, the City Council adopted 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 Texas Economic Development and Tourism Office of the Office of the Texas Governor, through the Economic Development Bank, will consider Alcon Research, LLC, as a single 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 partner with 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 that will continue to produce a high -quality product for its local customers, as well as retaining a growing workforce of employees at the qualified business site. Alcon Research, LLC's facility located at 6201 South Freeway, Fort Worth, Texas, qualifies as a Single Enterprise Project Designation that counts as one designation with planned capital investments of approximately $40 million for facility improvements and upgrades including mechanical, electrical, and plumbing (MEP). These projects will include facility maintenance and improvements at an existing building, from September 1, 2025, through September 1, 2030. Alcon's principal business is providing product solutions focusing on manufacturing for vision products. As part of the project, Alcon will retain 1,540 current employees, with an average annual salary at $129,987.00. If designated as a single enterprise project by the State of Texas, Alcon 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 single enterprise project designation allows for a state sales and use tax refund on qualified expenditures of $2,500.00 per job, for up to 500 jobs, with a maximum benefit of $1,250,000.00 over a five-year period. 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. The project is located in Council District 8. 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 this recommendation will have no material effect on City funds. Submitted for Citv Manager's Office bv: Jesica McEachern 5804 Oriainatina Business Unit Head: Kevin Gunn 2015 Additional Information Contact: Kelly Baggett 2617