HomeMy WebLinkAboutIR 9610 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9610
To the Mayor and Members of the City Council December 17, 2013
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SUBJECT: AUTHORIZE SUBMISSION OF A LETTER OF SUPPORT TO THE
rF FOREIGN-TRADE ZONES BOARD TO EXPAND FOREIGN TRADE ZONE NO.
168 IN MERCANTILE BUSINESS PARK
Purpose:
The purpose of this Informal Report is to inform City Council on a proposed expansion of the Foreign
Trade Zone No. 168 encompassing Mercantile Business Park.
Background:
A Foreign-Trade Zone (FTZ) is a restricted-access site, in or adjacent to a Customs port of entry. FTZs
are considered outside the United States Customs Territory and foreign or domestic merchandise can be
stored or manufactured before formal Customs entry procedures. These special geographic areas are
under the supervision of the U.S. Customs and Border Protection and establishment of the FTZ allows for
state and local ad valorem exemption on tangible personal property imported from outside the United
States and held in a zone. This tariff and tax relief is designed to lower the costs of U.S. based operations
engaged in international trade and thereby create and retain the employment and capital investment
opportunities that result from those operations.
There are two operational frameworks that exist under the Foreign-Trade Zone Act; Traditional Site and
Alternative Site. The area encompassed in Foreign Trade Zone No. 168 operates under the Traditional
Site Framework. Under this framework, the FTZ administrator (Grantee) has to receive a letter of support
from the locally affected taxing entities if it wishes to expand its current zone. The Grantee has received
support from landowner, Mercantile Partners, LP, to purse FTZ designation for the entire 630 acre
Mercantile Center Business Park in north Fort Worth. The expanded FTZ boundaries will allow Mercantile
Partners, LP, to attract new companies with international operations. The Grantee has also received a
letter of support from Haltom City's City Manager for land that is located in Haltom City and also within the
proposed FTZ boundary.
The Grantee has requested a letter of support from the City of Fort Worth in order to modify the current
Foreign Trade Zone boundary under the Traditional Site Framework, pursuant to the Foreign Trade Zone
Act. Approval to submit this letter of support will only approve FTZ designation for land located within the
Fort Worth city limits.
Recommendation:
Staff recommends approval of the Mayor and Council Communication to expand the boundary of FTZ No.
168. Current tenants within the proposed boundary are not interested in pursuing FTZ benefits. Of the
thirty-seven current tenants that would be included in the revised boundary, only two perform activities that
could be eligible for FTZ benefits.
Staff will bring forward an M&C to City Council on January 7, 2014 to approve the submission of the letter
of support for the boundary modification.
Tom Higgins
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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