HomeMy WebLinkAbout25-0129 - 2025-12-02 - Informal ReportINFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 25-0129
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1875
To the Mayor and Members of the City Council
December 2, 2025
Page 1 of 3
SUBJECT: AMENDMENT OF THE ECONOMIC DEVELOPMENT PROGRAM
(CHAPTER 380) POLICY AND TAX ABATEMENT POLICY
The City of Fort Worth's most recent Economic Development Program Policy for Grants and Loans
Authorized by Chapter 380, Texas Local Government Code (380 Policy) and General Tax
Abatement Policy (TA Policy) were adopted on April 22, 2025 (Resolution No. 6086-04-2025) and
May 13, 2025 (Resolution No. 6100-05-2025), respectively, and subsequently amended on August
5, 2025 (Resolution No. 6126-08-2025). The TA Policy and the 380 Policy include targeted project
eligibility criteria and requirements that promote the goals and objectives of the Fort Worth
Economic Development Strategic Plan (Plan) as accepted by City Council on December 12, 2017
(M&C G-19192) and subsequently updated and accepted on February 22, 2022 (M&C 22-0113).
Occasionally, changes in economic conditions and market trends require amendments to these
policies to ensure the availability of tools capable of providing continued support to the execution
of the Plan. Therefore, staff recommends incorporating various changes and updates to the TA
Policy and the 380 Policy to: 1) provide eligibility criteria for Boutique Hotels, as defined in the 380
Policy; 2) amend affordable housing requirements to provide sustained funding to the Fort Worth
Housing Finance Corporation; and 3) delegate authority to the City Manager to amend certain
agreement provisions. The amendments are further explained below.
Support for Boutique Hotels
Section 4.2 of the current 380 Policy provides incentive eligibility requirements for qualifying full -
service hotels. Certain properties, due to site constraints, opportunities for the adaptive reuse of
existing historical or non -hotel buildings, or for certain reasons relating to market positioning, may
present an opportunity for the development of a new boutique hotel that does not meet the minimum
eligibility requirements for full -service hotels under the 380 Policy as currently drafted. Therefore,
staff is recommending Council amend the 380 Policy to allow for the consideration of a waiver of
some or all of the minimum hotel features otherwise required, provided that the project: 1) is located
within a Fort Worth Target Area; 2) offers full -service onsite dining or demonstrates a partnership
or service agreement with a nearby full -service restaurant offering guests in -hotel dining; and 3)
features a design that promotes walkable urbanism and that highlights, complements, or amplifies
the unique setting and culture of the immediate surroundings.
It is not the intent for the proposed policy change to deliver incentives to limited -service hotels.
Rather, descriptions and other policy guidance specific to boutique hotels are provided for within
the 380 Policy. Under this proposed 380 Policy amendment, eligible projects could be considered
for support through grants that are based on a combination of new incremental City hotel
occupancy taxes, property taxes, or sales taxes that will be negotiated on a per -project basis and
with consideration to the impact of the proposed project, net fiscal impact to the City, and the role
of an applicable project financing zone that might constrain the availability or use of certain public
funds.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 25-0129
�pf1TE7t$
18 7'a
To the Mayor and Members of the City Council
December 2, 2025
Page 2 of 3
SUBJECT: AMENDMENT OF THE ECONOMIC DEVELOPMENT PROGRAM
(CHAPTER 380) POLICY AND TAX ABATEMENT POLICY
Support and Requirements for Affordable Housing
The promotion of housing affordability and the delivery of new inventory in key segments of the
market remain strategic goals of the City and its economic development activities. To that end, the
existing TA Policy and 380 Policy rely on similar approaches to the support of affordable housing
as had been typical of the City's negotiated economic development agreements for many years. In
general, the policies require that projects involving rental residential units set aside a minimum
percentage of those units at rental rates that correspond to Area Median Income (AMI) levels
established by the U.S. Department of Housing and Urban Development (HUD). Ordinarily, those
agreements (and the policies) required a minimum 10% of units to be rented at 80% of AMI and an
additional 10% of units at 60% of AMI.
In the past, this approach was effective in delivering new affordable units to Fort Worth because
the value of the resulting incentive was larger than the combined value of lost revenue to the
developer (compared to market rents) and the financial gap to be filled by those incentives
(necessary to allow the project to move forward).
More recently, the economics of such projects have changed considerably. Market rent levels and
the cost of construction have risen sharply while, in many cases, outpacing the value of new City
property taxes from a new development. As a result, it has been increasingly difficult to structure
effective incentive agreements that both help a project to proceed while also securing commitments
to set aside a portion of the development for affordable units. In other words, the value forfeited by
the developer negates the value of City incentives. The rigidity of existing policy requirements has
added to that difficulty.
In response, staff is recommending a two -fold approach. First, it is recommended that the TA Policy
and the 380 Policy remove existing requirements for the direct provision of affordable housing units
as part of a project. Eliminating these requirements under the policies does not preclude staff from
negotiating similar commitments for a specific project or agreement on a case -by -case basis.
Second, staff is recommending that the 380 Policy and TA Policy be amended to provide for a new
mechanism by which affordable housing support can be funded. As proposed, projects that contain
residential units will earn annual grants or receive annual abatements (depending on the form of
the agreement) for the term of the agreement that equals five percent (5%) of the incremental City
taxes on Real and Business Personal Property associated with the Project. Rather than being paid
to the developer, these grants or abatements would be paid to the Fort Worth Housing Finance
Corporation (FWHFC) for the purpose of promoting the development or provision of affordable
housing in Fort Worth (striving for such housing to be delivered in close proximity to the project). In
this manner, the value delivered by new economic development projects will be used to support
investment in affordable housing throughout the City.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 25-0129
�pf1TE7t$
1875
To the Mayor and Members of the City Council
December 2, 2025
Page 3of3
SUBJECT: AMENDMENT OF THE ECONOMIC DEVELOPMENT PROGRAM
(CHAPTER 380) POLICY AND TAX ABATEMENT POLICY
Delegated Authority for Certain Amendments
Except as otherwise reserved to the City Council in an agreement or the M&C authorizing an
agreement, staff recommends that the TA Policy and the 380 Policy be amended to delegate to the
City Manager the authority to amend an agreement for any of the following purposes and subject
to the following limitations without further action by the City Council:
• Extension of any deadline for a period of up to one year;
• Amendment of a minimum Investment commitment; provided that the difference does not
exceed ten percent (10%) from that which was authorized by the City Council and specified
in an Economic Development Program Agreement (EDPA) or Tax Abatement Agreement;
• Amendment of a minimum employment commitment; provided that the difference does not
exceed ten percent (10%) from that which was authorized by the City Council and specified
in the EDPA or Tax Abatement Agreement; or
• Amendment of a minimum average annual salary commitment; provided that the difference
does not exceed ten percent (10%) from that which was authorized by the City Council and
specified in the EDPA or Tax Abatement Agreement.
The City Manager will report timely to the City Council whenever this authority is exercised.
Additional revisions to address certain formatting changes and for the alignment of shared
definitions have also been incorporated into the 380 Policy and TA Policy as recommended for
adoption.
In order to adopt these recommended changes to the 380 Policy and TA Policy, two M&Cs will be
placed on the December 9, 2025 agenda for City Council approval. Copies of the draft policies with
the proposed changes incorporated are attached for further review.
For further questions, please contact Jessica Rogers, Director of the Economic Development
Department, by e-mail to essica.roaers(a.fortworthtexas.aov.
Jesus "Jay" Chapa
City Manager
Attachment
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
City of Fort Worth
Economic Development Program Policy
for Grants and Loans Authorized by Chapter 380,
Texas Local Government Code
Effective e December-0 2025
1. GENERAL PROVISIONS.
1.1. Purpose
Chapter 380 of the Texas Local Government Code authorizes the City Council to
establish and provide for the administration of one or more programs, including programs for the
making of loans and grants of public money and providing personnel and services of the City, to
promote economic development. This Policy is intended to establish a program and set forth
guidelines and criteria for persons or entities interested in receiving economic development
program grants or loans (collectively, "380 Incentive") and other support from the City pursuant
to Chapter 380 of the Texas Local Government Code ("Economic Development Program").
1.2. General Eligibility Criteria
The terms and conditions of any 380 Incentive will be set forth in an Economic
Development Program Agreement (an "EDPA"). Although the City will consider all
applications for 380 Incentives that meet the eligibility requirements set forth in this Policy, it is
especially interested in supporting projects that are expected to produce a meaningful impact on
the City and its economy and that result in one or more of the following:
• Growth of business activity, employment, or investment in one of the City's identified Target
Industries;
• Creation of high -wage jobs;
• Significant Investment;
• Growth of business activity, employment, or Investment in the Central Business District;
• Revitalization with likelihood of ancillary development in a key employment node or
specifically designated area of the City;
• Retention or expansion of an existing major employer; or
• Anchoring of a business expansion project with potential to generate additional supply chain
activity.
1.3. Target Sectors
While the City is open to discussion on potential incentive opportunities for a variety of
industries, the City is particularly interested in developing certain target sectors (each defined
herein as a "Target Sector"). These Target Sectors have been specifically identified by the City
for their strategic value in helping to strengthen, diversify, and advance the City's economy:
City of Fort Worth 380 Incentives Policy Page 1 of 26
• Mobility — Automotive & Transportation Manufacturing, Vehicle Technologies,
Micromobility, Vertical Takeoff and Landing (VTOL) and Electric Flight, Transportation
Services, Logistics Technologies and Management
• Aerospace & Defense — Aerospace Manufacturing and Design, Federal Government,
Information Technology and Analytical Instruments
• Energy — Alternative Energy Generation, Alternative Energy Equipment, Energy Storage
and Distribution, Oil and Gas Management, Oil & Gas Technology, Smart Building Systems
• Culture — Hospitality and Tourism, Performing Arts, Film, Local Hospitality and
Independent Venues
• Anchors & Innovators — Corporate Headquarters, Engineering, Financial Services,
Professional Services, Colleges and Universities, Research Organizations,
Biopharmaceutical Products and Medical Technologies, Hospitals, Computer and
Information Services
2. DEFINITIONS: See Exhibit "A"
3. PROGRAM FOCUS I: STRATEGIC INDUSTRIES.
A core responsibility of the City under its Economic Development Program and through related
economic development activities, focuses on identifying, evaluating, and providing targeted
support to opportunities in key industries that play a highly strategic role in Fort Worth's regional
economy now and in the future. These strategic industries strengthen the economic and industrial
base of the community and allow for Fort Worth to ensure that it is well positioned for long-term
economic competitiveness. The following programs are administered by the City's Economic
Development Department ("Department") as part of this Economic Development Program to
deliver targeted supportto desired projects. This support is delivered to increase the attractiveness
of Fort Worth as a destination for desired investment and industry growth or to offset certain
competitive disadvantages that might otherwise prevent, stall, or curtail growth in the targeted
industry.
3.1. ELIGIBILITY REOUIREMENTS FOR TARGET SECTOR PROJECTS.
To be considered for a 380 Incentive, a Target Sector project must commit to a minimum
investment of at least $25 million and the creation of new full-time jobs that meet a minimum
annual average wage of at least $60,000 (with the understanding that the City may require higher
commitments as determined on a project -by -project basis in full view and consideration of the
specific project deliverables, anticipated impact, and market environment).. The amount of a
380 Incentive will be based on a percentage of annual tax revenues that the City receives in a
particular year, including ad valorem taxes on real property, ad valorem taxes on Business
Personal Property, local sales taxes directly attributable to the project, or some combination
thereof. The percentage of ad valorem taxes will be based on the maintenance & operations
(M&O) tax rate of the City. The table below establishes the maximum percentage of annual tax
City of Fort Worth 380 Incentives Policy Page 2 of 26
revenues on which 380 Incentives to Target Sector projects will be based, in correlation with
minimum Investment and employment levels:
Requirements for Target Sector Industries
Maximum
Jobs
$70 M +
$55 M -$70 M
Term
Required
Investment
Investment
3 - 5 years
50 —100
40 % Incentive
40 % Incentive
6 — 7 years
100 — 250
50 % Incentive
50 % Incentive
8 — 9 years
250 - 400
60% Incentive
60% Incentive
10 years
400 +
70% Incentive
N/A
$40 M -$54 M $25 M -$39 M
Investment
40 % Incentive
50 % Incentive
N/A
N/A
Investment
40 % Incentive
N/A
N/A
N/A
Any Target Sector Industry Project with Capital Investment over $100 million and the
creation of over 500 jobs exceeding the minimum annual average wage of at least $60,000 (with
the understanding that the City may require higher commitments as determined on a project -by -
project basis in full view and consideration of the specific project deliverables, anticipated
impact, and market environment) will be eligible for an 80% 380 Incentive for a period of up to
15 years.
All Target Sector Industry Projects will be subject to a requirement to demonstrate hiring
practices that prioritize recruitment and employment of Fort Worth Residents and must
demonstrate a "Good Faith Effort" to have at least thirty percent (30%) of employees associated
with the project as Fort Worth Residents.
3.2. ELIGIBILITY CRITERIA FOR GENERAL PROJECTS.
Unless a proj ect meets one of the other minimum eligibility criteria set forth in this Policy,
in order to be considered for a 380 Incentive, an applicant must commit to a minimum Investment
of at least $25 million and creation of new full-time jobs that meet a minimum annual average
wage of at least $60,000 (with the understanding that the City may require higher commitments
as determined on a project -by -project basis in full view and consideration of the specific project
deliverables, anticipated impact, and market environment).
The amount of a 380 Incentive will be based on a percentage of annual tax revenues that
the City receives in a particular year, including ad valorem taxes on real property, ad valorem
taxes on Business Personal Property, local sales taxes directly attributable to the project, or some
combination thereof. The percentage of ad valorem taxes will be based on the maintenance and
operations ("M&O") tax rate of the City. The table below establishes the maximum percentage
of annual tax revenues on which 380 Incentives to General Sector Industry Projects may be
eligible, in correlation with minimum Investment and employment levels:
Requirements for General Sector Industries
City of Fort Worth 380 Incentives Policy Page 3 of 26
Maximum
Jobs
$70 M +
$55 M -$70 M
$40 M - $54 M
$25 M - $39 M
Term
Required
Investment
Investment
Investment
Investment
3 - 5 years
50 —100
20 % Incentive
20 % Incentive
20 % Incentive
20 % Incentive
6 - 7 years
100 — 250
30 % Incentive
30 % Incentive
30 % Incentive
N/A
8 - 9 years
250 - 400
40% Incentive
40% Incentive
N/A
N/A
10 years
400 +
50% Incentive
N/A
N/A
N/A
Any General Sector Industry Project with Capital Investment over $100 million and the
creation of over 500 jobs exceeding the minimum annual average wage of $60,000 will be
eligible for a 60% 380 Incentive for a period of up to 15 years.
All General Sector Industry Projects will be subject to a requirement to demonstrate
hiring practices that prioritize recruitment and employment of Fort Worth Residents and must
demonstrate a "Good Faith Effort" to have at least thirty percent (30%) of employees associated
with the project as Fort Worth Residents.
3.3. ELIGIBILITY REOUIREMENTS FOR EXISTING BUSINESS EXPANSION
PROJECTS.
The City desires to support the growth of business currently located in the City. In order
to be considered for 380 Incentives, an Existing Business expansion project that is not eligible
for 380 Incentives elsewhere in this Policy must commit to a minimum Investment of at least $10
million and creation of at least 25 new full-time jobs.. The amount of a 380 Incentive under this
Section will be based on a percentage of annual tax revenues that the City receives in a particular
year, including ad valorem taxes on real property, ad valorem taxes on Business Personal
Property, local sales taxes directly attributable to the project, or some combination thereof, not
to exceed 80%. The percentage of ad valorem taxes will be based on the M&O tax rate of the
City.
Requirements for Business Expansion Projects
Maximum
Jobs
$55 M +
$40 M -$54 M
$25 M - $39 M
$10 M - $24 M
Term
Required
Investment
Investment
Investment
Investment
3 - 5 years
50 — 100
50 % Incentive
20 % Incentive
20 % Incentive
20 % Incentive
6 - 7 years
100 — 250
60 % Incentive
30 % Incentive
30 % Incentive
N/A
8 - 9 years
250 - 400
70% Incentive
40% Incentive
N/A
N/A
10 years
400 +
80% Incentive
N/A
N/A
N/A
All Existing Business expansion projects will be subject to a requirement to demonstrate
hiring practices that prioritize recruitment and employment of Fort Worth Residents and must
demonstrate a "Good Faith Effort" to have at least thirty percent (30%) of employees associated
with the project as Fort Worth Residents.
3.4. ELIGIBILITY REOUIREMENTS FOR SUPPLIERS OF ESTABLISHED
TARGET SECTOR EMPLOYERS.
City of Fort Worth 380 Incentives Policy Page 4 of 26
The City desires to strengthen and further the growth of target sector clusters in
Fort Worth and to promote a stronger business environment for major established employers that
are currently located in the City. As such, a project completed by or for the supplier of critical
materials, components, or services for an established Target Sector company ("Supplier") that (i)
has a corporate or regional headquarters that is located in Fort Worth and (ii) employs at least
3,000 people at its Fort Worth facilities, will be eligible for a Ch. 380 Incentive. To be eligible,
a Supplier project must commit to a minimum Investment of at least $10 million and the creation
of at least 25 new full-time j obs with a minimum annual average employee Salary at least $60,000
(with the understanding that the City may require higher commitments as determined on a
project -by -project basis in full view and consideration of the specific project deliverables,
anticipated impact, and market environment).
The amount of a Ch. 380 Incentive under this Section will be based on a percentage of
annual tax revenues that the City receives in a particular year, including ad valorem taxes on real
property, ad valorem taxes on Business Personal Property, local sales taxes directly attributable
to the project, or some combination thereof, not to exceed 50%. The percentage of ad valorem
taxes will be based on the M&O tax rate of the City.
Requirements for Suppliers of Established Target Sector Employers
Maximum Jobs $55 M + $40 M -$54 M $25 M - $39 M $10 M - $24 M
Term Required Investment Investment Investment Investment
3 - 5 years 25 — 100 45 % Incentive 40 % Incentive 35 % Incentive 30 % Incentive
6 - 10 years 100 + 50 % Incentive 45 % Incentive 40 % Incentive N/A
3.5. ELIGIBILITY REOUIREMENTS FOR MEGA PROJECTS.
A "Mega Project" can be within any industry; however, the City is especially interested
in Fortune 1,000, Fortune Global 500, or Inc. 5000 designated firms, pursing development or
redevelopment opportunities within the City. Projects granted this designation must commit to at
least one of the following (with the exception of data centers or other unique low employment/high
capital investment projects which must have a minimum investment of $50 million):
Commits to a minimum Investment of at least $250 million;
Commits to hire at least 1,500 full-time employees; or
Commits to a minimum annual payroll of at least $150 million.
The amount of a 380 Incentive under this Section will be based on a percentage of annual
tax revenues that the City receives in a particular year, including ad valorem taxes on real property,
ad valorem taxes on Business Personal Property, local sales taxes directly attributable to the project,
or some combination thereof, not to exceed 85%. The percentage of ad valorem taxes will be
based on the M&O tax rate of the City.
To be eligible, a Mega Project must commit to a minimum annual average employee
Salary level of at least $60,000 (with the understanding that the City may require higher
commitments as determined on a project -by -project basis in full view and consideration of the
specific project deliverables, anticipated impact, and market environment).
City of Fort Worth 380 Incentives Policy Page 5 of 26
Additionally, or as an alternative to the 380 Incentives that are based on a percentage of
annual tax revenues, qualified projects may be eligible to receive a grant of cash funds from the
Economic Development Initiatives Fund ("EDIF") in accordance with the EDIF Policy.
3.6 FILM PROJECTS AND PROMOTION
The City recognizes the direct and indirect impacts produced by Film production,
including the ability for such projects to increase the profile and visibility of the community on
a national and international stage. The City therefore seeks to support efforts to attract and
produce such projects through targeted programs and partnerships.
3.6.1. FILM ATTRACTION AND FILM INDUSTRY PROMOTION.
Certain partnerships with Fort Worth -based government or non-profit
organizations involved in the promotion of Fort Worth to the Film industry, the attraction
of individual Film projects, or other support to Film projects located in Fort Worth, will
be eligible, subject to approval by the City Council, to receive certain 380 Incentives
funded by the EDIF, subject to requirements and limitations specified under contract.
3.6.2 FILM PRODUCTION.
Film projects qualifying for support through the Texas Moving Image Industry
Incentive Program (TMIIIP) will be eligible for consideration for certain 380 Incentives,
provided that major production activities relating to the project occur in Fort Worth. The
380 Incentives for Film production projects will be based on a percentage not to exceed
50% of annual tax revenues that the City receives in a particular year during film
production, including ad valorem taxes on real property, ad valorem taxes on Business
Personal Property, local sales taxes directly attributable to the project, or some
combination thereof. The percentage of ad valorem taxes will be based on the
maintenance & operations (M&O) tax rate of the City. Film production projects that
receive 380 Incentives will be required to make certain commitments relating to (i) local
supply and services for the project, (ii) local hiring for film production (i.e. extras, crew,
etc.), and (iii) the featuring of Fort Worth in the final edit of the film or series in a manner
that positively promotes the image of the community and in a manner that is clearly
identifiable as Fort Worth.
3.7 TEMPORARY OFFICE SPACE
For any projects that meet the eligibility criteria set forth in Sections 3.1-3.4 of this Policy,
the City may, in its sole discretion, provide applicants with certain temporary office space for a
limited period of time during the construction of the applicant's new facilities for the project.
Such temporary office space may be provided to the applicant without charge, subject to certain
terms and conditions. Details and total value will be subject to final negotiations.
3.8. PROJECT FACILITATION.
City of Fort Worth 380 Incentives Policy Page 6 of 26
The City recognizes the importance of moving expeditiously through necessary site
review and permitting processes for any new development, relocation, or expansion. The urgency
of such processes is particularly important to competitive projects or those that face specific
challenges with respect to project timeline. To ease project design efforts and to reduce associated
time requirements for projects that are designated for enhanced project facilitation by the
Department, certain staff time and other City resources may be specifically allocated to a project
("Project Facilitation"). Depending on the project, this might involve direct support by senior -
level City staff beyond that which would be typically provided to other projects. In all cases in
which a project has been designated for such treatment, projects will have a dedicated Project
Facilitator in the Development Services Department who is trained in guiding construction
projects throughout the permitting and development process.
4. PROGRAM FOCUS IL• FOUNDATIONAL COMPETITIVENESS.
A second core responsibility of the City under its Economic Development Program and through
related economic development activities, focuses on ensuring a strong foundation for the local
economy, including a sound and competitive business environment with infrastructure,
institutions, and a built environment capable of supporting sustainable long-term growth for the
benefit of the entire community. While these interests may be advanced by the broader efforts of
the City, as a whole, the following targeted programs are designed to address specific near- and
long-term needs that, when addressed, will provide a stronger foundation for a more competitive
local and regional economy.
4.1. CENTRAL BUSINESS DISTRICT PROGRAMS
The Central Business District ("CBD") represents a unique area of the community that
plays a highly distinct role in the overall health and operation of the City's local and regional
economy. As commonly found in other major cities throughout the United States, the CBD serves
as the primary commercial center of the community, plays an important role in shaping the
community's identity, culture, and brand, and produces spillover effects for all portions of the City.
Therefore, programs that provide targeted support to the CBD are both necessary in response to its
unique circumstances and desirable for the near -term and long-term impact that can be produced
for the City, as a whole.
4.1.1. ELIGIBILITY REOUIREMENTS FOR CERTAIN TARGET SECTOR
PROJECTS IN THE CENTRAL BUSINESS DISTRICT.
An applicant in a Target Sector that locates in the CBD ("CBD TS Business") may
be eligible for 380 Incentives if the applicant meets the following criteria: (i) employs a
minimum of 50 permanent full-time employees at the proposed site; (ii) pays a minimum
annual salary of $60,000 or equal to that of Tarrant County as averaged across the most
recent four quarters of published data from the Bureau of Labor Statistics Quarterly
County Employment and Wages (QCEW) report (whichever is higher) as determined by
City staff upon receipt of an Application to those employees; and (iii) meets the criteria
for an Existing Business or relocates from outside the Dallas -Fort Worth Metropolitan
Statistical Area. If the CBD TS Business does not own the real property on which the
project will be located, then the property owner may need to be included in the EDPA.
City of Fort Worth 380 Incentives Policy Page 7 of 26
If the CBD TS Business locates its project in an existing building in the CBD, the
maximum amount of the 380 Incentives will equal (based on the M&O tax rate of the
City):
Up to 80% of the CBD TS Business's incremental Business Personal Property
taxes for a maximum of 15 years; or
Up to 80% of the CBD TS Business's incremental real property taxes in a
proportional share to the amount of space within the building that is occupied
by the CBD TS Business for up to 10 years.
If the CBD TS Business locates its project in a new building in the CBD for which
a building permit has not been obtained as of the date of the incentive application, the
maximum amount of the 380 Incentives will equal:
Up to 80% of net new real property taxes (specifically excluding any Business
Personal Property taxes) in a proportional share to the amount of space within
the building that is occupied by the CBD TS Business for up to 15 years,
subject to the following requirements:
o CBD TS Business must be a Fortune 1,000 or Inc. 5000 corporate or
regional headquarters;
o A minimum of 100,000 square feet must be occupied by the CBD TS
Business;
o The CBD property must be new construction in order to house the CBD
TS Business; and
o A minimum of $100 million must be invested in Hard Construction Costs
associated with the new construction.
A CBD TS Business locating in a new building in the CBD will only be eligible
for 380 Incentives if it meets all the above -referenced criteria.
4.1.2. RELOCATION SUPPORT FOR NEW OFFICE TENANTS.
The City wishes to support the tenant recruitment process of out -of -region
tenants to Class A Office space in strategic locations of Fort Worth and to ease lease
transactions by offsetting certain initial costs incurred by major office tenants at the
point of lease execution and shortly thereafter as part of a business's relocation. In
support of these goals, office tenants entering into a lease of at least 10,000 square feet
of unoccupied Class A office space in the CBD will be eligible to receive a one-time
cash grant from the EDIF. Eligibility will be limited only to tenants who meet the
following criteria:
Relocating or expanding tenant is currently located outside of the City of Fort
Worth;
Tenant is entering into a minimum five-year lease of at least 10,000 square feet
of Class A Office space located within the Fort Worth CBD;
City of Fort Worth 380 Incentives Policy Page 8 of 26
The value of grants will be equal to between five and seven percent (5 - 7%) of the
value of the lease based on a maximum of five years of the proposed lease term (the "5-
Year Lease Value"). The maximum grant value for the lease of 10,000 - 49,999 square
feet will be equal to 7% of the 5-Year Lease Value and the maximum grant value for
the lease of 50,000 square feet or more will be equal to 5% of the 5-Year Lease Value.
Grants will be paid within twelve months of final lease execution. The grant may be
assigned to an affiliate of the tenant provided that such affiliate was directly involved in
the lease transaction, such as the property owner or sub -lessor.
The delivery of any 380 Incentives as described above will be subject to requirements
specified under agreement, including minimum requirements for tenant employment
and minimum average salaries for the term of the lease. The 380 Incentives will be
subject to Clawback provisions applicable to the grant recipient.
4.1.3 OTHER SUPPORT FOR MAJOR OFFICE TENANTS.
Companies proposing to enter into a new lease of at least 50,000 square feet of
Class A office space in the CBD may be eligible for targeted support under this Policy
subject to evaluation of project characteristics and strategic impact. All such projects will
be reviewed on a case -by -case basis. To support eligible projects, and in place of or in
addition to 380 Incentives that are based on annual tax revenues received by the City, the
City may elect to provide a grant of cash funds from the EDIF so long as it complies with
the EDIF Policy.
4.2 ELIGIBILITY REOUIREMENTS FOR FULL -SERVICE HOTELS.
In addition to direct contributions to the local economy as part of the broader hospitality
industry, full -service hotels play a particularly meaningful role in support of efforts to achieve
broader economic development objectives for the City. Leisure properties in or near key cultural
districts can serve to enhance the attractiveness or impact of that district as an asset for the
community. Hotels that serve business travel can play an important role in promoting greater
exposure of the City to investors, executives, and professionals in other industries that may be
targeted for growth by the City and, functionally, they can serve as a temporary base of operations
for those wishing to do business in the City. Other hotels add necessary capacity to host major
conventions or events and, by that additional capacity, improve the type, quality, exposure, or
industry brought to City by such conventions or events.
In recognition of the role that full -service hotels play in the broader local economy, the
City is engaged in a sustained effort to encourage expanded inventory and higher quality of full -
service hotels in the City. In support of these efforts, the City will consider providing 380
Incentives to full -service hotel projects, including the hotel portion of mixed -use projects.
Projects will be evaluated on a case -by -case basis in relation to their location, the evolving
conditions and offerings of the established hotel market in Fort Worth, historical adaptive reuse
or preservation, and expected contributions by the proposed project to other related economic
development objectives of the City.
City of Fort Worth 380 Incentives Policy Page 9 of 26
The following matrix presents the minimum features required by the City for a full -
service hotel project to be eligible for 380 Incentives:
Hotel
Full Service
Ballroom*
Rooms
Restaurant
Size
200 rooms
Yes
6,000 sq. ft.
250 rooms
Yes
7,500 sq. ft.
300 rooms
Yes
10,000 sq. ft.
Meeting* Boardroom* Room Block
Space
Space Agreement
2,400 sq. ft.
500 sq. ft. Yes
4,000 sq. ft.
500 sq. ft. Yes
6,000 sq. ft.
500 sq. ft. Yes
* Hotel projects located within the CBD that are 12 stories or taller may qualify for a reduction or reconfiguration of
conference space requirements. To be eligible for such adjustments, the applicant must demonstrate that sufficient parking
has been secured to serve the needs of the hotel, whether through a shared parking agreement, provision of new parking, or
the installation of equipment or infrastructure that supports the use of car sharing services or other shared transportation
services.
The amount of any 380 Incentives under this Section will be based on a percentage of
hotel occupancy taxes, directly attributable to the project, not to exceed 80%.
4.2.1 BOUTIOUE HOTELS.
Certain properties, due to site constraints, opportunities for the adaptive -reuse of
existing historical or non -hotel buildings, or for certain reasons relating to market
positioning, may present an opportunity for the development of new boutique hotel
Projects that may not meet the minimum eligibility requirements for full -service hotels as
specified above in Section 4.2-. Such project opportunities may be of interest to the Citv
when contributing to efforts to: (i) promote infill development in walkable mixed -use
districts' (ii) attract new hotels to districts that offer limited site opportunities for larger
full -service hotels, (iii) or when the addition of a large full -service hotel is inconsistent
with the Citv's aims and objectives for a Given area. In such cases, the Citv may consider
a waiver of some or all of the minimum hotel features specified above in Section 4.2-.
"Boutiaue Hotel" means a smaller, tvpically independent (i.e. non -chain) hotel that is
known for its unique stvle, personalized service, relationship to and shared identitv with
its surrounding properties or district, and its focus on creating a distinctive guest
expenence.
Boutique Hotel projects will be evaluated on a case-bv-case basis in relation to
their location, immediate surroundings, the evolving conditions and offerings of the
established hotel market in Fort Worth, the needs or conditions of the surrounding district,
and in consideration of other related economic development objectives of the City. To be
eligible for a waiver of minimum eligibility requirements, a Boutique Hotel project must:
• Be located within a Fort Worth Target Area,
• Offer full -service onsite dining or demonstrate a partnership or service
agreement with a nearbv full -service restaurant offering Guests in -hotel dining;
and
• Feature a design that promotes walkable urbanism that hiahliahts, complements,
or amplifies the unique setting and culture of the immediate surroundings
City of Fort Worth 380 Incentives Policy Page 10 of 26
Eligible Boutique Hotel projects will be evaluated based on their expected
contribution to the Citv's economic development objectives for the area and based on
demonstration of a financial iaap or other significant constraint preventinia the proiect
from proceeding but for the assistance of the Citv. Such projects may be eligible to receive
380 Incentives that will be based on a combination of new incremental Citv hotel
occupancv taxes, property taxes, or sales taxes that will be negotiated on a per -project
basis and with consideration to the impact of the proposed project, net fiscal impact to
the Citv, and the role of an applicable project financing zone that might constrain the
availabilitv or use of certain public funds.
4.3. AFFORDABLE HOUSING FOR MIXED USE DEVELOPME
PROJECT-SSUPPORT.
All Mixed Use Development --Projects subject to an EDPA that contain residential units
will earn annual Grants in each program vear for the term of the EDPA that are equal to five
percent (5%) of the incremental Citv taxes on Rfeal and/or Business Personal Propertv associated
with the Project, with such Grants to be paid to the Fort Worth Housing Finance Comoration for
the pumose= of promoting the development or provision of affordable housing, at all times
striving to deliver such affordable housing in close proximity to the Project ("Affordable
Housine Grant"). At no time may the combined value of an Affordable Housing Grant and anv
other Grant pavable under the EDPA that is based on the incremental value of Citv Rreal and
Business Personal Property taxes exceed one hundred percent (100%) of such taxes.
0 At least i not ,.f all rent i fesi onf.-al unit „, tst be sot aside o elusively fee io,�o
te-gtraii�ing households ..,hose adjusted ; es ,a not exeeed the the etlffeR4
eigky percent (Q neeme limits established by t o UY. r_Nepa#weR r
Hetisingd Urbm Do. J�p\-,wnt ("MiD") ti n�t3 tls.Nti . w af€efdabh to
0 At least i not of all feet l fesi- aa'itial units must be sot aside o el„siyely fee logo
to qttalifs ing l.,ousehoids .,hose adjusted ; es do not exeeed the the etlffeR4
° oonw linits HUD at -,,A-ita that .e affofdable
4_4,_ 1,A,,g- b,61,7 S.
4.4-4. CITY -OWNED PROPERTY.
Projects involving property that, either prior to project start or after project completion,
is owned by the City or one of its component units, will be eligible to receive 380 Incentives for
the purpose of project finance or facilitation. Such property may include, but is not limited to,
real property and leasehold interests. The delivery of 380 Incentives to such projects will require
approval by the City Council.
5. PROGRAM FOCUS III: FULL STRENGTH FORT WORTH.
A third core responsibility of the City under its Economic Development Program and through
related economic development activities, focuses on tapping into the full potential of
neighborhoods and districts throughout the City so that the City can compete at full strength.
City of Fort Worth 380 Incentives Policy Page 11 of 26
Doing so requires the joint efforts of multiple City departments and community partners. The
following targeted programs are administered by the Department as part of this Economic
Development Program. They are designed to provide specific support for projects and initiatives
that advance revitalization, economic productivity, equitability, and commercial opportunity in
historically disadvantaged districts and corridors as well as in locations that may significantly
impact surroundings in a manner that advance the City's long-term aims for community
development.
5.1. COMMITMENT FOR UTILIZATION OF SMALL BUSINESS FIRMS
All projects receiving 380 Incentives are subject to the City' s Small Business Program in
Procurement of Goods, Services and Construction Ordinance (-Chapter 21 of the City Code and
herein referred to as "Small Business Ordinance") and must make a commitment to utilize Small
Business Firms as determined by the Economic Development Director.
5.2. ELIGIBILITY REOUIREMENTS FOR CATALYTIC DEVELOPMENT
PROJECTS.
A "Catalytic Development Project" is a business or real estate development project that
meets the following criteria:
• Located within either a Designated Investment Zone, an Urban Village, of --an
identified Revitalization Area. +., d it Drhbito "E", "r��,
fespeetively) of the rBDe f a Felt 3A'ertl: Tar2Afeahmovation District, or
Strategic Development Area (as depicted in Exhibits "B", "C", "D", and "E"
respectivelv).:
• Commits to at least $5 million in Investment; and
• Complies with at least one of the following requirements:
o Mixed -Use Development;
o Fills a gap, such as a grocery store in a food desert or a childcare facility, as
determined by City staff based on goals set forth in the City's then -current
Comprehensive Plan or other statistical data or relevant documentation;
o Located along a commercial corridor or within an urban village, as
identified in the City's then -current Comprehensive Plan;
o Generates significant job opportunities in the area, as determined by City
staff based on then -current employment data; or
o Helps create a hub of entrepreneurial activity, positioning the City to attract
entrepreneurs and high -growth companies, as determined by City staff
based on goals and recommendations set forth in the City's Economic
Development Strategic Plan, the City's then -current Comprehensive Plan,
or on other statistical data or relevant documentation.
All Catalytic Development Projects will be eligible for consideration for 380 Incentives.
The amount of a 380 Incentive under this Section will be based on a percentage of annual tax
revenues that the City receives in a particular year, including ad valorem taxes on real property,
ad valorem taxes on Business Personal Property, local sales taxes directly attributable to the
project, or some combination thereof, not to exceed 80%. The percentage of ad valorem taxes
will be based on the M&O tax rate of the City. In place of or in addition to 380 Incentives that
City of Fort Worth 380 Incentives Policy Page 12 of 26
are based on annual tax revenues received by the City, the City may elect to provide a grant of
cash funds from the EDIF so long as it complies with the EDIF Policy.
Now.ithzata'r g, an appli z a Alio%ad Uao De,,&optnont that e effifflits
to at kit V million in In ;Curl-xArt a4i orapriax mtl unity
hoc ) tlxit rune*^ the ^&f abl -eorn'-.�xtr.o�Torth it Sac4or. 1.3 will be
eensider-edw a C ata jt1 s PFE�e�eligiblezvr�9v-arcen crczreven—'rrit is loe4ed etAside of -a
Designa4ed Investment Zone.
Atiy o Do:,zoptnont Pr, jeetleeate3 in tho GBD that inAtt&3 rntal raiderrtial
units, rra7 , �` tla oil, b:--_,-,xApt ` z(aiivr��'ita
set -forth it Seetion 3.6 r i ed; pfevi-ded, howevo- , tlxit it oua': irAtanses the total aega4o
Glue of 380 Ineertivia will be capped at ar an. a rt equal to the valt e f r„t he ; o orts
asseeiated with tho praj-eEt,—(Soo S34on 311.898(b)(4)(B) 0�mam'IP103 of puvke
impfovemep,t4.
Additionally, Catalytic Development Projects proposed to occur on property that is
owned by the City will be eligible to receive a grant of funds in an amount not to exceed the
purchase price or the lease rate of the property that is due to be received by the City in concert
with the proposed project. Such projects will qualify as a Catalytic Development Project
irrespective of their location, provided that all other criteria of this Section are met. In such
instances in which the value of City -owned property is the sole form of support under this Policy,
only requirements specified under this section will apply (except as otherwise required under
Chapter 380 of the Texas Local Government Code) and any additional project requirements or
minimums will be negotiated on a case -by -case basis.
5.3. ELIGIBILITY REOUIREMENTS FOR TRANSIT ORIENTED
DEVELOPMENTS.
The City encourages and supports the construction of Transit Oriented Developments. In
order to be considered for 380 Incentives, a Transit Oriented Development project must commit
to at least $5 million in Investment. The amount of a 380 Incentive under this Section will be
based on a percentage of annual tax revenues that the City receives in a particular year, including
ad valorem taxes on real property, ad valorem taxes on Business Personal Property, local sales
taxes directly attributable to the project, or some combination thereof, not to exceed 50%, for a
period of no more than 7 years. The percentage of ad valorem taxes will be based on the M&O
tax rate of the City.
6. ECONONHC DEVELOPMENT INITIATIVES FUND INCENTIVES (EDIF).
From time -to -time, the City may have cash reserves available as part of the EDIF to incentivize
businesses that commit to increase employment at salary levels desired by the City. These cash
reserves will be utilized to make cash grants, either upfront or following attainment of certain
performance metrics, or loans.
City of Fort Worth 380 Incentives Policy Page 13 of 26
All industries will be considered, but strong consideration will be given to applicants that derive
the majority of its revenues from the Target Sectors outlined in Section 1.3 (subject to additional
requirements outlined below).
Existing Businesses will only be eligible for 380 Incentives under this Section if the City is able
to verify that they are receiving competing offers to relocate their operations outside of the
City.
The following table reflects the maximum level of 380 Incentives available to a qualifying
business under this Section based on the required minimum Salaries for net new full-time
permanent jobs. All jobs must be filled and maintained for a minimum of 3 years in order to
qualify. Remedies for enforcement of this requirement will be established in the Economic
Development Program Grant Agreement.
Minimum Annual Wage Rate
$70,000 - $80,499
$80,500 - $91,999
$92,000 - $101,499
$102,000 or above
Maximum Amount Per New Position
$1,500
$2,000
$2,500
$3,000
7. PROGRAM FOCUS IV: INNOVATION AND ENTREPRENEURSHIP.
A fourth core responsibility of the City under its Economic Development Program and through
related economic development activities, focuses on promoting innovation and entrepreneurship
to build a sustainable, competitive advantage for the City that fuels growth in economic
productivity and drives the future of the City's economy. Doing so requires the joint efforts of
multiple City departments and community stakeholders. The following targeted programs are
administered by the Department as part of this Economic Development Program.
7.1. ELIGIBILITY REOUIREMENTS FOR RESEARCH AND DEVELOPMENT
PROJECTS.
The City seeks to promote increased research and development activity and investment
in the City. In support of this effort and recognizing that such research and development activities
are not always associated with the delivery of new taxable sales or property, the City offers
qualified projects the ability to earn 380 Incentives that are based on the value of annual research
and development activity. While the 380 Incentives are earned on the basis of annual research
and development activity, the ultimate value of 380 Incentives received are determined on the
basis of incremental property taxes generated by either the applicant or an assignee, with the
understanding that an assignee's property need not be the location of the project site.
Applicants within a Target Sector are eligible to receive 380 Incentives equal to a
percentage of certain qualified expenses relating to ongoing research and development activities
that take place in the City. Qualified Expenses outside the City will not be considered.
City of Fort Worth 380 Incentives Policy Page 14 of 26
The City may provide 380 Incentives for a period of up to 15 years equal to up to 50% of
Qualified Expenses that are reported for a given year during a period of up to 10 years. At no
time will the amount of any 380 Incentives exceed 75% of annual incremental real property and
Business Personal Property taxes received by the City in the preceding year from the subject
property of an applicant or an assignee. The maximum amount of each 380 Incentive under this
Section will be determined by the location in which the Target Sector research and development
project is located, as set forth in the table below:
CBD/ Innovation District
Designated Investment Zones
Other City Location
Maximum Potential
R&D Reimbursement
Equal to 50% of Qualified Expenses
Equal to 35% of Qualified Expenses
Equal to 25% of Qualified Expenses
A Target Sector business receiving 380 Incentives pursuant to this Section may assign,
sell, or transfer its right to receive the 380 Incentives to any party it wishes, subject to execution
of a written agreement between the City, the Target Sector business, and the assignee party
memorializing this arrangement. The Target Sector Business will still be required to submit any
reports and documentation required by the EDPA in order for the City to verify the amount of
each 380 Incentive. The amount of any transferred or assigned 380 Incentives will be reduced
by 5 percentage points to account for the City's additional administrative costs in overseeing the
program.
In the event an assignee advances funds to the Target Sector business within the first 24
months following execution of the EDPA, the assignee may, subject to terms expressed in the
EDPA, have the right to receive 380 Incentives equal to up to 75% of its annual incremental real
and Business Personal Property ad valorem tax received by the City in an amount equal to the
lesser of the amount advanced or 15% of the Program Cap for a period of up to 10 years. No
property that is zoned Residential by the City shall be permitted to be included as part of an
assignee's subject property except where such zoning may be changed to facilitate new
development (example: a property zoned for Single -Family Detached subsequently rezoned for
Industrial in connection with new development). Properties that are zoned Mixed -Use (including
any part of a form -based code) or properties that are zoned Planned Development may be
included as part of an assignee's subject property.
7.2. ELIGIBILITY REOUIREMENTS FOR WET LAB PROJECTS.
The City wishes to foster innovation and growth in the life sciences sector by supporting
the development of state-of-the-art wet lab facilities, especially in areas targeted for innovation in
the fields of medicine and other biosciences. -In support of these aims, the City offers qualified
projects the ability to earn Ch. 380 Incentives in relation to the construction of new wet lab
facilities. To be eligible, projects must:
Be located in the Fort Worth Medical Innovation District as officially designated
by the City Council and illustrated in Exhibit "E"; and
City of Fort Worth 380 Incentives Policy Page 15 of 26
• Involve a minimum of $10 million in new investment for the construction or
modernization of wet lab facilities, including the value of new Business Personal
Property.
The amount granted as part of the Ch. 380 Incentives will be based on a maximum of 50% of
incremental City ad valorem taxes generated by the project, which may be delivered as a one-time
cash grant or a series of annual grants delivered over a period not to exceed ten years.
8. ECONOMIC DEVELOPMENT PROGRAM CALCULATION.
8.1. Improvements Required.
All applicants for 380 Incentives must deliver or construct the minimum Capital
Investment expenditure by the deadline established in the EDPA.
8.2. Percentaee and Amount.
Although this Policy establishes the maximum calculations for 380 Incentives that may
be available for a particular type of project, the specific amount of a particular EDPA will be
negotiated on a case -by -case basis and the amount of the 380 Incentives may be less than the
maximum amounts specified in this Policy, based on the review criteria set forth in Section 10.3.
The calculation of a 380 Incentive for any project that meets the requirements of this Policy will
be negotiated on a case -by -case basis and governed solely by the terms and conditions of the
EDPA.
9. ECONOMIC DEVELOPMENT PROGRAM IMPLEMENTATION.
9.1. Term.
Although this Policy establishes the maximum term of EDPAs that may be available to
certain types of projects, the actual term of any particular EDPA will be negotiated on a case -by -
case basis and may be less than the maximum available term specified in this Policy, based on
the review criteria set forth in Section 10.3.
9.2. Compliance.
Unless otherwise provided in the EDPA, the City will review and determine the
recipient's compliance with the terms and conditions of the EDPA for a full calendar year prior
to the first year in which the first 380 Incentive will be payable ("First Compliance Review
Year"). The First Compliance Review Year will either be the full calendar year in which a final
certificate of occupancy is issued for the improvements required by the EDPA (or if a certificate
of occupancy is not required for some or all of the improvements, then such other written
confirmation of completion of such improvements) for the real property and Business Personal
Property investment required by the EDPA or the following calendar year, as negotiated and set
forth in the EDPA. The first 380 Incentive will be paid in the calendar year following the
Compliance Review Year. In other words, the degree to which the recipient meets the
commitments set forth in the EDPA will determine the amount of the 380 Incentive payable in
City of Fort Worth 380 Incentives Policy Page 16 of 26
the following year. The City will continue to review and determine the recipient's compliance
with the terms and conditions of the EDPA for each subsequent calendar year, which findings
will govern the amount of each subsequent 380 Incentive, until expiration of the EDPA.
9.3. Deleeated Authoritv for Certain Amendments.
Except as otherwise reserved to the Citv Council in an EDPA, a Mavor and Council
Communication (M&C) authorizing an EDPA, or anv other action required to be taken by the
Citv Council by law. Citv rule or regulation, or this Policy, the Citv Manager may amend an
EDPA for the following purposes without further action by the Citv Council:
• Extension of anv deadline for a period of up to one year:
• Amendment of a minimum Investment commitment: provided that the difference
does not exceed ten percent (10%) of the minimum Investment commitment
authorized by the Citv Council and specified in the EDPA:
• Amendment of a minimum emplovment commitment: provided that the
difference does not exceed ten percent (10%) of the minimum emplovment
commitment authorized by the Citv Council and specified in the EDPA: or
• Amendment of a minimum average annual salary commitment: provided that the
difference does not exceed ten percent (10%) of the minimum average annual
salary commitment authorized by the Citv Council and specified in the EDPA.
Notwithstanding the foreaoina and except as otherwise expressly authorized by the Citv Council.
anv amendment to an EDPA authorized by the Citv Manager pursuant to this Section 9.3. must
comply with the applicable minimum eligibility reauirements of this Policv. Nothing in this
Section 9.3. obligates the Citv Manager to authorize anv amendment of an EDPA and anv
reauests for amendments pursuant to this Section 9.3. will be considered on a case-bv-case basis.
The Citv Manager will report timely to the Citv Council when this authority is exercised.
9.-34. Clawbacks and Performance Bonds.
Certain 380 Incentives involving the delivery of a cash grant that is subject to specific
ongoing performance requirements under the Agreement will be subj ect to conditions providing
for the potential recapture by the City of the grant funds received if those conditions are not
fulfilled ("Clawback"). To ensure adherence to obligations and duties under any Agreement
that is subject to a Clawback provision as described above and to protect the interests of the
City, certain additional requirements for a Performance Bond will apply. The sole exception
will be for situations involving the documented impossibility of efforts to secure a Performance
Bond as more specifically provided for in the Agreement.
City of Fort Worth 380 Incentives Policy Page 17 of 26
lo. ECONOMIC DEVELOPMENT PROGRAM APPLICATION
PROCEDURES.
Each 380 Incentive application will be processed in accordance with the following standards and
procedures:
10.1. Submission of Application
The Department is responsible for promulgating the application for 380 Incentives
("Application"). Applicants desiring to receive 380 Incentives must complete and submit an
Application to the Department. Among other things, the Application must include
documentation that there are no delinquent property taxes due for the subject property. In
addition, applicants whose projects include, either in whole or in part, the renovation of one or
more existing structures, must provide a detailed description and cost estimates for the
contemplated renovations.
10.2. Application Fee
An applicant must pay a non-refundable application fee $2,500 ("Application Fee")
prior to final approval of the agreement by City Council.
10.3. Application Review and Evaluation
The Department will review an Application for accuracy and completeness. Once
complete, the Department will evaluate an Application based on the proposed merit and value of
the project, including, the guidelines and criteria established by this Policy, which include,
without limitation, the following:
• Types and number of new jobs created, including: respective Salaries, and employee
benefits packages such as health insurance, day care provisions, retirement packages,
transportation assistance, employer -sponsored training and education, any other benefits
and whether all benefits are offered on an equal and non-discriminatory basis to all
employees;
• Percent of construction contracts committed to (i) Fort Worth Companies and (ii) BEFs;
• Financial viability of the project;
• The reasonably projected increase in the value of the tax base;
• Costs to the City (such as infrastructure participation, etc.);
• Type of industry and activities associated at the project site;
• If the company is foreign owned and/or includes capital investment sources from outside
the United States;
City of Fort Worth 380 Incentives Policy Page 18 of 26
• Other items that the City may determine to be relevant with respect to the project.
10.4. Consideration by the Citv Council
The City Council retains sole authority to approve or deny any EDPA and is under no
obligation to approve any Application or EDPA.
11. GENERAL POLICIES AND REOUIREMENTS.
Notwithstanding anything to the contrary herein, the following general terms and
conditions govern this Policy:
11.1. The City will not grant 380 Incentives for any development project in which a building
permit application has been filed with the City's Development Services Department.
11.2. An applicant for a 380 Incentives must provide evidence to the City that demonstrates
that 380 Incentives are necessary for the financial viability of the development project proposed.
11.3. An applicant 380 Incentives must provide Salary and employee benefit information for
all positions of employment to be located in any facility covered by the Application as well as a
copy of the applicant's written non-discrimination policy applicable to the applicant's
employees.
11.4. As part of the consideration for any 380 Incentives, the City will have the right to (i)
review and verify the applicant's financial statements and records related to the project and the
amount of any 380 Incentives that may be payable in any given year; and (ii) conduct an on -site
inspection of the project in order to verify compliance with the terms and conditions of the EDPA.
Similarly, the City will have the right to require and review documentation providing evidence
of project funding commitments, including but not limited to, direct equity participation by the
proposed recipient, in advance of a determination relating to the offer or approval of a 380
Incentive.
City of Fort Worth 380 Incentives Policy Page 19 of 26
Exhibit "A"
DEFINITIONS
Business Personal Property -- Any taxable tangible personal property other than inventory and supplies
that (i) is subject to ad valorem taxation by the City; (ii) is located on the property subject to an EDPA;
(iii) is owned or leased by the party to the EDPA; and (iv) was not located in the City prior to the year
in which the EDPA was executed.
Capital Investment - Expenditures for real property improvements such as, without limitation, new
facilities and structures, site improvements, infrastructure improvements, facility expansion, facility
modernization, and utility installation. Capital Investment does NOT include land acquisition costs or
the cost or value of any improvements existing on the property prior to the City Council's authorization
of execution of an EDPA.
Catalytic Development Project — A development that meets the prerequisites set forth in Section 5.2.
Central Business District — A geographic area within the City, also referenced as Downtown, as defined
in the Fort Worth Comprehensive Plan.
Comprehensive Plan - The City of Fort Worth's official guide for making decisions about growth and
development. The Plan is a summary of the goals, objectives, policies, strategies, programs, and projects
that will enable the city to achieve its mission of focusing on the future, working together to build strong
neighborhoods, develop a sound economy, and provide a safe community.
Designated Investment Zone —The geographic area within the City containing those census tracts (i)
that are eligible for community development block grants (CDBG), as defined and determined by the
United States Department of Housing and Urban Development (HUD), meaning that fifty-one percent
(51%) or more of residents have low to moderate incomes and (ii) those census tracts that have a poverty
rate of 20% of higher, as shown in the map of Exhibit "B" of this Policy.
Economic Development Initiatives Fund (EDIF) —The special revenue fund established pursuant to
the City of Fort Worth Economic Development Initiatives Fund Policy and incorporated into the City of
Fort Worth Adopted Budget to make cash funds available for the purpose of supporting economic
development activities within the City.
Existing Business — A business that was operating within the corporate limits of the City prior to the
effective date of this Policy.
Fort Worth Resident — An individual whose primary residence is located in the corporate boundaries
of the City of Fort Worth.
Fort Worth Target Area — A geographic area as more specifically illustrated in Exhibit "E" that is
located either within the corporate boundaries of the City of Fort Worth or its extraterritorial jurisdiction
and that is identified for the specific purpose of prioritizing or otherwise guiding the proposed location
of certain economic development projects or programs, for communicating industry or economic trends,
growth patterns, and site or market characteristics, and for purposes of reference in relation to economic
development policy or strategy. Fort Worth Target Areas are at all times inclusive of duly designated
City of Fort Worth 380 Incentives Policy Page 20 of 26
Revitalization Target Areas, Innovation Districts, Tax Increment Reinvestment Zones, and Public
Improvement Districts. Also designated as Fort Worth Target Areas are Target Industry Growth Centers,
which are areas that are generally suited for supporting near or long-term growth in one or more Target
Sector across multiple sites with similar characteristics, and Strategic Development Areas, which are
areas suited for high -value mixed -use development of the kind that can be expected to promote citywide
or regional economic growth or activity. Although not depicted in Exhibit "E," Strategic Development
Areas also generally include developable properties that are located within a one -quarter mile distance
of the Trinity River, Benbrook Lake, Lake Arlington, or Lake Worth.
Innovation District — Geographic areas where leading -edge anchor institutions and companies cluster
and connect with start-ups, business incubators, and accelerators that are physically compact, transit -
accessible, and technically -wired, and offer mixed -use housing, office, and retail.
Investment — The aggregate of Capital Investment and Personal Property Investment.
Mega Project- A project meeting the prerequisites set forth in Section 3.4.
Mixed -Use Development Project — A development project in which a facility or facilities will be
constructed or renovated such that (i) at least twenty percent (20%) of the total gross floor area will be
used as residential space and (ii) at least ten percent (10%) of the total gross floor area will be used for
office, restaurant, entertainment and/or retail sales and service space. In the event that all or any portion
of the residential space is rental (i.e. apartments), there must be at least fifty (50) units.
Personal Property Investment — The value of Business Personal Property installed on a development
site by a date certain, as determined solely by the appraisal district having jurisdiction over the
development site.
Program Cap — The maximum amount of 380 Incentive award available over the term of 380 Incentive
Term.
Qualified Expenses — Those expenses classified as qualified expenses under Internal Revenue Code
Section 41 (the Research and Experimentation Tax Credit) and any other expenses identified and agreed
to by the City in an EDPA as direct expenses for utility patent generation, technology commercialization,
or spinoff incubation costs.
Salary — A cash payment or remuneration made to a full-time employee, including paid time off,
commissions, and non -discretionary bonuses. A Salary does not include any benefits, such as health
insurance or retirement contributions by the employer, reimbursements for employee expenses, or any
discretionary bonuses.
Target Sector— A business providing services in the sectors specifically identified in Section 1.3.
Technology Company — A company working in an industry with a high concentration of workers in
STEM (Science, Technology, Engineering, and Mathematics) occupations, including, but not limited to,
design, prototype development and testing, preliminary manufacturing and product marketing.
City of Fort Worth 380 Incentives Policy Page 21 of 26
Transit Oriented Development - A Mixed -Use Development located within one-half mile of a
commuter rail line station and in which all buildings will be at least 3 stories in height.
City of Fort Worth 380 Incentives Policy Page 22 of 26
Exhibit "B"
DESIGNATED INVESTMENT ZONES
Copyright 2020 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws. This products of
for informational purposes and may not have been prepared for or be suitable for legal, engineering, or
surveying purposes. It does ndt rellfgsent an on -the -ground survey and represents on the approximate relative
location of property boundaries. The City of Fort Worth assumes no responsibility for the accuracy of said data_
City of Fort Worth 380 Incentives Policy Page 23 of 26
Exhibit "C"
URBAN VILLAGES
Copyright 2020 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws. This products of
for informational purposes and may not have been prepared for or be suitable for legal, engineering, or
surveying purposes It does not represent an on -the -ground survey and represents on the approximate relative
location of property boundaries The City of Fort Worth assumes no responsibility for the accuracy of said data.
City of Fort Worth 380 Incentives Policy Page 24 of 26
Exhibit "D"
REVITALIZATION TARGET AREAS
:I
o
Revitalization Target Areas
- Revi 1". Target k.
Revitalization Neighborhoods
0 Altrmesa and N i
0 Bad aeRr
H v,Her
o Hi�n, Hend1ey
_ HiR.m N.,thAde
0 His.m SOWhside
Polytechnic Height;
Riverside Ee3
5[np S,.
Wat .p Bowie
0 Woadh—n
COPYRIGI,T 2025 CITY OF FORT WORTH UNAUTHORIZED REPRODUCTION TS A VIOLATION OF APPLICABLE LAWS. THIS DATA IS TO BE USE FOR GRAPHICAL
REPRESENTATION ONLY. THE ACCURACY IS NOT TO BETAKEN ) USED AS DATA PRODUCED FOR ENGINEERING PURPOSES OR BY A REGISTERED
MnFFCcinN51 I ANn cl JPVFYnF TNF f nF M{ WnR Ac IMP Q Nn gPgp NCTMI I RnR THE AM Ph" nF cam nary
City of Fort Worth 380 Incentives Policy Page 25 of 26
Exhibit "E"
FORT WORTH TARGET AREAS
■ Revitalization Target Areas (RTAs) ■ Strategic DevelopmentAreas (SDAs) ■ Target Industry Growth Centers (TIGCs)
■ Innovation Districts ■ TIFs and PIDs
Copyright 2025 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws. This product is for informational purposes and may not have been prepared for, or be
suitable for legal purposes. It does not represent an on -the -ground survey and represents the approximate relative location of boundaries. The City of Fort Worth assumes no
responsibility for the accuracy of said data.
City of Fort Worth 380 Incentives Policy Page 26 of 26
City of Fort Worth
General Tax Abatement Policy
Effective SepteFitber-December 9-1, 2025 through April 22, 2027
1. GENERAL PROVISIONS.
I.I. Purpose
Chapter 312 of the Texas Tax Code allows, but does not obligate or require, the City of
Fort Worth ("City") to grant a Tax Abatement on the value added to a particular property on
account of a specific development project that meets the eligibility requirements set forth in this
Policy. -In order for the City to participate in a Tax Abatement, the City is required to establish
guidelines and criteria governing Tax Abatement Agreements. -This Policy is intended to set
forth those guidelines and criteria for persons or entities interested in receiving a Tax Abatement
from the City. This Policy, as revised by Resolution 6126-08-2025, will be effective on
Septembef !.December 9, 2025 and expire at 11:59 p.m. on April 2-21, 2027.
1.2. General Elieibility Criteria
A Tax Abatement can only be granted to persons or entities eligible for a Tax Abatement
pursuant to Section 312.204(a) of the Texas Tax Code, which persons or entities as of the
effective date of this Policy must be (i) the owner of taxable real property located in a Tax
Abatement reinvestment zone; or (ii) the owner of a leasehold interest in real property located in
a Tax Abatement reinvestment zone. Although the City will consider all applications for a Tax
Abatement that meet the eligibility requirements set forth in the associated Policy, it is especially
interested in supporting projects that are expected to produce a meaningful impact on the City
and its economy and that result in one or more of the following:
• Growth of business activity, employment, or investment in one of the City's identified
Target Industries;
• Creation of high -wage jobs;
• Significant Investment;
• Growth of business activity, employment, or investment in the Central Business District;
• Revitalization with likelihood of ancillary development in a key employment node or
specifically designated area of the city;
• Retention or expansion of an existing, major employer; and
• Anchoring of a business expansion project with potential to generate additional supply
chain activity.
1.3. General Exclusions and Limitations
1.3.1. Lessees of Real Prooertv
A person or entity seeking a Tax Abatement on real property that is leased from a
third party should be advised that, pursuant to state law, unless the real property owner is
also a party to a Tax Abatement Agreement, the City can only abate taxes on the increased
value of the taxable leasehold interest in the real property, if any, and the increase in value
City of Fort Worth General Tax Abatement Policy
Page 1 of 18
of taxable improvements and Mc-v Tate Ta4igibIeBusiness Personal Property located
on the real property and subject to the leasehold interest, if any. --Before applying for a
Tax Abatement from the City, such persons or entities should seek professional and legal
guidance, and may wish to consult with the appraisal district having jurisdiction over the
property in question as to whether their development projects will result in a taxable
leasehold interest in the property and, if so, the anticipated value of that leasehold interest.
1.3.2. Property Located in Neighborhood Empowerment Zones ("NEZs")
The City Council has designated certain distressed areas of the City needing
economic development and expanded public services as NEZs.--Notwithstanding
anything that may be interpreted to the contrary, this Policy does not apply to property
located in a NEZ.-_A person or entity seeking a Tax Abatement on property owned or
leased in a NEZ should refer to the Neighborhood Empowerment Zone Tax Abatement
Policy currently in effect.
1.3.3. Prooertv Located in Tax Increment Reinvestment Zones ("TIFs")
The City Council has designated certain areas of the City as TIFs.-_This Policy
does apply to property located in a TIF. However, a person or entity seeking a Tax
Abatement on property owned or leased in a TIF should be advised that state law requires
a TIFs board of directors and the governing bodies of all taxing jurisdictions contributing
tax increment revenue to a TIF to approve a City Tax Abatement Agreement on property
located in that TIF before the Agreement can take effect.
1.3.4. Prooertv Located in Enterprise Zones
The State of Texas has designated certain areas of the City with high
unemployment as enterprise zones. Various economic development incentives are
available to owners of property located in enterprise zones.- In accordance with state law,
all property located within an enterprise zone is automatically designated as a Tax
Abatement reinvestment zone. -_However, the City typically designates individual Tax
Abatement reinvestment zone overlays when it wishes to grant Tax Abatements on
property located in an enterprise zone.
2.- DEFINITIONS: See Exhibit "A".
3. ELIGIBILITY CRITERIA FOR GENERAL PROJECTS.
Unless a project meets one of the other minimum eligibility criteria set forth in Sections 4-449
below, in order to be considered for a Tax Abatement, a project must commit to a minimum Investment
of at least $25 million and the creation of new, full-time jobs that meet a minimum average annual Salary
of --at least $60,000 (with the understanding that the City may require higher commitments as determined
on a project -by -project basis in full view and consideration of the specific project deliverables,
anticipated impact, and market environment).
The table below establishes the maximum percentage of a Tax Abatement that may be available
to general projects based on minimum Investment and employment levels:
City of Fort Worth General Tax Abatement Policy
Page 2 of 18
Requirements for General Sector Industries
Maximum
Jobs
>$70 M
$55 M -$70 M
$40 M - $54 M
$25 M - $39M
Term
Required
Investment
Investment
Investment
Investment
3 - 5 years
50 — 100
20% Abatement
20% Abatement
20% Abatement
20% Abatement
6 - 7 years
100 — 250
30% Abatement
30% Abatement
30% Abatement
N/A
8 - 9 years
250 - 400
40% Abatement
40% Abatement
N/A
N/A
10 years
400 +
50% Abatement
N/A
N/A
N/A
All General Sector Industry Projects will be subject to a requirement to demonstrate hiring
practices that prioritize recruitment and employment of Fort Worth Residents and must demonstrate a
"Good Faith Effort" to have at least thirty percent (30%) of employees associated with the project as
Fort Worth Residents.
4. ELIGIBILITY REOUIREMENTS FOR TARGET INDUSTRY PROJECTS.
The City is particularly interested in attracting certain target industries (each defined herein as a
"Target Industry") that will help strengthen and diversify the City's economy:
• Mobility — Automotive & Transportation Manufacturing, Vehicle Technologies,
Micromobility, Vertical Takeoff and Landing (VTOL) and Electric Flight, Transportation
Services, Logistics Technologies and Management
• Aerospace & Defense — Aerospace Manufacturing and Design, Federal Government,
Information Technology and Analytical Instruments
• Energy — Alternative Energy Generation, Alternative Energy Equipment, Energy Storage
and Distribution, Oil and Gas Management, Oil & Gas Technology, Smart Building
Systems
• Culture — Hospitality and Tourism, Performing Arts, Film, Local Hospitality and
Independent Venues
• Anchors & Innovators — Corporate Headquarters, Engineering, Financial Services,
Professional Services, Colleges and Universities, Research Organizations,
Biopharmaceutical Products and Medical Technologies, Hospitals, Computer and
Information Services
In order to be considered for a Tax Abatement, an applicant for a Target Industry project must
commit to a minimum Investment of at least $25 million and the creation of new, full-time jobs that meet
a minimum average annual Salary of $ at least $60,000 (with the understanding that the City may require
higher commitments as determined on a project -by -project basis in full view and consideration of the
specific project deliverables, anticipated impact, and market environment).
The table below establishes the maximum percentage of Tax Abatement that will be available to
Target Industry projects based on minimum investment and employment:
City of Fort Worth General Tax Abatement Policy
Page 3 of 18
Requirements for Target Sector Industries
Maximum
Jobs
> $70 M +
$55 M -$70 M
$40 M - $54 M
$25 M - $39 M
Term
Required
Investment
Investment
Investment
Investment
3 - 5 years
50 — 100
40% Abatement
40% Abatement
40% Abatement
40% Abatement
6 — 7 years
100 — 250
50% Abatement
50% Abatement
50% Abatement
N/A
8 — 9 years
250 - 400
60% Abatement
60% Abatement
N/A
N/A
10 years
400 +
70% Abatement
N/A
N/A
N/A
The difference in the eligibility criteria between general projects under Section 3 and Target
Industry projects under this Section 4 is that the maximum percentage of a Tax Abatement available for
Target Industry projects is 70% instead of 50%.
All Target Sector Industry Projects will be subject to a requirement to demonstrate hiring practices
that prioritize recruitment and employment of Fort Worth Residents and must demonstrate a "Good Faith
Effort' to have at least thirty percent (30%) of employees associated with the project as Fort Worth
Residents.
5. ELIGIBILITY REOUIREMENTS FOR EXISTING BUSINESS EXPANSION
PROJECTS.
The City desires to support the growth and expansion of existing business in the City. --In order to
be considered for a Tax Abatement, an applicant for an Existing Business expansion project must commit
to a minimum Investment of at least $10 million and the creation of at least 25 new, full-time jobs.
Requirements for General Sector Industries
Maximum
Jobs
>$55 M
$40 M -$54 M
$25 M - $39 M
$10 M - $24 M
Term
Required
Investment
Investment
Investment
Investment
3 - 5 years
50 — 100
50% Abatement
50% Abatement
50% Abatement
50% Abatement
6 - 7 years
100 — 250
60% Abatement
60% Abatement
60% Abatement
N/A
8 - 9 years
250 - 400
70% Abatement
70% Abatement
N/A
N/A
10 years
400 +
80% Abatement
N/A
N/A
N/A
Any Existing Business expansion project will be considered for a Tax Abatement at a Tax
Abatement percentage not to exceed 80%.
All Target Sector Industry Projects will be subject to a requirement to demonstrate hiring practices
that prioritize recruitment and employment of Fort Worth Residents and must demonstrate a "Good Faith
Effort' to have at least thirty percent (30%) of employees associated with the project as Fort Worth
Residents.
5.1. ELIGIBILITY REOUIREMENTS FOR SUPPLIERS OF ESTABLISHED
TARGET INDUSTRY EMPLOYERS.
The City desires to strengthen and further the growth of target industry clusters in
Fort Worth and to promote a stronger business environment for major established employers that are
currently located in the City. As such, a project completed by or for the supplier of critical materials,
City of Fort Worth General Tax Abatement Policy
Page 4 of 18
components, or services for an established Target Sector company ("Supplier") (i) has a corporate or
regional headquarters that is located in Fort Worth and (ii) employs at least 3,000 people at its Fort Worth
facilities will be eligible for a Tax Abatement. To be eligible, a Supplier project must commit to a
minimum Investment of at least $10 million and the creation of at least 25 new full-time jobs with a
minimum annual average employee Salary of --at least $60,000 (with the understanding that the City
may require higher commitments as determined on a project -by -project basis in full view and
consideration of the specific project deliverables, anticipated impact, and market environment).
Requirements for Suppliers of Established Target Industry Employers
Maximum
Jobs
$55 M +
$40 M -$54 M
$25 M - $39 M
$10 M - $24 M
Term
Required
Investment
Investment
Investment
Investment
3 - 5 years
25 — 100
45 % Incentive
40 % Incentive
35 % Incentive
30 % Incentive
6 - 10 years
100 +
50 % Incentive
45 % Incentive
40 % Incentive
N/A
6. ELIGIBILITY REOUIREMENTS FOR MEGA PROJECTS.
A "Mega Project" can be within any industry.- However, the City is especially interested in
Fortune 1,000, Fortune Global 500, and Inc. 5000 designated companies, pursuing development or
redevelopment opportunities within the City. -_Applicants for Mega Projects granted must commit to at
least one of the following (with the exception of data centers or other unique low employment/high capital
investment projects that must have a minimum investment of $50 million):
Commit to a minimum Investment of at least $250 million;
Commit to hire at least 1,500 full-time employees; or
Commit to a minimum annual payroll of at least $150 million.
A Mega Project will be considered for a Tax Abatement at an Abatement percentage not to exceed
85%.
To be eligible, a Mega Project must commit to a minimum annual average employee Salary level
of at least $60,000 (with the understanding that the City may require higher commitments as determined
on a project -by -project basis in full view and consideration of the specific project deliverables,
anticipated impact, and market environment).
7. ELIGIBILITY REOUIREMENTS FOR TECHNOLOGY COMPANY PROJECTS.
The City wishes to encourage and promote the development of technology businesses. -_In order to
be considered for a Tax Abatement, a Technology Company project must employ at least 5 individuals.
A Technology Company may receive one of the following Tax Abatements:
• Up to 80% of incremental real property taxes on owned or leased facilities for up to 5 years;
or
Up to 80% of- -Novi Tanable-TangibIeBusiness Personal Property taxes for up to 5 years.
City of Fort Worth General Tax Abatement Policy
Page 5 of 18
8. ELIGIBILITY REOUIREMENTS FOR CATALYTIC DEVELOPMENT PROJECTS.
To be designated as a "Catalytic Development Project", an applicant must show that the Project
meets the following criteria:
• Located within either a Designated Investment Zone, an Urban Village, ef-an identified
Revitalization Target Areas. OF a Feft Word: T=4et Ar,
Area �--wed it Drhbita "E", "lgE
and "D", roape y.Innovation District. or Strategic Development Area (as debicted in
Exhibits "B", "C" "D", and "E" respectivelv):
• Minimum_$5 million in Investment; and
• Complies with at least one of the following requirements:
o A Mixed -Use Development;
o Fills a gap, such as a grocery store in a food desert or a childcare facility, as
determined by City staff based on goals set forth in the City's then -current
Comprehensive Plan or other statistical data or relevant documentation;
o Located along a commercial corridor or within an urban village, as identified in the
City's then -current Comprehensive Plan;
o Generates significant j ob opportunities in the area, as determined by City staff based
on then -current employment data; or
o Helps create a hub of entrepreneurial activity, positioning the City to attract
entrepreneurs and high -growth companies, as determined by City staff based on
goals and recommendations set forth in the City's Economic Development Strategic
Plan, the City's then -current Comprehensive Plan, or on other statistical data or
relevant documentation.
Notvlitlaatardirg the fefe eil+ a Mined Use De elepm-oct witl: at lcwt $` mllior it lxvastmen
ampriax mitcl uni13 (i.c., apA-ita) tl�.t nxoot tom`
EoSac4or. 11.2 will be eensi e fe a a "Calulytic Deve1 i3fnef 4 n,-,,;o,.f' eligible fe
a Tali Abatem�r*
All Catalytic Development Projects will be eligible for consideration for a Tax Abatement. --The
maximum percentage of Tax Abatement available for a Catalytic Development Project will be 80% of
incremental real property and Now Tanable T-angibleBusiness Personal Property tax.
9. ELIGIBILITY REOUIREMENTS FOR TRANSIT ORIENTED DEVELOPMENTS.
The City encourages and supports the construction of Transit Oriented Developments. --In order
to be considered for Tax Abatement, an applicant for a Transit Oriented Development project must
commit to at least $5 million in Investment. --The maximum percentage of Tax Abatement available for
a Transit Oriented Development project will be 50% of incremental real property and Now Tanable
TangibleBusiness Personal Property taxes for a maximum term of 7 years.
10. TAX ABATEMENTS IN COOPERATION WITH COUNTIES
The City may, at its sole discretion and for purposes of facilitating a Tax Abatement by a County
as required under Chapter 312 of the Texas Tax Code, elect to enter into a Tax Abatement Agreement
for a term of one (1) year if a County government separately proposes to enter into a Tax Abatement
Agreement in support of the project.
11. ADDITIONAL TAX ABATEMENT REOUIREMENTS.
City of Fort Worth General Tax Abatement Policy
Page 6 of 18
11.1 Commitment for Utilization of Small Business Firms.
a. All projects subject to a Tax Abatement are subject to the City' s Small Business
Program in Procurement of Goods, Services and Construction Ordinance ( Chapter
21 of the City Code and herein referred to as " Small Business Ordinance") and must
make a commitment to utilize Small Business Firms (" SBF") ( as Small Business is
defined in the Small Business Ordinance) as determined by the Economic
Development Director.
b. If upon completion of the funded portion of the improvements it is determined that
the required SBF commitment was not achieved for a particular category of
improvement as outlined in the agreement, the agreed to penalty or loss of incentive
will be enforced as outlined in the agreement.
All Mined Use Peyel.,pment Pfejeets stibjee +o a Tali Abatement that o entain feet l
residov.tial unto muot pravide .,&,-dable hobs.„, as f llows-
< At L�„� 19%-4 -�l mites unite, -newt bo oti aide-e*ch c�-,Viy e
to "alifying households whose adjusted ineemes do not exeeed �he then ouffen
eig4y percent (909 ) ifteomo limto wtabliched by VJD at rcnto that are
.,&f .,ble to suesueh households.
At least 1 09% f all feast l fesi aa.tial unito muot be sot aside o el„siyely f0f lease
d tla thAxi etiffeiit
y pe ent (609%) ; m o limto ootabliohed by HUD at ra.to that areto stiek households.
11.2. Affordable Housing Commitme Support.
All Projects subject to a Tax Abatement Agreement that contain residential units will, for each vear of
the Tax Abatement Compliance Term, earn a Tax Abatement that is equal to five percent (5%) of the
incremental Citv taxes on Real and/or Business Personal Property associated with the Project
("Affordable Housing Abatement"). Subject to terms more specifically provided for under the Tax
Abatement Agreement, the Project owner will upon receipt of the Affordable Housing Abatement make
equal pavment annuallv to the Fort Worth Housing Finance Comoration for the pumose of promotins4
the development or provision of affordable housins4, at all times strivins4 to deliver such affordable
housing in close proximity to the Proj ect ("Affordable Housing Pavment" ). At no time may the combined
value of the Affordable Housins4 Abatement and anv other Tax Abatement pavable under the Tax
Abatement Agreement that is based on the incremental value of Citv Real and Business Personal
Property taxes exceed one hundred percent (100%) of such taxes.
11.3. Commitment for Emplovment of Fort Worth Residents.
All projects that are subject to a commitment for the employment of at least ten (10)
individuals must also demonstrate hiring practices that prioritize recruitment and employment of
Fort Worth Residents.
City of Fort Worth General Tax Abatement Policy
Page 7 of 18
12. TAX ABATEMENT CALCULATION.
12.1. Improvements Required.
All Tax Abatement Agreements must require the applicant to construct or cause
construction of specific improvements on the real property that is subject to the Tax Abatement.
12.2. Percentage and Amount.
Although this Policy establishes the maximum percentage of Tax Abatement that may be
available for a particular type of project, the specific amount of a particular Tax Abatement will
be determined on a case -by -case basis and may be less than the maximum available percentage
specified in this Policy, based, without limitation, on the review criteria set forth in Section 14.3.
13. TAX ABATEMENT IMPLEMENTATION
13.1. Term.
Although this Policy establishes the maximum term of a Tax Abatement that may be
available to certain types of projects, the actual term of a Tax Abatement will be determined on
a case -by -case basis and may be less than the maximum available term specified in this Policy,
based on the review criteria set forth in Section 14.3.
13.2. Compliance.
The City will review and determine the recipient's compliance with the terms and
conditions of the Tax Abatement Agreement in each year of the Tax Abatement Compliance
Term. —_The first year of the Tax Abatement Compliance Term will be either the calendar year in
which the recipient achieved all Investment required by the Tax Abatement Agreement or the
following calendar year, as set forth in the Tax Abatement Agreement. —_The City will provide
Tax Abatement for the tax years comprising the Tax Abatement Benefit Term, with the first such
tax year occurring in the year following the first year of the Tax Abatement Compliance Term.
In other words, the degree to which the recipient meets the commitments set forth in the Tax
Abatement Agreement will determine the percentage of taxes abated for the following tax year.
The City will continue to review the recipient's compliance with the terms and conditions of the
Tax Abatement Agreement for each subsequent calendar year, which findings will inform the
percentage of taxes abated for the following tax year, until expiration of the Tax Abatement
Agreement.
13.3. Delegated Authoritv for Certain Amendments.
Except as otherwise reserved to the Citv Council in a Tax Abatement Agreement, a Mavor
and Council Communication (M&C) authorizing a Tax Abatement Agreement, or anv other
action reauired to be taken by the Citv Council by law. Citv rule or regulation, or this Policy, the
Citv Manager may amend a Tax Abatement Agreement for the following purposes without
further action by the Citv Council:
• Extension of anv deadline for a period of up to one vear.
City of Fort Worth General Tax Abatement Policy
Page 8 of 18
• Amendment of a minimum Investment commitment: provided that the difference
does not exceed ten percent (10%) of the minimum Investment commitment
authorized by the Citv Council and specified in the Tax Abatement Agreement:
• Amendment of a minimum emplovment commitment. provided that the
difference does not exceed ten percent (10%) of the minimum emplovment
commitment authorized by the Citv Council and specified in the Tax Abatement
Asreement: or
• Amendment of a minimum average annual salary commitment: provided that the
difference does not exceed ten percent (10%) of the minimum average annual
salary commitment authorized by the Citv Council and specified in the Tax
Abatement Agreement.
Notwithstanding the foreaoina and except as otherwise expressly authorized by the Citv
Council. anv amendment to a Tax Abatement Agreement authorized by the Citv Manager
pursuant to this Section 13.3. must comply with the applicable minimum eligibility reauirements
of this Policv. Nothing in this Section 13.3. obligates the Citv Manager to authorize anv
amendment of a Tax Abatement Agreement and anv reauests for amendments pursuant to this
Section 13.3. will be considered on a case-bv-case basis.-
-The Citv Manager will report timely to the Citv Council when this authority is exercised.
14. TAX ABATEMENT APPLICATION PROCEDURES
The City will process each Tax Abatement application in accordance with the following
standards and procedures:
14.1. Submission of Application
If a given project qualifies for a Tax Abatement pursuant to this Policy, an applicant for
a Tax Abatement must complete and submit a City Tax Abatement Application ("Application").
An Application can be obtained from, and must be submitted to, the City's Economic
Development Department ("Department"). —_In order to be complete, the Application must
include documentation evidencing no delinquent property taxes due for the subject property. In
addition, projects that include, in whole or in part, the renovation of one or more existing
structures must provide, as part of the Application, a detailed description and the estimated costs
of the proposed renovations.
14.2. Application Fee
An applicant must pay a non-refundable Application fee of $2,500 ("Application Fee")
prior to final approval of the tTax &Abatement &Agreement by City Council.
14.3. Application Review and Evaluation
The Department will review an Application for accuracy and completeness. —_Once
complete, the Department will evaluate an Application based on the proposed merit and value of
the project, including the guidelines and criteria established by this Policy, which include,
without limitation, the following:
City of Fort Worth General Tax Abatement Policy
Page 9 of 18
• Types and number of new jobs created, including: respective Salaries and employee
benefits packages, such as health insurance, day care provisions, retirement packages,
transportation assistance, employer -sponsored training and education, any other benefits
and whether all benefits are offered on an equal and non-discriminatory basis to all
employees;
• Percentage of Capital Investment committed to local companies, including BEFs;
• Financial viability of the project;
• The reasonably projected increase in the value of the tax base;
• Costs to the City (such as infrastructure participation, etc.);
• Remediation of an existing environmental problem on the real property;
• Type of industry and activities associated at the project site;
• If the company is foreign owned and/or includes Capital Investment sources from outside
the United States; and
• Any other items that the City may determine to be relevant with respect to the project.
4-514.4. Consideration by the Citv Council
The City Council retains sole authority to approve or deny any Tax Abatement Agreement and
is under no obligation to approve any Application or Tax Abatement Agreement.
156. GENERAL POLICIES AND REOUIREMENTS
Notwithstanding anything to the contrary herein, the following general terms and conditions
govern this Policy:
156.1. The City will not grant a Tax Abatement for any project in which a building permit
application has been filed with the City's Planning and Development Department. —_In addition,
the City will not abate taxes on the value of real or Tangible Personal Property for any period of
time prior to the year of execution of a Tax Abatement Agreement with the City.
156.2. The applicant for a Tax Abatement must provide evidence to the City that demonstrates
that a Tax Abatement is necessary for the financial viability of the proposed project.
156.3. The City will not abate taxes levied on inventory, supplies, or the existing tax base.
156.4. An applicant for a Tax Abatement must provide Salary and employee benefit information
for all positions of employment to be located in any facility covered by the Application as well
as a copy of the applicant's written non-discrimination policy applicable to the applicant's
employees.
City of Fort Worth General Tax Abatement Policy
Page 10 of 18
156.5. Unless otherwise specified in the Tax Abatement Agreement, the amount of real property
taxes to be abated in a given year shall not exceed one hundred fifty percent (150%) of the amount
of the minimum Capital Investment expenditure required by the Tax Abatement Agreement for
improvements to the real property subject to Tax Abatement multiplied by the City's tax rate in
effect for that same year, and the amount of Business Personal Property taxes to be abated in a
given year shall not exceed one hundred fifty percent (150%) of the minimum value of Business
Personal Property required by the Tax Abatement Agreement to be located on the real property,
if any, subject to Tax Abatement multiplied by the City's tax rate in effect for that same year.
156.6. The owner of real property and/or Now Tanabl gibleBusiness Personal Property for
which a Tax Abatement has been granted must properly maintain the property to assure the long-
term economic viability of the project.
156.7. As part of the consideration for any Tax Abatement, the City will have the right to (i)
review and verify the applicant's financial statements and records related to the project and the
Tax Abatement in each year during the term of the Tax Abatement Agreement prior to the
granting of a Tax Abatement in any given year and (ii) conduct an on -site inspection of the project
in each year during the term of the Tax Abatement to verify compliance with the terms and
conditions of the Tax Abatement Agreement. —Any incidents of non-compliance will be reported
to all taxing units with jurisdiction over the real property subject to a Tax Abatement. Similarly,
the City will have the right to require and review documentation providing evidence of project
funding commitments, including but not limited to direct equity participation by the proposed
recipient, in advance of a determination relating to the offer or approval of a Tax Abatement.
City of Fort Worth General Tax Abatement Policy
Page 11 of 18
EXHIBIT "A"
DEFINITIONS
Capitalized terms used in this Policy but not defined elsewhere shall have the following
meanings:
Abatement or Tax Abatement — An abatement of a specified percentage of the City's incremental ad
valorem real property taxes on any improvements located on the subject property (calculated as of
January 1 of the year in which the Tax Abatement Agreement is executed) and of the City's incremental
ad valorem tax on Now TanableTengib eBusiness Personal Property.
Abatement Benefit Term — The period of time specified in a Tax Abatement Agreement, but not to
exceed ten (10) years, that the recipient of a Tax Abatement may receive the Abatement.
Abatement Compliance Term — The period of time specified in a Tax Abatement Agreement during
which the recipient of a Tax Abatement must comply with the provisions and conditions of the Tax
Abatement Agreement and file an annual report with the City that outlines and documents the recipient's
compliance with such provisions and conditions.
Business Personal Pronertv —Anv taxable tangible personal property other than inventory and supplies
that (i) is subject to ad valorem taxation by the City. 60 is located on the property subject to a Tax
Abatement Agreement; (iii) is owned or leased by the party to the Tax Abatement Agreement; and (iv)
was not located in the Citv prior to the vear in which the Tax Abatement Agreement was executed.
New Taxable Tangible - Personal t=y And,pfepeftypefseffalor tl.m iwiaafftefy and Gupplias
th*i) io cxLjet t eo W yalorom tanatian by the City; (ii) is i,,ea4e,a on the pf refty sttbjeet t Abatement;
c Txt abut, oxit; and 0-d in the
City pfioftot4e period cover he Tax A bale ent A ,. ee ors
Capital Investment — Expenditures for real property improvements such as, without limitation, new
facilities and structures, site improvements, infrastructure improvements, facility expansion, facility
modernization, and utility installation. Capital Investment does NOT include land acquisition costs or
the cost or value of any improvements existing on the property prior to the City Council's authorization
of execution of a Tax Abatement Agreement.
Catalytic Development — A development that meets the prerequisites set forth in Section 8.
Central Business District — A geographic area within the City, also referenced as Downtown, as defined
in the City's Comprehensive Plan.
Comprehensive Plan—T — Th#e City's official guide for making decisions about growth and
development, which includes a summary of the goals, objectives, policies, strategies, programs, and
projects that will enable the City to achieve its mission of focusing on the future, working together to
build strong neighborhoods, develop a sound economy, and provide a safe community.
Designated Investment Zone =The geographic area within the City containing those census tracts (i)
that are eligible for community The
block grants (CDBG), as defined and determined by the
United States Department of Housing and Urban Development (HUD), meaning that fifty-one percent
City of Fort Worth General Tax Abatement Policy
Page 12 of 18
(51%) or more of residents have low to moderate incomes and (ii) those census tracts that have a poverty
rate of 20% of higher, as shown in the map of Exhibit "B" of this Policy.
Existing Business — A business that was legally operating within the corporate boundaries of the City
prior to the effective date of this Policy.
Fort Worth Resident — An individual whose primary residence is located in the corporate boundaries
of the City.
Fort Worth Target Area — A geographic area as more specifically illustrated in Exhibit "E" that is
located either within the comorate boundaries of the Citv of Fort Worth or its extraterritorial jurisdiction
and that is identified for the specific pumose of prioritizing or otherwise guiding the proposed location
of certain economic development projects or programs, for communicating industry or economic trends,
growth patterns, and site or market characteristics, and for purposes of reference in relation to economic
development policy or strategy. Fort Worth Target Areas are at all times inclusive of dulv designated
Revitalization Target Areas, Innovation Districts, Tax Increment Reinvestment Zones, and Public
Improvement Districts. Also designated as Fort Worth Target Areas are Target Industry Growth Centers,
which are areas that are generally suited for supporting near or long-term growth in one or more Target
Sector across multiple sites with similar characteristics, and Strategic Development Areas, which are
areas suited for high -value mixed -use development of the kind that can be expected to promote citvwide
or regional economic growth or activitv. Although not depicted in Exhibit "E," Strategic Development
Areas also generally include developable properties that are located within a one -quarter mile distance
of the Trinitv River, Benbrook Lake, Lake Arlington, or Lake Worth.
Innovation District — Geographic areas where leading -edge anchor institutions and companies cluster
and connect with start-ups, business incubators, and accelerators that are phvsically compact, transit -
accessible, and technicallv-wired, and offer mixed -use housing, office, and retail.
Investment — The aggregate of Capital Investment and Now Tanablo TangibleBusiness Personal
Property.
Mega Project- — A A-prcject meeting the prerequisites set forth in Section 6.
Mixed -Use Development Project — A development project in which a facility or facilities will be
constructed or renovated such that (i) at least twenty percent (20%) of the total gross floor area will be
used as residential space and (ii) at least ten percent (10%) of the total gross floor area will be used for
office, restaurant, entertainment and/or retail sales and service space. In the event that all or any portion
of the residential space is rental (i.e., apartments), there must be at least fifty (50) units.
Reinvestment Zone — An area designated by the City as a Tax Abatement reinvestment zone in
accordance with Chapter 312 of the Texas Tax Code.
Salary — A cash payment or remuneration made to a full-time employee, including paid time off,
commissions, and non -discretionary bonuses. A Salary does not include any benefits, such as health
insurance or retirement contributions by the employer, reimbursements for employee expenses, or any
discretionary bonuses.
Target Industry — A business providing services in the sectors specifically identified in Section 4.
City of Fort Worth General Tax Abatement Policy
Page 13 of 18
Tax Abatement Agreement — A written agreement that the recipient of a Tax Abatement must enter
into with the City that outlines the specific terms and conditions pertaining to and governing the Tax
Abatement.
Technology Company — A company working in an industry with a high concentrations of workers in
STEM (Science, Technology, Engineering, and Mathematics) occupations, including, but not limited to,
design, prototype development and testing, preliminary manufacturing and product marketing.
Transit Oriented Development — A —Mixed-Use Development located within one-half mile of a
commuter rail line station and in which all buildings will be at least 3 stories in height.
City of Fort Worth General Tax Abatement Policy
Page 14 of 18
EXHIBIT `B"
DESIGNATED INVESTMENT ZONES
Copyright 2020 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws. This products of
for informational purposes and may not have been prepared for or be suitable for legal, engineering, or
surveying purposes. It does not represent an on -the -ground survey and represents on the approximate relative
location of property boundaries. The City of Fort Worth assumes no responsibility for the accuracy of said data.
City of Fort Worth General Tax Abatement Policy
Page 15 of 18
EXHIBIT "C"
URBAN VILLAGES
Historic Marine
N
West Seventh
r /
ti Magn
U77
Six
26 12'
Near East Side
;Ma,i
Oakland Corners
PolytechniclWesleyan Historic Handley
Evans & Rosedale '
Copyright 2020 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws. This products of
for informational purposes and may not have been prepared for or be suitable for legal, engineering, or
surveying purposes It does not represent an on -the -ground survey and represents on the approximate relative
location of property boundaries The City of Fort Worth assumes no responsibility for the accuracy of said data.
City of Fort Worth General Tax Abatement Policy
Page 16 of 18
Exhibit "D"
REVITALIZATION TARGET AREAS
L�3 ML-� M-j-
— Revitalization Target Areas
E—MReriGl"¢alion iargek 14—
Revitalization Neighborhoods
0 AHamesa end htCart
o Hi�n, H—dl,
_ HiR-n Noi+hdde
0 His.m SOWhside
M Polytechnic Height;
Ri--de Ead
- S- Si
QWe Gmp 6oxne
0 Wmdl--
CC)PYRIGHr 2025 CrLY OF FORT WORTH UNAUTHORIZED REPRODUCTION TS A YLOLATION OF APPLICABLE LAWS. THIS DATA IS TO BE USE FOR GRAPHICAL
REPRESENTATION ONLY. THE ACCURACY IS NOT TO BE TARN f USED AS DATA PRODUCED FOR ENGINEERING PURPOSES OR BY A REGLSTERED
_-Al I ANf CI IGLlFVl1R _ I _ CIIpT Wl1IlTl! _ I_ _ AFSO(1m_1 I mp TL _ I__ __ IIATA
City of Fort Worth General Tax Abatement Policy
Page 17 of 18
Exhibit "E"
FORT WORTH TARGET AREAS
■ Revitalization Target Areas (RTAs) ■ Strategic DevetopmentAreas (SDAs)
■ Innovation Districts ■ TIFs and PIDs
■ Target Industry Growth Centers (TIGCs)
Copyright 2025 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws. This product is for informational purposes and may not have been prepared for, or be
suitable for legal purposes. It does not represent an on -the -ground survey and represents the approximate relative location of boundaries. The City of Fort Worth assumes no
responsibility for the accuracy of said data.
City of Fort Worth General Tax Abatement Policy
Page 18 of 18