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HomeMy WebLinkAbout6282-03-2026 - City Council - ResolutionRESOLUTION NO. 6282-03-2026 NOMINATING THE DESIGNATION OF A FACILITY LOCATED AT 15060 BLUE MOUND ROAD, FORT WORTH, TEXAS (STELLAR ENERGY AMERICAS, INC.) AS AN ENTERPRISE PROJECT PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE WHEREAS, on November 4, 2003, the Fort Worth City Council ("City Council") adopted Ordinance No. 15733 authorizing the City of Fort Worth's ("City") participation in the TeXas Enterprise Zone Program ("EZP") pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Goverrunent Code, as amended ("Act"), and outlining local incentives available to noininated projects or activities of certain qualified businesses under the EZP; WHEREAS, on May 12, 2015, the City Council adopted Ordinance No. 21743-OS-2015, which amended City Ordinance No. 15733 to include additional potential local incentives that could be made available to qualitied businesses under the EZP; and the local incentives available pursuant to this Resolution are the same on this date as were outlined in Ordinance No. 21743-OS-2015; WHEREAS, Stellar Energy Ainericas, Inc., a Florida corporation authorized to do business in the State of Texas ("Stellar"), has applied to the City for nomination of its facility located at 15060 Blue Mound Road, Fort Worth, Texas ("Project") as an enterprise project under the EZP and pursuant to the Act; WHEREAS, the Texas Economic Development and Tourism Office within the Office of the Governor, through the Texas Economic Development Bank (`Bank"), will consider Stellar's Project as an enterprise project pursuant to a nomination and an application made by the City; WHEREAS, the City is in full compliance with the Act prior to the nomination of the Project's designation as an enterprise project and such nomination is in the best interest of the City; WHEREAS, the City Council desires to pursue the creation of a proper economic and social environment to induce the investment of private resources in productive business enterprises located in the City and to provide employment to residents of enterprise zones and other economically disadvantaged individuals; WHEREAS, the City Council finds Stellar meets the criteria for designation of the Project as an enterprise project under the Act on the following grounds: 1. Stellar is a"qualified business" under Section 2303.402 of the Act because it will be engaged in or has provided substantial commitment to initiate the active conduct of a trade or business that does not qualify as an enterprise zone; and at least thirty-five percent (35%) of Stellar's new employees will be residents of an enterprise zone, economically disadvantaged individuals, or veterans; and Texas �nterprise Zone Progran� Nomination Resolution — Stellar �nergy Americas, Inc. Page 1 of 2 2. There exists a high level of cooperation between public, private, and neighborhood entities within the City's jurisdiction; and 3. The designation of the Project as an enterprise project will contribute significantly to the achieveinent of the plans of the City for developinent and revitalization of the qualified business site (as defined in the Act) where the Project is located; WHEREAS, the City Council finds that Stellar meets the criteria for local incentives adopted by the City incentives available to nominated projects or activities of certain qualified businesses under the EZP on the grounds that it is located at a qualified business site and will create a higher level of employment opportunities, increased economic activity, and stability in the area; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS THAT: 1. Pursuant to the Act and EZP, and based on the tindings stated in this Resolution, Stellar's Project is noininated for designation by the Bank as an enterprise project. 2. The enterprise project will take effect on the date of designation of the Project as an enterprise project by the Bank and terminate five (5) years thereafter. Adopted this 31 yt day of March 2026. ATTEST: � � ' B : ��� Y Jannette S. Goodall, City Secretary Texas �nterprise Zone Program Nomination Resolution — Stellar �nergy Americas, Inc. Page 2 of 2 City of Fort Worth, Texas Mayor and Council Communication DATE: 03/31/26 M&C FILE NUMBER: M&C 26-0245 LOG NAME: 17STELLAR_TEZ SUBJECT (CD 10) Adopt Resolution Nominating Stellar Energy Americas, Inc.'s Facility at 15060 Blue Mound Road, Fort Worth, Texas, in Denton County as a Single Enterprise Project Pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code RECOMMENDATION: It is recommended that the City Council adopt the attached resolution nominating the Stellar Energy Americas Inc. facility at 15060 Blue Mound Road, Fort Worth, Texas, in Denton County as a single enterprise project pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code. DISCUSSION: The Texas Enterprise Zone Program is an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment in economically distressed areas of the state. An enterprise project is defined as a business that is nominated by a municipality or county and then approved for state benefits. Designated projects are eligible to apply for state sales and use tax refunds on qualified expenditures. The level and amount of refund is related to the capital investment and jobs created at the qualified business site. On November 4, 2003, the City Council adopted Ordinance No. 15733 electing to participate in the Texas Enterprise Zone Program. On May 12, 2015, the City Council adopted Ordinance No. 21743-05-2015, amending Ordinance No. 15733 by adding additional potential local incentives that could be made available to qualified businesses under the Texas Enterprise Zone Program. The Office of the Governor, Economic Development and Tourism, through the Economic Development Bank will consider Stellar Energy Americas, Inc. (Company) as an enterprise project pursuant to a nomination and an application made by the City. The Company qualifies for a Single Enterprise Project Designation with planned capital investment of approximately $79.5 million for the development of a manufacturing facility to be located on property at 15060 Blue Mound Road, Fort Worth, Texas, in Denton County. Single Enterprise Projects must have between $5 and $149 million in planned capital investment to be qualified for designation. As part of the project, the Company will create at least 500 new jobs, with an average annual salary of $78,000.00. If designated as an enterprise project by the State of Texas, the Company commits to hiring thirty-five percent (35%) of economically disadvantaged persons or enterprise zone residents for its certified jobs at its Fort Worth facility during its enterprise project designation. The enterprise project designation allows for a state sales and use tax refund on qualified expenditures of $2,500.00 per job, for up to 500 jobs, with a maximum benefit of $1.25 million over a five-year period. Under the Texas Enterprise Zone Act, at least thirty-five percent of the business' new or retained employees will be residents of an enterprise zone, economically disadvantaged individuals or veterans. In addition, the jobs will be provided through the end of the designation period or at least three years after the date on which a state benefit is received, whichever is later. The project is located in Council District 10. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that approval of this recommendation will have no material effect on City funds. Submitted for City Manager's Office by: Dana Burghdoff 8018 Originating Business Unit Head:Jessica Rogers 2663 Additional Information Contact:Cherie Gordon 6053