HomeMy WebLinkAbout26-28701 - City Council - Ordinance
Ordinance No. 26-28701
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ORDINANCE 26-28701
AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE CITY OF
EFFECTIVE AND EXPIRATION DATES FOR THE ZONE AND A
MECHANISM FOR RENEWAL OF THE ZONE; AND CONTAINING
OTHER MATTERS RELATED TO THE ZONE.
WHEREAS, City
City Council
Resolution No. 6222-12-Tax Abatement Policy
participate in tax abatement and has established guidelines and criteria governing tax abatement
agreements entered into between the City and various third parties, as authorized by Chapter 312
of the Texas Tax Co Code
WHEREAS, the City Council desires to promote the development of the area in the City
more specifically described in of this Ordinance () through the creation of a
tax abatement reinvestment zone for the purpose of supporting new business investment or
expansion, as authorized by the Code;
WHEREAS, Mach Industries Inc. (), in addition to other employment and
salary commitments, will construct and develop an aerospace and defense assembly and
integration facility within the Zone (collectively, the );
WHEREAS, Company has applied for real and business personal property tax abatements
from the City in return for completion of the Improvements in the Zone, and to foster economic
development in the Zone and the City in general, it is anticipated that the City will enter into a City
Council-approved tax abatement agreement with Company to that effect;
WHEREAS, on August 11, 2026, the City Council held a public hearing regarding the
creation of the Zone, received information concerning the Improvements proposed for the Zone,
and afforded a reasonable opportunity for all interested persons to speak and present evidence for,
or against, the creation of the Zone (), as required by Section 312.201(d) of the
Code;
WHEREAS, notice of the Public Hearing was published in a newspaper of general
circulation in the City at least seven (7) days prior to the Public Hearing, in accordance with
Section 312.201(d)(1) of the Code; and
WHEREAS, in accordance with Sections 312.201(d)(2) and 312.201(e) of the Code, notice of the
Public Hearing was also delivered, in writing, to the presiding officer of the governing body of
Ordinance No. 26-28701
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each taxing unit that includes in its boundaries real property that is to be included in the proposed
Zone not later than the seventh day before the date of the Public Hearing.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
SECTION 1.
FINDINGS.
That, after reviewing all information before it regarding the establishment of the Zone and after
conducting the Public Hearing and affording a reasonable opportunity for all interested persons to
speak and present evidence for, or against, the creation of the Zone, the City Council hereby makes
the following findings of fact:
1.1.The statements and facts set forth in the recitals of this Ordinance are true and
correct and the City has met the statutory requirements of Chapter 312 of the Code
for creation and designation of the Zone.
1.2.The Improvements proposed for the Zone, as more specifically outlined in the
Public Hearing, are feasible and practical and, once completed will benefit the land
included in the Zone as well as the City for a period of more than ten (10) years,
which is the statutory maximum term of any tax abatement agreement entered into
under Chapter 312 of the Code.
1.3.As a result of designation as a reinvestment zone, the area within the Zone is
reasonably likely to contribute to the expansion of primary employment and to
attract major investment in the Zone that will be a benefit to property in the Zone
and will contribute to the economic development of the City.
SECTION 2.
DESIGNATION OF ZONE
That the City Council designates the Zone described in the boundary description attached hereto
as and made a part of this Ordinance for all purposes as a reinvestment zone for
purposes permitting tax abatement as may be found desirable by the City or any other eligible
taxing units for purposes authorized by and in accordance with Chapter 312 of the Code. This Zone
This project is eligible for commercial/industrial tax abatements per Section 4 of the Tax
Abatement Policy as a Target Industry Project.
Ordinance No. 26-28701
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SECTION 3.
TERM OF ZONE
That the Zone takes effect upon the effective date of this Ordinance and expires five (5) years
thereafter. The Zone may be renewed by the City Council for one or more subsequent terms not
to exceed five years, unless otherwise allowed by law.
SECTION 4.
SEVERABILITY
That if any portion, section, or part of a section of this Ordinance is subsequently declared invalid,
inoperative, or void for any reason by a court of competent jurisdiction, the remaining portions,
sections or parts of sections of this Ordinance will remain in full force and effect and shall not in
any way be impaired or affected by such decision, opinion, or judgment.
SECTION 5.
IMMEDIATE EFFECT.
That this Ordinance takes effect upon its adoption.
APPROVED AS TO FORM AND LEGALITY:
ATTESTED BY:
By: _________________________________ ___________________________________
Michael Doss Jannette S. Goodall,
Senior Assistant City Attorney City Secretary
ADOPTED: August 11, 2026
EFFECTIVE: August 11, 2026
Ordinance No. 26-28701
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EXHIBIT A
BOUNDARY DESCRIPTION OF ZONE
22.904 Acres of Land
BEING a tract of land situated in the F. Cuella Survey, Abstract Number 267, the J. J. Roberts
Survey, Abstract Number 1305, and the Jose Chirino Survey, Abstract Number 265, City of
Fort Worth, Tarrant County, Texas, Being all of Lot 1R2, Block 4, Alliance Gateway South, an
addition to the City of Fort Worth, Tarrant County, Texas, recorded in Instrument Number
D224086576, County Records, Tarrant County, Texas, being all of that tract of land described
by plat to AIL Investment, L.P. recorded in Instrument Number D208140924, said County
Records;
BEGINNING at the northeast corner of said Lot 1R2, Block 4, being the northwest corner of
Lot 1R1, Block 4, said Alliance Gateway South addition, and being in the south right-of-way
line of Westport Parkway (a variable width right-of-way);
THENCE departing said right-of-way line with the common lot line of Lots 1R2 and 1R1 the
following courses and distances:
With said curve to the left, an arc distance of 114.84 feet, through a central angle of
113.34 feet;
With said curve to the right, an arc distance of 109.24 feet, through a central angle of
107.81 feet;
southwest corner of said Lot 1R1, Block 4, and being in the north line of that tract of land
described by deed to AIL Investment, L.P., recorded in Volume 13588, Page 181, said
County Records;
THENCE
Lot 1R2, Block 4 and said north line to the southwest corner of said Lot 1R2, Block 4, being in
the east line of Block 19, Rolling Meadows Phase 3B, an addition to the City of Fort Worth,
Tarrant County, Texas, recorded in Instrument Number D214264351, said County Records;
THENCE with the west line of said Lot 1R2, Block 4, and said east line the following bearings
and distances:
Ordinance No. 26-28701
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southeast corner of that tract of land described by deed to AIL Investment, L.P., recorded
in Instrument Volume 13588, Page 183, said County Records, in all 824.38 feet to the
northwest corner of said Lot 1R2, Block 4, being the northeast corner of said AIL
Investment tract (Volume 13588, Page 183) and being in the south right-of-way line of
aforementioned Westport Parkway;
THENCE
right-of-way line to the
Point of Beginning and containing 997,702 square feet or 22.904 acres of land more or less.
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11.2 MACH TA EDPA
MAYOR AND COUNCIL COMMUNICATION
11.2 MACH TA EDPA
DATE:08/11/26 M&C FILE NUMBER:M&C 26-0701
DEPARTMENT:ECONOMIC DEVELOPMENT
SUBJECT
(CD 10) Conduct a Public Hearing and Adopt an Ordinance Designating Tax Abatement
Reinvestment Zone No. 119, and Authorize Execution of a Ten-Year Economic Development
Program and Tax Abatement Agreement with Mach Industries Inc., or an Affiliate, for the
Development of an Unmanned Aerial Vehicle Assembly and Integration Facility and Related
Improvements to be Located at 5000 Westport Parkway, Fort Worth, Texas, Tarrant County
within Tax Abatement Reinvestment Zone No. 119
(PUBLIC HEARING - a. Staff Available for Questions: Brianna Brown; b. Public Comment; c.
Council Action: Close Public Hearing and Act on M&C)
RECOMMENDATION
It is recommended that the City Council:
1. Conduct a public hearing concerning the designation of Tax Abatement Reinvestment
Zone No. 119, City of Fort Worth, Texas, Tarrant County, for property located at 5000
Westport Parkway, consisting of approximately 22.904 acres of land for the
development of an unmanned aerial vehicle assembly and integration facility and
related improvements by Mach Industries Inc., or an affiliate;
2. Find that the development of an unmanned aerial vehicle assembly and integration
facility and related improvements, as set forth in more detail below, are feasible and
practical and would be a benefit to the land to be included in Tax Abatement
Reinvestment Zone No. 119 and to the City after the expiration of any economic
development program and tax abatement agreements;
3. Adopt the attached ordinance designating Tax Abatement Reinvestment Zone No. 119,
City of Fort Worth, Texas, pursuant to and in accordance with Chapter 312 of the Texas
Tax Code;
4. Find that the proposed economic development program and tax abatement
agreement terms meet the criteria and guidelines set forth in the City of Fort Worth's
Economic Development Program Policy (Resolution No. 6223-12-2025) and General Tax
Abatement Policy (Resolution No. 6222-12-2025); and
5. Authorize the execution of a ten-year economic development program and tax
abatement agreement with Mach Industries Inc., or an affiliate, for the development of
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an unmanned aerial vehicle assembly and integration facility and related
improvements to be located at 5000 Westport Parkway, Fort Worth, Texas, Tarrant
County, in Tax Abatement Reinvestment Zone No. 119, with a total value not to exceed
$4.5 million.
DISCUSSION
The purpose of this Mayor and Council Communication (M&C) is to (1) designate a new Tax
Abatement Reinvestment Zone (TARZ) No. 119; and (2) authorize a ten-year economic
development program and tax abatement agreement with Mach Industries Inc., or an affiliate
(collectively, the Company) for the development of an unmanned aerial vehicle assembly
and integration facility and related improvements (Project) within TARZ No. 119.
Company is an aerospace and defense manufacturer headquartered in Huntington Beach,
California and has identified Alliance Gateway 34 at 5000 Westport Parkway in Fort Worth as
a finalist Project site. The Project represents a key expansion of the company’s domestic
manufacturing footprint and a critical step toward scaling full-system production in the
United States.
The City proposes to enter into an economic development program and tax abatement
agreement with the Company to facilitate development of the Project within TARZ No. 119. The
agreement will be tied to the amount of investment made by the Company for the Project
and satisfaction of other Project and spending requirements as follows:
Investment and Company Commitments:
1. Company must expend a minimum of $6,000,000.00 in total construction costs for real
property improvements at the Project site on or before May 1, 2027;
2. Company must install taxable Business Personal Property (BPP) that is new to the City
at the Project site as follows:
a. a minimum assessed taxable BPP value of $23,000,000.00 by January 1, 2028;
b. an additional minimum assessed taxable BPP value of $23,000,000.00 (for a
cumulative total of $46,000,000.00) by January 1, 2029; and
c. an additional minimum assessed taxable BPP value of $22,000,000.00 (for a
cumulative total of $68,000,000.00) by January 1, 2030.
3. Company will forfeit all Grants and Abatements if the total investment for real property
improvements and BPP is not delivered pursuant to the milestones and the terms of
the agreement;
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4. Company must provide a minimum total cumulative amount of 1,000 new full-time
jobs at the Project site with an average salary of at least $67,470.00 as follows:
a. Milestone 1: 100 new full-time jobs or contracted jobs by the end of the first
operating year (as defined in the agreement);
b. Milestone 2: 350 new full-time jobs or contracted jobs (including Milestone 1) by
the end of the second operating year (as defined in the agreement); and
c. Milestone 3: 600 new full-time jobs or contracted jobs (including Milestones 1
and 2) by the end of the third operating year (as defined in the agreement);
d. Milestone 4: 850 new full-time jobs or contracted jobs (including Milestones 1, 2,
and 3) by the end of the fourth operating year (as defined in the agreement);
and
e. Milestone 5: 1,000 new full-time jobs or contracted jobs (including Milestone 1, 2,
3, and 4) by the end of the fifth operating year (as defined in the agreement).
5. Company must attain the minimum total cumulative amount of 1,000 new full-time
jobs or contracted jobs by the end of the fifth operating year of the Project and
maintain that minimum number each subsequent operating year for the term of the
agreement, or be subject to proportional reductions as further defined in the
agreement.
6. If Company fails to meet job Milestones as defined in the agreement, any applicable
tax abatement will be subject to a proportional reduction as provided in the
agreement.
7. Company will forfeit any tax abatement if it fails to provide and maintain a minimum
of 600 new full-time jobs at the Project site by end of the Fifth Operating Year.
8. Company voluntarily commits to expend by the Project completion deadline at least
30% of all real property improvement costs, both hard and soft costs, with Small
Businesses (Small Business Commitment). "Small Business" means a business entity
located in Tarrant, Wise, Johnson, Parker, or Denton County that holds certification as a
small business from an organization approved by the City Manager (City Ordinance
No. 27832-08-2025). If Company does not meet the Small Business Commitment,
subject to availability and the terms of the tax abatement agreement, the tax
abatement shall be reduced by 10%.
City Commitments:
1. The City, subject to the terms of the economic development program and tax
abatement agreement, will provide: (i) up to three grants in a total combined amount
not to exceed $1 million, subject to forfeiture and repayment of the grants if Company
fails to meet any or all of employment milestones 1, 2, and 3 as described above; and
(ii) a 10-year abatement of up to 45% of the value of City ad valorem taxes in a given
year on completed Project real property improvements and Project BPP as determined
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by the applicable appraisal district multiplied by the applicable tax rate for the
applicable year.
2. The economic development program grants and tax abatements are subject to
Company meeting the performance requirements stated above and as specifically
detailed within the agreement.
3. The economic development and tax abatement agreement value will be capped at
$4.5 million.
The project is projected to result in an estimated $4,469,157.00 in new incremental property
tax to the with anticipated grants of $2,011,121.00, resulting in the collection of $2,458,036.00 in
net new incremental property tax revenue over the ten-year period following Project
completion.
Reinvestment Zone:
TARZ No. 119 will consist of approximately 22.904 acres located at 5000 Westport Parkway, Fort
Worth, Texas, Tarrant County, and is more particularly described in Exhibit A to the attached
Ordinance.
Designating this area as TARZ No. 119 pursuant to Chapter 312 of the Texas Tax Code allows
the City the option to enter into a tax abatement agreement with the Company to help
facilitate development on the Project Site.
Pursuant to Chapter 312 of the Texas Tax Code, a public hearing must be conducted
regarding the creation or expansion of a reinvestment zone. Notice of this hearing was
delivered to the presiding officer of the governing body of each affected taxing unit and
published in a newspaper of general circulation at least seven days prior to this hearing.
Pursuant to Chapter 312 of the Texas Tax Code, the area within the proposed TARZ No. 119
meets the statutory criteria for designation as a Tax Abatement Reinvestment Zone because
the area is likely, as a result of the designation, to contribute to the retention or expansion of
primary employment or to attract major investment in TARZ No. 119 that would be a benefit to
the property and that would contribute to the economic development of the City. Further, the
proposed improvements and investments at the Project Site are feasible and practical and
would be a benefit to the land to be included in TARZ No. 119 and to the City after the
expiration of any tax abatement agreement.
The term of TARZ No. 119 will be five years from the date of adoption of the attached
Ordinance and may be renewed for periods not to exceed five years each unless otherwise
allowed by law.
The project is located in COUNCIL DISTRICT 10.
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FISCAL INFORMATION/CERTIFICATION
The Director of Finance certifies that approval of this agreement will have no material effect
on the Fiscal Year 2026 Budget. While no current year impact is anticipated from this action,
any effect on expenditures and revenues will be budgeted in future Fiscal Years.
SUBMITTED FOR CITY MANAGER'S OFFICE BY:Dana Burghdoff, # 8018
ORIGINATING BUSINESS UNIT HEAD:Jessica Rogers, #2663
ADDITIONAL INFORMATION CONTACT:Brianna Brown, #2609
ATTACHMENTS
1. Map of Location - RE Z. 119 [11.2.1 - 1 page]
2. Ordinance TARZ No 119 Designation Ordinance Mach [11.2.2 - 5 pages]