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HomeMy WebLinkAbout26-28701 - City Council - Ordinance Ordinance No. 26-28701 Page 1 of 5 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 Page 2 of 5 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 Page 3 of 5 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 Page 4 of 5 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 Page 5 of 5 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. Co p y r i g h t 2 0 2 6 C i t y o f F o r t W o r t h . U n a u t h o r i z e d r e p r o d u c t i o n i s a v i o l a t i o n o f a p p l i c a b l e l a w s . T h i s p r o d u c t i s f o r i n f o r m a t i o n a l p u r p o s e s a n d m a y n o t h a v e b e e n pr e p a r e d f o r o r b e s u i t a b l e f o r l e g a l e n g i n e e r i n g o r s u r v e y i n g p u r p o s e s . I t d o e s n o t r e p r e s e n t a n o n - t h e - g r o u n d s u r v e y a n d r e p r e s e n t s o n l y t h e a p p r o p r i a t e r e l a t i v e lo c a t i o n o f p r o p e r t y b o u n d a r i e s . T h e C i t y o f F o r t W o r t h a s s u m e s n o r e s p o n s i b i l i t y f o r t h e a c c u r a c y o f s a i d d a t a . Ta x A b a t e m e n t R e i n v e s t m e n t Z o n e N o . 1 1 9 5 0 0 0 W e s t p o r t F r e e w a y 2 2 . 9 0 4 a c r e s Fo r t W o r t h T X 7 6 0 5 2 1 of 5 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 2 of 5 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; 3 of 5 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 4 of 5 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. 5 of 5 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]