HomeMy WebLinkAbout26-6381 - City Council - ResolutionRESOLUTION 26-6381
NOMINATING THE DESIGNATION OF A FACILITY LOCATED AT 1501
DISTRIBUTION DRIVE (CARRIER CORPORATION) AS A DOUBLE JUMBO
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
Government Code, as amended ("Act"), and outlining local incentives available to nominated
projects or activities of certain qualified businesses under the EZP;
WHEREAS, on May 12, 2015, the City Council adopted Ordinance No. 21743-05-2015, which
amended City Ordinance No. 15733 to include additional potential local incentives that could be
made available to qualified 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. 21743-05-2015;
WHEREAS, Carrier Corporation, a Delaware corporation authorized to do business in the State
of Texas ("Carrier"), has applied to the City for nomination of its facility located at1501
Distribution Drive, Fort Worth, Texas ("Project") as a double jumbo 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 Carrier's
Project as a double jumbo 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 a double jumbo 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 Carrier meets the criteria for designation of the Project as an
enterprise project under the Act on the following grounds:
1. Carrier 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 in an enterprise zone; and at least thirty-five percent (35%) of Carrier's new
permanent employees will be residents of an enterprise zone, economically disadvantaged
individuals, or veterans; and
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 a double jumbo enterprise project will contribute
significantly to the achievement of the plans of the City for development and revitalization
of the qualified business site (as defined in the Act) where the Project is located;
WHEREAS, the City Council finds that Carrier meets the criteria for local incentives adopted by
the City 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.
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 findings stated in this
Resolution, Carrier's Project is nominated for designation by the Bank as a double
jumbo enterprise project; and
2. The double jumbo enterprise project will take effect on the date of
designation of the Project as a double jumbo enterprise project by the Bank and
terminate five (5) years thereafter.
3. This resolution shall be effective from and after its passage by the City Council.
Adopted this September 15, 2026.
ATTEST:
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Jannette S. Goodall, City Secretary
FORT WORTH Tax Abatement Reinvestment Zone No. 121
1501 Distribution Drive — 61.781 acres
Fort Worth TX 76052 "Exhibit A"
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Copyright 2026 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 engineering or surveying purposes. It does not represent an on -the -ground survey and represents only the appropriate relative
location of property boundaries. The City of Fort Worth assumes no responsibility for the accuracy of said data.
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CITY OF FORT WORTH, TEXAS
PUBLIC NOTICE OF A MEETING AT WHICH THE FORT WORTH CITY COUNCIL
WILL CONSIDER APPROVAL OF A TAX ABATEMENT AGREEMENT
Pursuant to Section 312.207 of the Texas Tax Code, notice is given that the Fort Worth City
Council ("City Council") will consider approval of a tax abatement agreement as an agenda item
at its regularly scheduled meeting on September 15, 2026, at the City Council Chamber, City
Hall, 100 Fort Worth Trail, Fort Worth, Texas, beginning at 6:00 P.M.
Tax Abatement Agreement Information Required by Section 312.207, Texas Tax Code:
1. Name of the Property Owner and Applicant for the Tax Abatement Agreement: The
name of the property owner is ALLIANCE WESTPORT NO. 12 LTD and the applicant
for the tax abatement agreement is Carrier Corporation.
2. Name and Location of the Reinvestment Zone: The name of the proposed reinvestment
zone in which the property subject to the tax abatement will be located is Tax Abatement
Reinvestment Zone Number 121 ("TARZ No. 121"), which will be considered for creation
by the City Council prior to consideration of the tax abatement agreement. TARZ No. 121
will consist of 61.781 acres as depicted in the attached Exhibit A ("Property").
3. General Description of the Nature of Improvements: The tax abatement agreement
includes improvements to the Property for the creation of an advanced manufacturing
facility.
4. Estimated Cost of the Improvements: The estimated costs of the improvements are: (i)
$36,000,000 in real property improvements; and (ii) $397,800,000 in new business
personal property.
This notice has been given in a manner required by the Section 312.207 of the Texas Tax Code
and Chapter 551 of the Texas Government Code.
EXHIBIT A
DEPICTION OF TARZ NO. 121
61.781 Acres of Land
BEING A TRACT OF LAND SITUATED IN THE G. OVERTON SURVEY, ABSTRACT NUMBER 972, CITY
OF FORT WORTH, DENTON COUNTY, TEXAS, AND BEING ALL OF THREE TRACTS OF LAND
DESCRIBED BY DEED TO ALLIANCE WESTPORT NO. 12, LTD., RECORDED IN INSTRUMENT NUMBER
2021-168548, 2025-141458, AND 2026-20684, ALL OF REAL PROPERTY RECORDS, DENTON COUNTY,
TEXAS, AND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:
BEGINNING AT A 5/8 INCH IRON ROD, WITH CAP STAMPED "WESTWOOD", SET AT THE SOUTHWEST
CORNER OF SAID ALLIANCE WESTPORT NO. 12 TRACT (2021-168548), BEING THE SOUTHEAST
CORNER OF LOT 3, BLOCK 2, WESTPORT ADDITION, AN ADDITION TO THE CITY OF FORT WORTH,
BY PLAT RECORDED IN INSTRUMENT NUMBER 2019-210, AND BEING IN THE NORTH RIGHT-OF-WAY
LINE OF DISTRIBUTION DRIVE, (80 FOOT RIGHT-OF-WAY), AN ADDITION TO SAID CITY OF FORT
WORTH, BY PLAT RECORDED IN INSTRUMENT NUMBER 2024-296, BOTH OF PLAT RECORDS, DENTON
COUNTY, TEXAS;
THENCE N 00°32'52"W, AT 1147.00 FEET, PASSING THE NORTHWEST CORNER OF SAID ALLIANCE
WESTPORT NO. 12 TRACT (2021-168548), IN ALL, A TOTAL DISTANCE OF 1261.00 FEET, WITH THE EAST
LINE OF SAID LOT 3, TO A 5/8 INCH IRON ROD, WITH CAP STAMPED "WESTWOOD", SET AT THE
NORTHWEST CORNER OF SAID ALLIANCE WESTPORT NO. 12 TRACT (2026-20684), FROM WHICH A 5/8
INCH IRON ROD, FOUND AT THE NORTHEAST CORNER OF SAID LOT 3, BEARS N 00°32 52 W, 72.90
FEET;
THENCE N 89°27'08"E, 2130.95 FEET, TO A 5/8 INCH IRON ROD, WITH CAP STAMPED "WESTWOOD",
SET AT THE NORTHEAST CORNER OF SAID ALLIANCE WESTPORT NO.12 TRACT (2025-141458);
THENCE S 00°50'40"E, AT 26.25 FEET, PASSING THE SOUTHEAST CORNER OF SAID ALLIANCE
WESTPORT NO. 12 TRACT (2025-141458), AND THE NORTHEAST CORNER OF SAID ALLIANCE
WESTPORT NO. 12 TRACT (2026-20684), AT 1223.32 FEET, PASSING A 5/8 INCH IRON ROD, WITH CAP
STAMPED "PELOTON", FOUND AT THE NORTHWEST TERMINUS OF MOBILITY WAY (60 FOOT RIGHT-
OF-WAY), RECORDED IN SAID INSTRUMENT NUMBER 2024-296, SAID PLAT RECORDS, IN ALL, A
TOTAL DISTANCE OF 1251.01 FEET, TO A 5/8 INCH IRON ROD, WITH CAP STAMPED "PELOTON",
FOUND AT THE NORTH END OF A CORNER CLIP IN THE WEST RIGHT-OF-WAY LINE OF SAID
MOBILITY WAY AND SAID NORTH RIGHT-OF-WAY LINE OF DISTRIBUTION DRIVE, AND BEING THE
MOST EASTERLY SOUTHEAST CORNER OF SAID ALLIANCE WESTPORT NO. 12 TRACT (2026-20684);
THENCE 544018 14"W, 14.11 FEET, TO A 5/8 INCH IRON ROD, WITH CAP STAMPED "PELOTON", FOUND
AT THE SOUTH END OF SAID CORNER CLIP, AND BEING THE MOST SOUTHERLY SOUTHEAST
CORNER OF SAID ALLIANCE WESTPORT NO. 12 TRACT (2026-20684);
THENCE S 89°27'08"W, AT 738. 48 FEET, PASSING THE SOUTHWEST CORNER OF SAID ALLIANCE
WESTPORT NO. 12 TRACT (2026-20684), AND THE SOUTHEAST CORNER OF SAID ALLIANCE
WESTPORT NO. 12 TRACT (2021-168548), IN ALL, A TOTAL DISTANCE OF 2127.48 FEET, WITH SAID
NORTH RIGHT-OF-WAY LINE, TO THE POINT OF BEGINNING AND CONTAINING 2,691,189 SQUARE
FEET OR 61.781 ACRES OF LAND MORE OR LESS.
FORT WORTH„
MAYOR AND COUNCIL COMMUNICATION
12.15 CARRIER CORPORATION PUBLIC HEARING AND TAX ABATEMENT
DATE: 09/15/26 M&C FILE M&C 26-0943
NUMBER:
DEPARTMENT: ECONOMIC DEVELOPMENT
SUBJEC-1
(CD 10) Conduct a Public Hearing and Adopt an Ordinance Designating Tax Abatement
Reinvestment Zone No. 121, Authorize Execution of a Seven -Year Tax Abatement Agreement
with Carrier Corporation, or an Affiliate, for the Development of an Advanced Manufacturing
Facility and Related Improvements to be Located at 1501 Distribution Drive, Fort Worth, Texas,
Denton County within Tax Abatement Reinvestment Zone No. 121, and Adopt a Resolution
Nominating this Project as a Texas Enterprise Zone Program Double Jumbo Project Pursuant
to Chapter 2303, Texas Government Code
(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. 121, City of Fort Worth, Texas, Denton County, for property located at 1501
Distribution Drive, consisting of approximately 61.781 acres of land for the development
of an advanced manufacturing facility and related improvements by Carrier
Corporation, or an affiliate;
2. Find that the development of an advanced manufacturing 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. 121
and to the City after the expiration of any tax abatement agreement;
3. Adopt the attached ordinance designating Tax Abatement Reinvestment Zone No. 121,
City of Fort Worth, Texas, pursuant to and in accordance with Chapter 312 of the Texas
Tax Code;
4. Find that the proposed tax abatement agreement terms meet the criteria and
guidelines set forth in the City of Fort Worth's General Tax Abatement Policy (Resolution
No. 6222-12-2025);
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5. Authorize the execution of a seven-year tax abatement agreement with Carrier
Corporation, or an affiliate, for the development of an advanced manufacturing facility
and related improvements to be located at 1501 Distribution Drive, Fort Worth, Texas,
Tarrant County, in Tax Abatement Reinvestment Zone No. 121; and
6. Adopt the attached Resolution nominating this project as a Texas Enterprise Zone
Program Double Jumbo Project, pursuant to the Texas Enterprise Zone Act, Chapter
2303 of the Texas Government Code.
DISCUSSION
The purpose of this Mayor and Council Communication (M&C) is to (1) designate a new Tax
Abatement Reinvestment Zone (TARZ No. 121); (2) authorize a seven-year tax abatement
agreement with Carrier Corporation, or an affiliate (collectively, the Company) for the
development of an advanced manufacturing facility and related improvements within TARZ
No. 121 (Project); and (3) adopt a resolution nominating the Project as a Texas Enterprise
Zone Program Double Jumbo Project Pursuant to Chapter 2303, Texas Government Code.
Company is a global leader in intelligent climate and energy solutions headquartered in
Palm Beach Gardens, Florida and has identified Alliance Westport 12 at 1501 Distribution Drive
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 a tax abatement agreement with the Company to facilitate
development of the Project. 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 $36,000,000.00 in total construction costs for
real property improvements at the Project site on or before December 31, 2028;
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 $397,800,000.00 by January 1, 2029;
b. Except as otherwise required as part of the BPP Commitment, Company must
maintain a minimum assessed value of all BPP installed on the Project Site equal
to at least two hundred and fifty million dollars ($250,000,000.00) in each year
of the term of the Agreement, the failure of which will result in a forfeiture of any
tax abatement for that year.
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3. Company will forfeit any tax abatement if the total investment for real property
improvements and BPP is not delivered pursuant to the terms of the agreement;
4. Company must provide a minimum total cumulative amount of 495 new full-time jobs
at the Project site with an average salary of at least $75,000.00 as follows:
a. December 31, 2027:125 new full-time jobs (as defined in the agreement);
b. December 31, 2028: 250 new full-time jobs (as defined in the agreement); and
c. December 31, 2029:120 new full-time jobs (as defined in the agreement).
5. Following December 31, 2029, Company must maintain the minimum total cumulative
amount of 495 new full-time jobs throughout the term of the agreement.
6. If Company fails to meet job creation requirements as defined in the agreement, any
applicable tax abatement will be subject to forfeiture as provided in the agreement.
7. 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:
The City, subject to the terms of the tax abatement agreement, will provide a 7 -year
abatement of up to 60% of the incremental value of City ad valorem taxes in a given
year on completed Project real property improvements and Project BPP as determined
by the applicable appraisal district multiplied by the applicable tax rate for the
applicable year.
2. For any year in which more than fifty percent (50%) of all full-time Jobs at the Project
Site have salaries that are less than $60,000 for that year, the applicable rate of the tax
abatement will be reduced in an amount equal to 30% of the incremental value of City
ad valorem taxes on the completed Real Property Improvements and BPP Commitment
as determined by the applicable appraisal district multiplied by the applicable tax rate
for the year.
3. The tax abatements are subject to Company meeting the performance requirements
stated above and as specifically detailed within the agreement.
The Project is projected to result in an estimated $18,190,263.00 in new incremental property
tax revenue to the City, of which $10,900,000.00 will be abated pursuant to the terms of the
agreement, resulting in the collection of $7,290,263.00 in net new incremental property tax
revenue over the seven-year period following Project completion.
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Reinvestment Zone:
TARZ No. 121 will consist of approximately 61.781 acres located at 1501 Distribution Drive, Fort
Worth, Texas, Denton County, and is more particularly described in Exhibit A to the attached
Ordinance.
Designating this area as TARZ No. 121 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 units 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. 121
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. 121 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. 121 and to the City after the
expiration of any tax abatement agreement.
The term of TARZ No. 121 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.
Resolution Nominating Project as an Enterprise Project:
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. A Texas Enterprise Zone Project must be
nominated by a municipality or county to be considered for state benefits. Designated
projects are eligible to apply for state sales and use tax refunds on qualified expenditures.
The level and amount of the 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
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Program. The Office of the Governor, Economic Development and Tourism, through the
Economic Development Bank will consider Company as an enterprise project pursuant to an
application, including a nomination made by the City.
The Company qualifies for a Double Jumbo Project Designation with capital investment of at
least $433,800,000. Double Jumbo Projects must have a minimum of $150,000,000 in
planned capital investment to be qualified for designation.
If designated as an enterprise project by the State of Texas, the Company commits to hiring
at least 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 Double Jumbo Project Designation allows for a state sales and use tax refund on
qualified expenditures of $5,000 per job, for up to 500 jobs, with a maximum benefit of
$2,500,000 over a five-year period. Under the Texas Enterprise Zone Act, at least thirty-five
percent (35%) 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.
This contract requires a Form 1295.
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. Tax Abatement 30 day Public Notice Carrier [12.15.3 - 2 pages]
2. Map of Location - 121 [12.15.4 - 1 page]
3. CARRIER_EZP_NOMINATING_RESOLUTION_Final [12.15.5 - 2 pages]
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4. Tax Abatement Reinvestment Zone Designation (Ordinance)_121_Carrier_Final [12.15.6
- 5 pages]
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