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Home My WebLink About26-28812 - City Council - OrdinanceORDINANCE 26-28812 AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE CITY OF FORT WORTH AS "TAX ABATEMENT REINVESTMENT ZONE NUMBER 121, CITY OF FORT WORTH, TEXAS"; PROVIDING THE EFFECTIVE AND EXPIRATION DATES FOR THE ZONE AND A MECHANISM FOR RENEWAL OF THE ZONE; AND CONTAINING OTHER MATTERS RELATED TO THE ZONE. WHEREAS, pursuant to the City of Fort Worth's ("City") General Tax Abatement Policy, as revised and adopted by the Fort Worth City Council ("City Council") on December 9, 2025 via Resolution No. 6222-12-2025 ("Tax Abatement Policy"), the City has elected to be eligible to 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 Code, as amended ("Code"); WHEREAS, the City Council desires to promote the development of the area in the City more specifically described in Exhibit "A" of this Ordinance ("Zone") through the creation of a tax abatement reinvestment zone for the put -pose of supporting new business investment or expansion, as authorized by the Code; WHEREAS, Carrier Corporation, a Delaware corporation authorized to do business in the State of Texas ("Company"), in addition to other employment and salary commitments, will: construct an advanced manufacturing facility within the Zone (collectively, the "Improvements"); 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 September 15, 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 ("Public Hearing"), 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 Ordinance No.26-28812 Page 1 of 5 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 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 THAT: 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 Exhibit "A" 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 will be known as `'Tax Abatement Reinvestment Zone Number 121, City of Fort Worth, Texas." This project is eligible for commercial/industrial tax abatements per Section Six of the Tax Abatement Policy as a Mega Project. Ordinance No.26-28812 Page 2 of 5 SECTION 3. TERM OF ZONE 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 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: By: Michael Doss (Sep 28, 2026 17:00:25 CDT) Assistant City Attorney ADOPTED: September 15. 2026 EFFECTIVE: September 15.2026 Jannette S. Goodall, o� F OR �nt�/a > °OOOOO°O I CCityb Secretary O o° ° o O hh °°°OOOOOO .C% atLAnEx A5�� Ordinance No.26-28812 Page 3 of 5 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 S 44°18'14"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 Ordinance No.26-28812 Page 4 of 5 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. Ordinance No.26-28812 Page 5 of 5 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 SUBJECT (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); 1 of 6 FORT WORTH 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 Comaanv 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. 2 of 6 FORT WORTH 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. 3 of 6 FORT WORTH 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 4 of 6 FORT WORTH 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] 5 of 6 FORT WORTH 4. Tax Abatement Reinvestment Zone Designation (ordinance) _121 —carrier_ Final [12.15.6 - 5 pages] 6 of 6