HomeMy WebLinkAboutIR 9682 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9682
To the Mayor and Members of the City Council November 11, 2014
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•a SUBJECT: TEXAS ENTERPRISE ZONE NOMINATION FOR COLUMBIA PLAZA
rrn MEDICAL CENTER OF FORT WORTH SUBSIDIARY, L.P.
The City Council of the City of Fort Worth (City) has previously passed Ordinance No. 15733
electing to participate in the Texas Enterprise Zone Program. The Office of the Governor
Economic Development and Tourism through the Economic Development Bank will consider
Columbia Plaza Medical Center of Fort Worth Subsidiary, L.P., as an enterprise project pursuant
to a nomination and an application made by the City.
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.
Columbia Plaza Medical Center of Fort Worth Subsidiary, L.P., qualifies for a single Enterprise
Project Designation with a projected capital investment of $21 ,000,000. The company will retain
its current workforce of 949 employees as a part of the overall project. Columbia Plaza Medical
Center of Fort Worth Subsidiary, L.P., will submit 748 full-time jobs with an annual payroll of
$50,708,395 as qualified employment for the designation. The single project designation allows
for a state sales and use tax refund on qualified expenditures of $2,500 per job, capped at 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 (35%) of the business's new and
retained employees must be residents of an enterprise zone or classified as economically
disadvantaged individuals. 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.
Staff will place an M&C for City Council consideration on the November 18, 2014 agenda
nominating Columbia Plaza Medical Center of Fort Worth Subsidiary, L.P., as an Enterprise Zone
Project pursuant to the Texas Enterprise Zone Program. Approval and submittal of this
application does not involve any incentives from the City.
If you have any questions concerning this information, please contact Jay Chapa, Housing &
Economic Development Director at 817-392-5804 orjesus.chapa@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS