HomeMy WebLinkAboutResolution 4530-11-2015 A Resolution
NO. 4530-11-2015
NOMINATING THE UNITED PARCEL SERVICE, INC. DISTRIBUTION FACILITY
AT 13700 INDEPENDENCE PARKWAY AS AN ENTERPRISE PROJECT
PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT,
CHAPTER 2303, OF THE TEXAS GOVERNMENT CODE
WHEREAS, on November 4, 2003 the City Council of the City of Fort Worth (the "City") previously
adopted Ordinance No. 15733 electing to participate in the Texas Enterprise Zone Prograrn.; and
WHEREAS, on May 12, 2015 the City Council of the City adopted Ordinance No. 21.743-05-2015
amending Ordinance No. 15733 by adding additional potential local incentives that could be made
available to qualitited businesses under the'l.'exas Enterprise Zone Prograiri; and
WHEREAS, the Office of the Governor, Economic Development and Tourism. ( DC), through the
Economic Development Bank ("Bank"), will consider LJnited Parcel Service, Inc. as an enterprise
pr(,.)ject pursuant to a nornination and an application made by the (."ity; and
WHERE AS, the City desires to pursue the creation of the proper economic and social. environment in
order to induce the investment of private resources in productive business enterprises located in the City
and to provide enxployment to residents of enterprise zones and to other economically disadvantaged
individuals; and
WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas
Government Code (the "Act"), t.Jnited. Parcel Service, Inc. has applied to the City for designiation as an
enterprise project; and
WHEREAS, the City finds United Parcel Service, Inc., meets the criteria for designation as an
enterprise project under Chapter 2303, Subchapter F of the Act on the ft.)Ilowing grounds:
1. [.Jn.ited Parcel Service, Inc., is a "qualified business" under Section. 2303.402 of the Act
since it will be engaged in the active conduct of a trade or business at a qualified business site
within the governing body's jurisdiction located outside of an enterprise zone, and at least thirty-
five percent (35%) of the business's new or retained employees will be residents of an enterprise
zone, economically disadvantaged individuals or veterans; and
2. There has been and will continue to be a high level of cooperatioti between public, private,
and neighborhood entities within the area; and
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3. The designation of United Marcel. Service, Inc., as an enterprise prqject will. contribute
significantly to the achievement of the plans of the City for development and revitalization.of the
area; and
WHEREAS, the City finds that United Parcel Service, Inc., meets the criteria for tax for tax relief and
other incentives adopted by the City and noininates United Parcel Service, Inc. for enterprise prQject
status on the grounds that it is located at the qualified business site and will create a higher level of
employrnent, economic activity and stability in the area; and
WHEREAS, the City finds that it is in the best interest of the City to nominate United Parcel Service,
Inc., as an enterprise project pursuant to the Act;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS:
1, THAT the findings of the City and its actions approving this Resolution taken at the
Council meeting are hereby r approved and adopted.
2. THAT United Parcel Service, Inc. is a "qtialifi.cd business," as defined in Section
2303.402 of the Act, and meets the criteria for designation as an enterprise project, as set
forth in Section 2303., Subchapter F of the Act.
3. THAT the enterprise project shall take effect on the date of designation of the enterprise
I)roject by the Bank and terminate five (5) years after the date of designation.
Adopted this 3A day of ..
Noyernbe[,2015.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 11/3/2015 - Resolution No. 4530-11-2015
DATE: Tuesday, November 03, 2015 REFERENCE NO.: **G-18598
LOG NAME: 17ED UPSEZ
SUBJECT:
Adopt Resolution Nominating the United Parcel Service, Inc., Distribution Facility Located at 13700
Independence Parkway as an Enterprise Project, Pursuant to the Texas Enterprise Zone Act, Chapter
2303 of the Texas Government Code (COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council adopt the attached Resolution nominating the United Parcel
Service, Inc., distribution facility located at 13700 Independence Parkway as an Enterprise Project,
pursuant to Chapter 2303 of the Texas Government Code.
DISCUSSION:
This United Parcel Service, Inc. (UPS), project involves the expansion of UPS' Hub operations at the
existing site located at 13700 Independence Parkway. This $45 million expansion will complete the
creation of an automated Hub facility. The expansion will retain 321 full time jobs and create an additional
25 full-time jobs. UPS, an Ohio Corporation, is a wholly owned subsidiary of UPS Worldwide Forwarding,
Inc. The overall parent company, United Parcel Service (UPS DE), a Delaware corporation, is traded on
the New York Stock Exchange. UPS DE is the world's largest package delivery company and a leading
global provider of specialized transportation and logistics services.
The City Council previously adopted Ordinance No. 15733, under which the City has elected to participate
in the Texas Enterprise Zone Program. The City Council subsequently amended Ordinance No. 15733 on
May 12, 2015 to update the list of potential local incentives that may be provided to a project on a case-
by-case basis (Ordinance No. 21743-05-2015, M&C G-18473). The Office of the Governor Economic
Development and Tourism through the Economic Development Bank will consider the UPS distribution
facility as an Enterprise Project, pursuant to a nomination and an application made by the City. The Texas
Enterprise Zone Program allows the City to pursue its goal of inducing the investment of private resources
in productive business enterprises and provide employment to residents of enterprise zones and other
economically disadvantaged individuals.
The attached Resolution establishes the City Council's finding that the UPS distribution facility meets the
criteria for designation as an Enterprise Project, under Chapter 2303, Subchapter F of the Act on the
following grounds:
1. United Parcel Service, Inc., is a "qualified business," under Section 2303.402 of the Act, since
it will be engaged in the active conduct of a trade or business at a qualified business site within
the governing body's jurisdiction located outside of an enterprise zone and at least 35 percent
of the business' new or retained employees will be residents of an enterprise zone, economically
disadvantaged individuals or veterans;
2. There has been, and will continue to be, a high level of cooperation between public, private and
neighborhood entities within the area; and
Logname: 17ED UPSEZ Page 1 of 2
3. The designation of the UPS distribution facility as an Enterprise Project will contribute significantly to
the achievement of the plans of the City for development and revitalization of the area.
If awarded an Enterprise Project designation, UPS will be eligible to apply for state sales and use tax
refunds on qualified expenditures. Based on its $45 million capital investment and 346 new and retained
jobs as part of the proposed expansion project, UPS could be eligible for a maximum refund of $2,500.00
per job annually, for up to 5 years. These state benefits have no fiscal impact on the city's general fund.
This project is located in COUNCIL DISTRICT 7, Mapsco 9P.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that this action will not increase the total
appropriations on City funds.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year (Chartfield 2)
FROM
Fund Department ccoun Project Program ctivity Budget Reference # mount
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office bv: Jesus Chapa (6116)
Originating Department Head: Robert Sturns (2122663)
Natalie Moore (2122680)
Additional Information Contact: Ossana Hermosillo (2122665)
Logname: 17ED UPSEZ Page 2 of 2