The URL can be used to link to this page

Home My WebLink AboutResolution 4535-11-2015 A Resolution ® 4535-11-2015 NOMINATING THE AMERICAN AIRLINES FACILITIES AT 4501 N. HIGHWAY 360; 4601 N. HIGHWAY 360; 4700 AMERICAN BLVD.; AND 13800 AIRPORT FREEWAY AS A DOURLEJUMBO ENTERPRISE PROJECT PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, OF THE TEXAS GOVERN MENT CODE WHEREAS, on November 4, 2003 the City Council of the City of Fort Worth (die "City") previously adopted Ordinance No. 15733 electing to participate in the Texas Enterprise Zone Program; and WHEREAS, on May 12, 2015 the City Council of the City, 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'rexas Enterprise Zoriie Prograrn:, and WHEREAS, the Office of the (3overnor, Economic Development and 'Fourisni (EDC), through the Economic Developmeni B ("Bank"), will consider the American Airlines, Inc. facilities at 4501 N. I lighway 360; 4601 N., flighway 360; 4700 American Blvd., and 13800 Aitj)ort Free%vay (the "ArneriCarn Airlines Facilities") as a doublejurnbo enterprise project purstiant to a nomination and an application made by the City;and WHEREAS, the City desires to pursue the creation of the proper econoinic and social environnient in order to induce the investment of private resources in produefive business cnilerprises located in the City, and to provide employment to residents of enterprise zones and to other econornicafly disadvantaged individuals and velerans; and WHEREAS,pursuant to Chapter 2303, Subchapter of the're xas I�Aterprise Zone Act, Texas Government Code (the "Act), Arnerican Airlines, Inc. has aj.)plicd to the City.4 for designation as a double juiinbo enterprise project; and WHEREAS, the C4 finds that the Arnerican Airlines Facilities meet the criteria for designation as a double junibo enterprise project under("hapter 2303, Subehapter F of the Act on the IbIlowing grounds: 1. American Airlines, 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 Imsiness at qualified business sites 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 empk)yces, will be residents of an enterprise gone,„ economically(JiS&dVarjltaged individuals or veterans, and 2. There has been and will continue to be a. high level of cooperation between public, private, and neigjiborhood entities within the area; and 3. The designation of the American Airlines F'acilities as a double jun'ubo enterprise project will contribute signiticanfly to the achievement of the plans of the City for development and revitalization of the area-, and WHEREAS,the City finds that American Airlines, Inc. meets the criteria for tax.for tax relief and other incentives adopted by the City and norninates the American Airlines J.,acilities for double jumbo enterprise project status on the grounds that.they are located at quallified business sites and will create a higher level of employment, economic activity and stabilil in the area; and y WHEREAS,the City.finds that it is in the best interest of the City to nominate the American Airlines F'acilities as a double jumbo enterprise pr(Ject pursuant to the Act; NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: I. THAT the findings of the City and its actions approving this R.esolution taken at the City Council. meeting on the date below are hereby approved and adopted. 2. THAT American Airlines, Inc. is a "qualified business," as defnicd in Section 2303.402 of the Act, and that the American Airlines Facilities meet the cu-iteria for designation as a double jumbo enterprise project, as set forth in Section 2303, Subchapter F of the Act, 3. THAT the double g ation of the ,jumbo enterprise project:ject shall take effect on the date of desigri enterprise project by the Bank and tenninate five(5)years after the date of designation. Adopted this..1.7 th day of Novenlbgr� 2015. "D�'a ................. ........... -AIX444 -C;�t 'F�ortr 4>1 0 0 000. ATTEST- 0 0 "d A0 By' .. .... ............... ... tary 00, 0. Mary J. se IS c %*�"00 0 lei *00000® RTWOWI it of Fort Worth, Texas Mayor and Council Communication mimo�NN11111 I. 11' COUNCIL ACTION: Approved on 11/1712015 - Resolution No. 4535-11-2015 & 4536-11-2015 DATE: Tuesday, November 17, 2015 REFERENCE NO.: **G-18606 LOG NAME: 17ED AMERICANAIRL INESEZ SUBJECT: Adopt Resolution Nominating the American Airlines, Inc,,, Facilities at 4255 and 4333 Amon Carter Boulevard as a Single Enterprise Project and the American Airlines, Inc., Surrounding Facilities at 4501 and 4601 N. Highway 360, 4700 American Boulevard and 13800 Airport Freeway, as a Double Jumbo Enterprise Project, Pursuant to Chapter 2303 oft e Texas Government Code (COUNCIL DISTRICT 5) .......... ............ RECOMMENDATION: It is recommended that the City Council,- 1. Adopt the attached Resolution nominating the American Airlines, Inc., facilities at 4255 Amon Carter Boulevard and 4333 Amon Carter Boulevard, as a Single Enterprise Project, pursuant to Chapter, 2303 of the Texas Government Code; and 2. Adopt the attached Resolution nominating the American Airlines, Inc., surrounding facilities at 4501 N. Highway 360, 4601 N Highway 360, 4700 American Way and 13800 Airport Freeway, as a Double Jumbo Enterprise Project, pursuant to Chapter,2303 of the Texas Government Code. .................. .......... ..................... . ........... DISCUSSION: American Airlines, Inc. (American Airlines), is a commercial airline engaged in carrying passengers and cargo domestically and internationally, American Airlines' headquarters were relocated to Fort Worth from New York City in July and August of 1979. American Aii lines is held by American Airlines Group which also holds US Airways, American Eagle and US Airways Express, American Airlines Group operates an average of nearly 6,700 flights per day to more than 330 destinations in 54 countries. 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 American Airlines facilities 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 Resolutions establish the City Council's findings that the American Airlines headquarter facilities meet the criteria for designation as a Single Enterprise Project, as well as a Double Jumbo Enterprise Project, Linder,Chapter 2303, Subc�hapterr F oft e Act on the following grounds: 1. American Airlines is a " qualified business," under Section 2303.402 oft e 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 1,og net ne: 17ED AM.E1R1CA.NA1R.LfNESEZ Page I of 2 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, ecoinornicWly disadvantaged individuals and 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 3. The designation of the American Airlines current Headquarters as a Single Enterprise Project and American Airlines Surrounding Facilities as a Double Jurnbo Enterprise Project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area. If awarded the recornmended Enterprise Project designations, American Airlines will be eligible to apply for state sales and use tax refunds on qualified expenditures, If the Single Enterprise Project is awarded its designation, based on a $16 to $18 million capital investment and 4,200 retained jobs, American Airlines could be eligible for a maximum refund of $2,500.00 per job annually for up to 5 years. If the Double Jumbo Enterprise Project is awarded its designation, based on an additional $155 million capital Investment and an additional 4,673 new and retained jobs, American Airlines could be eligible for a maximum refund of $5,000.00 per job annually for up to 5 years. These state benefits will have no fiscal impact on the City's General Fund. This project is located in COUNCIL DISTRICT 5. ....................... ......— FISCAL INFORMATION I CERTIFICATION: The Financial Management Services Director certifies that this action will not increase the total appropriations of City funds. ........... FUND IDENTIFIER5 JFIDs TO Fund Department riii 14 C-"c 6 tirii�"-Oi6j e"6'i ----------------- Reference u 10rogramActiv-ii�lii§'ddi6"i ....... ID ID Year (Chartfield .......... ............... . ................................ .......... FROM Fund 6'e-p-a n t "c'--0-- O'r6j c't ragram ct'vity ""udget Reference # mount ID Year f hartfield -1................................................ .......... ............... ...... .... CERTIFICATIONS: Submitted for-Qfty-Manaq s Office b) Jesus Chapa (6116) Originating Department Head: Robert Sturns (2122663) Ossana Hermosillo (2122665) Additional Information Contact: Natalie Moore (2122680) Lo name: 17ED AMERICANA I R LINESEZ Page 2 af 2