HomeMy WebLinkAboutResolution 4536-11-2015 A Resolution
NO. 453641-201.5
NOMINATING THE AMERICAN AIRLINES, INC. FACILITIES
AT 4255 AMON CARTER BLVD. AND 4333 AMON CARTER BLVD.
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 ("ouncil ofthe City of For: Worth (the "City") previously adopted
Ordinance No. 15733 electing to participate in the Texas 1'Interprise Zone 11rogr-an't; and
WHERFAS, on May 12, 2015 the City Council of the City adopted Ordiriancle No. 21743�-05-2015 amending
Ordinance No. 15733 by adding additional potential local incentives that could be made availalde to qualified
businesses under the Texas I�1'nterprise Zone Program; and
WHEREAS, the Office of the Governor, l,"conoinic Developrrietit and Tourism (f..�IDQ, through the 11conoriiic
Development Bank("Bank"), will consider the American Airlines, Inc. facilities at 42.5.5 Amon Carter Blvd. and
4333 Amon Carter Blvd. (the "'American Airlines Facilities") as an enterprise ]')I.(JeCtr pursuant to a nomination
and an application made by the City; and
WHEREAS, the City desires to pursue the creation of the proper econornic and social environment in order to
induce the investment of private resources in pr(!0L1Ctive business enterprises located. in the City and to pirovide
ernpknyrnent to residents of erneq)rise zones and to other econonfically disadvantaged individuals and veterans,
and
WHEREAS, ptirsiAant to Chapter 2303, Subchapter F of the Texas 1,1'nterprise Zone Act,Texas Government Code
(the"Act"), American Airlines,Inc. has applied to the City for desigtialion as an enterprise project;and
WHEREAS, the City finds that the American Airlines Facilities meet the criteria for designation as an enterprise
prqject under Chapter 2303, Subehapter F of the Act on the foltowing grounds-
I. American Airlines,, Inc., is a "4,pmlifiedi business" under Section 2303.402 of the Act since it will be
engaged in the active conduct of a trade or business 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 einployees 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 cooperation between public, private, and
neighborhood entities within the area; and
3. The designation of the American Airlines Facilities as an enterprise project will contributre
significantly to the achievement of the plans of the City for dr(.1velopment and revitalization of the area,-,
and
WHEREAS, the City finds that Aniedcan Airlincs, Inc., ineets the criteria for tax for tax relief and other
incentives adopted by the City and noininates the Anterican. Airlines 1,acilities for enlei.pi°ise project status on the
grounds that they are located at qualified business sites and will create a higher level of employnient, econornic
activity and stability in the area-- and
WHEREAS,the City finds that it is in the best interest of the City to nominate the Ain c.ficani Airlines Facilifies as
an enterprise project pursuant to the Act;
NOW,TIJEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
1'EXA.S:
F. THAT the findings of the City and its actions approving this R.esolution.taken at the City("'ouncil
ineeting on the date below are hereby approved and adopted.
2. THAT American Airlines, Inc. is a "qualified business," as defi ned in Section 2303.402 of the
Act, and that the Ainerican Airlines Facilities meet the criteria for desipjiation 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 ofthe enterprise project
Fry the Bank and temiinate five(5)years after the date of designation.
Adoptedthis.17 th day of'Novenibet, 2015. "a4A
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Cty of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 11/17/2015 - Resolution No. 4535-11-2015 & 4536-11-2015
...11 11111l000 ww
DATE: Tuesday, November 17, 2015 REFERENCE NO.: **G-18606
LOG NAME: 17ED AMERICANAIRLINESEZ
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 of the 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 Codey 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 Airlines 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, Linder 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 20,15, M&C G-118473). The Office of the Governor Economic
Development and Tourism through the Economic Development an 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, under Chapter 2303, Subchapter F of the Act on the following grounds"'
1, American Airlines 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
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jurisdiction urisdiction 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 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 Jumbo Enterprise Project will contribute significantly
to the achievement oft e plans of the City for development and revitalization aft e area.
If awarded the recommended 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 $5,000.00 per job annually for up to 5 years, These state benefits will have no fiscal
impact on the City's General Fund.
This project is located in COUNCIL DISTRICT 5.
..........
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that this action will not increase the total
appropriations of City funds.
FUND IQENTIEIER$_fFIDs
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CERTIFICATIONS:
SgbrqLftted fpr Ciity_MAna q! s Offig"b Jesus Chapa (6116)
069:1nakftin DpIp Robert Sturns (2122663)
Artment Hea#,
Ossana Hermosillo (2122665)
Additional Information Pon tact. NatWie Moore (2122680)
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