The new TTI, Inc., Distribution Center (TTI) comprises a $74,500,000.00 investment in a 610,000 square foot facility. The facility, located at 3737 Meacham Boulevard, will house the company's North American warehouse, assembly and distribution facilities. The space will feature an extensive picking system with conveyors, pick modules, racking systems and a three-level carousel platform. The investment will include $51,500,000.00 in real property and $23,000,000.00 in business personal property. The investment will result in the creation of at least 10 new jobs and retention of 700 jobs. 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 TTI 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 TTI meets the criteria for designation as an Enterprise Project, under Chapter 2303, Subchapter F of the Act on the following grounds: 1. TTI 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 within an enterprise zone and at least 25 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
3. The designation of the TTI 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, TTI will be eligible to apply for state sales and use tax refunds on qualified expenditures. Though TTI has already invested approximately $46,000,000.00, the remaining $28,500,000.00 of investment qualifies TTI for a single Enterprise Project Designation. TTI will retain a minimum of 700 jobs and create 10 new jobs, for a total of 710 jobs. As part of the anticipated investment, TTI could be eligible for a maximum refund of $2,500.00 per job, distributed over the five year designation period. The maximum potential refund TTI could receive is $1,250,000.00 over the five year designation period. These state benefits have no fiscal impact on the City's general fund. This project is located in COUNCIL DISTRICT 4, Mapsco 50N. This M&C does not request approval of a contract with a business entity. |