|Official site of the City of Fort Worth, Texas|
|City Council Agenda|
|COUNCIL ACTION: Approved on 2/12/2019 - Resolution No. 5062-02-2019|
|DATE:||2/12/2019||REFERENCE NO.:||C-29042||LOG NAME:||17TABENEKEITH|
|SUBJECT:||Authorize Execution of a Tax Abatement Agreement with Ben E. Keith Company or an Affiliate for an Expansion of its Food Distribution Operations on Property Located at 7650 Will Rogers Boulevard and Adopt Resolution Nominating this Project as an Enterprise Project Pursuant to Chapter 2303, Texas Government Code (COUNCIL DISTRICT 8)|
It is recommended that the City Council:
1. Authorize the City Manager to execute a Tax Abatement Agreement with Ben E. Keith Company or an affiliate for an expansion of its food distribution operations on property located at 7650 Will Rogers Boulevard;
Ben E. Keith Company, or an affiliate (Company) intends to construct an approximate 185,000 square foot expansion of office and warehouse facilities to support expanded operations at its existing food distribution facility located at 7650 Will Rogers Boulevard in Carter Industrial Park. The proposed expansion would involve a minimum investment of $22 million in total construction costs and would lead to the hiring of at least 283 net new jobs at the facility.
Utilization of Fort Worth Companies and Fort Worth Certified M/WBE Companies (Construction):
Utilization of Fort Worth Companies (Supply & Services):
TABLE IV-I Maximum Potential Abatement with Corresponding Components:
Resolution Nominating this Project as an Enterprise Project
The City Council previously adopted Ordinance No. 15733 electing to participate in the Texas Enterprise Zone Program. On May 12, 2015, the City Council 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 Texas Enterprise Zone Program. The Office of the Governor Economic Development and Tourism through the Economic Development Bank will consider Company 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.
Company qualifies for a single Enterprise Project Designation. The single project designation allows for a state sales and use tax refund on qualified expenditures of $2,500 per job, for up to 500 jobs, with a maximum benefit of $1.25 million over a five year period. Under the Texas Enterprise Zone Act at least twenty-five percent of the business' new or retained employees will be residents of an enterprise zone, economically disadvantaged individuals, or veterans. 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.
This project is located in COUNCIL DISTRICT 8.
The Director of Finance certifies that upon approval, the tax abatement provided under this agreement will be built into the City's long-term financial forecast for Business Personal Property Tax with a maximum estimated abatement of $877,392.00.
|Submitted for City Manager's Office by:||
|Originating Department Head:||
|Additional Information Contact:||
|Form 1295 - Signed_Redacted.pdf|