Title
Conduct a Public Hearing to Consider/Discuss/Act on an Ordinance Reaffirming the City of McKinney’s Continued Participation in the Texas Enterprise Zone Program and Nominating Globe Life and Accident Insurance Company to the Office of the Governor Economic Development and Tourism Through the Economic Development Bank as an Enterprise Project
Summary
COUNCIL GOAL: Strategic & Economic Growth
MEETING DATE: August 20, 2024
DEPARTMENT: City Manager
CONTACT: Mark Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION: Approval of Ordinance
ITEM SUMMARY:
• The proposed ordinance amends the current Ordinance No. 2017-11-101 to include updated language required by the Governor’s Office. The language being added also states that the governing body is in full compliance with Chapter 2303, of the Texas Government Code prior to the nomination of an eligible business. In addition, the updated ordinance also nominates Globe Life and Accident Insurance Company as a Texas Enterprise Project to the Governor’s Office
BACKGROUND INFORMATION:
• The Texas Enterprise Zone Program (EZP) is a State initiated sales and use tax refund program designed to encourage private investment and job creation/retention. A governing jurisdiction must nominate a taxpayer by City Council action in order to participate in the Program. The City of McKinney has been participating in the Program since 2010. Each biennium, the City is allowed to award six (6) designations. The City has not awarded any designations this biennium, which ends in June 2025.
• Globe Life & Accident Insurance Company (“GLAIC”), a wholly owned subsidiary of Globe Life Inc., operates as a life and health insurance company licensed in 49 states. Over the next five years, GLAIC and Globe Life commit to the investment of approximately $25MM to overhaul its technology infrastructure. The major technology investments will involve the implementation of Workday Enterprise Resource Planning (ERP) and the Producer Lifecycle Management (PLCM) software to improve financial and human resource management, as well as enhance operational efficiency. Additionally, the company is planning to acquire new computers, laptops, and monitors. GLAIC and Globe Life currently employ 2,031 employees assigned to the McKinney facility. Of those jobs, 1,043 meet the definition of a “retained job” in the Texas Government Code. Given the proposed investment, no layoffs or reductions in employment are contemplated and GLAIC and Globe Life commit to retain the existing level of employment. Moreover, an additional 10 full-time employment positions will be created as part of this planned investment.
• The MEDC has also assisted in bringing this nomination forward.
FINANCIAL SUMMARY:
• The TX EZ incentive has no local fiscal impact on the City of McKinney as refunds are limited to the state portion (6.25%) of the sales tax paid on taxable purchases
BOARD OR COMMISSION RECOMMENDATION: N/A