Title
Consider/Discuss/Act on a Resolution Nominating Encore Wire Corporation to the Office of the Governor, Economic Development and Tourism and the Economic Development Bank for Designation as a Qualified Business and Enterprise Project Under the Texas Enterprise Zone Program Under the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
(1C: Provide a strong city economy by facilitating a balance between industrial, commercial, residential and open space)
MEETING DATE: August 17, 2021
DEPARTMENT: Development Services
City Manager’s Office
City Attorney
CONTACT: Michael Quint, Executive Director of Development Services
Barry Shelton, Assistant City Manager
Mark Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION:
• Approve the resolution.
ITEM SUMMARY:
• The City has been approached by Encore Wire, requesting nomination as an Enterprise Project under the Texas Enterprise Zone Program (“Program”) in order to utilize additional incentives available through the State of Texas.
• The City held a public hearing on November 29, 2017, in conjunction with the adoption of Ordinance 2017-11-101 reaffirming the City’s continued participation in the Program pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code, (“Act”), and identifies the local business and tax incentives that may be available, at the election of the City Council, to any nominated “Project” or “Activity,” as those terms are defined by the Act.
• The proposed resolution nominates Encore Wire’s upcoming expansion for Enterprise Project status.
• The proposed resolution confirms that the incentives identified in the proposed resolution considered by the City Council on this date are the same incentives that will or may be made available to Medical Center McKinney as a nominated Project pursuant to the Act.
• The proposed resolution also confirms Encore Wire is a "qualified business", as defined in Section 2303.402 of the Act, and meets the criteria for designation as an enterprise project, as set forth in Section 2303, Subchapter F of the Act; and provides that the Enterprise Project will take effect on the date of the designation of the enterprise project by the Office and terminate five (5) years from the date of designation.
BACKGROUND INFORMATION:
• The City desires to create the proper economic and social environment to induce the investment of private resources in productive business enterprises.
• The Texas Enterprise Zone program is an economic development tool for local communities to partner with the State of Texas to encourage job creation and capital investment in economically distressed areas of the state.
• For a business to receive state tax incentives under the Texas Enterprise Zone Program, the local community must nominate it for enterprise project designation.
• Encore Wire recently opened a new 720,000 square foot service center, which was nominated by the City as a Texas Enterprise Project in 2020. Encore Wire now plans to convert its old distribution center into a new manufacturing plant to produce commercial and industrial wire. Equipment and machinery for the new plant is estimated to cost over $60 million and will help to retain the existing workforce as well as unlock the potential for new jobs in the future.
FINANCIAL SUMMARY:
• None.
BOARD OR COMMISSION RECOMMENDATION:
• N/A