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 of 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: November 3, 2026
DEPARTMENT: City Manager’s Office
City Attorney
CONTACT: Jennifer Arnold, AICP, Assistant City Manager
Mark Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION:
• Approval of the resolution nominating Encore Wire and its upcoming expansion for Enterprise Project status pursuant to the Texas Enterprise Zone Program.
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 confirms that the incentives identified therein have been considered by the City Council on this date and are the same incentives that will or may be made available to Encore Wire 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 opened a 720,000 square foot service center, which was nominated by the City as a Texas Enterprise Project in 2020. Encore Wire is completing a campus expansion project which includes the addition of a 650,000+ square foot medium voltage cable production facility to support growing demand for electrification and power grid projects in the United States. In addition, the company plans further capital investment in the McKinney campus, including a 250,000 square foot Medium Voltage Service Center scheduled to begin construction in late Q4 2026 and a 182,000 square foot rod mill facility scheduled to begin construction in early Q1 2027. The Medium Voltage Service Center is expected to require approximately $65 million in total capital investment, including approximately $55 million for the building and the balance for equipment. The rod mill facility is expected to require approximately $200 million in total capital investment, including approximately $135 million for the building and $65 million for equipment. These projects represent additional investment beyond the approximately $250 million associated with the prior campus expansion project. This continued investment will help to retain the existing workforce as well as unlock the potential for new jobs in the future.
FINANCIAL SUMMARY:
• The TX EZ incentive has no local fiscal impact to the city as refunds are limited to the state portion (6.25%) of sales tax paid on taxable purchases.
BOARD OR COMMISSION RECOMMENDATION:
• N/A