Title
Consider/Discuss/Act on a Resolution Nominating Globe Life & Accident Insurance Company as a Texas Enterprise Zone Project to the Governor’s Office
Summary
COUNCIL GOAL: Strategic & Economic Growth
MEETING DATE: November 5, 2024
DEPARTMENT: McKinney Economic Development Corporation
CONTACT: Barry Shelton, Assistant City Manager
Mark Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION:
• Approval of resolution and request for nomination.
ITEM SUMMARY:
• The proposed resolution nominates Globe Life and Accident Insurance Company as a Texas Enterprise Zone Project to the Governor’s Office.
BACKGROUND INFORMATION:
• The Texas Enterprise Zone Program (EZP) is a state sales and use tax refund program designed to encourage private investment and job creation/retention. A governing jurisdiction must nominate a taxpayer via Council action 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 designations. The city has awarded two designations this biennium, which ends in June 2025.
• On August 20, 2024, the City Council approved an ordinance reaffirming the City of McKinney’s continued participation in the Texas Enterprise Zone Program and nominating Globe Life as an enterprise project. This additional resolution is needed by Globe Life to participate in the program.
• 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 $5.9MM to conduct facility infrastructure upgrades and renovations. In order to improve facility energy efficiency, the HVAC systems for the North and South Buildings will be upgraded. Other facility improvements include renovation of major hallways in the South Building and the facility’s external foundation.
• 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 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.
FINANCIAL SUMMARY:
• The TX EZ incentive has no local fiscal impact as refunds are limited to the state portion (6.25%) of the sales tax paid on taxable purchases.