Title
Consider/Discuss/Act on a Resolution Nominating Lite-On, Inc. 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 17, 2026
DEPARTMENT: City Manager’s Office
City Attorney
CONTACT: Jennifer Arnold, AICP, Assistant City Manager
Mark Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION:
• Approve the resolution.
ITEM SUMMARY:
• The City has been approached by Lite-On, Inc., requesting nomination as an Enterprise Project under the Texas Enterprise Zone Program (“TXEZ Program”) in order to utilize 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 TXEZ 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 Lite-On, Inc., a provider of opto-semiconductors, power supply management systems, and advanced electronic products, for triple jumbo Enterprise Project status.
• 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 Lite-On, Inc. as a nominated Project pursuant to the Act.
• The proposed resolution also confirms Lite-On, Inc. 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.
• Lite-On, Inc., a subsidiary of Lite-On Technology Corporation, has purchased two industrial buildings totaling approximately 650,000 square feet at 300 and 310 Cypress Hill Drive for its North American operations. Lite-On plans to invest up to $567 million in new real property improvements and business personal property at the facilities, including improvements to the two existing buildings and new production equipment, plus an additional $150 million in research and development equipment, within five years of receiving a certificate of occupancy.
• Lite-On expects to transfer, create, and retain 600 full-time employees at the facilities with an average median salary of $91,944, including up to 250 net new full-time positions with a mean annual salary of $118,000 over the first five years.
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 AND COMMISSION SUMMARY:
• n/a