(CD 10) Conduct Public Hearing and Adopt an Ordinance Designating Tax Abatement Reinvestment Zone No. 115; Authorize Execution of a Ten-Year Tax Abatement Agreement with Stellar Energy Americas, Inc., or an affiliate, for Development of a Manufacturing Facility to be Located on Property within Tax Abatement Reinvestment Zone No. 115 at 15060 Blue Mound Road, Fort Worth, Texas, in Denton County (PUBLIC HEARING - a. Staff Available for Questions: Cherie Gordon; b. Public Presentations; c. Council Action: Close Public Hearing and Act on M&C)

Summary

The City Council will conduct a public hearing and consider adopting an ordinance to designate Tax Abatement Reinvestment Zone No. 115. This zone encompasses approximately 66 acres at 15060 Blue Mound Road in Denton County. The purpose is to facilitate the development of a manufacturing facility by Stellar Energy Americas, Inc., or an affiliate. The proposed tax abatement agreement is for ten years, with the city abating up to 60% of incremental City ad valorem and business personal property taxes on completed real property improvements and business personal property. The company commits to a minimum investment of $34,000,000.00 in real property improvements by December 31, 2026, and installing new business personal property valued at $45,500,000.00 by January 1, 2027. Additionally, the company must create a minimum of 1,420 full-time jobs with an average salary of at least $78,000.00 by December 31, 2027, and maintain them for the duration of the agreement. A commitment to spend at least 30% of real property improvement costs with small businesses is also required. The zone designation is valid for five years and may be renewed. The projected net new incremental property tax revenue to the City over the ten-year abatement period is $1,918,876.00.

Citizen Impact

This agreement aims to bring a new manufacturing facility and over 1,400 jobs to the area, with a commitment to using small businesses for a portion of construction costs. Residents may see increased economic activity, but the direct impact on city services or taxes is expected to be minimal, with the city projecting net new tax revenue over the abatement period.

Confidence

high