From
Terry Jones
Title
Resolution nominating Gruma Corporation dba Mission Foods as an Enterprise Zone Project
Presenter
Marty Wieder, Economic Development Director
Recommended Action
Approve
Analysis
Gruma Corporation dba Mission Foods is a leading global food production company offering a variety of products, including corn and flour tortillas, wheat flour products and flat breads. Since August 2016, Mission Foods has been consolidating its existing regional manufacturing operations by creating a major distribution hub and production facility in Grand Prairie with 775,000 square feet of space. Mission Foods is currently looking at an expansion that would provide sufficient production capacity for increased demand in the U.S.
Mission Foods is a good candidate for the Texas Enterprise Zone Program since they will retain 411 full-time jobs and add an additional 594 full-time jobs phased over a period of years. In addition to investing $50,000,000 in real property upgrades, Mission Foods will purchase more than $128,000,000 in new, state-of-the art production equipment to accommodate 11 new product production lines. Their facility is already located within an Enterprise Zone; therefore, they will be committed to hiring 25% economically disadvantaged and enterprise zone residents.
Financial Consideration
No City funds are required to nominate Gruma Corporation dba Mission Foods for the Texas Enterprise Zone Program.
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, NOMINATING GRUMA CORPORATION DBA MISSION FOODS AS AN ENTERPRISE ZONE PROJECT
Whereas, the City Council of the City of Grand Prairie (‘City”) has previously passed Ordinance No. 7358 electing to participate in the Texas Enterprise Zone Program; and the local incentives offered under this Resolution are the same on this date as were outlined in Ordinance No. 7358;
Whereas, the Office of the Governor Economic Development and Tourism, through the Economic Development Bank, will consider GRUMA Corporation dba Mission Foods as an enterprise project pursuant to a nomination and an application made by the City;
Whereas, the City desires to pursue the creation of the proper economic and social environment in order to induce the investment of private resources in productive business enterprises located in the city and to provide employment to residents of enterprise zones, veterans and to other economically disadvantaged individuals;
Whereas, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas Government Code (the "Act"), GRUMA Corporation dba Mission Foods has applied to the City for designation as an enterprise project;
WHEREAS, the City finds that GRUMA Corporation dba Mission Foods meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds:
1. GRUMA Corporation dba Mission Foods is a "qualified business" under Section 2303.402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site located inside an enterprise zone and at least twenty-five percent (25%) of the business' new employees will be residents of an enterprise zone, economically disadvantaged individuals or veterans; and
2. There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities within the area; and
3. The designation of GRUMA Corporation dba Mission Foods as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area.
WHEREAS, the City finds that GRUMA Corporation dba Mission Foods meets the criteria for tax relief and other incentives adopted by the City and nominates GRUMA Corporation dba Mission Foods for enterprise project status on the grounds that it will be located at the qualified business site, will create a higher level of employment, economic activity and stability in the area;
WHEREAS, the City finds that it is in the best interest of the City to nominate GRUMA Corporation dba Mission Foods as an enterprise project pursuant to the Act.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of GRAND PRAIRIE, Texas that:
Section 1. The findings of the City and its actions approving this resolution taken at the council meeting are hereby approved and adopted.
Section 2. GRUMA Corporation dba Mission Foods 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.
Section 3. The enterprise project shall take effect on the date of designation of the enterprise project by OOGEDT and terminate five years from the date of designation.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, February 19, 2019.