From
Letecia McClendon
Title
Resolution for Flex-N-Gate Enterprise Zone Project
Presenter
Marty Wieder, Director of Economic Development
Recommended Action
Approve
Analysis
Flex-N-Gate, a Tier 1 supplier to the automotive industry, purchased the 430,188 square foot speculative shell building at 2150 West Bardin Road, Grand Prairie, Dallas County, Texas. Having started in 1956 as a small manufacturing shop, Flex-N-Gate has grown to manufacture metal and plastic original equipment components and mechanical assemblies for BMW, General Motors, Ford Motor, Nissan Motor, and Toyota Motor - ranging from advanced computerized bumper assemblies and hinges to pedal systems and instrument panels.
Flex-N-Gate is a good candidate for the Texas Enterprise Zone Program because they will retain 172 jobs, and will add an additional 615 jobs. In addition to investing over $24,000,000 in real property and upgrades, over $140,000,000 in new state-of-the-art robotic equipment will be purchased. Their facility is located in 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 Flex-N-Gate for the Texas Enterprise Zone Program.
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, DECLARING THAT FLEX-N-GATE 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 THAT THE ENTERPRISE PROJECT SHALL TAKE EFFET ON THE DATE OF DESIGNATION OF THE ENTERPRISE PROJECT BY THE AGENCY AND TERMINATE FIVE YEARS FROM THE DATE OF DESIGNATION
Whereas, 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 (EDC) through the Economic Development Bank (Bank) will consider Flex-N-Gate 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 and to other economically disadvantaged individuals;
Whereas, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas Government Code (the "Act"), Flex-N-Gate has applied to the City for designation as an enterprise project;
WHEREAS, the City finds that Flex-N-Gate meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds:
1. Flex-N-Gate 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 within the governing body’s jurisdiction located inside an enterprise zone and at least twent-five percent (25.0%) of the business' new employees will be residents of an enterprise zone or economically disadvantaged individuals; 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 Flex-N-Gate 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 Flex-N-Gate meets the criteria for tax relief and other incentives adopted by the City and nominates Flex-N-Gate 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; and
WHEREAS, the City finds that it is in the best interest of the City to nominate Flex-N-Gate 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:
The findings of the City and its actions approving this resolution taken at the council meeting are hereby approved and adopted.
BE IT FURTHER RESOLVED that Flex-N-Gate 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.
BE IT FURTHER RESOLVED that the enterprise project shall take effect on the date of designation of the enterprise project by the agency and terminate five years from the date of designation.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, THIS THE 7TH DAY OF NOVEMBER, 2017.