Agenda

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Item # 7.

Council Meeting

Meeting Date:	02/23/2021
Department:	Economic Development
Pillars:	Innovation in Entrepreneurship & Business
Milestones:	Leverage Addison's assets to grow and expand placemaking business programs and events that will set Addison apart to attract talent and businesses

AGENDA CAPTION:

Hold a Public Hearing, Present, Discuss, and Consider Action on a Resolution Nominating Bank of America Corporation, Located at 16001 Dallas Parkway, to the Office of the Governor, Economic Development & Tourism Through the Texas Economic Development Bank as an Enterprise Project under the Texas Enterprise Zone Act.

BACKGROUND:

Bank of America, located at 16001 Dallas Parkway in Addison, has formally requested a second nomination from the Town of Addison to be considered as a Texas Enterprise Zone Project to the Office of the Governor Economic Development & Tourism through the Texas Economic Development Bank. Bank of America is also Addison’s largest private employer with 2,200 existing jobs and occupies 554,176 square feet of space.

In 2020 the company was approved by the State of Texas as a Texas Enterprise Zone Project for a $7 million capital improvement renovation of their facility. As part of the first application, the company agreed to create an additional 10 new full-time jobs and retain 490 full time jobs in their global technology and operations center to support the bank’s global operations.

As part of the second nomination, Bank of America is investing an additional $8.5 million toward their facility in Addison. The company will consolidate several operations from other Texas locations to Addison and bring those additional positions to the community.

The Texas Enterprise Zone Program is a state supported and managed incentive program to encourage private investment and job creation in economically distressed areas or for companies who employ individuals from economically distressed areas. If selected by the State of Texas, the company would qualify for up to $1,250,000 in state sales and use tax refunds on the renovation of their location in Addison.

There is no impact to the Town of Addison aside from the increase in value of the property after it is renovated. This program is also a great retention tool that can be used by local companies. As part of the application process, the Town of Addison is required to hold a public hearing and pass a resolution supporting the project. Communities our size can nominate six projects per year, but the state will only approve 105 projects per biennium. Bank of America has engaged Ernst & Young to assist in completing the application for the company. Only two Addison companies have been approved in the past for Texas Enterprise Zone designation including Mary Kay Cosmetics and Bank of America.

Due to the recent weather event, the official letter from Bank of America could not be provided in time for the posting of this agenda. A draft of the letter, minus the official letter head and signature section, has been provided. The final letter will be available at the meeting.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Bank of America
Letter - Bank of America