Title
Consider approving Resolution No. 2026-112 nominating Trinity Industries, Inc. as a Texas State Enterprise Zone Project; and take appropriate action.
Body
REQUESTOR:
Economic Development Department
BACKGROUND:
The Texas Enterprise Zone Program (TEZ) is a State economic development initiative that promotes job creation and capital investment in economically distressed areas. Ordinance No. 2775, later amended by Ordinance No. 3542, established the City of Farmers Branch's participation in the TEZ Program and authorized the provision of economic incentives for qualifying projects. The City is eligible to nominate up to six Enterprise Project designations during each Biennium cycle. Biennium 2025-2027 commenced on September 1, 2025. Currently, three designations are in use. Approval of the proposed designation would leave three allocations available to the City through August 31, 2027.
Trinity Industries, Inc., headquartered in Farmers Branch, has applied for designation under the TEZ Program. The company employs approximately 460 individuals at its local headquarters and anticipates investing more than $20 million at its headquarters over the next 5 years in software and IT system upgrades, as well as other facility updates.
If designated as an Enterprise Project, Trinity Industries, Inc. would be eligible to receive up to $1.25 million in State sales and use tax refunds over a five-year designation period. The State may also grant a potential refund of $2,500 for each new and retained employee, up to a maximum of 500 employees.
DISCUSSION:
Pursuant to Chapter 2303, Subchapter F of the Act, Trinity Industries, Inc. has applied to the State of Texas for a Texas Enterprise Zone grant. The State of Texas administers the program, and the local municipality nominates projects. State sales tax, not the local municipality's sales tax, is rebated for the project. The City of Farmers Branch nominates the project, and the State of Texas funds the grant. The amo...
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