TOWN STAFF REPORT RECOMMENDATIONS
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Discuss, consider and act to approve Resolution 25-06, a Resolution by the Town Council of the Town of Westlake, Texas, approving the participation of the Town in the Texas Enterprise Zone Program pursuant to the Texas Enterprise Zone Act, Chapter 2303 of the Texas Local Government Code, as amended; nominating Charles Schwab & Co., Inc. to the Governor’s Office for Economic Development and Tourism as a Triple Jumbo Enterprise Project through the Economic Development Bank; and authorizing the Town Manager or Designee to execute any related documents in support of that nomination. (Jason Alexander, AICP, CEcD, Deputy Town Manager)
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STAFF: Jason Alexander, AICP, CEcD, Deputy Town Manager
BACKGROUND:
Pursuant to Ordinance No. 946 --- adopted by the Town Council on April 25, 2022, the Town of Westlake found that Charles Schwab & Co., Inc., met the criteria established by the provisions of Chapter 2303, Subchapter F, of the Texas Enterprise Zone Act (the “Act”) to request nomination as an “Enterprise Project” as such is defined in the Act.
To receive additional economic development incentives through the Economic Development Bank (the “Bank”) in the Office of the Governor Economic Development and Tourism, the Town of Westlake must nominate a “Qualified Business” as such is defined in the Act.
By Ordinance No. 946, the Town of Westlake nominated Charles Schwab & Co., Inc., as a Qualified Business; and, as such, Charles Schwab and Co., Inc., is eligible for additional economic development incentives offered through the Bank. The focus of the economic development incentives offered through the Bank is a refund of the State sales and use tax to “encourage private investment and job creation in economically distressed areas.”
As Charles Schwab & Co., Inc., is a globally recognized leader in investment and related financial services, it is growing and would be eligible to receive additional economic development incentives and benefits from the Bank if nominated by the Town of Westlake. Should the Bank --- with a nomination from the Town of Westlake vis-à-vis Resolution No. 25-06 --- provide additional economic development incentives and benefits to support the expansion of Charles Schwab & Co., Inc., the State would also be investing in the continued economic development and economic growth of Westlake. The increase in employment opportunities would encourage increased investment from new businesses including lodging, restaurant, and retail users.
As presented, Resolution No. 25-06 would nominate Charles Schwab & Co., Inc. to the Bank as a Triple Jumbo Enterprise Project, meaning that the company would be eligible to receive the maximum refund allocation per job created. It should be noted that the State would refund up to $7,500.00 per each job created up to a maximum amount of $3,750,000.00. This refund does not impact --- nor does it reduce --- any of the portion of sales and use tax collected and distributed to the Town of Westlake. The refunds will come directly from the State’s portion of the sales and use tax collected.
DISCUSSION:
A resolution nominating Charles Schwab & Co., Inc., as Triple Jumbo Enterprise will not impact the portion of the sales and use tax collected by the Town of Westlake.
FISCAL IMPACT:
N/A.
OFFICE OF THE TOWN MANAGER RECOMMENDATION:
The Office of the Town Manager recommends approval of the Resolution as presented.
ATTACHMENT(S):
1. Resolution 25-06
TOWN COUNCIL ACTION / OPTIONS:
1) Motion to approve;
2) Motion to approve with amendments;
3) Motion to deny; or
4) Motion to table to a specific date.