R-2010-15 nominate E. I. du Pont de Nemours and Company (DuPont) as a Texas Enterprise Zone project

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: 7/26/2010 Requested By: Stacey Osborne Department: Administration Report: Resolution: X Ordinance: A{lpropriation Source of Funds: Account Number: Exhibits: Texas Enterprise Zone Resolution Exhibits: Ordinance # 2010-3248 Amount Budgeted: Amount Requested: Budgeted Item: YES NO Exhibits: Texas Enterprise Zone Overview SUMMARY & RECOMMENDATION The Texas Enterprise Zone is an economic development program that allows local communities to partner with the State of Texas to promote job creation/retention and capital investment in economically distressed areas of the state. Companies that wish to apply for Texas Enterprise Zone project designation must have the nomination of a local community in order to participate. Companies can participate by either creating or retaining jobs, and they must commit to a minimum capital investment of $40,000 and creation or retention of a minimum of 10 jobs. The City of La Porte passed Ordinance Number 2010-3248 on May 10,2010 authorizing the City's participation in the Texas Enterprise Zone program. At that time Council also nominated Invista as an Enterprise Zone project. Tonight we are asking Council to pass a resolution nominating E. I. du Pont de Nemours and Company ("DuPont") as a Texas Enterprise Zone project. The company is applying with a job retention project, and they have committed to a capital investment of $70M and to the retention of 490 jobs over the next five years. We brought this project to Council as a workshop item on July 12,2010, introducing DuPont and asking for Council's guidance on moving forward. Kenneth Martin, a Senior Consultant from DuPont, and George Francis, a Director at Deloitte Tax LLP, answered questions and explained how the DuPont project qualifies as a Texas Enterprise Zone project. After speaking with Mr. Martin and Mr. Francis, Council suggested that we bring the resolution forward for a vote. Representatives from DuPont and Deloitte are here this evening to answer any questions you may have, and we have included an overview of the Texas Enterprise Zone program for your information. Ron Bottoms, City Manager 711~;;b date .