In the pre-council session, the council discussed a Texas Enterprise Zone nomination for TTI Inc. The enterprise zone is an economic development tool for local communities to partner with the state to promote job creation and capital investment in economically distressed areas.
A business would be nominated by a municipality or county and then approved for state benefits. Designated projects are eligible to apply for state sales and use tax refunds on qualified expenditures. The level and amount of refund is related to the capital investment and jobs created at the qualified business site.
The new TTI distribution center is a $74.5 million investment in a 610,000-square-foot facility at 3737 Meacham Blvd. to house the company’s North American warehouse, assembly and distribution facilities. The space will have an extensive picking system with conveyors, pick modules, racking systems and a three-level carousel platform.
The investment will include $51.5 million in real property and $23 million in business personal property. Though TTI has already invested about $46 million, the remaining $28.5 million of investment qualifies TTI for a single Enterprise project designation.
The investment is expected to create at least 10 new jobs and retain about 700 jobs, although the benefit for an Enterprise project designation is capped at 500 jobs.
TTI could be eligible for a maximum refund of $2,500 per job, distributed over the five-year designation period. The maximum potential refund TTI could receive is $1,250,000 over the five years.
Under the Texas Enterprise Zone Act at least 25 percent of the business’ new or retained employees must be residents, economically disadvantaged individuals or veterans. In addition, the jobs would be provided through the end of the designation period or for at least three years after the date on which a state benefit is received, whichever is later.