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HomeMy WebLinkAboutItem 04 - Game Stop �R � � , , � � /� i I �:�'� ame �o � July 20, 2010 Mr. Bruno Rumbelow City Manager City of Grapevine 200 South Main Street P.O. Box 95104 Grapevine, Texas 76099 Re: Request for Job Retention Benefits for GameStop, Inc. Grapevine, Texas Enterprise Project Application—Tab 14 Dear Mr. Rumbelow: GameStop is pleased to present the relevant information required by Chapter 2303 of the Texas Government Code for your consideration and nomination of GameStop's Grapevine facilities as an Enterprise Project for job retention benefits. GameStop traces its roots to Babbage's, a small software retailer that started in Dallas, Texas. The metamorphosis from Babbage's into GameStop began with a series of inergers. The first was with Software Etc., a deal in which businessman Leonard Riggio, formed Babbage's Etc. LLC. In 1999, Babbage's Etc. was sold to Barnes & Noble. The next merger was with Funco, Inc., which was acquired by Barnes & Noble in June 2000. Following this acquisition, Babbage's Etc became a wholly-owned subsidiary of Funco. At the end of 2000, Funco changed its name to GameStop. In late 2004, GameStop spun off from Barnes &Noble with its buy back - of six million shares of stock from the boolc seller. GameStop then proceeded to acquire Electronics Boutique (EB Games) in 2005, and purchased Rhino Video Games from Blockbuster in January 2007. Walk into any GameStop store worldwide and you'll feel the excitement. We are serving a larger and more diverse population than ever before, and are fully committed to bring power to the players whoever and wherever they are. This goal motivates us and guides what we do at every level, strengthening the GameStop brand experience for our customers and growing value for all of our shareholders. Our worldwide headquarters is located at 625 Westport Parkway in 625 Westport Parkway s Grapevine, TX 76051 ♦ 817-424-2000 0 817-424 2820 � '!c� . Mr. Bruno Rumbelow City of Grapevine July 20, 2010 Page 2 Grapevine, Texas, and we have distribution centers in Kentucky and Texas. To help support our business, we have regional offices strategically placed alound the globe. GameStop has dutifully worked for years to create the "GameStop Nation," a massive audience of players made up of thousands of local game communities around each store. We reach the GameStop Nation through multiple touch points, from personal, in-store service, to our popular website that allows customers to pre-order games they know will sell off the shelves. Our Game Informer is the largest video game publication in the United States, offering a range of tips and game reviews to more than 4 million paid subscribers. GameStop operates more than 6,500 stores across the United States and in 17 countries worldwide that include Australia, Austria, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Norway, Puerto Rico, Portugal, Spain, Sweden, Switzerland, United Kingdom and New Zealand. GameStop also operates stores in Canada and in limited U.S. marlcets under the EB Games moniker. More than 45,000 team members around the world help us maintain our GameStop Nation. In addition to our headquarters at 625 Westport Parkway, GameStop recently invested over $7 million for a 180,000 square feet product refurbishment and distribution warehouse at 2200 William D. Tate Avenue in Grapevine. As a result of increased sales of refurbished games, gaming consoles, equipment, and accessories GameStop needed to expand its refurbishing operations. Without room for expansion at the headquarters, but with a desire to keep our core operations in Grapevine, GameStop chose to purchase the 2200 William D. Tate Avenue property recently vacated by Avnet, Inc. when their Grapevine distribution and assembly operations were moved to Nogales, Mexico and Chandler, Arizona. The used games and equipment acquired by GameStop will be sent to the new Grapevine facility to be refurbished and resold through GameStop's retail outlets and its website www.ramestop.com. The investment in this new facility qualifies GameStop to seek one of the state's limited Enterprise Project designations. In order to piusue that designation, GameStop is respectfully requesting that the City of Grapevine nominate GameStop to the state for Enterprise Project status. Section 2303.406(a)(4)(D) of the Texas Government Code allows a project or activity of a qualified business to be designated an Enterprise Project and receive job retention benefits if the company has clearly demonstrated that "the business is able to employ individuals in accordance with Section 2303.402." GameStop qualifies for job retention benefits under this statutory provision because GameStop is an Equal Opportunity Employer and the Grapevine locations will use a proprietary, voluntary questionnaire to actively tracic its new-hires to determine hiring patterns. Additionally, GameStop will geo-code its new-hires to identify employees that reside in state Enterprise Zones. The data collected from the questionnaires and geo-coding will be used to establish a best-practices model for hiring employees in accordance with Section 2303.402. � _} � . Mr. Bruno Rumbelow City of Grapevine July 20, 2010 Page 3 GameStop's Grapevine headquarters are in Census Tract 1137.06, Blocic Group 1, in the City of Grapevine with a 0.0% poverty level, and the new facility at 2200 William D. Tate Avenue is in Census Tract 1136.20, Block Group 1, in the City of Grapevine with a 2.76% poverty level as defined by the U.S. Census for 2000. GameStop commits to hiring thirty-five percent (35%) economically disadvantaged persons or enterprise zone residents, for its new or replacement personnel, for certified jobs during its Enterprise Project designation. As of April 26, 2010, GameStop employed approximately 1,952 full-time employees at its Grapevine facility. GameStop expects to maintain its existing level of employment and retain all of its existing full-time jobs for benefit under its Enterprise Project designation. These jobs meet the definition of a "retained job" in Texas Government Code § 2303.401(2) because they currently exist, provide and will continue to provide at least 1,820 hours of employment annually, and will be employment positions for the longer of the duration of the project's designation period or three years after the expiration date of the claim period for receipt of state benefit. Additionally, GameStop anticipates creating approximately 75 new jobs at its Grapevine facilities over the next year as a result of the refurbishing operations expansion described above. The communities we serve are the backbone of our business. Growing, vibrant communities create an environment where our business can prosper. As such, GameStop chooses to support organizations with goals that mesh with our desire to serve the communities in which we do business. Our national non-profit partner, the Make-A-Wish Foundation� and GameStop are working together to provide gaming shopping sprees to children across the country. Wish children, their families and their wish granters set up a time to visit their local GameStop, and they literally go on a shopping spree. Over the last year, GameStop employees contributed over 2,200 volunteer hours to the Make-A-Wish Foundation�, Angel Tree, Children's Medical Center Christmas Parade, Coolc Children's Hospital, and Grapevine City Cleanup. Additioiially, GameStop made over$340,000 in charitable donations nationwide last year. GameStop is proud to be a member of the Grapevine community and is committed to taking a leadership role in the local community by providing company support and encouraging employee involvement. GameStop is excited about the expansion of its Grapevine operations and the opportunities to come. Sincerely, Michael Nichols Vice President, Treasurer GameStop Corp.