HomeMy WebLinkAboutItem 15 - GamestopMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: NOVEMBER 21, 2023
SUBJECT: APPROVAL OF A RESOLUTION TO THE CITY' S ENTERPRISE ZONE
PROGRAM - GA STOP INC. ECONOMIC DEVELOPMENT AND
TOURISM, AS A TEXAS ENTERPRISE PROJECT
RECOMMENDATION: City Council to consider approval of a resolution to norninate GameStop,
Inc. to the Office of the Governor, Economic Development and Tourism as
a Texas Enterprise Project.
FUNDING SOURCE: Economic development incentives in the form of sales and use tax
rebates are derived from the state's portion of sales and use taxes, None
of the funding source will involve the local portion of state sales tax.
BACKGROUND: The Enterprise Zone Program is a state incentive program designed to
promote job retention and/or creation and capital investment. Game top
currently has a total of approximately 1,300 employees combined at its
headquarters, refurbishing center and warehouse in Grapevine. At the
level of investment proposed by GarneStop, the state will provide an
incentive of $2,500 per job for a total of 500 retained jobs with a maximum
total benefit of $1.25 million in sales tax rebates from the states portion of
the sales tax over a five-year period,
This is GameStop's fifth request to be norninated as a Texas Enterprise
Project. The first request was approved on August 3, 2010 to assist in
upgrades to their refurbishing facility at 2200 William D. Tate Avenue. The
second request was approved on November 15, 2011 and involved an
upgrade of the IT system in both the refurbishment center and the
headquarters at 625 Westport Parkway. The third request was approved
on August 15, 2017 and involved investments in software, hardware and
other infrastructure for the employee's personal computer operating
systems. The fourth request approved on November 1, 2022 involved an
upgrade of the IT system in both the refurbishment center and the
headquarters at 625 Westport Parkway. The fourth request from
November 1, 2022 was denied by the office of the Governor and the
applicant would like for the City of Grapevine to reaffirm their approval of
this resolution for consideration by the state,
Over the next five years, Larne top plans to invest more than $9 million
in order to migrate their enterprise management software to a new
platform. The investment inClUdes more than $4 million in merchandising
management software that will enhance merchandise planning and
allocation, $2.5 million in cloud based financial management software,
and $3.5 million in other software that will integrate all business
processes. The implementation of this project will enable Game top to
improve their competitiveness in a market of ever-increasing online sales.
Staff recommends approval.
RESOLUTION NO. 2023-023
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, NOMINATING GAMESTOP, INC. TO
THE OFFICE OF THE GOVERNOR, ECONOMIC
DEVELOPMENT AND TOURISM THROUGH THE
ECONOMIC DEVELOPMENT BANK FOR DESIGNATION AS
AN ENTERPRISE PROJECT ("PROJECT") UNDER THE
TEXAS ENTERPRISE ZONE PROGRAM UNDER THE
TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS
GOVERNMENT CODE ("ACT"); AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, on November 1, 2022, the City of Grapevine, Texas (the "City")
passed Ordinance No. 2022-081 electing to participate in the Texas Enterprise Zone
Program, and the local incentives available under this resolution are the same on this
date as were outlined in Ordinance No. 2022-081; and
WHEREAS, the Office of the Governor Economic Development and Tourism
("OOGEDT") through the Economic Development Bank ("Bank") will consider GameStop,
Inc. (the "Company") as an enterprise project pursuant to a nomination and an application
made by the City; and
WHEREAS, the City Council of the City of Grapevine, Texas, desires to pursue the
creation of the proper economic and social environment in order to induce the investment
of private resources in productive business enterprises located in the City and to provide
employment to residents of enterprise zones and to other economically disadvantaged
individuals; and
WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone
Act, Texas Government Code (the "Act"), GameStop, Inc. has applied for a fourth time to
the City for designation as an enterprise project, the first three times concerning different
assets and successfully approved in the August 3, 2010 and November 15, 2011, and
August 15, 2017 City Council meetings; and
WHEREAS, the City finds that GameStop, Inc. meets the criteria for designation
as an enterprise project under Chapter 2303, Subchapter F of the Act on the following
grounds-
1 . GameStop, Inc. is a "qualified business" under Section 2303.402 of the Act since
it will be engaged in the active conduct of a trade or business at a qualified
business site within the governing body's jurisdiction located outside of an
enterprise zone and at least thirty-five percent (35.0%) of the business' new
employees will be residents of an enterprise zone, economically disadvantaged
individuals, or veterans; and
2. There has been and will continue to be a high level of cooperation between public,
private, and neighborhood entities within the area; and
3. The designation of GameStop, Inc. as an enterprise project will contribute
significantly to the achievement of the plans of the City for development and
revitalization of the area.
WHEREAS, the City finds that GameStop, Inc. meets the criteria for tax relief and
other incentives adopted by the City and nominates GameStop, Inc. for enterprise project
status on the grounds that it will be located at the qualified business site, will create a
higher level of employment, economic activity and stability;
WHEREAS, all constitutional and statutory prerequisites for the approval of this
Resolution have been met, including but not limited to the Open Meetings Act; and
WHEREAS, the City Council deems the adoption of this resolution to be in the best
interests of the health, safety, and welfare of the public; and
WHEREAS, the City finds that it is in the best interest of the City to nominate
GameStop, Inc. as an enterprise project pursuant to the Act.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all matters stated hereinabove are found to be true and correct
and are incorporated herein by reference as if copied in their entirety.
Section 2. The City finds that GameStop, Inc. is a "qualified business", as
defined in Section 2303.402 of the Act, and meets the criteria for designation as an
enterprise project, as set forth in Section 2303, Subchapter F of the Act.
Section 3. The City nominates GameStop, Inc. to the State of Texas for
Enterprise Project status.
Section 4. The enterprise project shall take effect on the date of designation of
the enterprise project by OOGEDT and terminate 5 years after the date of designation.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 21st day of November, 2023.
APPROVED:
William D. Tate
Mayor
Resolution No. 2023-023 2
ATTEST:
Tara Brooks City
Secretary
APPROVED AS TO FORM:
Matthew C.G. Boyle
City Attorney
Resolution No. 2023-023