HomeMy WebLinkAboutItem 09 - Gamestop MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER GQ'
MEETING DATE: AUGUST 15, 2017
SUBJECT: CONSIDERATION OF A RESOLUTION TO THE CITY'S
ENTERPRISE ZONE PROGRAM — GAMESTOP, INC.
RECOMMENDATION:
Staff recommends that the City Council approve the attached resolution to nominate
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 state sales and use taxes. This action will have no material
effect on city funds.
BACKGROUND INFORMATION:
This is GameStop's third requested resolution to be nominated 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 current request involves
GameStop's plans for a $5 million investment in capital improvements including software,
hardware and other infrastructure for the employees' personal computer operating systems
to increase efficiency and user interface support. These improvements are planned for the
headquarters and refurbishment facilities. The planned investments will improve the
efficiency and viability of GameStop as a whole and allow them to retain and potentially
create additional jobs.
The Enterprise Zone Program is a state incentive program designed to promote job
retention and/or creation and capital investment. GameStop currently has a total of
approximately 2,160 employees combined at its headquarters, refurbishing center and
warehouse in Grapevine. At the level of investment proposed by GameStop 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 state's portion of the sales tax over a
five year period.
In order to qualify for the proposed rebate, a minimum of 35% of GameStop's new hires
must be either residents of a state enterprise zone or economically disadvantaged as
defined by the State Government Code. GameStop must prove to the State Comptroller's
Office that they are meeting the retention and hiring criteria required by state law, prior to
rebates. The next deadline for submission of the application to the state is September 1,
2017 and the selection process will take approximately 90 days.
DT
Gamete r w
625 WESTPORT PARKWAY, GRAPEVINE, TEXAS 76051
July 21, 2017
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 15
Dear Mr. Rumbelow:
We are pleased to present the relevant information required by Chapter 2303 of the Texas
Government Code for your consideration and nomination of GameStop, Inc.'s operations located
in Grapevine, Texas as a Texas Enterprise Project for job retention benefits.
GameStop,Inc. ("GameStop")is a wholly-owned subsidiary of GameStop Corp. Incorporated in
Delaware and headquartered in Grapevine, Texas, GameStop Corp. is the world's largest video
game and entertainment software retailer and employs over 53,000 team members in more than
7,500 stores across the United States and in 13 countries worldwide. GameStop Corp. offers
customers the most popular new software, hardware and game accessories for next generation
video game systems as well as collectibles, apparel, gadgets, electronics and toys.
GameStop's headquarters and warehouse is located at 625 Westport Parkway, and the
Refurbishing Operations Center is located at 2200 William D. Tate Avenue in Grapevine Texas.
Over the next five years, GameStop plans to invest more than $5 million in capital improvement
upgrades including software, hardware, and infrastructure improvements to improve efficiency
throughout GameStop's operations. For example, GameStop is in the process of upgrading the
personal computer operating systems for all employees in an effort to increase efficiency and
user interface support. As a result of this investment, GameStop respectfully requests an
Enterprise Project nomination from the City of Grapevine for the September 1,2017 round.
Section 2303.406(a)(4)(D) of the Texas Government Code allows a project or activity of a
qualified business to be designated as an Enterprise Project and receive job retention benefits if
Mr. Bruno Rumbelow
City of Grapevine
July 21,2017
Page 2
the business has clearly demonstrated that "the business is able to employ individuals in
accordance with Section 2303.402." GameStop, Inc. qualifies for job retention benefits under
this statutory provision because GameStop, Inc. is an Equal Opportunity Employer, and will use
a proprietary, voluntary questionnaire to actively track its new-hires to determine "economically
disadvantaged" hiring patterns. Additionally, GameStop, Inc. 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.
If designated as an enterprise project by the State of Texas, GameStop commits to hiring thirty-
five percent (35%) economically disadvantaged persons, enterprise zone residents or veterans,
for its new or replacement personnel for certified jobs, during its enterprise project designation.
GameStop currently employs a combined 2,160 full-time employees at its Grapevine facilities.
GameStop expects to maintain its existing level of employment, and retain 500 full-time jobs for
benefit under the Enterprise Zone Program. 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.
GameStop believes that the success of our company and well-being of our employees are directly
related to the well-being of the communities in which we operate. GameStop proudly gives back
and supports local charities by donating thousands of volunteer hours each year to various
organizations such as Make-A-Wish, Ronald McDonald House, and St. Jude Children's
Research Hospital. Additionally, charitable contributions of nearly $370,000 have been made in
the local community by GameStop,Inc. during the past year.
GameStop is proud to be an integral part of the City of Grapevine community and will continue
to be an active participant, contributor, and corporate citizen. GameStop is excited about the its
planned upgrades to its Grapevine facilities and looks forward to working with the Texas
Enterprise Zone Program and City of Grapevine in the coming years.
Sincerely,
/./ •46
AJCo••
Vice 'resident, Global Tax
GameStop,Inc.
RESOLUTION NO. 2017-071
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").
WHEREAS, on August 3, 2010, the City of Grapevine, Texas (the "City") passed
Ordinance No. 2010-38 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. 2010-38; 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 third
time to the City for designation as an enterprise project, the first and second time
concerning different assets and successfully approved in the August 3, 2010 and
November 15, 2011 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 Office of the Governor, Economic Development and Tourism
and terminate five years after the date of designation.
Section 5. That this resolution shall take effect from and after the date of its
passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 15th day of August, 2017.
Resolution No. 2017-071 2
APPROVED:
William D. Tate
Mayor
ATTEST:
Tara Brooks
City Secretary
APPROVED AS TO FORM:
John F. Boyle, Jr.
City Attorney
Resolution No. 2017-071 3
Gamestop Headquarters - 625 Westport Parkway
-f <
, '
,.
rt _
T.
z
t•
i +.
LL
w , -10,010046 .
L'° >-• of
i
y 4 ..
z;
Z •_, _, . ,, ... . „.
O �.
.. ., . _ . . _
-•-•-li- _ if ,4
Y
11.,r
.71i 10=1.1 '' -1'
4014 Ali•
_________ .. itottivIr!73
t • r
WESTPORT PKWY
r kr ''
''•, \-
. .. �
&Ike
ftf
* J 7 e .t" 1 1�S.t/�}!r�' r .,:.'1..r.1-Li: 411iuI; I14:T : r1L t � ,1
- -- .. • ..... . . . ::.
•
,re nt . spar t 1\It., , , - - ....3 I( *-vm,-..., .. . ,
t1:,•� ,!.
S "{1t 101 rm'rA 1 f..'' "its Q
A�1 x
36os.. L�•
"LS' ' ' i.
ct
- "t;•
qAM 'til
.` ,� w
t cn
`rS6, ( , _ '` w
' \ � � Yom'
... E y=ssy
IIIIIIIII aso Sso
r 0 250 500 1,000 Feet se 4e.1
Legend
w V. ^ '„ ,I
DFW Airport Boundary s • `"` . _
,� 1
Gamestop Refurbishing Operations Center
2200 William D. Tate Avenue
v ,.... , ,, ,...
It. - . .
4Y f .�
•
,n yi •
y � jn
,. '- ,: . - umin ji.. + *-f ; -'vel"!
.
w
DR ,9
•
t
r MUSTANG-,--rsr.-�'* *. 'y r
-
s l `..
t, 0sq., t n
s s tis
�.. V fit, + .r O..
i 4
/i , , &II
3 r o. 4 tit ,ek �". ,.. •.. .: .. .,_ .... N.. .. /
,/g�� ,j
.
•
4
. . .
. ..,
n
r•
. .t ,..u. ,• ,c •.,./i..ii „_.L... .:3., .. .
. . .„. .,:ti.. . ide,
.. . .,,
s, ray . .�.... • • �4,,,,.,, . .A �Tpr 1 /�. I/ .,./ ,�' 9
4 i4 / ''
aC' " r tet•"iitt •, � � 0�.
rte , • •' z • ,"' �7 ��
:Cf
tae •
:i/40:,:lt:
-.1,,,,,:,i'., » . , ���
c i ,.ate' • , , dI 1 '. ' t
,,. .... 410' -k• .. —. ,.(
, . I ! (:)( , •
v,, ;� ` • �t a .}M j - { :�. � .' I� _. u•.�
TIMBERLINE DR- - '.+' �� I I I I I y i y j
,moi
'mop w'`�1� 0 250 500 1,000 Feet
s
11