Council asked to nominate Careington for state tax refunds tied to $13.5 million in upgrades at its Frisco sites

The Frisco City Council is set to vote Tuesday on nominating Careington International Corporation for the Texas Enterprise Zone Program, a state incentive that refunds state sales and use taxes companies pay on qualifying purchases.

The item is on the consent agenda for the Nov. 3 regular meeting, which starts at 5 p.m. at the George A. Purefoy Municipal Center. Consent items are usually approved together in one vote unless a majority of the council pulls one for separate discussion.

What the company plans

According to a memo from Jason Ford, president of the Frisco Economic Development Corporation, the company expects to spend about $13.5 million over five years on its Frisco location. Roughly $3.5 million would go to electrical, security and communications systems at the existing building, along with furniture, equipment and fixtures.

The other $10 million is earmarked for new computer hardware across the company's three Frisco facilities.

The application aims to add 20 full-time jobs in Frisco and keep 450 full-time positions already based in the city, the memo says. The EDC says the nomination has no cost to the city's general fund.

How the state program works

Cities must nominate a company before the state will consider it. The final decision rests with the Economic Development Bank in the Governor's Office of Economic Development and Tourism.

Under the state's rules, a project at Careington's investment level can be allotted up to 500 jobs and refunds of up to $1.25 million, capped at $2,500 per job.

Because the Frisco site is outside a designated enterprise zone, at least 35% of the company's new permanent jobs there must go to veterans, people considered economically disadvantaged, or residents of an enterprise zone, the draft resolution says. Jobs counted toward the refund must pay at least the county's average weekly wage, the governor's office says.

If the state approves, the designation would last five years. Frisco joined the program by ordinance in February 2012.

Council members have the options of approving, tabling or rejecting the nomination, or asking staff for changes, the memo says.

Sources

agenda.friscotexas.gov

agenda.friscotexas.gov

State of Texas