STRATEGIC PRIORITY: Economic and Neighborhood Vitality
AGENDA DATE: September 23, 2020
COUNCIL DISTRICT(S): 9
DEPARTMENT: Office of Economic Development
EXECUTIVE: Dr. Eric A. Johnson
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SUBJECT
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Authorize City assignment of BT East Dallas JV, LLP project to Pipeline East Dallas, LLC under the Texas Enterprise Zone Act, as amended (Texas Government Code, Chapter 2303) to the Office of the Governor, Economic Development and Tourism division, through the Economic Development Bank - Financing: No cost consideration to the City
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BACKGROUND
Tenet Hospitals Limited’s (“Tenet”) Doctors Hospital was designated as a Texas Enterprise Project on March 3, 2014 for the period October 11, 2013 through March 3, 2019.
On January 1, 2016, Doctors Hospital was acquired by a new joint venture until February 28, 2018, The joint venture, between Baylor University Medical Center, an affiliate of Baylor Scott & White Health, and Tenet Hospitals Corporation’s affiliate, Healthcare Network Texas, Inc. was named BT East Dallas JV, LLP (“BT East”).
On March 1, 2018, Pipeline East Dallas, LLC (“Pipeline East”) completed its acquisition of the facility, which is currently operating as City Hospital at White Rock.
Pipeline East has requested, and Office of Economic Development staff recommends, that the City of Dallas approve the assignment of the related Tenet Texas Enterprise Project Application for its duration of its ownership from March 1, 2018 through March 3, 2019. The assignment of this project designation is essential to the operations at the qualified business site in that it will allow Pipeline East to fulfill the capital investment and job retention commitments required to obtain the sales and use tax refunds which have or will be claimed under this project designation.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On February 26, 2014, City Council authorized the nomination of Tenet Hospitals Limited designation as an Enterprise Project under the Texas Enterprise Act, as amended by Resolution No. 14-0391.
Information about this item was provided to the Economic Development Committee on September 8, 2020.
FISCAL INFORMATION
No cost consideration to the City.