From
Letecia McNatt
Title
Resolution granting a 380 Agreement for Economic Development Incentives with Lear Corporation and GSW Gateway, LLC; granting a 75% rebate on business personal property improvements for seven years; granting a 50% rebate on added ad valorem real estate improvements for three years
Presenter
Marty Wieder, Economic Development Director
Recommended Action
Approve
Analysis
Lear Corporation, currently operating in 140,000 square feet in two buildings in South Arlington, is a Tier 1 supplier to the automotive industry. Founded in 1917 in Detroit, Michigan and currently headquartered in Southfield, Michigan, Lear Corporation began operations as a single plant with 18 employees and now operates 257 locations in 39 countries around the globe. The Company has approximately 165,000 employees worldwide and manufactures complete seating and electrical systems for automobiles.
Economic Development Department staff began negotiations with the Michigan-based corporate executives and their local executive team in November of 2017 to relocate, consolidate and expand Lear Corporation’s seating assembly plant and manufacturing lines to 3120 North GSW Parkway in Grand Prairie.
As an incentive to relocate to Grand Prairie, staff is recommending a seven-year, 75% property tax rebate on the value of ad valorem business personal property and a three-year, 50% added ad valorem real estate improvement to induce Lear Corporation to enter into a long-term lease and relocate its extensive manufacturing lines to Grand Prairie.
Financial Consideration
Projected Investment - Ad Valorem Real Estate: $7,000,000
Projected Investment - Ad Valorem Manufacturing Equipment: $48,000,000
Projected Investment - Inventory: $14,900,000
Projected - Ad Valorem Amount Real Estate Rebated: $23,500 per year ($70,500 over 3 years)
Projected - Ad Valorem Amount Equipment Rebated: $241,000 per year ($1,687,000 over 7 years)
Body
A RESOLUTION OF THE CITY OF GRAND PR...
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