From
Marty Wieder, Economic Development Director
Title
Resolution granting 380 Incentive Agreement with Par-Mize, LLC and Trinity Hearth & Home, Inc. granting a partial rebate on sales tax revenue, 50% rebate on ad valorem real estate improvements for seven years, and enter into a separated sales tax contract
Presenter
Marty Wieder, Economic Development Director
Recommended Action
Approve
Analysis
Trinity Hearth & Home, currently leasing a facility at 1358 West Carrier Parkway, is the largest custom fireplace and garage door supplier in North Texas and one of the largest fireplace distributors in the country. Many of the company's fireplace and garage doors attract an exclusive, high-end clientele that custom home builders use for their clients all over Texas. Economic Development began negotiations with Trinity Hearth & Home in July of 2014 to purchase a land site at 2917 State Highway 161, construct a 55,000 square foot retail showroom/office/production facility and remain in Grand Prairie.
As an incentive to remain in Grand Prairie, staff is recommending a seven-year, 50% property tax rebate on the added value of real estate, a partial construction sales tax rebate to induce Trinity to situs construction sales tax to Grand Prairie, and a 50% seven-year rebate of the 1% documented sales tax revenue to induce Trinity to situs Business-to-Business and internet sales to Grand Prairie.
Financial Consideration
Projected Investment - Real estate improvements: $5,500,000
Projected Investment - Equipment: $650,000
Projected Investment - Inventory: $2,000,000
Projected Investment - Added Sales Tax Revenue: $6,260,000 (over 7 years)
Projected - Ad Valorem Amount Rebated: $18,500 per year ($129,500 over 7 years)
Projected - Sales Tax Amount Rebated: $1,694,500 (over 7 years)
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, AUTHORIZING THE CITY MANAGER TO ENTER into a Chapter 380 Program Agreement for Economic Development Incentives with PAR-MIZE, LLC AND TRINITY HEARTH & HOME, INC. granting a rebate
Whereas, Par-Mize, LLC and Trinity Hearth and Home, Inc. desire to build a new 55,000 square foot retail showroom/office/production facility at 2917 State Highway 161 in Grand Prairie; and
Whereas, the new retail showroom will create a minimum expenditure of at least $1,000,000 in new building improvements; and
Whereas, a seven-year, 50% property tax rebate on the added value of real estate, a partial construction sales tax rebate will induce Trinity to situs construction sales tax to Grand Prairie, and a 50% seven-year rebate of the 1% documented sales tax revenue will induce Trinity to situs Business-to-Business and internet sales and remain in Grand Prairie; and
Whereas, the City Council has determined that it is in the public interest to enter into a Chapter 380 Program Agreement for Economic Development Incentives and partially rebate certain sales tax revenue, ad valorem real estate and business personal property taxes.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of GRAND PRAIRIE, Texas that:
Section 1. THAT the granting of an incentive through a Chapter 380 incentive agreement is approved and the City Manager is hereby authorized to execute contracts to effectuate this approval.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 7TH DAY OF JUNE, 2016.