From
Bob O'Neal
Title
Resolution granting a 380 Incentive Agreement with Sentry Land, L.P. and Next Gen Compounding, LLC granting a 75% rebate on Real Estate Improvement and Business Personal Property for 5 Years
Presenter
Bob O'Neal, Economic Development Director
Recommended Action
Approve
Analysis
Valley Roller Company was founded in 1984 to service the paper converting industry in the Fox River Valley of Wisconsin. Initially, the primary focus of the company was to service rubber covered rollers for the tissue and personal care products manufacturing operations in the region. The company operates two full service manufacturing sites, one in Appleton, Wisconsin and the other in Mansfield, Texas. Each plant is capable of producing a wide range of coverings on rolls for virtually every industry where substrates are conveyed in web or sheet form. Some of the industries served include, flexible packaging, plastics, paper making, paper converting, printing and many other general industrial applications.
Valley Roller wants to expand its North Texas manufacturing by establishing a new rubber compounding facility located in close proximity to the existing Valley Roller location. Budgetary numbers proposed include purchasing the 2901 Eagle Drive facility ($2,500,000.00) and adding an estimated $650,000 in building upgrades and $3,000,000 in new manufacturing equipment.
As an incentive to purchase a building and expand their manufacturing component in Grand Prairie, staff is recommending an incentive rebate over 5 years on the combined added manufacturing equipment and real estate improvements.
Financial Consideration
Projected Investment - Real estate improvements: $650,000
Projected Investment - Business personal property: $3,000,000
Projected - Ad Valorem Amount Rebated: $18,000 per year ($90,000 over 5 years)
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, TO ENTER into a Chapter 380 Program Agreement for Economic Development Incentives with Sentry Land, L.P. and Next Gen Compounding, LLC granting a rebate
Whereas, Sentry Land, L.P. and Next Gen Compounding, LLC desire to expand their North Texas manufacturing by purchasing a 38,256 square foot building at 2901 Eagle Drive in Grand Prairie, for its new rubber compounding manufacturing facility; and
Whereas, the new rubber compounding manufacturing facility will create a minimum expenditure of at least $1,000,000 in business personal property and building improvements; and
Whereas, a partial ad valorem tax rebate on the added real estate and business personal property will induce Sentry Land, L.P. and Next Gen Compounding, LLC to purchase the 2901 Eagle Drive facility, and add its manufacturing production and offices within the city limits of 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 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. The granting of an incentive rebating 75% of the added equipment and real estate improvements for 5 years through a Chapter 380 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 18TH DAY OF AUGUST, 2015.