From
Letecia McClendon
Title
Resolution granting 380 Agreement for Economic Development Incentives with Flex-N-Gate Texas LLC; granting a 75% rebate on ad valorem real estate and business personal property improvements for nine years
Presenter
Marty Wieder, Economic Development Director
Recommended Action
Approve
Analysis
Flex-N-Gate, currently leasing a 180,000 square foot building on Centennial Drive in Arlington, is a Tier 1 supplier to the automotive industry. Starting in 1956 as a small manufacturing shop, Flex-N-Gate has grown to manufacture metal and plastic original equipment components and mechanical assemblies for BMW, General Motors, Ford Motor, Nissan Motor, and Toyota Motor - ranging from bumpers and hinges to pedal systems and instrument panels. Economic Development Department staff started negotiations with Michigan-based corporate executives in June to relocate and expand Flex-N-Gate’s manufacturing lines to 2150 West Bardin Road in Grand Prairie.
As an incentive to relocate to Grand Prairie, staff is recommending a nine-year, 75% property tax rebate on the value of ad valorem real estate values and business personal property improvements to induce Flex-N-Gate to locate its extensive manufacturing lines to Grand Prairie.
Financial Consideration
Current Real Property Market Value: $17,732,890.00
Projected Investment - Ad Valorem Real Estate: $23,195,580.00
Projected Investment - Ad Valorem Manufacturing Equipment: $140,000,000.00
Projected Investment - Inventory: $9,000,000.00
Projected - Ad Valorem Amount Rebated: $825,000.00 per year ($7,425,000.00 over 9 years)
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, TO ENTER INTO A CHAPTER 380 AGREEMENT FOR ECONOMIC DEVELOPMENT INCENTIVES WITH FLEX-N-GATE TEXAS LLC GRANTING A REBATE
Whereas, Flex-N-Gate Texas LLC is considering purchasing a new 430,188+ S.F. shell facility to be finished-out according to their extensive manufacturing specifications, and adding 35,000+S.F. of new construction to the facility at 2150 West Bardin Road, in Grand Prairie; and
Whereas, the new facility will create a minimum expenditure of at least $1,000,000 in building improvements and new manufacturing equipment in Grand Prairie; and
Whereas, a nine-year, 75% property tax rebate on the value of ad valorem real estate and business personal property will induce Flex-N-Gate Texas LLC to expand its manufacturing operations and relocate to 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 real 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 City Manager is hereby authorized to negotiate and execute an agreement to effectuate this approval.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 1st DAY OF AUGUST, 2017.