From
Terry Jones
Title
Resolution granting 380 Agreement for Economic Development Incentives with Gruma Corporation dba Mission Foods granting a 75% rebate on added business personal property improvements for seven years
Presenter
Marty Wieder, Director of Economic Development
Recommended Action
Approve
Analysis
Gruma Corporation (doing business as Mission Foods) is a leading global food production company offering a variety of products, including corn and flour tortillas, wheat flour products and flat breads. Since August 2016, Mission Foods has been consolidating its existing regional manufacturing operations by creating a major distribution hub and production facility in Grand Prairie within 775,000 square feet of space. In order to meet capacity for increased demand in the U.S., Gruma is considering how to provide additional manufacturing capacity by either expanding the Grand Prairie facility or opening a new manufacturing plant in the Midwest.
As an incentive to select Grand Prairie, staff is recommending a seven-year, 75% property tax rebate on the added value of business personal property (manufacturing equipment) to induce Gruma Corporation dba Mission Foods to expand and increase its manufacturing capacity lines at its Grand Prairie plant.
Financial Consideration
Projected Investment - Added Equipment: $128,000,000
Projected Rebated - Equipment: $643,000 a year
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, TO ENTER into a Chapter 380 Agreement for Economic Development Incentives with GRUMA CORPORATION DBA MISSION FOODS; granting a rebate
Whereas, Gruma Corporation dba Mission Foods is considering expanding by purchasing and adding new manufacturing capacity lines at its Grand Prairie facility located at 2404 West Pioneer Parkway; and
Whereas, the new manufacturing equipment will create a minimum expenditure of at least $1,000,000 in added manufacturing capacity lines in Grand Prairie, thereby qualifying for incentive consideration; and
Whereas, a seven-year, 75% property tax rebate on the added value of business personal property (manufacturing equipment) will induce Gruma Corporation dba Mission Foods to expand and locate its new manufacturing capacity lines 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. THAT 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, FEBRUARY 19, 2019.