From
Marty Wieder, Economic Development Director
Title
Resolution granting 380 Incentive Agreement with Genuine Parts Company and Motion Industries, Inc. granting a partial rebate on sales tax revenue and 50% rebate on ad valorem real estate improvements and business personal property equipment for seven years
Presenter
Marty Wieder, Economic Development Director
Recommended Action
Approve
Analysis
Motion Industries, a wholly owned subsidiary of Genuine Parts Company, is a leading distributor of quality products and services to 150,000 government and industrial customers in North America. Motion Industries operates in the MRO (maintenance repair and operating) replacement parts market as well as the OEM market (original equipment manufacturer or machinery.) Negotiations began in March to purchase a land site on Trinity Boulevard and construct a new 156,000 square foot facility and consolidate its North Texas distribution centers and B2B over the counter parts and internet sales.
As an incentive to consolidate and build a new southwest regional distribution center in Grand Prairie, staff is recommending a seven-year, 50% property tax rebate on the added value of real estate and equipment, and rebating 50% of the 1% documented sales tax revenue generated from B2B sales.
Financial Consideration
Projected Investment - Real estate improvements: $12,000,000
Projected Investment - Equipment: $3,500,000
Projected Investment - Added Inventory: $64,000,000
Projected Investment - Added Sales Tax Revenue: $1,400,000 (over 7 years)
Projected - Ad Valorem Amount Rebated: $52,000 per year ($364,000 over 7 years)
Projected - Sales Tax Amount Rebated: $350,000 (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 GENUINE PARTS COMPANY AND MOTION INDUSTRIES, INC. granting a rebate
Whereas, Genuine Parts Company and Motion Industries, Inc. desire to consolidate and build a new 156,000 square foot southwest regional distribution center in the 200 Block of West Trinity Boulevard, more commonly known as Lot 1R-1 and Lot 1R-2, Stellar Way Addition, in Grand Prairie; and
Whereas, the new regional distribution center will create a minimum expenditure of at least $1,000,000 in business personal property and new building improvements; and
Whereas, a seven-year, 50% property tax rebate on the added value of real estate and equipment, and rebating 50% of the 1% documented sales tax revenue generated from B2B sales, will induce Genuine Parts Company and Motion Industries, Inc. to consolidate and locate its new southwest regional distribution center 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 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.