From
Bob O'Neal, Economic Development Director
Title
Resolution recommending designation of this project as a reinvestment zone and approving a partial tax abatement for real estate improvements for WR Logistics Crossing, LLC
Presenter
Bob O'Neal, Economic Development Director
Recommended Action
Approve
Analysis
WR Logistics Crossing, LLC purchased 75+ acres of Light Industrial land on West Marshall Drive, and commenced construction of Logistics Crossing 1, a light industrial 667,635+ S.F. speculative building.
In an effort to encourage WR Logistics Crossing to purchase the land sites in question, staff has been actively negotiating incentives with WR Logistics Crossing in the form of partial tax abatements, and requested WR Logistics Crossing to delay negotiations until a qualified tenant is identified; thus, this building was built on a speculative basis.
Over the past six months, staff and building owner have been actively negotiating with General Motors Arlington Assembly Plant to lease this building for a term of ten years. In an effort to entice GM to execute and finalize a ten-year lease on this building, staff is recommending City Council approve and grant a 50% / 6 year partial tax abatement on the ad valorem real estate improvements, which is estimated to be $22 Million once tenant improvements are completed and the rail spur is brought into the building.
WR Logistics Crossing, LLC is the ownership entity of Logistics Crossing 1 & 2. The entity is owned by Weeks Robinson Industrial Fund I, which is operated by Weeks Robinson Properties. With corporate offices in Atlanta, Georgia, Weeks Robinson Properties manages the Fund's assets and is the development company responsible for all property acquisitions and developments. Weeks Robinson’s industrial portfolio consists of over 8 million square feet, and is the developer that built and owns the Restoration Hardware building in Grand Prairie.
Financial Consideration
Projected Investment - Real estate improvements: $22,000,000
Projected Investment - Business personal property: $1,500,000
Projected - Ad Valorem Tax Revenue: $160,000 (including equipment) per year
Projected - Ad Valorem Amount Abated: $70,000 per year
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, AUTHORIZING A REINVESTMENT ZONE AND GRANTING A SIX-YEAR, 50% PARTIAL TAX ABATEMENT WITH WR LOGISTICS CROSSING, LLC
Whereas, WR LOGISTICS CROSSING, LLC developed and built a new 667,635+ square foot light industrial building on a speculative basis; and
Whereas, the facility will create a minimum of 10 jobs and necessitate an expenditure of at least $1,000,000 in building improvements; and
Whereas, a partial ad valorem real estate tax abatement will induce General Motors Assembly Plant to relocate its light assembly parts operations from Arlington to Grand Prairie; and
WHEREAS, the City Council has determined that it is in the public interest to designate this project as a reinvestment zone, and execute a Partial Tax Abatement with WR LOGISTICS CROSSING, LLC.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of GRAND PRAIRIE, Texas that:
Section 1. The designation of a reinvestment zone and granting a six year, 50% partial tax abatement agreement with WR LOGISTICS CROSSING, LLC is approved and the City Manager is hereby authorized to execute contracts.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 4TH DAY OF NOVEMBER, 2014.