From
Bob O'Neal, Economic Development Director
Title
Resolution approving the designation of a reinvestment zone and granting a seven-year, 50% partial tax abatement, on the added real estate improvements and business personal property improvements for Oldcastle Building Envelope, Inc.
Presenter
Bob O'Neal, Economic Development Director
Recommended Action
Approve
Analysis
Oldcastle, Inc. is the largest building materials company in North America. Oldcastle Building Envelope division provides fully integrated building envelopes in one unified system including curtain wall, windows, storefronts, skylights and architectural glass designed for high-rise office buildings.
Because of Oldcastle's growth in the last two years, the company needs to expand from its current 48,600 square feet on Fountain Parkway. Grand Prairie Economic Development has engaged Oldcastle in discussions to retain and expand in Grand Prairie by constructing an additional 100,000 square foot to its current building footprint, and adding manufacturing equipment.
As an incentive to retain and expand their southwest manufacturing component in Grand Prairie, staff is recommending a 50% / 7 year partial tax abatement on the combined added business personal property and real estate improvements.
The proposed incentive package was forwarded to the Council with a favorable recommendation by the Finance & Government Committee on May 5, 2015.
Financial Consideration
Projected Investment - Real estate improvements: $5,000,000
Projected Investment - Business personal property: $6,000,000
Projected - Ad Valorem Tax Revenue: $516,000 (over 7 years)
Projected - Ad Valorem Amount Abated: $258,000 (over 7 years)
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, AUTHORIZING A REINVESTMENT ZONE AND GRANTING A SEVEN-YEAR, 50% PARTIAL TAX ABATEMENT WITH OLDCASTLE BUILDING ENVELOPE, INC.
Whereas, Oldcastle Building Envelope, Inc. desires to expand and build an additional 100,000 square feet of production area onto its current building footprint on Fountain Parkway and add production equipment; and
Whereas, the southwest manufacturing facility will create a minimum of 10 jobs and necessitate a combined expenditure of at least $1,000,000 in business personal property and building improvements; and
Whereas, a partial ad valorem real estate and business personal property tax abatement will induce Oldcastle Building Envelope, Inc. to retain and expand 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 designate this project as a reinvestment zone and execute a Partial Tax Abatement with Oldcastle Building Envelope, Inc.
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, granting a seven year, 50% partial tax abatement agreement with Oldcastle Building Envelope, Inc. 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 19TH DAY OF MAY, 2015.