From
Terry Jones
Title
Resolution authorizing implementation of a 9-year 75% partial tax abatement and Chapter 380 Agreement for Restoration Hardware, Inc., and partial tax abatement and a separated sales tax contract for W.R. Pioneer Parkway, LLC
Presenter
Bob O'Neal, Economic Development Director
Recommended Action
Approve
Analysis
RH is one of the fastest growing and most innovative luxury brands in the home furnishings marketplace. The RH brand stands alone and is redefining this highly fragmented and growing market. Restoration Hardware is positioned as a lifestyle brand and design authority, offering dominant assortments across a growing number of categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, as well as baby and child products.
Operating as a curator of the finest historical design the world has to offer, RH collections of timeless, updated classics and reproductions are presented consistently across sales channels in sophisticated and unique lifestyle settings that are on par with world-class interior designers. Their culture of innovation, superior product development capabilities, integrated multi-channel infrastructure and significant scale enables RH to offer an unmatched combination of design, quality and value.
As an incentive to locate their southwest distribution component in Grand Prairie, staff is recommending a 75% / 9 year partial tax abatement on the combined business personal property and real estate improvements, and enter into a separated contract to provide a partial sales tax rebate on construction materials purchased to complete a new 850,000 square foot regional distribution center. In addition, staff recommends entering into a Chapter 380 Agreement rebating 50% (of the 1% documented general sales tax revenue) on the first $50,000,000 of taxable internet sales and 75% (of the 1% documented general sales tax revenue) on taxable internet sales over $50,000,000.
Financial Cons...
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