From
Marty Wieder, Economic Development Director
Title
Resolution granting 380 Incentive Agreement with Par-Mize, LLC and Trinity Hearth & Home, Inc. granting a partial rebate on sales tax revenue, 50% rebate on ad valorem real estate improvements for seven years, and enter into a separated sales tax contract
Presenter
Marty Wieder, Economic Development Director
Recommended Action
Approve
Analysis
Trinity Hearth & Home, currently leasing a facility at 1358 West Carrier Parkway, is the largest custom fireplace and garage door supplier in North Texas and one of the largest fireplace distributors in the country. Many of the company's fireplace and garage doors attract an exclusive, high-end clientele that custom home builders use for their clients all over Texas. Economic Development began negotiations with Trinity Hearth & Home in July of 2014 to purchase a land site at 2917 State Highway 161, construct a 55,000 square foot retail showroom/office/production facility and remain in Grand Prairie.
As an incentive to remain in Grand Prairie, staff is recommending a seven-year, 50% property tax rebate on the added value of real estate, a partial construction sales tax rebate to induce Trinity to situs construction sales tax to Grand Prairie, and a 50% seven-year rebate of the 1% documented sales tax revenue to induce Trinity to situs Business-to-Business and internet sales to Grand Prairie.
Financial Consideration
Projected Investment - Real estate improvements: $5,500,000
Projected Investment - Equipment: $650,000
Projected Investment - Inventory: $2,000,000
Projected Investment - Added Sales Tax Revenue: $6,260,000 (over 7 years)
Projected - Ad Valorem Amount Rebated: $18,500 per year ($129,500 over 7 years)
Projected - Sales Tax Amount Rebated: $1,694,500 (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 ...
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