From
Letecia McClendon
Title
Resolution granting 380 Incentive Agreement with Haier US Appliances Solutions, LLC d/b/a GE Appliances granting a 50% rebate on business personal property for nine years
Presenter
Marty Wieder, Economic Development Director
Recommended Action
Approve
Analysis
Haier US Appliances Solutions, LLC (doing business as GE Appliances, headquartered in Louisville, Kentucky), has operated at 1011 Isuzu Parkway in Grand Prairie for more than 17 years. They warehouse and distribute more than $29 million in GE Appliances across the Southwest U.S. out of this 470,000 square foot, rail-served facility.
GE's business has evolved and grown to the point that to continue to facilitate future operations, the company must make a change. GE is therefore pursuing a long term lease of 700,000+ square feet, to be constructed and developed according to their cross dock specifications. GE has considered numerous locations with various developers, narrowing their list down to two sites (Grand Prairie and Wilmer).
GE appliance executives communicated to Economic Development that there are significant financial considerations complicating this decision that have led them to apply for incentives. However they have also said that if Grand Prairie grants the incentives as requested, it will position GE to continue to make Grand Prairie their business home for several years to come.
Thus as an incentive for GE to expand its operations and remain in Grand Prairie, staff is recommending Council consideration of a nine-year, 50% property tax rebate on their business personal property.
This agreement was reviewed by the Finance and Government Committee on June 6, 2017.
Financial Consideration
Projected Investment - Added Real Estate Improvements: $22,000,000
Projected Investment - Business Personal Property: $29,000,000
Projected Added Investment - Business Personal Property: $1,000,000 per year (for 10 years)
Projected - Business Personal Property ...
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