From
Letecia McClendon
Title
Resolution granting 380 Agreement for Economic Development Incentives with Flex-N-Gate Texas LLC; granting a 75% rebate on ad valorem real estate and business personal property improvements for nine years
Presenter
Marty Wieder, Economic Development Director
Recommended Action
Approve
Analysis
Flex-N-Gate, currently leasing a 180,000 square foot building on Centennial Drive in Arlington, is a Tier 1 supplier to the automotive industry. Starting in 1956 as a small manufacturing shop, Flex-N-Gate has grown to manufacture metal and plastic original equipment components and mechanical assemblies for BMW, General Motors, Ford Motor, Nissan Motor, and Toyota Motor - ranging from bumpers and hinges to pedal systems and instrument panels. Economic Development Department staff started negotiations with Michigan-based corporate executives in June to relocate and expand Flex-N-Gate’s manufacturing lines to 2150 West Bardin Road in Grand Prairie.
As an incentive to relocate to Grand Prairie, staff is recommending a nine-year, 75% property tax rebate on the value of ad valorem real estate values and business personal property improvements to induce Flex-N-Gate to locate its extensive manufacturing lines to Grand Prairie.
Financial Consideration
Current Real Property Market Value: $17,732,890.00
Projected Investment - Ad Valorem Real Estate: $23,195,580.00
Projected Investment - Ad Valorem Manufacturing Equipment: $140,000,000.00
Projected Investment - Inventory: $9,000,000.00
Projected - Ad Valorem Amount Rebated: $825,000.00 per year ($7,425,000.00 over 9 years)
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, TO ENTER INTO A CHAPTER 380 AGREEMENT FOR ECONOMIC DEVELOPMENT INCENTIVES WITH FLEX-N-GATE TEXAS LLC GRANTING A REBATE
Whereas, Flex-N-Gate Texas LLC is considering purchasing a new 430,188+ S.F. shell facility to be finished-out according to their extensive manufacturing specifications, and adding 35,000+...
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