From
Bob O'Neal, Economic Development Director
Title
Resolution granting 380 Incentive Agreement with RiverPoint Industrial Investors, LLC and Daimler Trucks North America, LLC granting a partial rebate on sales tax revenue and 50% rebate on ad valorem real estate improvements and business personal property equipment for five years
Presenter
Bob O'Neal, Economic Development Director
Recommended Action
Approve
Analysis
Daimler Trucks North America LLC, headquartered in Portland, Oregon, is the leading heavy-duty truck manufacturer in North America. Daimler Trucks North America produces and markets commercial vehicles under the Freightliner, Western Star and Thomas Built Buses nameplates. Daimler Trucks North America is a Daimler company, the world's leading commercial vehicle manufacturer. Daimler Trucks North America chose the North Texas region as the preferred site for its new parts distribution center based on the region’s proximity to Daimler Trucks North America customers and accessibility to logistics.
As an incentive to locate its new southwest regional distribution center in Grand Prairie, staff is recommending a five-year, 50% property tax rebate on the added value of real estate and equipment, and rebating 50% of the 1% documented sales tax revenue generated from B2B sales.
The proposed incentive package was reviewed by the Finance & Government Committee and is forwarded to the Council with a favorable recommendation .
Financial Consideration
Projected Investment - Real estate improvements: $13,411,000
Projected Investment - Equipment: $4,000,000
Projected Investment - Added Inventory: $16,800,000
Projected Investment - Added Sales Tax Revenue: $3,870,000 (over 10 years)
Projected - Ad Valorem Amount Rebated: $58,000 per year ($290,000 over 5 years)
Projected - Sales Tax Amount Rebated: $967,500 (over 10 years)
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, TO ENTER into a Chapter 380 Program Agreement for Economic D...
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