From
Letecia McClendon
Title
Resolution granting 380 Incentive Agreement with The Coca-Cola Company granting a 50% rebate on ad valorem real estate improvements and tangible personal property improvements for seven years, and enter into a separated sales tax contract
Presenter
Marty Wieder, Director of Economic Development
Recommended Action
Approve
Analysis
The Coca-Cola Company, headquartered in Atlanta, currently has a 160,455 S.F. Dasani bottled water manufacturing facility in Grand Prairie, which produced and sold over 21 million cases in 2016. In 2007, Coca-Cola acquired Energy Brands (d/b/a Glacéau), which manufactures and distributes various lines of enhanced water including the Vitaminwater Line. Economic Development staff began negotiations with The Coca-Cola Company Corporate Atlanta office in December 2016 to locate its new Vitaminwater line in Grand Prairie. In January, CCC reduced its focus to 3 sites (California, Pennsylvania, and Grand Prairie) and requested incentive options from each city.
As an incentive to locate its new Vitaminwater manufacturing and distribution line in Grand Prairie, staff is recommending a seven-year, 50% property tax rebate on the added value of real estate and equipment, and entering into a Separated Sales Contract rebating 50% of the 1% document sales tax revenue generated from construction materials and purchase of taxable equipment (such as conveyors and process piping).
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 -- Added Real Estate improvements: $6,000,000
Projected Investment -- Added Equipment: $27,000,000
Projected Investment -- Added Sales Tax Revenue: $172,000
Projected -- Real Ad Valorem Amount Rebated: $20,000 per year ($140,000 over 7 years)
Projected -- Equipment Ad Valorem Amount Rebated: $90,000 per year ($630,000 over 7 years)
Projected -- S...
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