From
Bob O'Neal, Economic Development Director
Title
Resolution recommending designation of this project as a reinvestment zone and approving a partial tax abatement for real estate improvements for WR Logistics Crossing, LLC
Presenter
Bob O'Neal, Economic Development Director
Recommended Action
Approve
Analysis
WR Logistics Crossing, LLC purchased 75+ acres of Light Industrial land on West Marshall Drive, and commenced construction of Logistics Crossing 1, a light industrial 667,635+ S.F. speculative building.
In an effort to encourage WR Logistics Crossing to purchase the land sites in question, staff has been actively negotiating incentives with WR Logistics Crossing in the form of partial tax abatements, and requested WR Logistics Crossing to delay negotiations until a qualified tenant is identified; thus, this building was built on a speculative basis.
Over the past six months, staff and building owner have been actively negotiating with General Motors Arlington Assembly Plant to lease this building for a term of ten years. In an effort to entice GM to execute and finalize a ten-year lease on this building, staff is recommending City Council approve and grant a 50% / 6 year partial tax abatement on the ad valorem real estate improvements, which is estimated to be $22 Million once tenant improvements are completed and the rail spur is brought into the building.
WR Logistics Crossing, LLC is the ownership entity of Logistics Crossing 1 & 2. The entity is owned by Weeks Robinson Industrial Fund I, which is operated by Weeks Robinson Properties. With corporate offices in Atlanta, Georgia, Weeks Robinson Properties manages the Fund's assets and is the development company responsible for all property acquisitions and developments. Weeks Robinson’s industrial portfolio consists of over 8 million square feet, and is the developer that built and owns the Restoration Hardware building in Grand Prairie.
Financial Consideration
Projected Investmen...
Click here for full text