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BUSINESS INCENTIVES :: TAX ABATEMENTS ::
HISTORY
|
NAME |
DESCRIPTION |
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BFAC/ AMERICREDIT
CORP/OP CENTER
|
1999 tax abatement
agreement
entered into with AmeriCredit Corp. to open a new, Central Time Zone
financial operations center in Arlington on a 28-acre site at the
northwest corner of Interstate 20 and South Collins Boulevard.
AmeriCredit developed the site by constructing a 250,000-square-foot
facility with a value of approximately $22.5 million. AmeriCredit also
located another $10.5 million in personal property in the building.
Approximately 800 full-time employees are expected to work in the
facility. |
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AMERICREDIT II
|
2001 tax abatement
agreement
entered into to expand their current Arlington operations on 32.3-acre
site at 3930 Embarcadero Drive, adjacent to the existing facility. The
250,000-square-foot expansion of their financial operations center was
estimated to be valued in excess of $29 million, and AmeriCredit planned
to locate another $6 million of business personal property in the
building. The firm projected 1200 new jobs, with an average annual wage
of $32,600. |
|
RTG
FURNITURE OF TEXAS LP
ROOMS TO GO
DISTRIBUTION CENTER |
2002
tax abatement agreement –
Rooms To
Go and Logan Dallas Associates received a tax abatement from the City on
real and personal property improvements. Rooms to Go proposed to
construct an 850,000 square foot warehouse/distribution/office/retail
development estimated to be valued in excess of $28 million. The project
consists of $25 million in real property improvements and $3 million in
personal property improvements. The development is expected to create
over 400 jobs. The proposed agreement will exempt from taxation 40 to 60
percent of the added value of the real and personal property
improvements beginning January 1, 2005. The agreement will exempt from
taxation 40 to 60 percent of the added value of the real and personal
property improvements. |
|
SIEMENS LOGISTICS & ASSEMBLY
SIEMENS DEMATIC
R&D BUILDING |
2003 tax
abatement agreement -
Siemens
has constructed a corporate headquarters and research and development
facility of approximately 233,000 square feet, located on 14.1 acres,
located on Nolan Ryan Expressway, near the Ballpark. The value for the
project is estimated to exceed $35 million dollars. The agreement will
grant up to a 60 percent abatement for 10 years, if the added value
requirement is met. The retention or addition of 500 jobs with an
average annual salary (including benefits) of $60,000 will be eligible
for an additional abatement of up to a 20 percent. The maximum tax
abatement available, if all value and employment levels are met, will be
80% of the real and personal property improvements. |
|
TDS
AUTOMOTIVE US INC
MACKIE AUTOMOTIVE
I
PROLOGIS NORTH
AMERICAN PROPERTIES |
1997
tax abatement agreement -
Security Capital
Industrial Trust and Mackie Automotive Systems requested a tax abatement
on improvements resulting from the construction and equipping of a new
229,400-square-foot automotive subassembly facility located at 3151 East
Pioneer Parkway. The estimated value of the real property improvements
was $6.17 million, with new personal property projected to be worth
$990,000. Security Capital and Mackie may earn an abatement of up to a
75 percent on the improvements by meeting the conditions and
requirements of the agreement. The major requirements include a $5
million increase in taxable value, retention of Mackie or another target
industry in the facility, and creation/retention of 100 or more
full-time jobs. Mackie projected employing more than 300 hourly workers
by the end of the first year.
1999 tax abatement
agreement -
Mackie Automotive Systems began construction on a new $17.5 million,
492,500 square-foot automotive subassembly facility located at the
southeast corner of Avenue E and Great Southwest Parkway. Job growth was
estimated to reach 362 positions by the end of 1999. Mackie Automotive
Systems had previously been located in the Great Southwest Enterprise
Zone at 3151 East Pioneer Parkway, but needed to relocate in order to
expand production. Mackie Automotive Systems contracts with General
Motors as a subassembly constructor. |
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OFFICE DEPOT, INC.
/ CAMPBELL, JAMES EST |
1999 tax abatement
agreement -
Office Depot, Inc.
constructed and equipped a new 262,500-square-foot warehouse and
distribution facility located on approximately 26.2 acres of land at the
southwest corner of Interstate 20 and State Highway 360. The property
also accommodates an additional 140,000-square-foot expansion to meet
future growth needs. The estimated value of the improvements is $6.9
million. Office Depot projected employment to be at more than 125 hourly
workers by the end of 1999. |
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CHASE BANK CALL
CENTER
JP
MORGAN CHASE BANK |
1998
tax abatement agreement - A new customer service and call center
for Chase Bank of Texas, located on a 20-acre site at the southeast
corner of I-20 and New York Avenue, opened as part of a redeployment of
Chase Manhattan’s New York-based operations. The 175,000-square-foot,
two-story call center is estimated to be valued at $23.9 million. Chase
estimated spending another $12.7 million on personal property to furnish
and equip the center. |
|
COLLINS WALTON
BUCKNER LP/ PROVIDIAN FINANCIAL |
1999 tax abatement
agreement -
Providian
Financial, a leading provider of consumer lending and deposit products
including credit cards, revolving credit lines, home loans, secured
credit cards and fee-based services, has made improvements to 127,000
square feet of a previously vacant outlet mall located at 3801 South
Collins. The improvements to this new financial customer service center
were estimated to cost in excess of $22.6 million. Providian Financial
ranks among the 10 largest bankcard issuers in the nation and is a
member of the S&P 500. The developer estimated employment strength at a
total of 750 employees by the end of the year 2000. This agreement
concluded in 2005. |
|
PETULA/ AETNA |
1997 tax
abatement agreement
- Aetna received tax abatement on a new 140,000-square-foot office
facility at 4300 Centreway Place in the Westway Business Center. The
facility serves as the primary operations center for Aetna’s west
central region, and was expected to increase Aetna’s employment in
Arlington by 350 or more jobs in addition to the existing 450. The
estimated value of the real property improvements was $9 million, with
new personal property projected to be worth $2.3 million. Aetna planned
to transfer approximately $3.8 million in existing personal property
into the new facility. Aetna is eligible to earn up to a 75 percent
abatement on the improvements by meeting $5 million increase in taxable
value, being a target industry, and creation/retention 100 or more
full-time jobs. |
|
EDEN RD
INVESTMENTS #2 LTD/ RAZ IMPORTS (Terminated) |
2000
tax
abatement agreement
- Eden Road Investments No. 2, Ltd., built a 240,000-square-foot
build-to-suit office/warehouse development on 14.5 acre site on Eden
Road, just east of South Cooper Street for Raz Imports, Inc., a
privately held corporation currently located in Fort Worth. This project
is estimated to be valued in excess of $6.7 million, and a
320,000-square-foot, $2.2 million expansion was planned for 2002. Raz
Imports, Inc. is a distributor of imported handcrafted items, primarily
to mass merchants, craft shops, florists, and other customers throughout
the United States and internationally. Raz Imports, Inc. will employ 190
full-time employees, with an average annual wage of $40,206. The
agreement was terminated and the City recaptured taxes previously
abated. |
|
GENERAL MOTORS
|
2004 tax
abatement agreement on
a $169,170,962 expansion at its Arlington General Motors assembly
plant. The project will allow the company to retain 2,930 employees at
the plant along with an annual payroll of $281,190,041. The firm
expects to spend over $169,000,000 for buildings, real property
improvements, manufacturing and processing equipment and special tools.
The agreement exempts from taxation up to 90 percent annually of the
added value of the real and personal property improvements, related to
the expansion, beginning January 1, 2004. Twenty percent of this
abatement is contingent on job retention at current staffing
levels. This 20% abatement decreases by 5% for every 100-job reduction
in the plant's workforce; however, the abatement percentage can rise
again in a subsequent year if the staffing increases. A recapture clause
is also in place for the life of the agreement. If a breach occurs in
the first 5 years, the City may recapture all taxes abated. In years
6-10, if a breach occurs, the City may recapture only taxes abated for
the current year, if any.
1999 tax
abatement agreement
on an expansion
valued at an estimated $555 million in improvements. The improvements
expanded and modernized the plant for the next generation truck line,
and include a new $15 million administrative office building. At the end
of 2000, GM estimated a total of 2,870 full time employees at the plant,
with the expansion expected to be fully operational in early 2001.
1996 tax
abatement agreement
on an estimated
$264 million in improvements that will convert the Arlington plant from
passenger car to truck assembly. The tax abatement applies to 75 percent
of the value of both the real and personal property added in 1996 and
1997 as long as GM makes the improvements by July 31, 1997, and
continues to operate the plant with a minimum of 1,500 full-time
employees. The duration of the agreement is 10 years. A bonus tax
abatement may apply to a portion or all of the remaining 25 percent of
new value if GM retains more than the minimum number of full-time
employees, as follows: a) 1,600 to 1,699 employees for 10 percent more
abatement, b) 1,700 to 1,799 employees for 15 percent more abatement,
and c) 1,800 or more employees for 25 percent more abatement. City
property taxes due on the base year value in 1996 totaled $872,000. The
estimated value of the abatement (2 years at 100 percent, remainder at
75%) from the city to GM is $9.3 million over the 10 years. During the
same period, the estimated city taxes collected on the new improvements
are $2.4 million. In addition, the city can anticipate collecting $8 to
$10 million in property taxes on the $136 million base year value. |
|
LEAR |
2005 tax
abatement agreement
The firm plans to
spend $8,245,000 for new equipment to manufacture automotive seats for
General Motors. The proposed five-year agreement will exempt from
taxation up to 30 percent annually of the added taxable value of the
business personal property improvements, related to the improvements,
beginning January 1, 2006. Lear currently employees 641 workers at this
site with salaries that exceed Arlington’s median wage and the abatement
is contingent on Lear retaining at least 600 jobs at the site. A 100%
recapture clause is in place for the life of the agreement.
1997 tax
abatement agreement
Lear Operations
Corporation received a tax abatement for a new 90,000-square-foot
automotive parts manufacturing facility on Bardin Road near New York
Avenue. The projected taxable value of new real property was estimated
to be $5.2 million, with personal property improvements projected to be
valued at $4.76 million. The tax abatement agreement stated that
eligible improvements must be completed not later than December 31, 1997
and must exceed $5 million in new taxable value. The duration of the
agreement is 10 years, with new real property value eligible for up to
10 years of abatement and new personal property value eligible for a
maximum of five years of abatement. Lear earned a minimum of 50 percent
abatement due to its target industry status and completion of the
improvements with a taxable value of $5 million or more. An additional
25 percent of the value will be abated in every year that Lear creates
and retains 100 or more full-time jobs. Lear projects 180 employees by
the end of its second year in operation. |
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McLANE
DISTRIBUTUION STORAGE |
1995 tax abatement
agreement -
The city awarded a
10-year, 25 percent tax abatement to encourage PFS (Pepsico Food
Systems) to locate its newest regional distribution facility in
Arlington. PFS manufactures and distributes food, supplies and equipment
for PepsiCo’s restaurant chains such as Pizza Hut, Taco Bell and KFC.
Capital expenditures on the facility were estimated at $5 million, and
83 employees were relocated immediately from its Grand Prairie
operation, which did not provide adequate room for expansion. In any
year of the agreement that the facility employs 100 persons full-time,
an additional 25 percent abatement will be applied to the new taxable.
An additional adjacent seven acres have been acquired for future
expansion. Tarrant County is a participant in this agreement. This
agreement concluded in 2005. |
|
NATL SEMICONDUCTOR
CORP |
2006 tax abatement
agreement requires NS to add $30 million Combined Taxable Value to the
tax roll by 2011 in order to qualify for up to 90% abatement for ten
years. The planned expansion allows National Semiconductor Corporation
to begin producing 200mm wafers. The equipment included includes
semiconductor-processing equipment, clean room related property, support
machinery and equipment, as well as computer equipment and software to
support the new semiconductor processing and related systems. |
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NATL SEMICONDUCTOR
CORP,
|
2001 tax
abatement agreement
provides for a minimum investment of $25 million in real and personal
property improvements to National Semiconductor’s existing manufacturing
facility. The planned expansion allows National Semiconductor
Corporation to begin producing chips that will support the wireless
industry. The expansion plan includes semiconductor-processing
equipment, clean room related property, support machinery and equipment,
as well as computer equipment and software to support the new
semiconductor processing and related systems. The expansion is estimated
to create or retain 55 jobs with average annual wages of $30,000. The
agreement exempts from taxation 80 percent of the added value of the
real and personal property improvements. The proposed abatement
agreement would apply to approximately $1 million in real property
improvements for 10 years, and $24 million in personal property
improvements for 5 years.
1997 tax abatement
agreement
was based on forecasted capital spending of $216,800,000 in the years
1997 through 2001. The duration of the agreement is 10 years, with new
real property value eligible for up to 10 years of abatement and new
personal property value eligible for a maximum of five years of
abatement. Eligible improvements must have been made in the years 1997
through 2001. Under provisions of a 1998 amendment to the tax abatement
agreement, National Semiconductor may earn up to 80 percent abatement on
the value of the eligible improvements. A minimum of 60 percent
abatement applies to the new value due to the company’s classification
as a target industry (20 percent) and the project’s status as high
impact (40 percent), in accordance with the city’s current policy. A
bonus tax abatement up to 20 percent may apply to new value in any year
of the agreement that National Semiconductor maintains target full-time
employment levels. |
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FOR 1031 ARLINGTON
/ LAMAR LTD/ NURSE FINDERS |
1998 tax
abatement agreement -
Poynter
Scifres and project owner 1701 Lamar Blvd. Ltd. received a tax abatement
from the city on a two-story, 80,000-square-foot building, located at
the corner of Lamar Boulevard and Baird Farm Road in North Arlington.
The project was estimated to be valued at $5 to $7 million. The project
owner may earn up to 60 percent abatement on the improvements by meeting
the conditions and requirements of the agreement. The agreement grants a
minimum 20 percent abatement for meeting the $5 million increase in
taxable value. An additional 20 percent abatement may be earned for the
occupancy of at least half of the building by a target industry, and the
final 20 percent for the creation and/or retention of 100 or more
full-time jobs. |
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A.E. PETSCHE CO. |
2006 tax
incentives agreement -
The tax abatement
is contingent upon the firm achieving a taxable value of at least
$1,000,000. The proposed five-year agreement exempts up to 45% annually
of the added taxable value of the real property from taxation, beginning
January 1, 2007.
Petsche plans to
spend $1,500,000 to construct an expansion of their corporate
headquarters located at 2112 West Division. The Chapter 380 agreement
provides Petsche a waiver of up to $33,000 in City fees associated with
construction of the expansion. |
|
DALLAS MTA LP/
PRIMECO
|
1997
tax abatement agreement –
PrimeCo
Personal Communications received tax abatement on its new mobile
switching center, located in an existing building at 808 110th
Street in the Arlington/Great Southwest Enterprise Zone. PrimeCo
estimated spending $1.25 million in real property improvements and $35
million in equipment and machinery through the year 2001. The tax
abatement agreement stated that eligible improvements must be completed
not later than December 31, 2001 and exceed $25 million in new taxable
value. PrimeCo may earn a 50 percent abatement due to the project’s high
impact status, which required the company to add $25 million or more in
new property value. The duration of the agreement is 10 years, with new
real property value eligible for up to 10 years of abatement and new
personal property value eligible for a maximum of five years of
abatement. |
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PRIMERA I |
1997 tax
abatement agreement
– Primera Arlington Properties I, Ltd. Generally located at 4001 New
York Avenue requested a 75 percent tax abatement on a new
320,000-square-foot speculative office/warehouse facility. The projected
value of the real property improvements was $6,000,000. The proposed
agreement includes abating 25 percent of the value of real property
improvements for 10 years. An additional 25 percent abatement is earned
when 100 full-time jobs are created and is available in every year
thereafter when 100 or more jobs are maintained. An additional 25
percent abatement will be applied if at least 50 percent of the facility
is leased to a target industry. The agreement required that the
appraised value of the improvements must be at least $5,000,000 on
January 1, 1999 and the facility must be at least 50% leased or the city
may terminate the agreement. Primera may not change the use of the
Arlington facility as an office/warehouse facility or fail to maintain
an occupant for more than two years at any time throughout the term of
the agreement or the city may end the agreement and recapture all abated
taxes. |
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PRIMERA II |
2000 tax
abatement agreement
– Primera Arlington Properties II, Ltd. Planned a 228,800-square-foot
speculative office/warehouse facility on 11.663 acres at the northwest
corner of New York Avenue and Tech Center Parkway in the Arlington Tech
Centre/I-20 corridor. This estimated value was in excess of $6 million,
and was Phase II of a previously developed 320,000-square-foot
speculative office/warehouse facility adjacent to this new site. The
developer estimated that more than 180 would be created. |
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ROBINSON STEEL |
2005 tax
abatement
agreement will
exempt from taxation up to 25% annually of the added taxable value of
the business personal property, beginning January 1, 2006, for a term of
5 years. The abatement is contingent upon the firm achieving a taxable
value of at least $2,500,000. The firm will occupy an existing 59,200
building at 630 106th Street in the Great Southwest Industrial Center.
Robinson will add $250,000 in property improvements, and house both
manufacturing and distribution facilities. A 100% recapture clause is
in place for the life of the agreement. |
|
UNITED GRAPHICS |
2006 tax abatement -
The
proposed five-year agreement will exempt from taxation up to 40%
annually of the added taxable value of the business personal property.
United Graphics has relocated to Arlington and occupies an existing
42,000 sq. ft. building at 1130 Ave H East, in the Great Southwest
Industrial Center. The firm will be required to achieve a taxable
value, on business personal property, of at least $3.0 million in year
one and $4.8 million of taxable value in year two. If the company does
not achieve $3.0 million in year one, but does achieve $4.8 million in
year two, the company will receive an abatement for the remaining four
years. A 100% recapture clause is in place for the life of the
agreement. |
|
PROGRESSIVE, INC. |
2006 tax
abatement and 380 Grant for Wavier of City Fees
- the seven-year agreement exempts up to 45% annually of the added
taxable value of the real property from taxation, beginning January 1,
2008. The Chapter 380 agreement will provide Progressive a waiver of up
to $37,000 in City fees associated with construction of the expansion.
Progressive will expand to produce the parts for Joint Strike Fighter,
and must invest in a new building, equipment, personnel, and
infrastructure to meet the demands of this state-of-the-art program. The
abatement is contingent upon the firm achieving a taxable value of at
least $10,000,000 by January 1, 2008. The firm will expand at its
existing location 1030 Commercial Blvd. North. A 100% recapture clause
is in place for the life of the agreement. |
|
TRANSNORM SYSTEM,
INC. |
2006 tax abatement -
The
agreement will exempt 25% of the taxable value of business personal
property for five years if the firm achieves a taxable value of at least
$1,000,000. The firm relocated to Arlington and occupies an existing
85,000 sq. ft. building at 2810 Ave E East, in the Great Southwest
Industrial Center. Transnorm will relocate $1.4 million in equipment,
invest an additional $500,000 in new equipment, and spend $345,000 for
property improvements.
A 100% recapture
clause is in place for the life of the agreement. |
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