Title
Conduct a public hearing and consider a resolution approving the terms and conditions of a program to promote local economic development and stimulate business and commercial activity in the City, authorizing the City Manager to finalize and execute an Economic Development Program Chapter 380 Agreement for such purposes by and between the City of Mesquite and United Parcel Service, Inc., (UPS) for building improvements and equipment upgrades to the industrial facility located at 4200 Samuell Boulevard, in the City of Mesquite, Texas, and authorizing the City Manager to take such actions and execute such documents as are necessary or advisable to consummate the transactions contemplated by the agreement and administer the agreement on behalf of the City.
Body
United Parcel Service, Inc., (UPS), proposes to add $10 million in facility improvements by October 31, 2025, and $128 million in Business Personal Property (BPP) improvements by December 31, 2025, for a total of a $138 million capital investment, to modernize the 332,000-square-foot Mesquite facility which has been in operation in Mesquite for more than 25 years and is the City’s second largest private employer.
The proposed agreement provides UPS a 50-percent BPP property tax grant (rebate) on new revenue resulting from an increased taxable value on the Dallas Central Appraisal District (DCAD) tax rolls over the base year of 2024. The current taxable value of UPS is $51.1 million; no incentives will be paid on the taxable value prior to January 1, 2025. UPS is required to maintain a lease and operations through the term of the agreement.
The attached resolution will authorize the City Manager to finalize and execute a Chapter 380 Agreement that outlines the responsibilities and obligations of the company and the City.
The City Council authorized staff to proceed with the project in Executive Session on May 6, 2024.
Recommended/Desired Action
Following the public hearing, staff recommends approval of the resolution.
Attachment(s)
Resolution
Drafter
Kim Buttram
Head of Department
Kim Buttram