Title
A resolution in support of Hithium Tech USA Inc.’s application for designation as a foreign trade subzone as sponsored by Grantee of Foreign Trade Zone 168 in Dallas/Fort Worth.
Body
Foreign trade zones are a federal development program administered by the Foreign Trade Zones (FTZ) Board (Internation Trade Administration, U.S. Department of Commerce) and regulated by U.S. Customs and Boarder Protection. The FTZ program was created to stimulate international trade and provide economic incentives to enhance the global competitive position of the U.S. Through the foreign trade zones program individual companies are provided various tax and operational savings that are meant to encourage growth and generate jobs in the U.S.
The applicant, Hithium Tech USA Inc. has invested in local real estate with the purchase of a 483,874-square-foot building at 11955 FM 3932, as well as the lease of another 348,412-square-foot in an adjacent building at 11975 FM 2932 in the 20 East Trinity Pointe Business Park.
Currently, there is no Hithium business inventory on the current tax roll, so there is no negative financial impact to the City of Mesquite in 2025. Most of Hithium’s eligible inventory will be covered under the City-approved Texas Freeport exemption and there is only a small part of inventory protected by foreign trade zone status.
Future inventory value may be minimally affected by the federal FTZ exemption, should the company receive approval of their application.
Recommended/Desired Action
Staff recommends approval of the resolution.
Attachment(s)
Resolution
Drafter
Kim Buttram
Head of Department
Kim Buttram