CC MEETING: May 6, 2025
DATE: April 30, 2025
TO: Erin Rinehart, City Manager
FROM: Jenny Zeilfelder, Director of Economic Development
Ravi Shah, Executive Director of Development
Shannon Hicks, Assistant City Manager
Title
Consider A Resolution Authorizing The City Manager To Negotiate And Execute An Economic Development Incentive Agreement With UEP, Inc., Establishing A Program Of Grants To The Company For Its Expansion At 2323 McDaniel Drive, In Amounts Equal To Fifty Percent (50%) Of Taxes Paid To The City On The Assessed New Value Of Real Property And Business And Personal Property For A Maximum Term Of Five (5) Years, For A Total Incentive Amount Not To Exceed $1,559,868.
Body
BACKGROUND:
This agenda item is to consider a resolution authorizing the City Manager to negotiate and execute an economic development incentive agreement with UEP, Inc.
UEP, Inc. is a global leader in the manufacturing of aviation and aerospace components manufacturer specializing in military tech producing large caliber munitions, energetics and factory robotics products.
UEP intends to occupy a manufacturing facility, located at 2323 McDaniel Drive. The investment will be at least $17 million in improvements to the facility, adding a minimum of $188 million in new equipment and creating 60 new full-time jobs. This expansion will enable the company to produce large caliber munition, energetics, and factory robotics, as well as meet the growing demand for its products.
FINANCIAL IMPLICATIONS:
Staff recommends a fifty percent (50%) rebate on the assessed value of the new business and personal property taxes paid to the City, as well as a fifty percent (50%) rebate on the assessed value of real property taxes paid to the City, both for five (5) years. The dollar value of this program of tax rebates will not exceed $1,559,868 over the term of the Agreement. No incentives to the Company will be derived from the City’s General Fund.
IMPACT ON COMMUNITY SUSTAINABILITY:
Should UEP choose to expand at 2323 McDaniel Drive, the Company will create new jobs, as well as increase the ad valorem value of the property by making improvements to the building and adding new business and personal property.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends City Council approval of a Resolution authorizing the City Manager to negotiate and execute an economic development incentive agreement with UEP, Inc.