CC MEETING: August 19, 2025
DATE: August 11, 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 AER Manufacturing, LP Establishing A Program Of Grants To The Company For Its Expansion At 3405 Wiley Post Road, 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 Dollars $277,663.
Body
BACKGROUND:
This agenda item is to consider a resolution authorizing the City Manager to negotiate and execute an economic development incentive agreement with AER Manufacturing, LP.
AER Manufacturing, LP is a manufacturer of remanufactured engine assemblies and has headquartered in Carrollton since 1946. The company’s campus encompasses over 800,000 square feet of manufacturing and distribution space and employs over 1,000 Full-Time Employees.
AER Manufacturing, LP intends to construct a 155,000-square-foot warehouse facility, located at 3405 Wiley Post Road. This investment would add the installation of new furniture, fixtures, and equipment with an approximate value of $1.05 million and approximately $19 million in real property improvements to the facility, and the creation of fifteen (15) Full-Time Employees.
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 $277,663 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 AER Manufacturing, LP choose to expand at 3405 Wiley Post Road, 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 AER Manufacturing, LP.