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 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 Two (2) Five (5) Year Terms, Not To Exceed Seven Hundred Ninety-Eight Thousand And Five Hundred Four Dollars ($798,504) In Phase 1 And Not To Exceed Four Hundred Thirty-Three Thousand And One Hundred Ninety-Nine Dollars ($433,199) In Phase 2.
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 an aviation and aerospace components manufacturer specializing in military tech producing large caliber munitions, energetics and factory robotics.
UEP, Inc. intends to occupy a manufacturing facility, located at 2323 McDaniel Drive. This investment would add the installation of new furniture, fixtures, and equipment with an approximate value of $100 million and approximately $11 million in improvements to the facility, and the creation of sixty (60) 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 two (2) five (5) year terms, not to exceed $798,504 in Phase 1 and not to exceed $433,199 in Phase 2. No incentives to the Company will be derived from the City's General Fund.
IM...
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