CC MEETING: July 7, 2015
DATE: June 16, 2015
TO: Leonard Martin, City Manager
FROM: Tom Latchem, Director of Economic Development
Title
Consider A Resolution Authorizing The City Manager To Enter Into A Tax Incentive Agreement With RDL Property, LP.
Body
BACKGROUND:
RDL Property, LP has requested a tax incentive for a 75,000 square foot corporate headquarters/ manufacturing/distribution center (DC International) located at 4488 Plano Parkway. DC International is a company founded in Carrollton in 2008 and has grown to become a global, tech-savvy seller of high quality leather goods through Leatherology.com to major companies such as Toyota, Google, Seiko, and A&E, and of canvas covers for household and commercial use through TheCoverStore.com.
FINANCIAL IMPLICATIONS:
The total cost of the building is $7,400,000 with an investment in inventory of approximately $3,500,000, for a total investment of almost $11 million. This 7-year, 50% abatement of real and personal property, including inventory, would result in a savings of approximately $33,000 annually to the company for a 7-year total savings of approximately $230,000. During the same 7-year timeframe the City of Carrollton would receive a total of approximately $230,000 in tax revenue.
IMPACT ON COMMUNITY SUSTAINABILITY:
In accordance with the City of Carrollton’s goal of enhancing the tax base through new development, this project meets all criteria.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends that City Council authorize the City Manager to enter into an incentive agreement with RDL Property LP (attached).