CC MEETING: May 3, 2016
DATE: April 26, 2016
TO: Leonard Martin, City Manager
FROM: Thomas Latchem, Director of Economic Development
Title
Consider A Resolution Authorizing The City Manager To Enter Into A Tax Incentive Agreement With ROMCO Equipment Company, LLC.
Body
BACKGROUND:
ROMCO Equipment Company is a family-owned construction, mining, and paving equipment distributor established in Texas in 1961. The company has grown to 11 locations in Texas with its corporate headquarters and operation hub located in Dallas. The Dallas headquarters employs 54 people with an annual payroll of $5.6 million. The Company currently pays sales tax to the City of Dallas of over $250,000 annually.
ROMCO's current headquarters facility is dated and has become very difficult for its customers to access due to the urbanization that has occurred around them. In order to accommodate ROMCO's rapidly growing operations in a new facility that provides easy access and visibility throughout the Metroplex, the company has requested a tax incentive equal to a portion of property taxes paid on a new 35,000 square foot 3-building complex with a capital investment of $7 million to be located at 1519 West Belt Line Road in the Valwood Industrial Park.
ROMCO has been in preliminary discussions with City staff and, although the site is zoned light industrial, has agreed to upgrade their facility to provide a more aesthetically pleasing look facing Belt Line Road if the City can provide a partial offset to the additional cost of the estimated $750,000 upgrade.
FINANCIAL IMPLICATIONS:
ROMCO has requested a grant equal to 75% of taxes paid on new real and business personal property for a 7-year period. This incentive will provide ROMCO with a grant of approximately $31,000 annually for a 7-year total savings of approximately $217,000. In addition, the Company has requested a 100% rebate (not to exceed $30,000) of City permitting fees to be paid on the cons...
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