CC MEETING: October 18, 2016
DATE: October 11, 2016
TO: Leonard Martin, City Manager
FROM: Andrea Roy, Economic Development Manager
Title
Consider A Resolution Nominating Lennox Industries, Inc. To The Governor's Office Of Economic Development And Tourism Through The Economic Development Bank For Designation As An Enterprise Project.
Body
BACKGROUND:
Lennox Industries is a global leader in the residential and commercial heating, air conditioning, and refrigeration industry. It currently operates its research and development facility at 1600 Metrocrest Drive in Carrollton, employing about 300 people. The existing 150,000 square foot facility is owned by Lennox and has been in operation since 1977. Lennox's research and development team provides continuous innovation in the heating/cooling market through development of cutting edge technology that increases energy efficiency, ease of use, and consumer cost reduction. The company has been in business since 1895 and is currently headquartered in Richardson.
In order to accommodate Lennox's growing operations and remain competitive in the market, the company proposes to invest approximately $25 million to $40 million in new structural improvements, machinery and equipment. The expansion is estimated to create an additional 30 jobs over the next two years.
This agenda item relates only to the company's application for Texas Enterprise Zone Project Program assistance. In order for a company to seek benefits through the Texas Enterprise Zone Project Program, the city in which it is located must pass a resolution nominating the project to the Governor's Office. Passage of the resolution will formally nominate Lennox Industries, Inc. as an Enterprise Zone Project, which, if approved by the State, would provide a state sales and use tax refund for taxes paid on machinery and equipment, building materials, labor for the rehabilitation of existing buildings, electricity and natural gas purchased.
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