CC MEETING: May 6, 2025
DATE: April 30, 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 Five (5) Years, For A Total Incentive Amount Not To Exceed $1,559,868.
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 a global leader in the manufacturing of aviation and aerospace components manufacturer specializing in military tech producing large caliber munitions, energetics and factory robotics products.
UEP intends to occupy a manufacturing facility, located at 2323 McDaniel Drive. The investment will be at least $17 million in improvements to the facility, adding a minimum of $188 million in new equipment and creating 60 new full-time jobs. This expansion will enable the company to produce large caliber munition, energetics, and factory robotics, as well as meet the growing demand for its products.
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 $1,559,868 over the term of the Agreement. No incentives to the Company will be derived from the City's General Fund.
IMPACT ON COMMUNITY SUSTAINABILIT...
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