Title
Conceptual Economic Development Incentive Request - T&W Steel request for tax abatement for facility expansion at 1601 SE Hamblen Road; T&W Steel Co., applicant
Body
Issue/Request:
This is a conceptual presentation pursuant to the City's Economic Development Incentive Policy for the request by T&W Steel Co., which operates the facility at 1612 SW Jefferson Street (the “Company”), for proposed facility expansion at 1601 SE Hamblen Road for expansion of production capabilities. The incentive request includes two components as discussed below.
Key Issues:
Conceptual evaluation of the use of incentives through the Land Clearance for Redevelopment Authority (LCRA) to iretain the Company in the City and induce expansion at a new location in the City.
Background:
Developer is requesting the use of incentive in the form of:
(1) Sales and use tax exemption on construction materials for facility expansion (not including sales and use tax on machinery and equipment); and
(2) Real property tax abatement in the amount of 75% for 10 years using a fixed PILOTs schedule.
The Company is not requesting abatement for:
- real property taxes generated by the base value of the current property which contains the current facility;
- sales taxes paid on the purchase of machinery and equipment for the expansion.
Impact/Analysis:
The attached slides prepared by City staff, and the attached modeling prepared by Developer, provides a summary of the impact to the City and the taxing district and the benefits to developer from the incentive request.
Other Information/Unique Characteristics:
This abatement request is substantially similar to other abatement packages that the Council has approve for prior projects, which will be covered in the City’s presentation slides.
Presenter
David Bushek, Chief Counsel of Economic Development and Planning
Ryan Elam, Assistant City Manager
Curt Petersen, Polsinelli P.C., for T&W Steel, Co.