Title
Resolution - A Resolution of the City Council of the City of Mansfield, Texas, Approving an Economic Development and Performance Agreement by and Between the Mansfield Economic Development Corporation (“MEDC”) and Bway Corporation and Authorizing its Execution by the President of the MEDC; and Providing an Effective Date
Requested Action
Consideration of an Economic Development and Performance Agreement with Bway Corporation
Recommendation
Approve the Economic Development and Performance Agreement with Bway Corporation
Description/History
Bway Corporation has been in business since 1875 and purchased the Mansfield operation in 2012. The company currently employs 124 employees at the Mansfield facility. The existing facility manufactures packaging through injection molding.
The company is currently developing plans to expand their manufacturing operations by 13,500 square feet. The proposed expansion would allow Bway to expand their capabilities to include extrusion blow molding. This would result in their ability to produce a variety of stackable containers, serving primarily the food and beverage industries.
The expansion would occur within their existing warehouse space located at 1500 E. Dallas St. The initial phase of this project will include the installation of two complete production lines. These two production lines will require 8 additional full time employees. The production environment would be sized to accommodate an additional two blow mold machines in the near future, which would result in a total of four full production lines. Bway is not seeking assistance with Phase II.
Bway requested economic development assistance of $390,000 to replace the existing silo, construct walls to separate production from warehouse, upgrade electrical service and distribution system, upgrade to more efficient lighting fixtures, installation of HVAC systems for humidity control, reinforce foundation to accommodate machines. The capital investment totals $3,879,000, with $3,000,000 being in new equipment.
Justification
The capital investment will result in new tax revenue for the city, retain 124 jobs and create 8 immediate jobs in Mansfield.
Funding Source
4A
Prepared by
Scott Welmaker, Mansfield Economic Development Corporation 817-266-5890