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 Mouser Electronics, Incorporated and Authorizing its Execution by the President of the MEDC; and Providing an Effective Date
Requested Action
Approve Economic Development and Performance Agreement
Recommendation
Administration recommends approval of the Agreement.
Description/History
Mouser Electronics relocated to Mansfield, TX from San Diego, CA in 1983 with 103 full-time employees. The company currently has 19 offices worldwide and employs 1357 full-time employees, 1169 of which are located at their facility in Mansfield. Mouser is a subsidiary of TTI, Inc., headquartered in Fort Worth, and is part of Berkshire Hathaway's family of companies. Mouser is the largest employer, next to the school district, in the city.
The company is currently developing plans to expand their warehouse by 250,000 square feet to be completed in two phases over the next five years. The company expects to start construction on Phase 1 in the third quarter of 2014 with a 125,000 square foot warehouse addition. Phase 2 which would involve an additional 125,000 square feet would take place in 2019. Each phase will consist of a capital investment of approximately $10 million for the building and an additional $1 million in equipment for a total capital investment of $22 million. Each phase will add 100 full-time employees for a total of 200.
On March 31, 2014 Mansfield Economic Development Corporation Board approved by a vote of 7-0 an incentive of $650,000 which was 50% of the $1.3 million being requested for the relocation of water, sewer, and a large storm drain. This work must be completed before work can start on Phase 1. The work is necessary for both expansion phases and they do not expect additional utility relocation expenses for Phase 2. The company has stated that they will not seek MEDC assistance for the Phase 2 expansion and has agreed to receive the incentive payment in two equal installments of $325,000 a year over a two year period.
Justification
The company is the second largest employer in the city and has been invested in the City of Mansfield for the past 31 years. This project will be an additional investment of $22 million of taxable revenue to the City and 200 new jobs.
Funding Source
Mansfield Economic Development Corporation
Prepared By
Pat Jamison, Economic Development Specialist, Mansfield Economic Development Corporation