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 CAM-TECH MANUFACTURING, L.P. ("Cam-Tech"), and Authorizing its Execution by the President of the MEDC; and Providing an Effective Date
Requested Action
Consider the PCX Cam Tech Economic Development Agreement
Recommendation
The MEDC Board has recommended $50,000 per year for 5 years directly to PCX Cam Tech.
Description/History
In June 2011, Cam-Tech Manufacturing moved to Mansfield from Arlington, constructing a new building at 800 S. 6th Ave. Cam-Tech subsequently sold to PCX Aerostructures, LLC of Newington, CT. In purchasing the business, PCX entered into an 8 year lease with an 8 year extension option with the building owner. PCX has added 15 jobs since the purchase and expects to add at least 10 more if the new equipment is located in Mansfield.
PCX has proposed to expand the facility and has requested that the landlord construct a 13,500 sf addition to the existing Cam-Tech building valued at $1,300,000. PCX has committed to add $3.75 million in business personal property in the form of manufacturing equipment.
PCX has stated that they require an incentive of $250,000 in order to make the Mansfield move instead of moving the project to their headquarters location in Connecticut.
The MEDC Board initially recommended $50,000 to the landlord to assist with the real property improvements, and requested that the City Council consider offering a tax abatement directly to PCX for only the new business personal property (BPP) to offset the difference.
The Board has reconsidered the request and has recommended $50,000 per year for 5 years paid directly to PCX Cam Tech.
Justification
In addition to new jobs, PCX's presence in Mansfield could eventually lead to additional expansions.
Funding Source
N/A
Prepared By
Scott Welmaker, MEDC, 817-266-5890