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 Hoffman Cabinets, Inc., a Texas Corporation (Hoffman) and Authorizing its Execution by the President of the MEDC; and Providing an Effective Date
Requested Action
Consider the Hoffman Cabinets Economic Development Agreement.
Recommendation
The MEDC Board has recommended reimbursement not to exceed $75,000 for eligible expenses associated with fire lane paving and electrical upgrade. Approval for a sale of land to Hoffman will be on a future City Council agenda.
Description/History
Hoffman Cabinets builds custom cabinets for the residential housing market at 204 Sentry in Mansfield, where they have been since 1978. In the past few years they have experienced unprecedented growth and are completely out of space. They have evaluated many options, including moving to Arlington or Burleson. They have indicated that they would prefer to remain in Mansfield if they find it to be the best business decision. They currently employ about 200.
Hoffman’s goal is to have all operations under one roof eventually. Purchasing the existing building at 1206 Antler would give them some time to move some operations and parking to that site. They have also requested to purchase the 5.472 acre MEDC tract adjoining 1206 Antler.
Hoffman Cabinets requested incentives on 1206 Antler Drive for a total package of $125,000:
· A new fire lane (not to exceed $90,000)
· Upgrade to the electrical service (not to exceed $25,000)
· A new dock door (not to exceed $10,000)
Hoffman will commit to a minimum of 225 total employees within 5 years and an initial $500,000 investment in new manufacturing equipment.
The MEDC Board made the following recommendation:
· Reimbursement not to exceed $75,000 for fire lane and electrical upgrade on building at 1206 Antler, and...
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