Title
Resolution - A Resolution of the City of Mansfield, Texas, Approving an Amended and Restated 380 Economic Development Program Agreement with Zah Group, Inc.; Authorizing the City Manager to Execute Said Agreement; and Providing an Effective Date
Requested Action
Consider request for amended economic development agreement from Zah Group, Inc.
Recommendation
Approve requested revisions to the existing 380 Economic Development Program Agreement
Description/History
The City entered into a 380 Economic Development Program Agreement with Zah Group, Inc. (Klein Tools) in 2013. Klein Tools has been meeting the employment benchmarks set forward in this agreement and exceeding the benchmark for capital investment until 2017. In 2017, Klein Tools did not meet the employment benchmark and their incentive payment was reduced according to the agreement. Due to this reduction, Klein Tools has been reevaluating their hiring strategy, taking into consideration the construction delay for the upcoming distribution center. Klein Tools has requested a modification in employment for years 2018-2021 as spelled out in the table below. Part of the request that would be new to this amended agreement is the inclusion of full time temporary employees in the employee headcount. They have begun using a staffing agency for temp-to-hire employees as part of their hiring strategy.
Year Current Proposed (including full time temporary employees)
12-31-2018 585 491
12-31-2019 585 517
12-31-2020 585 585
12-31-2021 585 585
Justification
Klein Tools has been a community partner since they began moving their operations to Mansfield.
Funding Source
4A
Prepared By
Richard Nevins, MEDC, 817-728-3652