Title
Resolution - A Resolution of the City Council of the City of Mansfield, Texas, Approving the First Amendment to Tax Abatement Agreement Between the City of Mansfield, Texas and RMA HOLDINGS, LLC; Authorizing the Mayor to Execute Said Agreement; and Providing an Effective Date
Requested Action
Consider approval of the Amended Tax Abatement Agreement with RMA Holdings, Inc
Recommendation
Approval of the Amended Tax Abatement Agreement with RMA Holdings, Inc
Description/History
On October 10, 2016, RMA Holdings, LLC, also known as AM-C Warehouse, entered into a 10 year, 50% tax abatement agreement with the City of Mansfield. The abatement period was to begin January 1st of the year following completion of Phase One. Phase One was completed in 2018, so the abatement period should have commenced on January 1, 2019.
In order to receive the abatement, RMA was required to submit an exemption application to the Johnson County Appraisal District no later than April 30th of the year for which the company is seeking the abatement. RMA was unaware of this process and did not submit the application. Therefore, they are asking for an amendment to the tax abatement agreement allowing the first year to commence beginning January 1, 2020 rather than 2019.
Justification
RMA has already completed the first two phases of a total $67 million capital investment that will create at least 110 new jobs.
Funding Source
N/A
Prepared By
Richard Nevins, Director Economic Development, 817-728-3652