AGENDA ITEM # 18 KEY FOCUS AREA:
Economic Vibrancy
AGENDA DATE:
August 14, 2013
COUNCIL DISTRICT(S):
7
DEPARTMENT:
Office of Economic Development
CMO:
Ryan S. Evans, 671-9837
MAPSCO:
56 G ________________________________________________________________
SUBJECT Authorize a public hearing to be held on August 28, 2013 to receive comments concerning the creation of City of Dallas Reinvestment Zone No. 82 located at 5327 South Lamar Street, Dallas, Texas; and, at the close of the hearing, consideration of (1) an ordinance creating City of Dallas Reinvestment Zone No. 82; and (2) a 75 percent real property tax abatement for eight years with Borden Dairy associated with the addition of new equipment and the addition of jobs at their southern Dallas plant Financing: No cost consideration to the City BACKGROUND For the past several months, city staff has negotiated with Borden Dairy Company (Borden) regarding a possible expansion at its existing plant located at 5327 S. Lamar Street, Dallas, Texas. The company is considering the addition of a production line that would result in an investment of over $5,000,000 for equipment and over 100 new jobs. Borden is a subsidiary of Grupo LALA, S.A. de C.V. Borden is one of the largest and most recognized brands in the dairy industry. Headquartered in Dallas, Borden also has a shared services center and manufacturing plant located in Dallas. During 2013, the company plans to restructure many of its existing 19 manufacturing plants to increase their productivity while maximizing their efficiency. The plans include purchasing additional capital equipment and hiring additional employees where most appropriate. The company’s Dallas plant is one of the locations considered for expansion. Currently, the plant has excess capacity and space. If approved, the company plans to spend at least $5 million on capital expenditures to purchase additional/replacement equipment to improve the plant’s productivity. Investment in company vehicles, forklifts, etc. will likely result in an additional $5 million in a total investment of approximately $10 million. With the new capacity, the company will add more than 100 new jobs at the plant.