A. Lee Graham
lgraham@bizpress.net
DynCorp International Inc. would enjoy tax breaks and move its corporate headquarters to Fort Worth if the City Council approves the idea. “The project is an expansion of the existing facility and also a relocation of their corporate headquarters,” said Robert Sturns, acting assistant director of the city’s Housing and Economic Development Department.
Explaining the proposal at the pre-council portion of the July 23 regular council meeting, Sturns described more than an routine tax abatement. The deal would see at least 100 employees move from company headquarters in Falls Church, Va. to Fort Worth while it would agree to maintain at least 1,000 employees in Fort Worth, as stipulated by the proposal.
About 1,000 employees currently work at the Fort Worth location. The company has had Fort Worth operations since 2006. DynCorp International, which provides services for the U.S. military and recruits employees for many positions from Fort Worth, currently has operations at Alliance Airport. That Heritage Parkway site would expand while becoming the company’s corporate headquarters. Under the proposed tax abatement, the company would save 80 percent, or $970,600, in city property taxes over 10 years on the incremental value of real and business personal property. It also would seek state enterprise project designation, which would allow a state sales and use tax refund with no financial impact to the city.
In return, the company would be required to invest $14 million in facilities and equipment for such facilities, also known as business personal property. The company would be required to complete construction of its expanded facility and headquarters with the greater of 30 percent, or $600,000, with Fort Worth contractors and the greater of 25 percent, or $500,000, with Fort Worth minority- and women-owned businesses. The greater of 25 percent, or $1.25 million, in annual service and supply expenditures would be required to be spent each year with Fort Worth companies. The greater of 25 percent, or $1.25 million, would be required to be spent with Fort Worth minority- and women-owned companies each year. Fort Worth council members know what’s at stake. If the company chooses sites in Alabama and North Carolina locations also under consideration, it would cost Fort Worth a longtime employer and taxpayer. “That’s really the risk factor,” Mayor Betsy Price said. “I believe relocating this headquarters here will be a good thing for us. These are excellent jobs,” Price said.
The council is expected to consider the proposal at its Aug. 6 regular meeting.