The Fort Worth City Council unanimously approved a $21.25 million incentive package Tuesday for the construction of American Airlines’ new corporate headquarters in Fort Worth.
The package includes a one-year tax abatement and a 14-year economic development program grant.
“It’s a big deal for Fort Worth, but it’s a big deal for the entire metroplex, too,” Mayor Betsy Price said.
American Airlines plans to build its new $350 million headquarters on a 287-acre site at the southeast corner of Highway 183 and Highway 360 not far from its current headquarters. The property was previously occupied by Sabre Inc., a travel industry technology company that vacated the site when it moved to Southlake several years ago. The existing buildings will be torn down to make room for American’s corporate campus , which will include offices and training facilities.
The city attached some conditions to the incentive package. One of those conditions requires the airline to invest at least $200 million on construction by the end of 2019. At least $50 million of the construction costs must be spent with Fort Worth contractors, and at least $25 million must go to Fort Worth contractors designated as “minority or women-owned” business enterprises.
The airline also is required to retain a minimum of 4,279 full-time employees, and at least 400 of those employees must be Fort Worth residents.
The headquarters is expected to open in 2018.
American is also seeking a 10-year, $2 million tax break from Tarrant County.